diff --git a/src/containerapp/HISTORY.rst b/src/containerapp/HISTORY.rst
index 2e08fd80e15..886391caeb7 100644
--- a/src/containerapp/HISTORY.rst
+++ b/src/containerapp/HISTORY.rst
@@ -3,6 +3,10 @@
 Release History
 ===============
 
+0.3.16
+++++++
+* Remove quota check for 'az containerapp up' and 'az containerapp env create'.
+
 0.3.15
 ++++++
 * Add 'az containerapp containerapp ingress ip-restriction' command group to manage IP restrictions on the ingress of a container app.
diff --git a/src/containerapp/azext_containerapp/_constants.py b/src/containerapp/azext_containerapp/_constants.py
index 7324bb5291b..38d57684f45 100644
--- a/src/containerapp/azext_containerapp/_constants.py
+++ b/src/containerapp/azext_containerapp/_constants.py
@@ -14,8 +14,6 @@
 LOG_ANALYTICS_RP = "Microsoft.OperationalInsights"
 CONTAINER_APPS_RP = "Microsoft.App"
 
-MAX_ENV_PER_LOCATION = 5
-
 MICROSOFT_SECRET_SETTING_NAME = "microsoft-provider-authentication-secret"
 FACEBOOK_SECRET_SETTING_NAME = "facebook-provider-authentication-secret"
 GITHUB_SECRET_SETTING_NAME = "github-provider-authentication-secret"
diff --git a/src/containerapp/azext_containerapp/_up_utils.py b/src/containerapp/azext_containerapp/_up_utils.py
index 8830d7f76b3..045144a9c80 100644
--- a/src/containerapp/azext_containerapp/_up_utils.py
+++ b/src/containerapp/azext_containerapp/_up_utils.py
@@ -46,7 +46,8 @@
     trigger_workflow,
     _ensure_location_allowed,
     register_provider_if_needed,
-    validate_environment_location
+    validate_environment_location,
+    list_environment_locations
 )
 
 from ._constants import (MAXIMUM_SECRET_LENGTH,
@@ -203,19 +204,46 @@ def create_if_needed(self, app_name):
             )  # TODO use .info()
 
     def create(self):
-        self.location = validate_environment_location(self.cmd, self.location)
         register_provider_if_needed(self.cmd, LOG_ANALYTICS_RP)
-        env = create_managed_environment(
-            self.cmd,
-            self.name,
-            location=self.location,
-            resource_group_name=self.resource_group.name,
-            logs_key=self.logs_key,
-            logs_customer_id=self.logs_customer_id,
-            disable_warnings=True,
-        )
-        self.exists = True
-        return env
+
+        if self.location:
+            self.location = validate_environment_location(self.cmd, self.location)
+
+            env = create_managed_environment(
+                self.cmd,
+                self.name,
+                location=self.location,
+                resource_group_name=self.resource_group.name,
+                logs_key=self.logs_key,
+                logs_customer_id=self.logs_customer_id,
+                disable_warnings=True,
+            )
+            self.exists = True
+
+            return env
+        else:
+            res_locations = list_environment_locations(self.cmd)
+            for loc in res_locations:
+                try:
+                    env = create_managed_environment(
+                        self.cmd,
+                        self.name,
+                        location=loc,
+                        resource_group_name=self.resource_group.name,
+                        logs_key=self.logs_key,
+                        logs_customer_id=self.logs_customer_id,
+                        disable_warnings=True,
+                    )
+
+                    self.exists = True
+                    self.location = loc
+
+                    return env
+                except Exception as ex:
+                    logger.info(
+                        f"Failed to create ManagedEnvironment in {loc} due to {ex}"
+                    )
+            raise ValidationError("Can not find a region with quota to create ManagedEnvironment")
 
     def get_rid(self):
         rid = self.name
diff --git a/src/containerapp/azext_containerapp/_utils.py b/src/containerapp/azext_containerapp/_utils.py
index 21e58fde668..abf5f02bbfd 100644
--- a/src/containerapp/azext_containerapp/_utils.py
+++ b/src/containerapp/azext_containerapp/_utils.py
@@ -1506,42 +1506,19 @@ def is_registry_msi_system(identity):
 
 
 def validate_environment_location(cmd, location):
-    from ._constants import MAX_ENV_PER_LOCATION
-    from .custom import list_managed_environments
-    env_list = list_managed_environments(cmd)
-
-    locations = [loc["location"] for loc in env_list]
-    locations = list(set(locations))  # remove duplicates
-
-    location_count = {}
-    for loc in locations:
-        location_count[loc] = len([e for e in env_list if e["location"] == loc])  # pylint: disable=used-before-assignment
-
-    disallowed_locations = []
-    for _, value in enumerate(location_count):
-        if location_count[value] > MAX_ENV_PER_LOCATION - 1:
-            disallowed_locations.append(value)
-
     res_locations = list_environment_locations(cmd)
-    res_locations = [loc for loc in res_locations if loc not in disallowed_locations]
 
     allowed_locs = ", ".join(res_locations)
 
     if location:
         try:
             _ensure_location_allowed(cmd, location, CONTAINER_APPS_RP, "managedEnvironments")
+
+            return location
         except Exception as e:  # pylint: disable=broad-except
             raise ValidationError("You cannot create a Containerapp environment in location {}. List of eligible locations: {}.".format(location, allowed_locs)) from e
-
-    if len(res_locations) > 0:
-        if not location:
-            logger.warning("Creating environment on location %s.", res_locations[0])
-            return res_locations[0]
-        if location in disallowed_locations:
-            raise ValidationError("You have more than {} environments in location {}. List of eligible locations: {}.".format(MAX_ENV_PER_LOCATION, location, allowed_locs))
-        return location
     else:
-        raise ValidationError("You cannot create any more environments. Environments are limited to {} per location in a subscription. Please specify an existing environment using --environment.".format(MAX_ENV_PER_LOCATION))
+        return res_locations[0]
 
 
 def list_environment_locations(cmd):
diff --git a/src/containerapp/setup.py b/src/containerapp/setup.py
index 5d2676788a6..60a3af6dfdb 100644
--- a/src/containerapp/setup.py
+++ b/src/containerapp/setup.py
@@ -17,7 +17,7 @@
 # TODO: Confirm this is the right version number you want and it matches your
 # HISTORY.rst entry.
 
-VERSION = '0.3.15'
+VERSION = '0.3.16'
 
 # The full list of classifiers is available at
 # https://pypi.python.org/pypi?%3Aaction=list_classifiers