diff --git a/lib/application.js b/lib/application.js
index 2a46c5ff..fc2c1462 100644
--- a/lib/application.js
+++ b/lib/application.js
@@ -505,21 +505,21 @@ function dataSourcesFromConfig(name, config, connectorRegistry, registry) {
     'can not create data source without config object');
 
   if (typeof config.connector === 'string') {
-    name = config.connector;
-    if (connectorRegistry[name]) {
-      config.connector = connectorRegistry[name];
+    const connectorName = config.connector;
+    if (connectorRegistry[connectorName]) {
+      config.connector = connectorRegistry[connectorName];
     } else {
-      connectorPath = path.join(__dirname, 'connectors', name + '.js');
+      connectorPath = path.join(__dirname, 'connectors', connectorName + '.js');
 
       if (fs.existsSync(connectorPath)) {
         config.connector = require(connectorPath);
       }
     }
     if (config.connector && typeof config.connector === 'object' && !config.connector.name)
-      config.connector.name = name;
+      config.connector.name = connectorName;
   }
 
-  return registry.createDataSource(config);
+  return registry.createDataSource(name, config);
 }
 
 function configureModel(ModelCtor, config, app) {
diff --git a/test/app.test.js b/test/app.test.js
index f32843a4..c964fbdf 100644
--- a/test/app.test.js
+++ b/test/app.test.js
@@ -787,7 +787,7 @@ describe('app', function() {
     it('looks up the connector in `app.connectors`', function() {
       app.connector('custom', loopback.Memory);
       app.dataSource('custom', {connector: 'custom'});
-      expect(app.dataSources.custom.name).to.equal(loopback.Memory.name);
+      expect(app.dataSources.custom.name).to.equal('custom');
     });
 
     it('adds data source name to error messages', function() {