diff --git a/admin/settings/appearance.php b/admin/settings/appearance.php
index 77db028770d..96759634616 100644
--- a/admin/settings/appearance.php
+++ b/admin/settings/appearance.php
@@ -67,7 +67,7 @@ if ($hassiteconfig) { // speedup for non-admins, add all caps used on this page
 
     // Navigation settings
     $temp = new admin_settingpage('navigation', get_string('navigation'));
-    $temp->add(new admin_setting_configcheckbox('navhidecategories', get_string('navhidecategories', 'admin'), get_string('confignavhidecategories', 'admin'), 0));
+    $temp->add(new admin_setting_configcheckbox('navshowcategories', get_string('navshowcategories', 'admin'), get_string('confignavshowcategories', 'admin'), 1));
     $temp->add(new admin_setting_configcheckbox('navshowallcourses', get_string('navshowallcourses', 'admin'), get_string('confignavshowallcourses', 'admin'), 0));
     $ADMIN->add('appearance', $temp);
 
diff --git a/blocks/global_navigation_tree/block_global_navigation_tree.php b/blocks/global_navigation_tree/block_global_navigation_tree.php
index a2ed03cabd8..e4a0d2b5a39 100644
--- a/blocks/global_navigation_tree/block_global_navigation_tree.php
+++ b/blocks/global_navigation_tree/block_global_navigation_tree.php
@@ -127,7 +127,7 @@ class block_global_navigation_tree extends block_tree {
         }
 
         // Load the my courses branch if the user has selected to
-        if (!empty($CFG->navhidecategories)) {
+        if (isset($CFG->navshowcategories) && empty($CFG->navshowcategories)) {
             $this->page->navigation->collapse_course_categories();
         }
 
diff --git a/lang/en_utf8/admin.php b/lang/en_utf8/admin.php
index 330f0065b68..cc8af818b44 100644
--- a/lang/en_utf8/admin.php
+++ b/lang/en_utf8/admin.php
@@ -241,7 +241,7 @@ $string['configminpasswordupper'] = 'Passwords must have at least these many upp
 $string['condifmodeditdefaults'] = 'The values you set here define the default values that are used in the activity settings form when you create a new activity. You can also configure which activity settings are considered advanced.';
 $string['configmycoursesperpage'] = 'Maximum number of courses to display in any list of a user\'s own courses';
 $string['configmymoodleredirect'] = 'This setting forces redirects to /my on login for non-admins and replaces the top level site navigation with /my';
-$string['confignavhidecategories'] = 'Do not show course categories in the navigation bar or navigation blocks';
+$string['confignavshowcategories'] = 'Show course categories in the navigation bar and navigation blocks';
 $string['confignavshowallcourses'] = 'Setting this ensures that all courses a user is registered in are shown on the navigation at all times. By default once a user browses to a course only that course is shown on the navigation.';
 $string['confignodefaultuserrolelists'] = 'This setting prevents all users from being returned from the database from deprecated calls of get_course_user, etc., for the site course if the default role provides that access. Check this, if you suffer a performance hit.';
 $string['confignonmetacoursesyncroleids'] = 'By default all role assignments from child courses are synchronised to metacourses. Roles that are selected here will not be included in the synchronisation process.';
@@ -647,7 +647,7 @@ $string['mysql416required'] = 'MySQL 4.1.16 is the minimum version required for
 $string['navigationupgrade'] = 'This upgrade introduces two new navigation blocks that will replace these blocks: Administration, Courses, Activities and Participants.  If you had set any special permissions on those blocks you should check to make sure everything
 is behaving as you want it.<br /><br />
 You should also "Shift-Refresh" your browser to load the new styles, otherwise the new blocks will not work correctly.';
-$string['navhidecategories'] = 'Hide course categories';
+$string['navshowcategories'] = 'Show course categories';
 $string['navshowallcourses'] = 'Show all users courses';
 $string['nobookmarksforuser'] = 'You do not have any bookmarks.';
 $string['nochanges'] = 'No changes';
diff --git a/lib/navigationlib.php b/lib/navigationlib.php
index 206c37ee3f0..46d8349b9f8 100644
--- a/lib/navigationlib.php
+++ b/lib/navigationlib.php
@@ -2261,9 +2261,9 @@ class navbar extends navigation_node {
                     $oldaction = $child->action;
                     $child->action = null;
                 }
-                if (empty($CFG->navhidecategories) || $child->type !== navigation_node::TYPE_CATEGORY) {
-                // Now display the node
-                $output .= '<li>'.$separator.' '.$child->content(true).'</li>';
+                if ($child->type !== navigation_node::TYPE_CATEGORY || !isset($CFG->navshowcategories) || !empty($CFG->navshowcategories)) {
+                    // Now display the node
+                    $output .= '<li>'.$separator.' '.$child->content(true).'</li>';
                 }
                 if (isset($oldaction)) {
                     $child->action = $oldaction;