diff --git a/CHANGELOG.md b/CHANGELOG.md
index 3b77cb2ec29..46862259a94 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -14,4 +14,5 @@ IMPROVEMENTS:
 BUG FIXES:
 
 * Changed `google_compute_instance_group_manager` `target_size` default to 0 [GH-65]
+* Represent GCS Bucket locations as uppercase in state. [GH-117]
 * Allow unlinking of billing account [GH-133]
diff --git a/google/resource_storage_bucket.go b/google/resource_storage_bucket.go
index b60b76acb99..f58a5785c29 100644
--- a/google/resource_storage_bucket.go
+++ b/google/resource_storage_bucket.go
@@ -4,6 +4,7 @@ import (
 	"errors"
 	"fmt"
 	"log"
+	"strings"
 	"time"
 
 	"github.com/hashicorp/terraform/helper/resource"
@@ -41,6 +42,9 @@ func resourceStorageBucket() *schema.Resource {
 				Default:  "US",
 				Optional: true,
 				ForceNew: true,
+				StateFunc: func(s interface{}) string {
+					return strings.ToUpper(s.(string))
+				},
 			},
 
 			"predefined_acl": &schema.Schema{
diff --git a/google/resource_storage_bucket_test.go b/google/resource_storage_bucket_test.go
index cc05180443f..d1055a00001 100644
--- a/google/resource_storage_bucket_test.go
+++ b/google/resource_storage_bucket_test.go
@@ -38,6 +38,26 @@ func TestAccStorageBucket_basic(t *testing.T) {
 	})
 }
 
+func TestAccStorageBucket_lowercaseLocation(t *testing.T) {
+	var bucket storage.Bucket
+	bucketName := fmt.Sprintf("tf-test-acl-bucket-%d", acctest.RandInt())
+
+	resource.Test(t, resource.TestCase{
+		PreCheck:     func() { testAccPreCheck(t) },
+		Providers:    testAccProviders,
+		CheckDestroy: testAccStorageBucketDestroy,
+		Steps: []resource.TestStep{
+			resource.TestStep{
+				Config: testAccStorageBucket_lowercaseLocation(bucketName),
+				Check: resource.ComposeTestCheckFunc(
+					testAccCheckStorageBucketExists(
+						"google_storage_bucket.bucket", bucketName, &bucket),
+				),
+			},
+		},
+	})
+}
+
 func TestAccStorageBucket_customAttributes(t *testing.T) {
 	var bucket storage.Bucket
 	bucketName := fmt.Sprintf("tf-test-acl-bucket-%d", acctest.RandInt())
@@ -335,6 +355,15 @@ resource "google_storage_bucket" "bucket" {
 `, bucketName)
 }
 
+func testAccStorageBucket_lowercaseLocation(bucketName string) string {
+	return fmt.Sprintf(`
+resource "google_storage_bucket" "bucket" {
+	name = "%s"
+	location = "eu"
+}
+`, bucketName)
+}
+
 func testAccStorageBucket_customAttributes(bucketName string) string {
 	return fmt.Sprintf(`
 resource "google_storage_bucket" "bucket" {