diff --git a/registry/storage/driver/gcs/gcs.go b/registry/storage/driver/gcs/gcs.go
index d61d88b8..765d5492 100644
--- a/registry/storage/driver/gcs/gcs.go
+++ b/registry/storage/driver/gcs/gcs.go
@@ -32,7 +32,7 @@ import (
 	"golang.org/x/net/context"
 	"golang.org/x/oauth2"
 	"golang.org/x/oauth2/google"
-
+	"golang.org/x/oauth2/jwt"
 	"google.golang.org/api/googleapi"
 	storageapi "google.golang.org/api/storage/v1"
 	"google.golang.org/cloud"
@@ -47,10 +47,13 @@ import (
 const driverName = "gcs"
 const dummyProjectID = "<unknown>"
 
-//DriverParameters A struct that encapsulates all of the driver parameters after all values have been set
+// driverParameters is a struct that encapsulates all of the driver parameters after all values have been set
 type driverParameters struct {
 	bucket        string
-	keyfile       string
+	config        *jwt.Config
+	email         string
+	privateKey    []byte
+	client        *http.Client
 	rootDirectory string
 }
 
@@ -80,25 +83,43 @@ type driver struct {
 // Required parameters:
 // - bucket
 func FromParameters(parameters map[string]interface{}) (storagedriver.StorageDriver, error) {
-
 	bucket, ok := parameters["bucket"]
 	if !ok || fmt.Sprint(bucket) == "" {
 		return nil, fmt.Errorf("No bucket parameter provided")
 	}
 
-	keyfile, ok := parameters["keyfile"]
-	if !ok {
-		keyfile = ""
-	}
-
 	rootDirectory, ok := parameters["rootdirectory"]
 	if !ok {
 		rootDirectory = ""
 	}
+
+	var ts oauth2.TokenSource
+	jwtConf := new(jwt.Config)
+	if keyfile, ok := parameters["keyfile"]; ok {
+		jsonKey, err := ioutil.ReadFile(fmt.Sprint(keyfile))
+		if err != nil {
+			return nil, err
+		}
+		jwtConf, err = google.JWTConfigFromJSON(jsonKey, storage.ScopeFullControl)
+		if err != nil {
+			return nil, err
+		}
+		ts = jwtConf.TokenSource(context.Background())
+	} else {
+		var err error
+		ts, err = google.DefaultTokenSource(context.Background(), storage.ScopeFullControl)
+		if err != nil {
+			return nil, err
+		}
+
+	}
+
 	params := driverParameters{
-		fmt.Sprint(bucket),
-		fmt.Sprint(keyfile),
-		fmt.Sprint(rootDirectory),
+		bucket:        fmt.Sprint(bucket),
+		rootDirectory: fmt.Sprint(rootDirectory),
+		email:         jwtConf.Email,
+		privateKey:    jwtConf.PrivateKey,
+		client:        oauth2.NewClient(context.Background(), ts),
 	}
 
 	return New(params)
@@ -106,8 +127,6 @@ func FromParameters(parameters map[string]interface{}) (storagedriver.StorageDri
 
 // New constructs a new driver
 func New(params driverParameters) (storagedriver.StorageDriver, error) {
-	var ts oauth2.TokenSource
-	var err error
 	rootDirectory := strings.Trim(params.rootDirectory, "/")
 	if rootDirectory != "" {
 		rootDirectory += "/"
@@ -115,33 +134,11 @@ func New(params driverParameters) (storagedriver.StorageDriver, error) {
 	d := &driver{
 		bucket:        params.bucket,
 		rootDirectory: rootDirectory,
+		email:         params.email,
+		privateKey:    params.privateKey,
+		client:        params.client,
 	}
-	if params.keyfile == "" {
-		ts, err = google.DefaultTokenSource(context.Background(), storage.ScopeFullControl)
-		if err != nil {
-			return nil, err
-		}
-	} else {
-		jsonKey, err := ioutil.ReadFile(params.keyfile)
-		if err != nil {
-			return nil, err
-		}
-		conf, err := google.JWTConfigFromJSON(
-			jsonKey,
-			storage.ScopeFullControl,
-		)
-		if err != nil {
-			return nil, err
-		}
-		ts = conf.TokenSource(context.Background())
-		d.email = conf.Email
-		d.privateKey = conf.PrivateKey
-	}
-	client := oauth2.NewClient(context.Background(), ts)
-	d.client = client
-	if err != nil {
-		return nil, err
-	}
+
 	return &base.Base{
 		StorageDriver: d,
 	}, nil
diff --git a/registry/storage/driver/gcs/gcs_test.go b/registry/storage/driver/gcs/gcs_test.go
index 4062b2a3..60f3e957 100644
--- a/registry/storage/driver/gcs/gcs_test.go
+++ b/registry/storage/driver/gcs/gcs_test.go
@@ -3,17 +3,18 @@
 package gcs
 
 import (
-	"fmt"
 	"io/ioutil"
 	"os"
 	"testing"
 
-	"google.golang.org/api/googleapi"
-
+	"fmt"
 	ctx "github.com/docker/distribution/context"
 	storagedriver "github.com/docker/distribution/registry/storage/driver"
 	"github.com/docker/distribution/registry/storage/driver/testsuites"
-
+	"golang.org/x/oauth2"
+	"golang.org/x/oauth2/google"
+	"google.golang.org/api/googleapi"
+	"google.golang.org/cloud/storage"
 	"gopkg.in/check.v1"
 )
 
@@ -25,34 +26,54 @@ var skipGCS func() string
 
 func init() {
 	bucket := os.Getenv("REGISTRY_STORAGE_GCS_BUCKET")
-	keyfile := os.Getenv("REGISTRY_STORAGE_GCS_KEYFILE")
 	credentials := os.Getenv("GOOGLE_APPLICATION_CREDENTIALS")
 
+	// Skip GCS storage driver tests if environment variable parameters are not provided
+	skipGCS = func() string {
+		if bucket == "" || credentials == "" {
+			return "The following environment variables must be set to enable these tests: REGISTRY_STORAGE_GCS_BUCKET, REGISTRY_STORAGE_GCS_CREDS"
+		}
+		return ""
+	}
+
+	if skipGCS() != "" {
+		return
+	}
+
 	root, err := ioutil.TempDir("", "driver-")
 	if err != nil {
 		panic(err)
 	}
 	defer os.Remove(root)
 
-	gcsDriverConstructor = func(rootDirectory string) (storagedriver.StorageDriver, error) {
+	_, err = os.Stat(credentials)
+	if err == nil {
+		jsonKey, err := ioutil.ReadFile(credentials)
+		if err != nil {
+			panic(fmt.Sprintf("Unable to read credentials from file : %s", err))
+		}
+		credentials = string(jsonKey)
+	}
 
+	// Assume that the file contents are within the environment variable since it exists
+	// but does not contain a valid file path
+	jwtConfig, err := google.JWTConfigFromJSON([]byte(credentials), storage.ScopeFullControl)
+	if err != nil {
+		panic(fmt.Sprintf("Error reading JWT config : %s", err))
+	}
+
+	gcsDriverConstructor = func(rootDirectory string) (storagedriver.StorageDriver, error) {
 		parameters := driverParameters{
-			bucket,
-			keyfile,
-			rootDirectory,
+			bucket:        bucket,
+			rootDirectory: root,
+			email:         jwtConfig.Email,
+			privateKey:    []byte(jwtConfig.PrivateKey),
+			client:        oauth2.NewClient(ctx.Background(), jwtConfig.TokenSource(ctx.Background())),
 		}
 
 		return New(parameters)
 	}
 
-	// Skip GCS storage driver tests if environment variable parameters are not provided
-	skipGCS = func() string {
-		if bucket == "" || (credentials == "" && keyfile == "") {
-			return "Must set REGISTRY_STORAGE_GCS_BUCKET and (GOOGLE_APPLICATION_CREDENTIALS or REGISTRY_STORAGE_GCS_KEYFILE) to run GCS tests"
-		}
-		return ""
-	}
-
 	testsuites.RegisterSuite(func() (storagedriver.StorageDriver, error) {
 		return gcsDriverConstructor(root)
 	}, skipGCS)