diff --git a/builtin/providers/azure/provider.go b/builtin/providers/azure/provider.go
index 975a93b00..b897d2811 100644
--- a/builtin/providers/azure/provider.go
+++ b/builtin/providers/azure/provider.go
@@ -3,12 +3,10 @@ package azure
 import (
 	"encoding/xml"
 	"fmt"
-	"io/ioutil"
-	"os"
 
+	"github.com/hashicorp/terraform/helper/pathorcontents"
 	"github.com/hashicorp/terraform/helper/schema"
 	"github.com/hashicorp/terraform/terraform"
-	"github.com/mitchellh/go-homedir"
 )
 
 // Provider returns a terraform.ResourceProvider.
@@ -20,6 +18,14 @@ func Provider() terraform.ResourceProvider {
 				Optional:     true,
 				DefaultFunc:  schema.EnvDefaultFunc("AZURE_SETTINGS_FILE", nil),
 				ValidateFunc: validateSettingsFile,
+				Deprecated:   "Use the publish_settings field instead",
+			},
+
+			"publish_settings": &schema.Schema{
+				Type:         schema.TypeString,
+				Optional:     true,
+				DefaultFunc:  schema.EnvDefaultFunc("AZURE_PUBLISH_SETTINGS", nil),
+				ValidateFunc: validatePublishSettings,
 			},
 
 			"subscription_id": &schema.Schema{
@@ -64,11 +70,14 @@ func providerConfigure(d *schema.ResourceData) (interface{}, error) {
 		Certificate:    []byte(d.Get("certificate").(string)),
 	}
 
-	settingsFile := d.Get("settings_file").(string)
-	if settingsFile != "" {
+	publishSettings := d.Get("publish_settings").(string)
+	if publishSettings == "" {
+		publishSettings = d.Get("settings_file").(string)
+	}
+	if publishSettings != "" {
 		// any errors from readSettings would have been caught at the validate
 		// step, so we can avoid handling them now
-		settings, _, _ := readSettings(settingsFile)
+		settings, _, _ := readSettings(publishSettings)
 		config.Settings = settings
 		return config.NewClientFromSettingsData()
 	}
@@ -92,37 +101,42 @@ func validateSettingsFile(v interface{}, k string) ([]string, []error) {
 	return warnings, errors
 }
 
-const settingsPathWarnMsg = `
-settings_file is not valid XML, so we are assuming it is a file path. This
-support will be removed in the future. Please update your configuration to use
-${file("filename.publishsettings")} instead.`
+func validatePublishSettings(v interface{}, k string) (ws []string, es []error) {
+	value := v.(string)
+	if value == "" {
+		return
+	}
 
-func readSettings(pathOrContents string) (s []byte, ws []string, es []error) {
 	var settings settingsData
-	if err := xml.Unmarshal([]byte(pathOrContents), &settings); err == nil {
-		s = []byte(pathOrContents)
-		return
+	if err := xml.Unmarshal([]byte(value), &settings); err != nil {
+		es = append(es, fmt.Errorf("error parsing publish_settings as XML: %s", err))
 	}
 
-	ws = append(ws, settingsPathWarnMsg)
-	path, err := homedir.Expand(pathOrContents)
-	if err != nil {
-		es = append(es, fmt.Errorf("Error expanding path: %s", err))
-		return
-	}
-
-	s, err = ioutil.ReadFile(path)
-	if err != nil {
-		es = append(es, fmt.Errorf("Could not read file '%s': %s", path, err))
-	}
 	return
 }
 
-func isFile(v string) (bool, error) {
-	if _, err := os.Stat(v); err != nil {
-		return false, err
+const settingsPathWarnMsg = `
+settings_file was provided as a file path. This support
+will be removed in the future. Please update your configuration
+to use ${file("filename.publishsettings")} instead.`
+
+func readSettings(pathOrContents string) (s []byte, ws []string, es []error) {
+	contents, wasPath, err := pathorcontents.Read(pathOrContents)
+	if err != nil {
+		es = append(es, fmt.Errorf("error reading settings_file: %s", err))
 	}
-	return true, nil
+	if wasPath {
+		ws = append(ws, settingsPathWarnMsg)
+	}
+
+	var settings settingsData
+	if err := xml.Unmarshal([]byte(contents), &settings); err != nil {
+		es = append(es, fmt.Errorf("error parsing settings_file as XML: %s", err))
+	}
+
+	s = []byte(contents)
+
+	return
 }
 
 // settingsData is a private struct used to test the unmarshalling of the
diff --git a/builtin/providers/azure/provider_test.go b/builtin/providers/azure/provider_test.go
index ca4017aae..d06cf896d 100644
--- a/builtin/providers/azure/provider_test.go
+++ b/builtin/providers/azure/provider_test.go
@@ -51,12 +51,12 @@ func TestProvider_impl(t *testing.T) {
 }
 
 func testAccPreCheck(t *testing.T) {
-	if v := os.Getenv("AZURE_SETTINGS_FILE"); v == "" {
+	if v := os.Getenv("AZURE_PUBLISH_SETTINGS"); v == "" {
 		subscriptionID := os.Getenv("AZURE_SUBSCRIPTION_ID")
 		certificate := os.Getenv("AZURE_CERTIFICATE")
 
 		if subscriptionID == "" || certificate == "" {
-			t.Fatal("either AZURE_SETTINGS_FILE, or AZURE_SUBSCRIPTION_ID " +
+			t.Fatal("either AZURE_PUBLISH_SETTINGS, or AZURE_SUBSCRIPTION_ID " +
 				"and AZURE_CERTIFICATE must be set for acceptance tests")
 		}
 	}
@@ -78,6 +78,11 @@ func TestAzure_validateSettingsFile(t *testing.T) {
 		t.Fatalf("Error creating temporary file with XML in TestAzure_validateSettingsFile: %s", err)
 	}
 	defer os.Remove(fx.Name())
+	_, err = io.WriteString(fx, "<PublishData></PublishData>")
+	if err != nil {
+		t.Fatalf("Error writing XML File: %s", err)
+	}
+	fx.Close()
 
 	home, err := homedir.Dir()
 	if err != nil {
@@ -88,12 +93,11 @@ func TestAzure_validateSettingsFile(t *testing.T) {
 		t.Fatalf("Error creating homedir-based temporary file: %s", err)
 	}
 	defer os.Remove(fh.Name())
-
-	_, err = io.WriteString(fx, "<PublishData></PublishData>")
+	_, err = io.WriteString(fh, "<PublishData></PublishData>")
 	if err != nil {
 		t.Fatalf("Error writing XML File: %s", err)
 	}
-	fx.Close()
+	fh.Close()
 
 	r := strings.NewReplacer(home, "~")
 	homePath := r.Replace(fh.Name())
@@ -103,8 +107,8 @@ func TestAzure_validateSettingsFile(t *testing.T) {
 		W     int    // expected count of warnings
 		E     int    // expected count of errors
 	}{
-		{"test", 1, 1},
-		{f.Name(), 1, 0},
+		{"test", 0, 1},
+		{f.Name(), 1, 1},
 		{fx.Name(), 1, 0},
 		{homePath, 1, 0},
 		{"<PublishData></PublishData>", 0, 0},
@@ -114,10 +118,10 @@ func TestAzure_validateSettingsFile(t *testing.T) {
 		w, e := validateSettingsFile(tc.Input, "")
 
 		if len(w) != tc.W {
-			t.Errorf("Error in TestAzureValidateSettingsFile: input: %s , warnings: %#v, errors: %#v", tc.Input, w, e)
+			t.Errorf("Error in TestAzureValidateSettingsFile: input: %s , warnings: %v, errors: %v", tc.Input, w, e)
 		}
 		if len(e) != tc.E {
-			t.Errorf("Error in TestAzureValidateSettingsFile: input: %s , warnings: %#v, errors: %#v", tc.Input, w, e)
+			t.Errorf("Error in TestAzureValidateSettingsFile: input: %s , warnings: %v, errors: %v", tc.Input, w, e)
 		}
 	}
 }
@@ -164,33 +168,8 @@ func TestAzure_providerConfigure(t *testing.T) {
 		err = rp.Configure(terraform.NewResourceConfig(rawConfig))
 		meta := rp.(*schema.Provider).Meta()
 		if (meta == nil) != tc.NilMeta {
-			t.Fatalf("expected NilMeta: %t, got meta: %#v", tc.NilMeta, meta)
-		}
-	}
-}
-
-func TestAzure_isFile(t *testing.T) {
-	f, err := ioutil.TempFile("", "tf-test-file")
-	if err != nil {
-		t.Fatalf("Error creating temporary file with XML in TestAzure_isFile: %s", err)
-	}
-	cases := []struct {
-		Input string // String path to file
-		B     bool   // expected true/false
-		E     bool   // expect error
-	}{
-		{"test", false, true},
-		{f.Name(), true, false},
-	}
-
-	for _, tc := range cases {
-		x, y := isFile(tc.Input)
-		if tc.B != x {
-			t.Errorf("Error in TestAzure_isFile: input: %s , returned: %#v, expected: %#v", tc.Input, x, tc.B)
-		}
-
-		if tc.E != (y != nil) {
-			t.Errorf("Error in TestAzure_isFile: input: %s , returned: %#v, expected: %#v", tc.Input, y, tc.E)
+			t.Fatalf("expected NilMeta: %t, got meta: %#v, settings_file: %q",
+				tc.NilMeta, meta, tc.SettingsFile)
 		}
 	}
 }
diff --git a/website/source/docs/providers/azure/index.html.markdown b/website/source/docs/providers/azure/index.html.markdown
index 5d7afdd20..0c8c09f28 100644
--- a/website/source/docs/providers/azure/index.html.markdown
+++ b/website/source/docs/providers/azure/index.html.markdown
@@ -33,11 +33,11 @@ resource "azure_instance" "web" {
 
 The following arguments are supported:
 
-* `settings_file` - (Optional) Contents of a valid `publishsettings` file, used to
-  authenticate with the Azure API. You can download the settings file here:
-  https://manage.windowsazure.com/publishsettings. You must either provide
-  (or source from the `AZURE_SETTINGS_FILE` environment variable) a settings
-  file or both a `subscription_id` and `certificate`.
+* `publish_settings` - (Optional) Contents of a valid `publishsettings` file,
+  used to authenticate with the Azure API. You can download the settings file
+  here: https://manage.windowsazure.com/publishsettings. You must either
+  provide publish settings or both a `subscription_id` and `certificate`. It
+  can also be sourced from the `AZURE_PUBLISH_SETTINGS` environment variable.
 
 * `subscription_id` - (Optional) The subscription ID to use. If a
   `settings_file` is not provided `subscription_id` is required. It can also
@@ -47,6 +47,16 @@ The following arguments are supported:
   Azure API. If a `settings_file` is not provided `certificate` is required.
   It can also be sourced from the `AZURE_CERTIFICATE` environment variable.
 
+These arguments are supported for backwards compatibility, and may be removed
+in a future version:
+
+* `settings_file` - __Deprecated: please use `publish_settings` instead.__
+  Path to or contents of a valid `publishsettings` file, used to
+  authenticate with the Azure API. You can download the settings file here:
+  https://manage.windowsazure.com/publishsettings. You must either provide
+  (or source from the `AZURE_SETTINGS_FILE` environment variable) a settings
+  file or both a `subscription_id` and `certificate`.
+
 ## Testing:
 
 The following environment variables must be set for the running of the