diff --git a/ArduCopter/ArduCopter.cpp b/ArduCopter/ArduCopter.cpp
index a71262e856..25455d103b 100644
--- a/ArduCopter/ArduCopter.cpp
+++ b/ArduCopter/ArduCopter.cpp
@@ -178,16 +178,6 @@ void Copter::setup()
     fast_loopTimer = AP_HAL::micros();
 }
 
-/*
-  if the compass is enabled then try to accumulate a reading
- */
-void Copter::compass_accumulate(void)
-{
-    if (g.compass_enabled) {
-        compass.accumulate();
-    }
-}
-
 /*
   try to accumulate a baro reading
  */
diff --git a/ArduCopter/Copter.h b/ArduCopter/Copter.h
index 595b1fce98..e25c50901e 100644
--- a/ArduCopter/Copter.h
+++ b/ArduCopter/Copter.h
@@ -285,6 +285,7 @@ private:
             uint8_t motor_interlock_switch  : 1; // 23      // true if pilot is requesting motor interlock enable
             uint8_t in_arming_delay         : 1; // 24      // true while we are armed but waiting to spin motors
             uint8_t initialised_params      : 1; // 25      // true when the all parameters have been initialised. we cannot send parameters to the GCS until this is done
+            uint8_t compass_init_location   : 1; // 26      // true when the compass's initial location has been set
         };
         uint32_t value;
     } ap;
diff --git a/ArduCopter/commands.cpp b/ArduCopter/commands.cpp
index 23eb135bad..b20fdeb0ce 100644
--- a/ArduCopter/commands.cpp
+++ b/ArduCopter/commands.cpp
@@ -72,10 +72,6 @@ bool Copter::set_home(const Location& loc, bool lock)
 
     // init inav and compass declination
     if (ap.home_state == HOME_UNSET) {
-        // Set compass declination automatically
-        if (g.compass_enabled) {
-            compass.set_initial_location(gps.location().lat, gps.location().lng);
-        }
         // update navigation scalers.  used to offset the shrinking longitude as we go towards the poles
         scaleLongDown = longitude_scale(loc);
         // record home is set
diff --git a/ArduCopter/sensors.cpp b/ArduCopter/sensors.cpp
index f0316142a2..f2668dbddc 100644
--- a/ArduCopter/sensors.cpp
+++ b/ArduCopter/sensors.cpp
@@ -113,6 +113,28 @@ void Copter::init_compass()
     ahrs.set_compass(&compass);
 }
 
+/*
+  if the compass is enabled then try to accumulate a reading
+  also update initial location used for declination
+ */
+void Copter::compass_accumulate(void)
+{
+    if (!g.compass_enabled) {
+        return;
+    }
+
+    compass.accumulate();
+
+    // update initial location used for declination
+    if (!ap.compass_init_location) {
+        Location loc;
+        if (ahrs.get_position(loc)) {
+            compass.set_initial_location(loc.lat, loc.lng);
+            ap.compass_init_location = true;
+        }
+    }
+}
+
 // initialise optical flow sensor
 void Copter::init_optflow()
 {