diff --git a/cmd/api-errors.go b/cmd/api-errors.go
index 47c8879fd..a8a9a822a 100644
--- a/cmd/api-errors.go
+++ b/cmd/api-errors.go
@@ -184,7 +184,6 @@ const (
 	ErrStorageFull
 	ErrRequestBodyParse
 	ErrObjectExistsAsDirectory
-	ErrPolicyNesting
 	ErrInvalidObjectName
 	ErrInvalidResourceName
 	ErrServerNotInitialized
@@ -884,11 +883,6 @@ var errorCodes = errorCodeMap{
 		Description:    "Multiple disks failures, unable to write data.",
 		HTTPStatusCode: http.StatusServiceUnavailable,
 	},
-	ErrPolicyNesting: {
-		Code:           "XMinioPolicyNesting",
-		Description:    "New bucket policy conflicts with an existing policy. Please try again with new prefix.",
-		HTTPStatusCode: http.StatusConflict,
-	},
 	ErrInvalidObjectName: {
 		Code:           "XMinioInvalidObjectName",
 		Description:    "Object name contains unsupported characters.",
diff --git a/cmd/object-api-errors.go b/cmd/object-api-errors.go
index d148299f6..225ca06d9 100644
--- a/cmd/object-api-errors.go
+++ b/cmd/object-api-errors.go
@@ -372,13 +372,6 @@ func (e NotImplemented) Error() string {
 	return "Not Implemented"
 }
 
-// PolicyNesting - policy nesting conflict.
-type PolicyNesting struct{}
-
-func (e PolicyNesting) Error() string {
-	return "New bucket policy conflicts with an existing policy. Please try again with new prefix."
-}
-
 // UnsupportedMetadata - unsupported metadata
 type UnsupportedMetadata struct{}
 
diff --git a/cmd/web-handlers.go b/cmd/web-handlers.go
index f04e49729..6cdd16f2b 100644
--- a/cmd/web-handlers.go
+++ b/cmd/web-handlers.go
@@ -1840,8 +1840,6 @@ func toWebAPIError(err error) APIError {
 		return getAPIError(ErrWriteQuorum)
 	case InsufficientReadQuorum:
 		return getAPIError(ErrReadQuorum)
-	case PolicyNesting:
-		return getAPIError(ErrPolicyNesting)
 	case NotImplemented:
 		return APIError{
 			Code:           "NotImplemented",
diff --git a/docs/bucket/policy/README.md b/docs/bucket/policy/README.md
deleted file mode 100644
index abb1c98bf..000000000
--- a/docs/bucket/policy/README.md
+++ /dev/null
@@ -1,39 +0,0 @@
-## Access Policy
-
-This package implements parsing and validating bucket access policies based on Access Policy Language specification - http://docs.aws.amazon.com/AmazonS3/latest/dev/access-policy-language-overview.html
-
-### Supports following effects.
-
-    Allow
-    Deny
-
-### Supports following set of operations.
-
-    s3:GetObject
-    s3:ListBucket
-    s3:PutObject
-    s3:GetBucketLocation
-    s3:DeleteObject
-    s3:AbortMultipartUpload
-    s3:ListBucketMultipartUploads
-    s3:ListMultipartUploadParts
-
-### Supports following conditions.
-
-    StringEquals
-    StringNotEquals
-    StringLike
-    StringNotLike
-    IpAddress
-    NotIpAddress
-
-Supported applicable condition keys for each conditions.
-
-    s3:prefix
-    s3:max-keys
-    aws:Referer
-    aws:SourceIp
-
-### Nested policy support.
-
-Nested policies are not allowed.