diff --git a/CHANGELOG.md b/CHANGELOG.md
index 697c6e038..54d7cd17d 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -3,6 +3,9 @@
 IMPROVEMENTS:
 * cli: Added `-monitor` flag to `deployment status` command and automatically monitor deployments from `job run` command. [[GH-10661](https://github.com/hashicorp/nomad/pull/10661)]
 
+BUG FIXES:
+* quotas (Enterprise): Fixed a bug where quotas were evaluated before constraints, resulting in quota capacity being used up by filtered nodes. [[GH-10753](https://github.com/hashicorp/nomad/issues/10753)]
+
 ## 1.1.1 (June 9, 2021)
 
 FEATURES:
@@ -114,6 +117,10 @@ BUG FIXES:
  * server: Fixed a panic that may arise on submission of jobs containing invalid service checks [[GH-10154](https://github.com/hashicorp/nomad/issues/10154)]
  * ui: Fixed the rendering of interstitial components shown after processing a dynamic application sizing recommendation. [[GH-10094](https://github.com/hashicorp/nomad/pull/10094)]
 
+## 1.0.8 (Unreleased)
+* quotas (Enterprise): Fixed a bug where quotas were evaluated before constraints, resulting in quota capacity being used up by filtered nodes. [[GH-10753](https://github.com/hashicorp/nomad/issues/10753)]
+* quotas (Enterprise): Fixed a bug where stopped allocations for a failed deployment can be double-credited to quota limits, resulting in a quota limit bypass. [[GH-10694](https://github.com/hashicorp/nomad/issues/10694)
+
 ## 1.0.7 (June 9, 2021)
 
 BUG FIXES:
@@ -121,7 +128,6 @@ BUG FIXES:
 * cli: Fixed a bug where `plugin status` did not validate the passed `type` flag correctly [[GH-10712](https://github.com/hashicorp/nomad/pull/10712)]
 * cli: Fixed a bug where `alloc exec` may fail with "unexpected EOF" without returning the exit code after a command [[GH-10657](https://github.com/hashicorp/nomad/issues/10657)]
 * client: Fixed a bug where `alloc exec` sessions may terminate abruptly after a few minutes [[GH-10710](https://github.com/hashicorp/nomad/issues/10710)]
-* quotas (Enterprise): Fixed a bug where stopped allocations for a failed deployment can be double-credited to quota limits, resulting in a quota limit bypass. [[GH-10694](https://github.com/hashicorp/nomad/issues/10694)]
 * drivers/exec: Fixed a bug where `exec` and `java` tasks inherit the Nomad agent's `oom_score_adj` value [[GH-10698](https://github.com/hashicorp/nomad/issues/10698)]
 * ui: Fixed a bug where exec would not work across regions. [[GH-10539](https://github.com/hashicorp/nomad/issues/10539)]
 * ui: Fixed global-search shortcut for non-english keyboards. [[GH-10714](https://github.com/hashicorp/nomad/issues/10714)]
diff --git a/scheduler/stack.go b/scheduler/stack.go
index b8ef95a9e..856e0c2a3 100644
--- a/scheduler/stack.go
+++ b/scheduler/stack.go
@@ -208,10 +208,6 @@ func NewSystemStack(ctx Context) *SystemStack {
 	// have to evaluate on all nodes.
 	s.source = NewStaticIterator(ctx, nil)
 
-	// Create the quota iterator to determine if placements would result in the
-	// quota attached to the namespace of the job to go over.
-	s.quota = NewQuotaIterator(ctx, s.source)
-
 	// Attach the job constraints. The job is filled in later.
 	s.jobConstraint = NewConstraintChecker(ctx, nil)
 
@@ -243,13 +239,20 @@ func NewSystemStack(ctx Context) *SystemStack {
 		s.taskGroupDevices,
 		s.taskGroupNetwork}
 	avail := []FeasibilityChecker{s.taskGroupCSIVolumes}
-	s.wrappedChecks = NewFeasibilityWrapper(ctx, s.quota, jobs, tgs, avail)
+	s.wrappedChecks = NewFeasibilityWrapper(ctx, s.source, jobs, tgs, avail)
 
 	// Filter on distinct property constraints.
 	s.distinctPropertyConstraint = NewDistinctPropertyIterator(ctx, s.wrappedChecks)
 
+	// Create the quota iterator to determine if placements would result in
+	// the quota attached to the namespace of the job to go over.
+	// Note: the quota iterator must be the last feasibility iterator before
+	// we upgrade to ranking, or our quota usage will include ineligible
+	// nodes!
+	s.quota = NewQuotaIterator(ctx, s.distinctPropertyConstraint)
+
 	// Upgrade from feasible to rank iterator
-	rankSource := NewFeasibleRankIterator(ctx, s.distinctPropertyConstraint)
+	rankSource := NewFeasibleRankIterator(ctx, s.quota)
 
 	// Apply the bin packing, this depends on the resources needed
 	// by a particular task group. Enable eviction as system jobs are high
@@ -330,10 +333,6 @@ func NewGenericStack(batch bool, ctx Context) *GenericStack {
 	// balancing across eligible nodes.
 	s.source = NewRandomIterator(ctx, nil)
 
-	// Create the quota iterator to determine if placements would result in the
-	// quota attached to the namespace of the job to go over.
-	s.quota = NewQuotaIterator(ctx, s.source)
-
 	// Attach the job constraints. The job is filled in later.
 	s.jobConstraint = NewConstraintChecker(ctx, nil)
 
@@ -366,7 +365,7 @@ func NewGenericStack(batch bool, ctx Context) *GenericStack {
 		s.taskGroupDevices,
 		s.taskGroupNetwork}
 	avail := []FeasibilityChecker{s.taskGroupCSIVolumes}
-	s.wrappedChecks = NewFeasibilityWrapper(ctx, s.quota, jobs, tgs, avail)
+	s.wrappedChecks = NewFeasibilityWrapper(ctx, s.source, jobs, tgs, avail)
 
 	// Filter on distinct host constraints.
 	s.distinctHostsConstraint = NewDistinctHostsIterator(ctx, s.wrappedChecks)
@@ -374,8 +373,15 @@ func NewGenericStack(batch bool, ctx Context) *GenericStack {
 	// Filter on distinct property constraints.
 	s.distinctPropertyConstraint = NewDistinctPropertyIterator(ctx, s.distinctHostsConstraint)
 
+	// Create the quota iterator to determine if placements would result in
+	// the quota attached to the namespace of the job to go over.
+	// Note: the quota iterator must be the last feasibility iterator before
+	// we upgrade to ranking, or our quota usage will include ineligible
+	// nodes!
+	s.quota = NewQuotaIterator(ctx, s.distinctPropertyConstraint)
+
 	// Upgrade from feasible to rank iterator
-	rankSource := NewFeasibleRankIterator(ctx, s.distinctPropertyConstraint)
+	rankSource := NewFeasibleRankIterator(ctx, s.quota)
 
 	// Apply the bin packing, this depends on the resources needed
 	// by a particular task group.