diff --git a/bundles/org.eclipse.osgi.tests/src/org/eclipse/osgi/tests/services/datalocation/BasicLocationTests.java b/bundles/org.eclipse.osgi.tests/src/org/eclipse/osgi/tests/services/datalocation/BasicLocationTests.java
index 2023d7f576e..bead8f79282 100644
--- a/bundles/org.eclipse.osgi.tests/src/org/eclipse/osgi/tests/services/datalocation/BasicLocationTests.java
+++ b/bundles/org.eclipse.osgi.tests/src/org/eclipse/osgi/tests/services/datalocation/BasicLocationTests.java
@@ -180,15 +180,14 @@ public void testCreateLocation04() throws IllegalStateException, MalformedURLExc
 	}
 
 	@Test
-	public void testCreateLocation05() {
+	public void testCreateLocation05() throws IllegalStateException, MalformedURLException, IOException {
 		Location configLocation = configLocationTracker.getService();
 		File testLocationFile = OSGiTestsActivator.getContext().getDataFile("testLocations/testCreateLocation01");
 		Location testLocation = configLocation.createLocation(null, null, false);
-		try {
-			testLocation.set(testLocationFile.toURL(), false);
-		} catch (Throwable t) {
-			fail("Failed to set location", t);
-		}
+
+		assertTrue("Could not set location", testLocation.set(testLocationFile.toURL(), false));
+		assertTrue("Location should be set", testLocation.isSet());
+
 		try {
 			assertTrue("Could not lock location", testLocation.lock());
 			assertFalse("Could lock a secend time", testLocation.lock());
diff --git a/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/location/BasicLocation.java b/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/location/BasicLocation.java
index 45e95e12c5f..4b238ad483c 100644
--- a/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/location/BasicLocation.java
+++ b/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/location/BasicLocation.java
@@ -136,6 +136,7 @@ public synchronized boolean set(URL value, boolean lock) throws IllegalStateExce
 	@Override
 	public synchronized boolean set(URL value, boolean lock, String lockFilePath)
 			throws IllegalStateException, IOException {
+		boolean gotLock = false;
 		synchronized (this) {
 			if (location != null)
 				throw new IllegalStateException(Msg.ECLIPSE_CANNOT_CHANGE_LOCATION);
@@ -159,10 +160,11 @@ public synchronized boolean set(URL value, boolean lock, String lockFilePath)
 					file = new File(value.getPath(), DEFAULT_LOCK_FILENAME);
 				}
 			}
-			lock = lock && !isReadOnly;
-			if (lock) {
-				if (!lock(file, value))
+			if (lock && !isReadOnly) {
+				if (!lock(file, value)) {
 					return false;
+				}
+				gotLock = true;
 			}
 			lockFile = file;
 			location = value;
@@ -171,7 +173,7 @@ public synchronized boolean set(URL value, boolean lock, String lockFilePath)
 			}
 		}
 		updateUrl(serviceRegistration);
-		return lock;
+		return lock ? gotLock : true;
 	}
 
 	private void updateUrl(ServiceRegistration<?> registration) {