diff --git a/src/main/java/org/springframework/data/gemfire/client/ClientRegionFactoryBean.java b/src/main/java/org/springframework/data/gemfire/client/ClientRegionFactoryBean.java
index 362add1b..d10968bc 100644
--- a/src/main/java/org/springframework/data/gemfire/client/ClientRegionFactoryBean.java
+++ b/src/main/java/org/springframework/data/gemfire/client/ClientRegionFactoryBean.java
@@ -38,6 +38,7 @@ import com.gemstone.gemfire.cache.client.ClientCache;
 import com.gemstone.gemfire.cache.client.ClientRegionFactory;
 import com.gemstone.gemfire.cache.client.ClientRegionShortcut;
 import com.gemstone.gemfire.cache.client.Pool;
+import com.gemstone.gemfire.internal.cache.GemFireCacheImpl;
 
 /**
  * Client extension for GemFire regions.
@@ -74,8 +75,12 @@ public class ClientRegionFactoryBean<K, V> extends RegionLookupFactoryBean<K, V>
 	@Override
 	protected Region<K, V> lookupFallback(GemFireCache cache, String regionName) throws Exception {
 		Assert.isTrue(cache instanceof ClientCache, "Unable to create regions from " + cache);
-
 		ClientCache c = (ClientCache) cache;
+		
+		if (cache instanceof GemFireCacheImpl) {
+			Assert.isTrue(((GemFireCacheImpl) cache).isClient(), "A client-cache instance is required");
+		}
+
 
 		// first look at shortcut
 		ClientRegionShortcut s = null;
@@ -88,8 +93,13 @@ public class ClientRegionFactoryBean<K, V> extends RegionLookupFactoryBean<K, V>
 				else if (DataPolicy.PERSISTENT_REPLICATE.equals(dataPolicy)) {
 					s = ClientRegionShortcut.LOCAL_PERSISTENT;
 				}
+				else {
+					s = ClientRegionShortcut.LOCAL;
+				}
+			}
+			else {
+				s = ClientRegionShortcut.LOCAL;
 			}
-			s = ClientRegionShortcut.LOCAL;
 		} else {
 			s = shortcut;
 		}
diff --git a/src/test/resources/org/springframework/data/gemfire/client/client-cache.xml b/src/test/resources/org/springframework/data/gemfire/client/client-cache.xml
index 4534f6a7..5cfeb3ae 100644
--- a/src/test/resources/org/springframework/data/gemfire/client/client-cache.xml
+++ b/src/test/resources/org/springframework/data/gemfire/client/client-cache.xml
@@ -12,6 +12,6 @@
 	</gfe:pool>
 	 -->
 	 
-	 <gfe:cache/>
+	 <gfe:client-cache/>
 	 <gfe:client-region data-policy="NORMAL" name="ChallengeQuestions" id="challengeQuestionsRegion"/>
 </beans>
diff --git a/src/test/resources/org/springframework/data/gemfire/config/client-ns.xml b/src/test/resources/org/springframework/data/gemfire/config/client-ns.xml
index ec14d7fa..f2a229e8 100644
--- a/src/test/resources/org/springframework/data/gemfire/config/client-ns.xml
+++ b/src/test/resources/org/springframework/data/gemfire/config/client-ns.xml
@@ -9,7 +9,7 @@
 		http://www.springframework.org/schema/beans http://www.springframework.org/schema/beans/spring-beans.xsd
 		http://www.springframework.org/schema/util http://www.springframework.org/schema/util/spring-util.xsd">
 
-	<gfe:cache />
+	<gfe:client-cache />
 	
 	<gfe:client-region id="simple" pool-name="gemfire-pool"/>