diff --git a/Changelog.md b/Changelog.md
index b13d2590..021f29b3 100644
--- a/Changelog.md
+++ b/Changelog.md
@@ -5,6 +5,7 @@
 - gitlab: upgrade to CE v.7.9.0
 - init: set default value of `UNICORN_WORKERS` to `3`
 - init: set default value of `SMTP_OPENSSL_VERIFY_MODE` to `peer`
+- init: removed `GITLAB_RESTRICTED_VISIBILITY` configuration option, can be set from the UI
 
 **7.8.4**
 - gitlab: upgrade to CE v.7.8.4
diff --git a/README.md b/README.md
index 831f74d4..977996ac 100644
--- a/README.md
+++ b/README.md
@@ -728,7 +728,6 @@ Below is the complete list of available options that can be used to customize yo
 - **GITLAB_PROJECTS_WIKI**: Set if *wiki* feature should be enabled by default for new projects. Defaults is `true`.
 - **GITLAB_PROJECTS_SNIPPETS**: Set if *snippets* feature should be enabled by default for new projects. Defaults is `false`.
 - **GITLAB_PROJECTS_VISIBILITY**: Set default projects visibility level. Possible values `public`, `private` and `internal`. Defaults to `private`.
-- **GITLAB_RESTRICTED_VISIBILITY**: Comma separated list of visibility levels to restrict non-admin users to set. Possible visibility options are `public`, `private` and `internal`.
 - **GITLAB_WEBHOOK_TIMEOUT**: Sets the timeout for webhooks. Defaults to `10` seconds.
 - **GITLAB_BACKUP_DIR**: The backup folder in the container. Defaults to `/home/git/data/backups`
 - **GITLAB_BACKUPS**: Setup cron job to automatic backups. Possible values `disable`, `daily`, `weekly` or `monthly`. Disabled by default
diff --git a/assets/init b/assets/init
index cf3880c8..04f7231e 100755
--- a/assets/init
+++ b/assets/init
@@ -28,7 +28,6 @@ GITLAB_PROJECTS_WIKI=${GITLAB_PROJECTS_WIKI:-true}
 GITLAB_PROJECTS_SNIPPETS=${GITLAB_PROJECTS_SNIPPETS:-false}
 GITLAB_PROJECTS_VISIBILITY=${GITLAB_PROJECTS_VISIBILITY:-private}
 GITLAB_RELATIVE_URL_ROOT=${GITLAB_RELATIVE_URL_ROOT:-}
-GITLAB_RESTRICTED_VISIBILITY=${GITLAB_RESTRICTED_VISIBILITY:-}
 GITLAB_WEBHOOK_TIMEOUT=${GITLAB_WEBHOOK_TIMEOUT:-10}
 
 SSL_SELF_SIGNED=${SSL_SELF_SIGNED:-false}
@@ -409,9 +408,6 @@ sudo -u git -H sed 's/{{GITLAB_PROJECTS_SNIPPETS}}/'"${GITLAB_PROJECTS_SNIPPETS}
 # configure gitlab default project feature: visibility_level
 sudo -u git -H sed 's/{{GITLAB_PROJECTS_VISIBILITY}}/'"${GITLAB_PROJECTS_VISIBILITY}"'/' -i config/gitlab.yml
 
-# configure gitlab restricted_visibility_levels
-sudo -u git -H sed 's/{{GITLAB_RESTRICTED_VISIBILITY}}/'"${GITLAB_RESTRICTED_VISIBILITY}"'/' -i config/gitlab.yml
-
 # configure gitlab webhook timeout
 sudo -u git -H sed 's/{{GITLAB_WEBHOOK_TIMEOUT}}/'"${GITLAB_WEBHOOK_TIMEOUT}"'/' -i config/gitlab.yml