diff --git a/lib/liquid/context.rb b/lib/liquid/context.rb
index 0737f74..2dcb60c 100644
--- a/lib/liquid/context.rb
+++ b/lib/liquid/context.rb
@@ -34,7 +34,6 @@ module Liquid
       @strict_variables    = false
       @resource_limits     = resource_limits || ResourceLimits.new(Template.default_resource_limits)
       @base_scope_depth    = 0
-      squash_instance_assigns_with_environments
 
       self.exception_renderer = Template.default_exception_renderer
       if rethrow_errors
@@ -246,16 +245,5 @@ module Liquid
     rescue Liquid::InternalError => exc
       exc
     end
-
-    def squash_instance_assigns_with_environments
-      @scopes.last.each_key do |k|
-        @environments.each do |env|
-          if env.key?(k)
-            scopes.last[k] = lookup_and_evaluate(env, k)
-            break
-          end
-        end
-      end
-    end # squash_instance_assigns_with_environments
   end # Context
 end # Liquid
diff --git a/test/integration/template_test.rb b/test/integration/template_test.rb
index acac7f3..28536de 100644
--- a/test/integration/template_test.rb
+++ b/test/integration/template_test.rb
@@ -52,10 +52,7 @@ class TemplateTest < Minitest::Test
     t = Template.new
     assert_equal('from custom assigns', t.parse("{{ foo }}").render!('foo' => 'from custom assigns'))
     assert_equal('', t.parse("{{ foo }}").render!)
-  end
 
-  def test_custom_assigns_squash_instance_assigns
-    t = Template.new
     assert_equal('from instance assigns', t.parse("{% assign foo = 'from instance assigns' %}{{ foo }}").render!)
     assert_equal('from custom assigns', t.parse("{{ foo }}").render!('foo' => 'from custom assigns'))
   end