diff --git a/app/models/project.rb b/app/models/project.rb
index 37f4dd08355..17b71ea6555 100644
--- a/app/models/project.rb
+++ b/app/models/project.rb
@@ -222,6 +222,7 @@ class Project < ActiveRecord::Base
   validates :import_url, importable_url: true, if: [:external_import?, :import_url_changed?]
   validates :star_count, numericality: { greater_than_or_equal_to: 0 }
   validate :check_limit, on: :create
+  validate :can_create_repository?, on: [:create, :update], if: ->(project) { !project.persisted? || project.renamed? }
   validate :avatar_type,
     if: ->(project) { project.avatar.present? && project.avatar_changed? }
   validates :avatar, file_size: { maximum: 200.kilobytes.to_i }
@@ -467,7 +468,7 @@ class Project < ActiveRecord::Base
   end
 
   def repository_storage_path
-    Gitlab.config.repositories.storages[repository_storage]['path']
+    Gitlab.config.repositories.storages[repository_storage].try(:[], 'path')
   end
 
   def team
@@ -582,7 +583,7 @@ class Project < ActiveRecord::Base
   end
 
   def valid_import_url?
-    valid? || errors.messages[:import_url].nil?
+    valid?(:import_url) || errors.messages[:import_url].nil?
   end
 
   def create_or_update_import_data(data: nil, credentials: nil)
@@ -999,6 +1000,20 @@ class Project < ActiveRecord::Base
     end
   end
 
+  # Check if repository already exists on disk
+  def can_create_repository?
+    return false unless repository_storage_path
+
+    expires_full_path_cache # we need to clear cache to validate renames correctly
+
+    if gitlab_shell.exists?(repository_storage_path, "#{disk_path}.git")
+      errors.add(:base, 'There is already a repository with that name on disk')
+      return false
+    end
+
+    true
+  end
+
   def create_repository(force: false)
     # Forked import is handled asynchronously
     return if forked? && !force
@@ -1481,6 +1496,10 @@ class Project < ActiveRecord::Base
     self.storage_version.nil?
   end
 
+  def renamed?
+    persisted? && path_changed?
+  end
+
   private
 
   def storage
diff --git a/app/services/projects/create_service.rb b/app/services/projects/create_service.rb
index 48578b6d9e5..785057dd125 100644
--- a/app/services/projects/create_service.rb
+++ b/app/services/projects/create_service.rb
@@ -115,7 +115,7 @@ module Projects
       Project.transaction do
         @project.create_or_update_import_data(data: import_data[:data], credentials: import_data[:credentials]) if import_data
 
-        if @project.save && !@project.import?
+        if @project.valid? && @project.save && !@project.import?
           raise 'Failed to create repository' unless @project.create_repository
         end
       end
diff --git a/features/steps/shared/group.rb b/features/steps/shared/group.rb
index de119f2c6c0..03bc7e798e0 100644
--- a/features/steps/shared/group.rb
+++ b/features/steps/shared/group.rb
@@ -36,14 +36,12 @@ module SharedGroup
   protected
 
   def is_member_of(username, groupname, role)
-    @project_count ||= 0
     user = User.find_by(name: username) || create(:user, name: username)
     group = Group.find_by(name: groupname) || create(:group, name: groupname)
     group.add_user(user, role)
-    project ||= create(:project, :repository, namespace: group, path: "project#{@project_count}")
+    project ||= create(:project, :repository, namespace: group)
     create(:closed_issue_event, project: project)
     project.team << [user, :master]
-    @project_count += 1
   end
 
   def owned_group
diff --git a/spec/factories/projects.rb b/spec/factories/projects.rb
index 9ebda0ba03b..7493b0a8b35 100644
--- a/spec/factories/projects.rb
+++ b/spec/factories/projects.rb
@@ -101,8 +101,6 @@ FactoryGirl.define do
 
     # Test repository - https://gitlab.com/gitlab-org/gitlab-test
     trait :repository do
-      path { 'gitlabhq' }
-
       test_repo
 
       transient do
diff --git a/spec/helpers/blob_helper_spec.rb b/spec/helpers/blob_helper_spec.rb
index c654151564e..04620f6d88c 100644
--- a/spec/helpers/blob_helper_spec.rb
+++ b/spec/helpers/blob_helper_spec.rb
@@ -95,13 +95,13 @@ describe BlobHelper do
     it 'returns a link with the proper route' do
       link = edit_blob_link(project, 'master', 'README.md')
 
-      expect(Capybara.string(link).find_link('Edit')[:href]).to eq('/gitlab/gitlabhq/edit/master/README.md')
+      expect(Capybara.string(link).find_link('Edit')[:href]).to eq("/#{project.full_path}/edit/master/README.md")
     end
 
     it 'returns a link with the passed link_opts on the expected route' do
       link = edit_blob_link(project, 'master', 'README.md', link_opts: { mr_id: 10 })
 
-      expect(Capybara.string(link).find_link('Edit')[:href]).to eq('/gitlab/gitlabhq/edit/master/README.md?mr_id=10')
+      expect(Capybara.string(link).find_link('Edit')[:href]).to eq("/#{project.full_path}/edit/master/README.md?mr_id=10")
     end
   end
 
diff --git a/spec/lib/container_registry/tag_spec.rb b/spec/lib/container_registry/tag_spec.rb
index e76463b5e7c..cb4ae3be525 100644
--- a/spec/lib/container_registry/tag_spec.rb
+++ b/spec/lib/container_registry/tag_spec.rb
@@ -2,7 +2,7 @@ require 'spec_helper'
 
 describe ContainerRegistry::Tag do
   let(:group) { create(:group, name: 'group') }
-  let(:project) { create(:project, :repository, path: 'test', group: group) }
+  let(:project) { create(:project, path: 'test', group: group) }
 
   let(:repository) do
     create(:container_repository, name: '', project: project)
diff --git a/spec/lib/gitlab/email/handler/create_issue_handler_spec.rb b/spec/lib/gitlab/email/handler/create_issue_handler_spec.rb
index bd36d1d309d..6568a0b1bb0 100644
--- a/spec/lib/gitlab/email/handler/create_issue_handler_spec.rb
+++ b/spec/lib/gitlab/email/handler/create_issue_handler_spec.rb
@@ -13,7 +13,7 @@ describe Gitlab::Email::Handler::CreateIssueHandler do
   let(:email_raw) { fixture_file('emails/valid_new_issue.eml') }
   let(:namespace) { create(:namespace, path: 'gitlabhq') }
 
-  let!(:project)  { create(:project, :public, :repository, namespace: namespace) }
+  let!(:project)  { create(:project, :public, namespace: namespace, path: 'gitlabhq') }
   let!(:user) do
     create(
       :user,
diff --git a/spec/lib/gitlab/email/message/repository_push_spec.rb b/spec/lib/gitlab/email/message/repository_push_spec.rb
index 83c4d177cae..0ec1f931037 100644
--- a/spec/lib/gitlab/email/message/repository_push_spec.rb
+++ b/spec/lib/gitlab/email/message/repository_push_spec.rb
@@ -4,7 +4,7 @@ describe Gitlab::Email::Message::RepositoryPush do
   include RepoHelpers
 
   let!(:group) { create(:group, name: 'my_group') }
-  let!(:project) { create(:project, :repository, name: 'my_project', namespace: group) }
+  let!(:project) { create(:project, :repository, namespace: group) }
   let!(:author) { create(:author, name: 'Author') }
 
   let(:message) do
@@ -38,7 +38,7 @@ describe Gitlab::Email::Message::RepositoryPush do
 
     describe '#project_name_with_namespace' do
       subject { message.project_name_with_namespace }
-      it { is_expected.to eq 'my_group / my_project' }
+      it { is_expected.to eq "#{group.name} / #{project.path}" }
     end
 
     describe '#author' do
diff --git a/spec/models/container_repository_spec.rb b/spec/models/container_repository_spec.rb
index bae88cb1d24..e46945e301e 100644
--- a/spec/models/container_repository_spec.rb
+++ b/spec/models/container_repository_spec.rb
@@ -2,7 +2,7 @@ require 'spec_helper'
 
 describe ContainerRepository do
   let(:group) { create(:group, name: 'group') }
-  let(:project) { create(:project, :repository, path: 'test', group: group) }
+  let(:project) { create(:project, path: 'test', group: group) }
 
   let(:repository) do
     create(:container_repository, name: 'my_image', project: project)
diff --git a/spec/models/project_spec.rb b/spec/models/project_spec.rb
index 2e613c44357..eb590f7dae5 100644
--- a/spec/models/project_spec.rb
+++ b/spec/models/project_spec.rb
@@ -181,7 +181,7 @@ describe Project do
       end
     end
 
-    context 'repository storages inclussion' do
+    context 'repository storages inclusion' do
       let(:project2) { build(:project, repository_storage: 'missing') }
 
       before do
diff --git a/spec/services/projects/create_service_spec.rb b/spec/services/projects/create_service_spec.rb
index b0dc7488b5f..dbf3c49c67d 100644
--- a/spec/services/projects/create_service_spec.rb
+++ b/spec/services/projects/create_service_spec.rb
@@ -1,11 +1,12 @@
 require 'spec_helper'
 
 describe Projects::CreateService, '#execute' do
+  let(:gitlab_shell) { Gitlab::Shell.new }
   let(:user) { create :user }
   let(:opts) do
     {
-      name: "GitLab",
-      namespace: user.namespace
+      name: 'GitLab',
+      namespace_id: user.namespace.id
     }
   end
 
@@ -146,6 +147,41 @@ describe Projects::CreateService, '#execute' do
       expect(project.owner).to eq(user)
       expect(project.namespace).to eq(user.namespace)
     end
+
+    context 'when another repository already exists on disk' do
+      let(:opts) do
+        {
+          name: 'Existing',
+          namespace_id: user.namespace.id
+        }
+      end
+
+      let(:repository_storage_path) { Gitlab.config.repositories.storages['default']['path'] }
+
+      before do
+        gitlab_shell.add_repository(repository_storage_path, "#{user.namespace.full_path}/existing")
+      end
+
+      after do
+        gitlab_shell.remove_repository(repository_storage_path, "#{user.namespace.full_path}/existing")
+      end
+
+      it 'does not allow to create project with same path' do
+        project = create_project(user, opts)
+
+        expect(project).to respond_to(:errors)
+        expect(project.errors.messages).to have_key(:base)
+        expect(project.errors.messages[:base].first).to match('There is already a repository with that name on disk')
+      end
+
+      it 'does not allow to import a project with the same path' do
+        project = create_project(user, opts.merge({ import_url: 'https://gitlab.com/gitlab-org/gitlab-test.git' }))
+
+        expect(project).to respond_to(:errors)
+        expect(project.errors.messages).to have_key(:base)
+        expect(project.errors.messages[:base].first).to match('There is already a repository with that name on disk')
+      end
+    end
   end
 
   context 'when there is an active service template' do
diff --git a/spec/services/projects/fork_service_spec.rb b/spec/services/projects/fork_service_spec.rb
index 21c4b30734c..a6e0364d44c 100644
--- a/spec/services/projects/fork_service_spec.rb
+++ b/spec/services/projects/fork_service_spec.rb
@@ -1,6 +1,8 @@
 require 'spec_helper'
 
 describe Projects::ForkService do
+  let(:gitlab_shell) { Gitlab::Shell.new }
+
   describe 'fork by user' do
     before do
       @from_user = create(:user)
@@ -73,6 +75,26 @@ describe Projects::ForkService do
       end
     end
 
+    context 'repository already exists' do
+      let(:repository_storage_path) { Gitlab.config.repositories.storages['default']['path'] }
+
+      before do
+        gitlab_shell.add_repository(repository_storage_path, "#{@to_user.namespace.full_path}/#{@from_project.path}")
+      end
+
+      after do
+        gitlab_shell.remove_repository(repository_storage_path, "#{@to_user.namespace.full_path}/#{@from_project.path}")
+      end
+
+      it 'does not allow creation' do
+        to_project = fork_project(@from_project, @to_user)
+
+        expect(to_project).not_to be_persisted
+        expect(to_project.errors.messages).to have_key(:base)
+        expect(to_project.errors.messages[:base].first).to match('There is already a repository with that name on disk')
+      end
+    end
+
     context 'GitLab CI is enabled' do
       it "forks and enables CI for fork" do
         @from_project.enable_ci
diff --git a/spec/services/projects/transfer_service_spec.rb b/spec/services/projects/transfer_service_spec.rb
index 2cb60cbcfc4..a14ed526f68 100644
--- a/spec/services/projects/transfer_service_spec.rb
+++ b/spec/services/projects/transfer_service_spec.rb
@@ -1,6 +1,7 @@
 require 'spec_helper'
 
 describe Projects::TransferService do
+  let(:gitlab_shell) { Gitlab::Shell.new }
   let(:user) { create(:user) }
   let(:group) { create(:group) }
   let(:project) { create(:project, :repository, namespace: user.namespace) }
@@ -119,6 +120,25 @@ describe Projects::TransferService do
     it { expect(project.namespace).to eq(user.namespace) }
   end
 
+  context 'namespace which contains orphan repository with same projects path name' do
+    let(:repository_storage_path) { Gitlab.config.repositories.storages['default']['path'] }
+
+    before do
+      group.add_owner(user)
+      gitlab_shell.add_repository(repository_storage_path, "#{group.full_path}/#{project.path}")
+
+      @result = transfer_project(project, user, group)
+    end
+
+    after do
+      gitlab_shell.remove_repository(repository_storage_path, "#{group.full_path}/#{project.path}")
+    end
+
+    it { expect(@result).to eq false }
+    it { expect(project.namespace).to eq(user.namespace) }
+    it { expect(project.errors[:new_namespace]).to include('Cannot move project') }
+  end
+
   def transfer_project(project, user, new_namespace)
     service = Projects::TransferService.new(project, user)
 
diff --git a/spec/services/projects/update_service_spec.rb b/spec/services/projects/update_service_spec.rb
index 1b282e82187..92cc9a37795 100644
--- a/spec/services/projects/update_service_spec.rb
+++ b/spec/services/projects/update_service_spec.rb
@@ -1,6 +1,7 @@
 require 'spec_helper'
 
 describe Projects::UpdateService, '#execute' do
+  let(:gitlab_shell) { Gitlab::Shell.new }
   let(:user) { create(:user) }
   let(:admin) { create(:admin) }
 
@@ -132,6 +133,28 @@ describe Projects::UpdateService, '#execute' do
     end
   end
 
+  context 'when renaming a project' do
+    let(:repository_storage_path) { Gitlab.config.repositories.storages['default']['path'] }
+
+    before do
+      gitlab_shell.add_repository(repository_storage_path, "#{user.namespace.full_path}/existing")
+    end
+
+    after do
+      gitlab_shell.remove_repository(repository_storage_path, "#{user.namespace.full_path}/existing")
+    end
+
+    it 'does not allow renaming when new path matches existing repository on disk' do
+      result = update_project(project, admin, path: 'existing')
+
+      expect(result).to include(status: :error)
+      expect(result[:message]).to match('Project could not be updated!')
+      expect(project).not_to be_valid
+      expect(project.errors.messages).to have_key(:base)
+      expect(project.errors.messages[:base]).to include('There is already a repository with that name on disk')
+    end
+  end
+
   context 'when passing invalid parameters' do
     it 'returns an error result when record cannot be updated' do
       result = update_project(project, admin, { name: 'foo&bar' })