diff --git a/src/core/ngx_conf_file.c b/src/core/ngx_conf_file.c
index 01715af35..0aa659cd8 100644
--- a/src/core/ngx_conf_file.c
+++ b/src/core/ngx_conf_file.c
@@ -282,24 +282,16 @@ ngx_conf_handler(ngx_conf_t *cf, ngx_int_t last)
 {
     char           *rv;
     void           *conf, **confp;
-    ngx_uint_t      i, multi;
+    ngx_uint_t      i, found;
     ngx_str_t      *name;
     ngx_command_t  *cmd;
 
     name = cf->args->elts;
 
-    multi = 0;
+    found = 0;
 
     for (i = 0; ngx_modules[i]; i++) {
 
-        /* look up the directive in the appropriate modules */
-
-        if (ngx_modules[i]->type != NGX_CONF_MODULE
-            && ngx_modules[i]->type != cf->module_type)
-        {
-            continue;
-        }
-
         cmd = ngx_modules[i]->commands;
         if (cmd == NULL) {
             continue;
@@ -315,16 +307,18 @@ ngx_conf_handler(ngx_conf_t *cf, ngx_int_t last)
                 continue;
             }
 
+            found = 1;
+
+            if (ngx_modules[i]->type != NGX_CONF_MODULE
+                && ngx_modules[i]->type != cf->module_type)
+            {
+                continue;
+            }
 
             /* is the directive's location right ? */
 
             if (!(cmd->type & cf->cmd_type)) {
-                if (cmd->type & NGX_CONF_MULTI) {
-                    multi = 1;
-                    continue;
-                }
-
-                goto not_allowed;
+                continue;
             }
 
             if (!(cmd->type & NGX_CONF_BLOCK) && last != NGX_OK) {
@@ -408,17 +402,16 @@ ngx_conf_handler(ngx_conf_t *cf, ngx_int_t last)
         }
     }
 
-    if (multi == 0) {
+    if (found) {
         ngx_conf_log_error(NGX_LOG_EMERG, cf, 0,
-                           "unknown directive \"%s\"", name->data);
+                           "\"%s\" directive is not allowed here", name->data);
 
         return NGX_ERROR;
     }
 
-not_allowed:
-
     ngx_conf_log_error(NGX_LOG_EMERG, cf, 0,
-                       "\"%s\" directive is not allowed here", name->data);
+                       "unknown directive \"%s\"", name->data);
+
     return NGX_ERROR;
 
 invalid:
diff --git a/src/core/ngx_conf_file.h b/src/core/ngx_conf_file.h
index 4b87f1aad..41bacaa98 100644
--- a/src/core/ngx_conf_file.h
+++ b/src/core/ngx_conf_file.h
@@ -45,7 +45,7 @@
 #define NGX_CONF_ANY         0x00000400
 #define NGX_CONF_1MORE       0x00000800
 #define NGX_CONF_2MORE       0x00001000
-#define NGX_CONF_MULTI       0x00002000
+#define NGX_CONF_MULTI       0x00000000  /* compatibility */
 
 #define NGX_DIRECT_CONF      0x00010000
 
diff --git a/src/http/ngx_http_core_module.c b/src/http/ngx_http_core_module.c
index a8177aef7..ecc0a2f25 100644
--- a/src/http/ngx_http_core_module.c
+++ b/src/http/ngx_http_core_module.c
@@ -222,7 +222,7 @@ static ngx_command_t  ngx_http_core_commands[] = {
       NULL },
 
     { ngx_string("server"),
-      NGX_HTTP_MAIN_CONF|NGX_CONF_BLOCK|NGX_CONF_MULTI|NGX_CONF_NOARGS,
+      NGX_HTTP_MAIN_CONF|NGX_CONF_BLOCK|NGX_CONF_NOARGS,
       ngx_http_core_server,
       0,
       0,