diff --git a/cms/envs/aws.py b/cms/envs/aws.py
index 0d4d20b0ce..6b04d1fbf6 100644
--- a/cms/envs/aws.py
+++ b/cms/envs/aws.py
@@ -229,7 +229,7 @@ if AWS_SECRET_ACCESS_KEY == "":
     AWS_SECRET_ACCESS_KEY = None
 
 DATABASES = AUTH_TOKENS['DATABASES']
-MODULESTORE = convert_module_store_setting_if_needed(AUTH_TOKENS['MODULESTORE'])
+MODULESTORE = AUTH_TOKENS.get('MODULESTORE', MODULESTORE)
 CONTENTSTORE = AUTH_TOKENS['CONTENTSTORE']
 DOC_STORE_CONFIG = AUTH_TOKENS['DOC_STORE_CONFIG']
 # Datadog for events!
diff --git a/cms/envs/common.py b/cms/envs/common.py
index a5dd3ddad2..a9be299409 100644
--- a/cms/envs/common.py
+++ b/cms/envs/common.py
@@ -30,11 +30,11 @@ import sys
 import lms.envs.common
 # Although this module itself may not use these imported variables, other dependent modules may.
 from lms.envs.common import (
-    USE_TZ, TECH_SUPPORT_EMAIL, PLATFORM_NAME, BUGS_EMAIL, DOC_STORE_CONFIG, ALL_LANGUAGES, WIKI_ENABLED, MODULESTORE
+    USE_TZ, TECH_SUPPORT_EMAIL, PLATFORM_NAME, BUGS_EMAIL, DOC_STORE_CONFIG, ALL_LANGUAGES, WIKI_ENABLED, MODULESTORE,
+    update_module_store_settings
 )
 from path import path
 from warnings import simplefilter
-from lms.envs.modulestore_settings import *
 
 from lms.lib.xblock.mixin import LmsBlockMixin
 from dealer.git import git
diff --git a/common/lib/xmodule/xmodule/modulestore/django.py b/common/lib/xmodule/xmodule/modulestore/django.py
index 973833f4f8..5107181e6d 100644
--- a/common/lib/xmodule/xmodule/modulestore/django.py
+++ b/common/lib/xmodule/xmodule/modulestore/django.py
@@ -18,6 +18,7 @@ from xmodule.modulestore.loc_mapper_store import LocMapperStore
 from xmodule.util.django import get_current_request_hostname
 import xmodule.modulestore  # pylint: disable=unused-import
 from xmodule.contentstore.django import contentstore
+from xmodule.modulestore.modulestore_settings import convert_module_store_setting_if_needed
 
 # We may not always have the request_cache module available
 try:
@@ -85,6 +86,7 @@ def modulestore():
     """
     global _MIXED_MODULESTORE  # pylint: disable=global-statement
     if _MIXED_MODULESTORE is None:
+        settings.MODULESTORE = convert_module_store_setting_if_needed(settings.MODULESTORE)
         _MIXED_MODULESTORE = create_modulestore_instance(
             settings.MODULESTORE['default']['ENGINE'],
             contentstore(),
diff --git a/lms/envs/modulestore_settings.py b/common/lib/xmodule/xmodule/modulestore/modulestore_settings.py
similarity index 100%
rename from lms/envs/modulestore_settings.py
rename to common/lib/xmodule/xmodule/modulestore/modulestore_settings.py
diff --git a/lms/envs/test_modulestore_settings.py b/common/lib/xmodule/xmodule/modulestore/tests/test_modulestore_settings.py
similarity index 98%
rename from lms/envs/test_modulestore_settings.py
rename to common/lib/xmodule/xmodule/modulestore/tests/test_modulestore_settings.py
index 3f1e1ba8e7..eb96394c27 100644
--- a/lms/envs/test_modulestore_settings.py
+++ b/common/lib/xmodule/xmodule/modulestore/tests/test_modulestore_settings.py
@@ -3,7 +3,7 @@ Tests for testing the modulestore settings migration code.
 """
 import copy
 from django.test import TestCase
-from lms.envs.modulestore_settings import convert_module_store_setting_if_needed
+from xmodule.modulestore.modulestore_settings import convert_module_store_setting_if_needed
 
 
 class ModuleStoreSettingsMigration(TestCase):
diff --git a/lms/envs/aws.py b/lms/envs/aws.py
index 70d1f19ee5..1306c4dcdf 100644
--- a/lms/envs/aws.py
+++ b/lms/envs/aws.py
@@ -324,7 +324,7 @@ XQUEUE_INTERFACE = AUTH_TOKENS['XQUEUE_INTERFACE']
 
 # Get the MODULESTORE from auth.json, but if it doesn't exist,
 # use the one from common.py
-MODULESTORE = convert_module_store_setting_if_needed(AUTH_TOKENS.get('MODULESTORE', MODULESTORE))
+MODULESTORE = AUTH_TOKENS.get('MODULESTORE', MODULESTORE)
 CONTENTSTORE = AUTH_TOKENS.get('CONTENTSTORE', CONTENTSTORE)
 DOC_STORE_CONFIG = AUTH_TOKENS.get('DOC_STORE_CONFIG', DOC_STORE_CONFIG)
 MONGODB_LOG = AUTH_TOKENS.get('MONGODB_LOG', {})
diff --git a/lms/envs/common.py b/lms/envs/common.py
index eb54f7e58d..d1d764341d 100644
--- a/lms/envs/common.py
+++ b/lms/envs/common.py
@@ -33,7 +33,7 @@ from path import path
 from warnings import simplefilter
 
 from .discussionsettings import *
-from .modulestore_settings import *
+from xmodule.modulestore.modulestore_settings import update_module_store_settings
 
 from lms.lib.xblock.mixin import LmsBlockMixin