diff --git a/src/htmlContent/main-view.html b/src/htmlContent/main-view.html
index af224ce0287..33c45764fa6 100644
--- a/src/htmlContent/main-view.html
+++ b/src/htmlContent/main-view.html
@@ -40,24 +40,19 @@
 
     <!-- Main UI: horizontal set of sidebar, main content vertical stack, and vertical toolbar -->
     <div class="main-view">
-        <div id="sidebar" class="sidebar quiet-scrollbars horz-resizable right-resizer collapsible" data-minsize="0" data-forceleft=".content">
-            <!-- Left-hand 'Project panel' -->
-            <div id="projects" class="panel">
-                <div id="project-header">{{WORKING_FILES}}</div>
-                <div id="file-section">
-                    <div id="open-files-container">
-                        <!-- This will contain a dynamically generated <ul> at runtime -->
-                        <ul>
-                        </ul>
-                    </div>
-                
-                    <div id="project-files-header">
-                        <span id="project-title" class="title"></span>
-                    </div>
-                    <div id="project-files-container">
-                    <!-- This will contain a dynamically generated <ul> hierarchy at runtime -->
-                    </div>
-                </div>
+        <div id="sidebar" class="sidebar panel quiet-scrollbars horz-resizable right-resizer collapsible" data-minsize="0" data-forceleft=".content">
+            <div id="working-set-header">{{WORKING_FILES}}</div>
+            <div id="open-files-container">
+                <!-- This will contain a dynamically generated <ul> at runtime -->
+                <ul>
+                </ul>
+            </div>
+        
+            <div id="project-files-header">
+                <span id="project-title" class="title"></span>
+            </div>
+            <div id="project-files-container">
+                <!-- This will contain a dynamically generated <ul> hierarchy at runtime -->
             </div>
         </div>
         
diff --git a/src/project/WorkingSetView.js b/src/project/WorkingSetView.js
index 560a485410b..d11af5104b6 100644
--- a/src/project/WorkingSetView.js
+++ b/src/project/WorkingSetView.js
@@ -46,6 +46,7 @@ define(function (require, exports, module) {
      *  Use listItem.data(_FILE_KEY) to get the document reference
      */
     var _FILE_KEY = "file",
+        $workingSetHeader,
         $openFilesContainer,
         $openFilesList;
     
@@ -82,8 +83,10 @@ define(function (require, exports, module) {
     function _redraw() {
         if (DocumentManager.getWorkingSet().length === 0) {
             $openFilesContainer.hide();
+            $workingSetHeader.hide();
         } else {
             $openFilesContainer.show();
+            $workingSetHeader.show();
         }
         _adjustForScrollbars();
         _fireSelectionChanged();
@@ -555,6 +558,7 @@ define(function (require, exports, module) {
     function create(element) {
         // Init DOM element
         $openFilesContainer = element;
+        $workingSetHeader = $("#working-set-header");
         $openFilesList = $openFilesContainer.find("ul");
         
         // Register listeners
diff --git a/src/styles/brackets.less b/src/styles/brackets.less
index 365edc3bd74..4bce0bb44cd 100644
--- a/src/styles/brackets.less
+++ b/src/styles/brackets.less
@@ -332,8 +332,7 @@ a, img {
 
 /* Project panel */
 
-#project-header {
-    /* Fixed height blank space for now. The mockups have the window "stoplights" or a logo here. */
+#working-set-header {
     height: 19px;
     padding: 10px 0 9px 12px;
     background: #3C3F41;
@@ -341,6 +340,7 @@ a, img {
 }
 
 #sidebar {
+    position: relative;
     white-space: nowrap;
 }
 
@@ -351,12 +351,6 @@ a, img {
     z-index: @z-index-brackets-sidebar-resizer;
     opacity: 0;
     cursor: col-resize;
-} 
-
-#file-section {
-    .vbox;
-    .box-flex(1);
-    position: relative;
 }
     
 #project-files-header {
diff --git a/src/utils/ViewUtils.js b/src/utils/ViewUtils.js
index 12c5d5be5c0..5026d32f1f0 100644
--- a/src/utils/ViewUtils.js
+++ b/src/utils/ViewUtils.js
@@ -159,7 +159,7 @@ define(function (require, exports, module) {
      * div to align a single selected list item from a ul list element.
      *
      * Assumptions:
-     * - scrollElement is a child of the #file-section div
+     * - scrollerElement is a child of the #sidebar div
      * - ul list element fires a "selectionChanged" event after the
      *   selectedClassName is assigned to a new list item
      *