diff --git a/src/main/java/org/springframework/data/gemfire/CacheFactoryBean.java b/src/main/java/org/springframework/data/gemfire/CacheFactoryBean.java
index 300cdc26..dda291bd 100644
--- a/src/main/java/org/springframework/data/gemfire/CacheFactoryBean.java
+++ b/src/main/java/org/springframework/data/gemfire/CacheFactoryBean.java
@@ -241,8 +241,8 @@ public class CacheFactoryBean implements BeanNameAware, BeanFactoryAware, BeanCl
 	protected Object gatewayConflictResolver;
 
 	private void init() throws Exception {
-		// initialize locator
-		if (useBeanFactoryLocator) {
+
+		if (useBeanFactoryLocator && factoryLocator == null) {
 			factoryLocator = new GemfireBeanFactoryLocator();
 			factoryLocator.setBeanFactory(beanFactory);
 			factoryLocator.setBeanName(beanName);
diff --git a/src/test/java/org/springframework/data/gemfire/function/config/FunctionsWithClientCacheTests.java b/src/test/java/org/springframework/data/gemfire/function/config/FunctionsWithClientCacheTests.java
new file mode 100644
index 00000000..d28761ff
--- /dev/null
+++ b/src/test/java/org/springframework/data/gemfire/function/config/FunctionsWithClientCacheTests.java
@@ -0,0 +1,36 @@
+/*
+ * Copyright 2002-2013 the original author or authors.
+ * 
+ * Licensed under the Apache License, Version 2.0 (the "License"); you may not use this file except in compliance with
+ * the License. You may obtain a copy of the License at
+ * 
+ * http://www.apache.org/licenses/LICENSE-2.0
+ * 
+ * Unless required by applicable law or agreed to in writing, software distributed under the License is distributed on
+ * an "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied. See the License for the
+ * specific language governing permissions and limitations under the License.
+ */
+package org.springframework.data.gemfire.function.config;
+
+import org.junit.Test;
+import org.junit.runner.RunWith;
+import org.springframework.data.gemfire.test.GemfireTestApplicationContextInitializer;
+import org.springframework.test.context.ContextConfiguration;
+import org.springframework.test.context.junit4.SpringJUnit4ClassRunner;
+
+/**
+ * @author David Turanski
+ *
+ */
+@RunWith(SpringJUnit4ClassRunner.class)
+@ContextConfiguration(initializers = GemfireTestApplicationContextInitializer.class)
+public class FunctionsWithClientCacheTests {
+	 
+
+	@Test
+	public void test() {
+		//Just make sure this comes up for SGF-186
+	}
+
+}
+
diff --git a/src/test/java/org/springframework/data/gemfire/function/config/XmlConfiguredFunctionExecutionIntegrationTests.java b/src/test/java/org/springframework/data/gemfire/function/config/XmlConfiguredFunctionExecutionIntegrationTests.java
index b58804c9..52e0d753 100644
--- a/src/test/java/org/springframework/data/gemfire/function/config/XmlConfiguredFunctionExecutionIntegrationTests.java
+++ b/src/test/java/org/springframework/data/gemfire/function/config/XmlConfiguredFunctionExecutionIntegrationTests.java
@@ -34,27 +34,23 @@ import com.gemstone.gemfire.cache.Region;
  *
  */
 @RunWith(SpringJUnit4ClassRunner.class)
-@ContextConfiguration(initializers=GemfireTestApplicationContextInitializer.class)
+@ContextConfiguration(initializers = GemfireTestApplicationContextInitializer.class)
 public class XmlConfiguredFunctionExecutionIntegrationTests {
 	@Autowired
-	ApplicationContext context;	
-	
+	ApplicationContext context;
+
 	@Test
 	public void testProxyFactoryBeanCreated() throws Exception {
-		OnRegionFunctionProxyFactoryBean factoryBean = (OnRegionFunctionProxyFactoryBean)context.getBean("&testFunction");
-		Class<?> serviceInterface = TestUtils.readField("serviceInterface",factoryBean);
+		OnRegionFunctionProxyFactoryBean factoryBean = (OnRegionFunctionProxyFactoryBean) context
+				.getBean("&testFunction");
+		Class<?> serviceInterface = TestUtils.readField("serviceInterface", factoryBean);
 		assertEquals(serviceInterface, TestOnRegionFunction.class);
-		
-		Region<?,?> r1 = context.getBean("r1",Region.class);
-		
-		GemfireOnRegionFunctionTemplate template = TestUtils.readField("gemfireFunctionOperations",factoryBean);
-		
-		assertSame(r1, TestUtils.readField("region",template));
+
+		Region<?, ?> r1 = context.getBean("r1", Region.class);
+
+		GemfireOnRegionFunctionTemplate template = TestUtils.readField("gemfireFunctionOperations", factoryBean);
+
+		assertSame(r1, TestUtils.readField("region", template));
 	}
-	
+
 }
-
-
- 
-
-
diff --git a/src/test/java/org/springframework/data/gemfire/function/config/four/TestFunctionExecution.java b/src/test/java/org/springframework/data/gemfire/function/config/four/TestFunctionExecution.java
new file mode 100644
index 00000000..1093743c
--- /dev/null
+++ b/src/test/java/org/springframework/data/gemfire/function/config/four/TestFunctionExecution.java
@@ -0,0 +1,10 @@
+package org.springframework.data.gemfire.function.config.four;
+
+import org.springframework.data.gemfire.function.annotation.FunctionId;
+import org.springframework.data.gemfire.function.annotation.OnServer;
+
+@OnServer
+public interface TestFunctionExecution {
+	   @FunctionId("f1")
+	   public String getString(Object arg1);
+}
\ No newline at end of file
diff --git a/src/test/resources/org/springframework/data/gemfire/function/config/FunctionsWithClientCacheTests-context.xml b/src/test/resources/org/springframework/data/gemfire/function/config/FunctionsWithClientCacheTests-context.xml
new file mode 100644
index 00000000..21384749
--- /dev/null
+++ b/src/test/resources/org/springframework/data/gemfire/function/config/FunctionsWithClientCacheTests-context.xml
@@ -0,0 +1,17 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<beans xmlns="http://www.springframework.org/schema/beans"
+	xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
+	xmlns:gfe="http://www.springframework.org/schema/gemfire"
+	xmlns:gfe-data="http://www.springframework.org/schema/data/gemfire"
+	xsi:schemaLocation="http://www.springframework.org/schema/gemfire http://www.springframework.org/schema/gemfire/spring-gemfire-1.3.xsd
+		http://www.springframework.org/schema/beans http://www.springframework.org/schema/beans/spring-beans.xsd
+		http://www.springframework.org/schema/data/gemfire http://www.springframework.org/schema/data/gemfire/spring-data-gemfire-1.3.xsd">
+ <!-- SGF-186 -->
+ 	<gfe:client-cache/>
+    <gfe:pool>
+        <gfe:locator host="localhost" port="10334" />
+    </gfe:pool>
+
+    <gfe-data:function-executions base-package="org.springframework.data.gemfire.function.config.four" />
+
+</beans>