diff --git a/builtin/providers/rancher/provider.go b/builtin/providers/rancher/provider.go
index 9c176943f..8df36778d 100644
--- a/builtin/providers/rancher/provider.go
+++ b/builtin/providers/rancher/provider.go
@@ -2,6 +2,7 @@ package rancher
 
 import (
 	"encoding/json"
+	"fmt"
 	"io/ioutil"
 	"net/url"
 	"os"
@@ -87,7 +88,7 @@ func providerConfigure(d *schema.ResourceData) (interface{}, error) {
 			return config, err
 		}
 
-		if apiURL == "" {
+		if apiURL == "" && config.URL != "" {
 			u, err := url.Parse(config.URL)
 			if err != nil {
 				return config, err
@@ -104,6 +105,10 @@ func providerConfigure(d *schema.ResourceData) (interface{}, error) {
 		}
 	}
 
+	if apiURL == "" {
+		return &Config{}, fmt.Errorf("No api_url provided")
+	}
+
 	config := &Config{
 		APIURL:    apiURL + "/v1",
 		AccessKey: accessKey,