diff --git a/CMakeLists.txt b/CMakeLists.txt
index 337b09c2..1d033f82 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -502,7 +502,6 @@ if(LIBUV_BUILD_TESTS)
        test/test-multiple-listen.c
        test/test-mutexes.c
        test/test-not-readable-nor-writable-on-read-error.c
-       test/test-not-readable-on-eof.c
        test/test-not-writable-after-shutdown.c
        test/test-osx-select.c
        test/test-pass-always.c
@@ -530,6 +529,7 @@ if(LIBUV_BUILD_TESTS)
        test/test-process-title.c
        test/test-queue-foreach-delete.c
        test/test-random.c
+       test/test-readable-on-eof.c
        test/test-ref.c
        test/test-run-nowait.c
        test/test-run-once.c
diff --git a/Makefile.am b/Makefile.am
index cb3b42c2..3a2fba6d 100644
--- a/Makefile.am
+++ b/Makefile.am
@@ -206,7 +206,6 @@ test_run_tests_SOURCES = test/blackhole-server.c \
                          test/test-multiple-listen.c \
                          test/test-mutexes.c \
                          test/test-not-readable-nor-writable-on-read-error.c \
-                         test/test-not-readable-on-eof.c \
                          test/test-not-writable-after-shutdown.c \
                          test/test-osx-select.c \
                          test/test-pass-always.c \
@@ -234,6 +233,7 @@ test_run_tests_SOURCES = test/blackhole-server.c \
                          test/test-process-title-threadsafe.c \
                          test/test-queue-foreach-delete.c \
                          test/test-random.c \
+                         test/test-readable-on-eof.c \
                          test/test-ref.c \
                          test/test-run-nowait.c \
                          test/test-run-once.c \
diff --git a/src/unix/stream.c b/src/unix/stream.c
index bc64fe8f..5858258d 100644
--- a/src/unix/stream.c
+++ b/src/unix/stream.c
@@ -1010,7 +1010,6 @@ uv_handle_type uv__handle_type(int fd) {
 static void uv__stream_eof(uv_stream_t* stream, const uv_buf_t* buf) {
   stream->flags |= UV_HANDLE_READ_EOF;
   stream->flags &= ~UV_HANDLE_READING;
-  stream->flags &= ~UV_HANDLE_READABLE;
   uv__io_stop(stream->loop, &stream->io_watcher, POLLIN);
   uv__handle_stop(stream);
   uv__stream_osx_interrupt_select(stream);
@@ -1550,15 +1549,12 @@ int uv__read_start(uv_stream_t* stream,
   assert(stream->type == UV_TCP || stream->type == UV_NAMED_PIPE ||
       stream->type == UV_TTY);
 
-  /* The UV_HANDLE_READING flag is irrelevant of the state of the tcp - it just
-   * expresses the desired state of the user.
-   */
+  /* The UV_HANDLE_READING flag is irrelevant of the state of the stream - it
+   * just expresses the desired state of the user. */
   stream->flags |= UV_HANDLE_READING;
+  stream->flags &= ~UV_HANDLE_READ_EOF;
 
   /* TODO: try to do the read inline? */
-  /* TODO: keep track of tcp state. If we've gotten a EOF then we should
-   * not start the IO watcher.
-   */
   assert(uv__stream_fd(stream) >= 0);
   assert(alloc_cb);
 
diff --git a/src/win/pipe.c b/src/win/pipe.c
index 912aed9b..984b766b 100644
--- a/src/win/pipe.c
+++ b/src/win/pipe.c
@@ -1796,7 +1796,6 @@ static void uv_pipe_read_eof(uv_loop_t* loop, uv_pipe_t* handle,
    * it. */
   eof_timer_destroy(handle);
 
-  handle->flags &= ~UV_HANDLE_READABLE;
   uv_read_stop((uv_stream_t*) handle);
 
   handle->read_cb((uv_stream_t*) handle, UV_EOF, &buf);
diff --git a/src/win/tcp.c b/src/win/tcp.c
index cf2dbd85..be4133a8 100644
--- a/src/win/tcp.c
+++ b/src/win/tcp.c
@@ -1044,7 +1044,6 @@ void uv_process_tcp_read_req(uv_loop_t* loop, uv_tcp_t* handle,
           handle->flags &= ~UV_HANDLE_READING;
           DECREASE_ACTIVE_COUNT(loop, handle);
         }
-        handle->flags &= ~UV_HANDLE_READABLE;
 
         buf.base = 0;
         buf.len = 0;
@@ -1081,7 +1080,7 @@ void uv_process_tcp_read_req(uv_loop_t* loop, uv_tcp_t* handle,
           }
         } else {
           /* Connection closed */
-          handle->flags &= ~(UV_HANDLE_READING | UV_HANDLE_READABLE);
+          handle->flags &= ~UV_HANDLE_READING;
           DECREASE_ACTIVE_COUNT(loop, handle);
 
           handle->read_cb((uv_stream_t*)handle, UV_EOF, &buf);
diff --git a/test/test-list.h b/test/test-list.h
index 69a63ac5..3141a7cb 100644
--- a/test/test-list.h
+++ b/test/test-list.h
@@ -509,7 +509,7 @@ TEST_DECLARE   (getters_setters)
 
 TEST_DECLARE   (not_writable_after_shutdown)
 TEST_DECLARE   (not_readable_nor_writable_on_read_error)
-TEST_DECLARE   (not_readable_on_eof)
+TEST_DECLARE   (readable_on_eof)
 
 #ifndef _WIN32
 TEST_DECLARE  (fork_timer)
@@ -1145,8 +1145,8 @@ TASK_LIST_START
   TEST_HELPER   (not_writable_after_shutdown, tcp4_echo_server)
   TEST_ENTRY    (not_readable_nor_writable_on_read_error)
   TEST_HELPER   (not_readable_nor_writable_on_read_error, tcp4_echo_server)
-  TEST_ENTRY    (not_readable_on_eof)
-  TEST_HELPER   (not_readable_on_eof, tcp4_echo_server)
+  TEST_ENTRY    (readable_on_eof)
+  TEST_HELPER   (readable_on_eof, tcp4_echo_server)
 
   TEST_ENTRY  (metrics_idle_time)
   TEST_ENTRY  (metrics_idle_time_thread)
diff --git a/test/test-not-readable-on-eof.c b/test/test-readable-on-eof.c
similarity index 68%
rename from test/test-not-readable-on-eof.c
rename to test/test-readable-on-eof.c
index 2bb5f4ee..68e84542 100644
--- a/test/test-not-readable-on-eof.c
+++ b/test/test-readable-on-eof.c
@@ -35,7 +35,7 @@ static int close_cb_called;
 
 static void write_cb(uv_write_t* req, int status) {
   write_cb_called++;
-  ASSERT(status == 0);
+  ASSERT_EQ(status, 0);
 }
 
 static void alloc_cb(uv_handle_t* handle,
@@ -51,12 +51,20 @@ static void close_cb(uv_handle_t* handle) {
 }
 
 static void read_cb(uv_stream_t* handle, ssize_t nread, const uv_buf_t* buf) {
-  read_cb_called++;
+  int r;
 
-  ASSERT(nread == UV_EOF);
-  ASSERT(0 == uv_is_readable(handle));
+  ASSERT_EQ(nread, UV_EOF);
+  ASSERT_EQ(uv_is_readable(handle), 1);
+  ASSERT_EQ(uv_is_writable(handle), 1);
 
-  uv_close((uv_handle_t*) handle, close_cb);
+  if (++read_cb_called == 3) {
+      uv_close((uv_handle_t*) handle, close_cb);
+      ASSERT_EQ(uv_is_readable(handle), 0);
+      ASSERT_EQ(uv_is_writable(handle), 0);
+  } else {
+      r = uv_read_start((uv_stream_t*) &tcp_client, alloc_cb, read_cb);
+      ASSERT_EQ(r, 0);
+  }
 }
 
 static void connect_cb(uv_connect_t* req, int status) {
@@ -64,10 +72,9 @@ static void connect_cb(uv_connect_t* req, int status) {
   uv_buf_t close_me;
 
   connect_cb_called++;
-  ASSERT(status == 0);
+  ASSERT_EQ(status, 0);
 
-  r = uv_read_start((uv_stream_t*) &tcp_client, alloc_cb, read_cb);
-  ASSERT(r == 0);
+  read_cb((uv_stream_t*) &tcp_client, UV_EOF, NULL);
 
   close_me = uv_buf_init(close_me_cmd, sizeof(close_me_cmd));
 
@@ -77,26 +84,27 @@ static void connect_cb(uv_connect_t* req, int status) {
                1,
                write_cb);
 
-  ASSERT(r == 0);
+  ASSERT_EQ(r, 0);
 }
 
-TEST_IMPL(not_readable_on_eof) {
+TEST_IMPL(readable_on_eof) {
   struct sockaddr_in sa;
-  ASSERT(0 == uv_ip4_addr("127.0.0.1", TEST_PORT, &sa));
-  ASSERT(0 == uv_loop_init(&loop));
-  ASSERT(0 == uv_tcp_init(&loop, &tcp_client));
+  ASSERT_EQ(uv_ip4_addr("127.0.0.1", TEST_PORT, &sa), 0);
+  ASSERT_EQ(uv_loop_init(&loop), 0);
+  ASSERT_EQ(uv_tcp_init(&loop, &tcp_client), 0);
 
-  ASSERT(0 == uv_tcp_connect(&connect_req,
-                             &tcp_client,
-                             (const struct sockaddr*) &sa,
-                             connect_cb));
+  ASSERT_EQ(uv_tcp_connect(&connect_req,
+                           &tcp_client,
+                           (const struct sockaddr*) &sa,
+                           connect_cb),
+            0);
 
-  ASSERT(0 == uv_run(&loop, UV_RUN_DEFAULT));
+  ASSERT_EQ(uv_run(&loop, UV_RUN_DEFAULT), 0);
 
-  ASSERT(connect_cb_called == 1);
-  ASSERT(read_cb_called == 1);
-  ASSERT(write_cb_called == 1);
-  ASSERT(close_cb_called == 1);
+  ASSERT_EQ(connect_cb_called, 1);
+  ASSERT_EQ(read_cb_called, 3);
+  ASSERT_EQ(write_cb_called, 1);
+  ASSERT_EQ(close_cb_called, 1);
 
   MAKE_VALGRIND_HAPPY();
   return 0;