diff --git a/watchdog/Dockerfile b/watchdog/Dockerfile
index 3205ee5c..8794f412 100644
--- a/watchdog/Dockerfile
+++ b/watchdog/Dockerfile
@@ -2,11 +2,10 @@ FROM golang:1.8.5
 RUN mkdir -p /go/src/github.com/openfaas/faas/watchdog
 WORKDIR /go/src/github.com/openfaas/faas/watchdog
 
-COPY main.go        .
-COPY readconfig.go  .
-COPY config_test.go .
+COPY main.go            .
+COPY readconfig.go      .
+COPY readconfig_test.go .
 COPY requesthandler_test.go .
-
 COPY types types
 
 # Run a gofmt and exclude all vendored code.
diff --git a/watchdog/readconfig.go b/watchdog/readconfig.go
index d8a1f760..d36a3f5f 100644
--- a/watchdog/readconfig.go
+++ b/watchdog/readconfig.go
@@ -87,7 +87,7 @@ func (ReadConfig) Read(hasEnv HasEnv) WatchdogConfig {
 
 	cfg.contentType = hasEnv.Getenv("content_type")
 
-	if isBoolValueSet("combine_output") {
+	if isBoolValueSet(hasEnv.Getenv("combine_output")) {
 		cfg.combineOutput = parseBoolValue(hasEnv.Getenv("combine_output"))
 	}
 
diff --git a/watchdog/config_test.go b/watchdog/readconfig_test.go
similarity index 89%
rename from watchdog/config_test.go
rename to watchdog/readconfig_test.go
index 3c49c2d7..d61fc2df 100644
--- a/watchdog/config_test.go
+++ b/watchdog/readconfig_test.go
@@ -26,6 +26,31 @@ func (e EnvBucket) Setenv(key string, value string) {
 	e.Items[key] = value
 }
 
+func TestRead_CombineOutput_DefaultTrue(t *testing.T) {
+	defaults := NewEnvBucket()
+	readConfig := ReadConfig{}
+
+	config := readConfig.Read(defaults)
+	want := true
+	if config.combineOutput != want {
+		t.Logf("combineOutput error, want: %v, got: %v", want, config.combineOutput)
+		t.Fail()
+	}
+}
+
+func TestRead_CombineOutput_OverrideFalse(t *testing.T) {
+	defaults := NewEnvBucket()
+	readConfig := ReadConfig{}
+	defaults.Setenv("combine_output", "false")
+
+	config := readConfig.Read(defaults)
+	want := false
+	if config.combineOutput != want {
+		t.Logf("combineOutput error, want: %v, got: %v", want, config.combineOutput)
+		t.Fail()
+	}
+}
+
 func TestRead_CgiHeaders_OverrideFalse(t *testing.T) {
 	defaults := NewEnvBucket()
 	readConfig := ReadConfig{}