diff --git a/applicationset/controllers/applicationset_controller.go b/applicationset/controllers/applicationset_controller.go
index 815e808287b21..d84a84d8fd45d 100644
--- a/applicationset/controllers/applicationset_controller.go
+++ b/applicationset/controllers/applicationset_controller.go
@@ -435,8 +435,7 @@ func (r *ApplicationSetReconciler) validateGeneratedApplications(ctx context.Con
 			errorsByIndex[i] = fmt.Errorf("ApplicationSet %s contains applications with duplicate name: %s", applicationSetInfo.Name, app.Name)
 			continue
 		}
-
-		proj, err := r.ArgoAppClientset.ArgoprojV1alpha1().AppProjects(r.ArgoCDNamespace).Get(ctx, app.Spec.GetProject(), metav1.GetOptions{})
+		_, err := r.ArgoAppClientset.ArgoprojV1alpha1().AppProjects(r.ArgoCDNamespace).Get(ctx, app.Spec.GetProject(), metav1.GetOptions{})
 		if err != nil {
 			if apierr.IsNotFound(err) {
 				errorsByIndex[i] = fmt.Errorf("application references project %s which does not exist", app.Spec.Project)
@@ -450,15 +449,6 @@ func (r *ApplicationSetReconciler) validateGeneratedApplications(ctx context.Con
 			continue
 		}
 
-		conditions, err := argoutil.ValidatePermissions(ctx, &app.Spec, proj, r.ArgoDB)
-		if err != nil {
-			return nil, fmt.Errorf("error validating permissions: %s", err)
-		}
-		if len(conditions) > 0 {
-			errorsByIndex[i] = fmt.Errorf("application spec is invalid: %s", argoutil.FormatAppConditions(conditions))
-			continue
-		}
-
 	}
 
 	return errorsByIndex, nil
diff --git a/applicationset/controllers/applicationset_controller_test.go b/applicationset/controllers/applicationset_controller_test.go
index 3c3ce3ef57747..9269fe13276b7 100644
--- a/applicationset/controllers/applicationset_controller_test.go
+++ b/applicationset/controllers/applicationset_controller_test.go
@@ -1921,7 +1921,7 @@ func TestValidateGeneratedApplications(t *testing.T) {
 	}
 }
 
-func TestReconcilerValidationErrorBehaviour(t *testing.T) {
+func TestReconcilerValidationProjectErrorBehaviour(t *testing.T) {
 
 	scheme := runtime.NewScheme()
 	err := v1alpha1.AddToScheme(scheme)
@@ -1929,9 +1929,8 @@ func TestReconcilerValidationErrorBehaviour(t *testing.T) {
 	err = v1alpha1.AddToScheme(scheme)
 	assert.Nil(t, err)
 
-	defaultProject := v1alpha1.AppProject{
-		ObjectMeta: metav1.ObjectMeta{Name: "default", Namespace: "argocd"},
-		Spec:       v1alpha1.AppProjectSpec{SourceRepos: []string{"*"}, Destinations: []v1alpha1.ApplicationDestination{{Namespace: "*", Server: "https://good-cluster"}}},
+	project := v1alpha1.AppProject{
+		ObjectMeta: metav1.ObjectMeta{Name: "good-project", Namespace: "argocd"},
 	}
 	appSet := v1alpha1.ApplicationSet{
 		ObjectMeta: metav1.ObjectMeta{
@@ -1944,22 +1943,22 @@ func TestReconcilerValidationErrorBehaviour(t *testing.T) {
 				{
 					List: &v1alpha1.ListGenerator{
 						Elements: []apiextensionsv1.JSON{{
-							Raw: []byte(`{"cluster": "good-cluster","url": "https://good-cluster"}`),
+							Raw: []byte(`{"project": "good-project"}`),
 						}, {
-							Raw: []byte(`{"cluster": "bad-cluster","url": "https://bad-cluster"}`),
+							Raw: []byte(`{"project": "bad-project"}`),
 						}},
 					},
 				},
 			},
 			Template: v1alpha1.ApplicationSetTemplate{
 				ApplicationSetTemplateMeta: v1alpha1.ApplicationSetTemplateMeta{
-					Name:      "{{.cluster}}",
+					Name:      "{{.project}}",
 					Namespace: "argocd",
 				},
 				Spec: v1alpha1.ApplicationSpec{
 					Source:      &v1alpha1.ApplicationSource{RepoURL: "https://github.com/argoproj/argocd-example-apps", Path: "guestbook"},
-					Project:     "default",
-					Destination: v1alpha1.ApplicationDestination{Server: "{{.url}}"},
+					Project:     "{{.project}}",
+					Destination: v1alpha1.ApplicationDestination{Server: "https://kubernetes.default.svc"},
 				},
 			},
 		},
@@ -1967,17 +1966,9 @@ func TestReconcilerValidationErrorBehaviour(t *testing.T) {
 
 	kubeclientset := kubefake.NewSimpleClientset()
 	argoDBMock := dbmocks.ArgoDB{}
-	argoObjs := []runtime.Object{&defaultProject}
+	argoObjs := []runtime.Object{&project}
 
 	client := fake.NewClientBuilder().WithScheme(scheme).WithObjects(&appSet).Build()
-	goodCluster := v1alpha1.Cluster{Server: "https://good-cluster", Name: "good-cluster"}
-	badCluster := v1alpha1.Cluster{Server: "https://bad-cluster", Name: "bad-cluster"}
-	argoDBMock.On("GetCluster", mock.Anything, "https://good-cluster").Return(&goodCluster, nil)
-	argoDBMock.On("GetCluster", mock.Anything, "https://bad-cluster").Return(&badCluster, nil)
-	argoDBMock.On("ListClusters", mock.Anything).Return(&v1alpha1.ClusterList{Items: []v1alpha1.Cluster{
-		goodCluster,
-	}}, nil)
-
 	r := ApplicationSetReconciler{
 		Client:   client,
 		Scheme:   scheme,
@@ -2008,12 +1999,12 @@ func TestReconcilerValidationErrorBehaviour(t *testing.T) {
 	var app v1alpha1.Application
 
 	// make sure good app got created
-	err = r.Client.Get(context.TODO(), crtclient.ObjectKey{Namespace: "argocd", Name: "good-cluster"}, &app)
+	err = r.Client.Get(context.TODO(), crtclient.ObjectKey{Namespace: "argocd", Name: "good-project"}, &app)
 	assert.NoError(t, err)
-	assert.Equal(t, app.Name, "good-cluster")
+	assert.Equal(t, app.Name, "good-project")
 
 	// make sure bad app was not created
-	err = r.Client.Get(context.TODO(), crtclient.ObjectKey{Namespace: "argocd", Name: "bad-cluster"}, &app)
+	err = r.Client.Get(context.TODO(), crtclient.ObjectKey{Namespace: "argocd", Name: "bad-project"}, &app)
 	assert.Error(t, err)
 }