diff --git a/tests/baselines/reference/assignmentCompatWithStringIndexer.errors.txt b/tests/baselines/reference/assignmentCompatWithStringIndexer.errors.txt
index 8305623f209..12ad021b06d 100644
--- a/tests/baselines/reference/assignmentCompatWithStringIndexer.errors.txt
+++ b/tests/baselines/reference/assignmentCompatWithStringIndexer.errors.txt
@@ -10,8 +10,6 @@ assignmentCompatWithStringIndexer.ts(33,5): error TS2322: Type 'A<Base>' is not
 assignmentCompatWithStringIndexer.ts(41,5): error TS2322: Type 'A<Base>' is not assignable to type '{ [x: string]: Derived2; }'.
   'string' index signatures are incompatible.
     Type 'Base' is missing the following properties from type 'Derived2': baz, bar
-assignmentCompatWithStringIndexer.ts(44,9): error TS1184: Modifiers cannot appear here.
-assignmentCompatWithStringIndexer.ts(45,9): error TS1184: Modifiers cannot appear here.
 assignmentCompatWithStringIndexer.ts(46,9): error TS2322: Type '{ [x: string]: Derived; }' is not assignable to type 'A<T>'.
   'string' index signatures are incompatible.
     Type 'Derived' is not assignable to type 'T'.
@@ -31,7 +29,7 @@ assignmentCompatWithStringIndexer.ts(51,9): error TS2322: Type 'A<T>' is not ass
       Type 'Base' is missing the following properties from type 'Derived2': baz, bar
 
 
-==== assignmentCompatWithStringIndexer.ts (11 errors) ====
+==== assignmentCompatWithStringIndexer.ts (9 errors) ====
     // index signatures must be compatible in assignments
     
     interface Base { foo: string; }
@@ -93,12 +91,8 @@ assignmentCompatWithStringIndexer.ts(51,9): error TS2322: Type 'A<T>' is not ass
 !!! error TS2322:     Type 'Base' is missing the following properties from type 'Derived2': baz, bar
     
         function foo<T extends Base>() {
-            declare var b3: { [x: string]: Derived; };
-            ~~~~~~~
-!!! error TS1184: Modifiers cannot appear here.
-            declare var a3: A<T>;
-            ~~~~~~~
-!!! error TS1184: Modifiers cannot appear here.
+            var b3: { [x: string]: Derived; };
+            var a3: A<T>;
             a3 = b3; // error
             ~~
 !!! error TS2322: Type '{ [x: string]: Derived; }' is not assignable to type 'A<T>'.
diff --git a/tests/baselines/reference/assignmentCompatWithStringIndexer.js b/tests/baselines/reference/assignmentCompatWithStringIndexer.js
index 7e2b2543b8a..75d95861367 100644
--- a/tests/baselines/reference/assignmentCompatWithStringIndexer.js
+++ b/tests/baselines/reference/assignmentCompatWithStringIndexer.js
@@ -44,8 +44,8 @@ namespace Generics {
     b2 = a1; // error
 
     function foo<T extends Base>() {
-        declare var b3: { [x: string]: Derived; };
-        declare var a3: A<T>;
+        var b3: { [x: string]: Derived; };
+        var a3: A<T>;
         a3 = b3; // error
         b3 = a3; // error
 
@@ -107,6 +107,8 @@ var Generics;
     a1 = b2; // ok
     b2 = a1; // error
     function foo() {
+        var b3;
+        var a3;
         a3 = b3; // error
         b3 = a3; // error
         a3 = b4; // error
diff --git a/tests/baselines/reference/assignmentCompatWithStringIndexer.symbols b/tests/baselines/reference/assignmentCompatWithStringIndexer.symbols
index 3aa422ed4ad..0dfab337643 100644
--- a/tests/baselines/reference/assignmentCompatWithStringIndexer.symbols
+++ b/tests/baselines/reference/assignmentCompatWithStringIndexer.symbols
@@ -124,23 +124,23 @@ namespace Generics {
 >T : Symbol(T, Decl(assignmentCompatWithStringIndexer.ts, 42, 17))
 >Base : Symbol(Base, Decl(assignmentCompatWithStringIndexer.ts, 0, 0))
 
-        declare var b3: { [x: string]: Derived; };
->b3 : Symbol(b3, Decl(assignmentCompatWithStringIndexer.ts, 43, 19))
->x : Symbol(x, Decl(assignmentCompatWithStringIndexer.ts, 43, 27))
+        var b3: { [x: string]: Derived; };
+>b3 : Symbol(b3, Decl(assignmentCompatWithStringIndexer.ts, 43, 11))
+>x : Symbol(x, Decl(assignmentCompatWithStringIndexer.ts, 43, 19))
 >Derived : Symbol(Derived, Decl(assignmentCompatWithStringIndexer.ts, 2, 31))
 
-        declare var a3: A<T>;
->a3 : Symbol(a3, Decl(assignmentCompatWithStringIndexer.ts, 44, 19))
+        var a3: A<T>;
+>a3 : Symbol(a3, Decl(assignmentCompatWithStringIndexer.ts, 44, 11))
 >A : Symbol(A, Decl(assignmentCompatWithStringIndexer.ts, 20, 20))
 >T : Symbol(T, Decl(assignmentCompatWithStringIndexer.ts, 42, 17))
 
         a3 = b3; // error
->a3 : Symbol(a3, Decl(assignmentCompatWithStringIndexer.ts, 44, 19))
->b3 : Symbol(b3, Decl(assignmentCompatWithStringIndexer.ts, 43, 19))
+>a3 : Symbol(a3, Decl(assignmentCompatWithStringIndexer.ts, 44, 11))
+>b3 : Symbol(b3, Decl(assignmentCompatWithStringIndexer.ts, 43, 11))
 
         b3 = a3; // error
->b3 : Symbol(b3, Decl(assignmentCompatWithStringIndexer.ts, 43, 19))
->a3 : Symbol(a3, Decl(assignmentCompatWithStringIndexer.ts, 44, 19))
+>b3 : Symbol(b3, Decl(assignmentCompatWithStringIndexer.ts, 43, 11))
+>a3 : Symbol(a3, Decl(assignmentCompatWithStringIndexer.ts, 44, 11))
 
         declare var b4: { [x: string]: Derived2; };
 >b4 : Symbol(b4, Decl(assignmentCompatWithStringIndexer.ts, 48, 19))
@@ -148,11 +148,11 @@ namespace Generics {
 >Derived2 : Symbol(Derived2, Decl(assignmentCompatWithStringIndexer.ts, 3, 47))
 
         a3 = b4; // error
->a3 : Symbol(a3, Decl(assignmentCompatWithStringIndexer.ts, 44, 19))
+>a3 : Symbol(a3, Decl(assignmentCompatWithStringIndexer.ts, 44, 11))
 >b4 : Symbol(b4, Decl(assignmentCompatWithStringIndexer.ts, 48, 19))
 
         b4 = a3; // error
 >b4 : Symbol(b4, Decl(assignmentCompatWithStringIndexer.ts, 48, 19))
->a3 : Symbol(a3, Decl(assignmentCompatWithStringIndexer.ts, 44, 19))
+>a3 : Symbol(a3, Decl(assignmentCompatWithStringIndexer.ts, 44, 11))
     }
 }
diff --git a/tests/baselines/reference/assignmentCompatWithStringIndexer.types b/tests/baselines/reference/assignmentCompatWithStringIndexer.types
index 4005d18e836..b6c445d7be4 100644
--- a/tests/baselines/reference/assignmentCompatWithStringIndexer.types
+++ b/tests/baselines/reference/assignmentCompatWithStringIndexer.types
@@ -159,13 +159,13 @@ namespace Generics {
 >foo : <T extends Base>() => void
 >    : ^ ^^^^^^^^^    ^^^^^^^^^^^
 
-        declare var b3: { [x: string]: Derived; };
+        var b3: { [x: string]: Derived; };
 >b3 : { [x: string]: Derived; }
 >   : ^^^^^^^^^^^^^^^^^^^^^^^^^
 >x : string
 >  : ^^^^^^
 
-        declare var a3: A<T>;
+        var a3: A<T>;
 >a3 : A<T>
 >   : ^^^^