diff --git a/ceilometer/api/app.py b/ceilometer/api/app.py
index 2171d5efc..89857d608 100644
--- a/ceilometer/api/app.py
+++ b/ceilometer/api/app.py
@@ -43,9 +43,8 @@ OPTS = [
 
 API_OPTS = [
     cfg.BoolOpt('pecan_debug',
-                default=CONF.debug,
                 help='Toggle Pecan Debug Middleware. '
-                'Defaults to global debug value.'
+                'If it is not set, global debug value will be used.'
                 ),
 ]
 
@@ -76,6 +75,8 @@ def setup_app(pecan_config=None, extra_hooks=None):
 
     pecan.configuration.set_config(dict(pecan_config), overwrite=True)
 
+    cfg.set_defaults(API_OPTS, pecan_debug=CONF.debug)
+
     app = pecan.make_app(
         pecan_config.app.root,
         debug=CONF.api.pecan_debug,
@@ -91,7 +92,6 @@ def setup_app(pecan_config=None, extra_hooks=None):
 class VersionSelectorApplication(object):
     def __init__(self):
         pc = get_pecan_config()
-        pc.app.debug = CONF.api.pecan_debug
 
         def not_found(environ, start_response):
             start_response('404 Not Found', [])
diff --git a/ceilometer/tests/api/test_app.py b/ceilometer/tests/api/test_app.py
index 5daa60d84..b77926b53 100644
--- a/ceilometer/tests/api/test_app.py
+++ b/ceilometer/tests/api/test_app.py
@@ -49,3 +49,21 @@ class TestApp(base.BaseTestCase):
         with mock.patch.object(self.CONF, 'find_file') as ff:
             ff.return_value = None
             self.assertRaises(cfg.ConfigFilesNotFoundError, app.load_app)
+
+    @mock.patch('ceilometer.storage.get_connection_from_config',
+                mock.MagicMock())
+    @mock.patch('ceilometer.api.hooks.PipelineHook', mock.MagicMock())
+    @mock.patch('pecan.make_app')
+    def test_pecan_debug(self, mocked):
+        def _check_pecan_debug(g_debug, p_debug, expected):
+            self.CONF.set_override('debug', g_debug)
+            if p_debug is not None:
+                self.CONF.set_override('pecan_debug', p_debug, group='api')
+            app.setup_app()
+            args, kwargs = mocked.call_args
+            self.assertEqual(expected, kwargs.get('debug'))
+
+        _check_pecan_debug(g_debug=False, p_debug=None, expected=False)
+        _check_pecan_debug(g_debug=True, p_debug=None, expected=True)
+        _check_pecan_debug(g_debug=True, p_debug=False, expected=False)
+        _check_pecan_debug(g_debug=False, p_debug=True, expected=True)