diff --git a/sway/commands.c b/sway/commands.c
index 548393223..42d6b173e 100644
--- a/sway/commands.c
+++ b/sway/commands.c
@@ -307,9 +307,9 @@ static bool cmd_gaps(struct sway_config *config, int argc, char **argv) {
 			errno = 0;
 			return false;
 		}
-		if (strcmp(argv[0], "inner") == 0) {
+		if (strcasecmp(argv[0], "inner") == 0) {
 			config->gaps_inner = amount;
-		} else if (strcmp(argv[0], "outer") == 0) {
+		} else if (strcasecmp(argv[0], "outer") == 0) {
 			config->gaps_outer = amount;
 		} else {
 			return false;
diff --git a/sway/container.c b/sway/container.c
index 06111674b..af9bcd738 100644
--- a/sway/container.c
+++ b/sway/container.c
@@ -63,12 +63,11 @@ swayc_t *new_output(wlc_handle handle) {
 	sway_log(L_DEBUG, "Added output %lu:%s", handle, name);
 
 	swayc_t *output = new_swayc(C_OUTPUT);
-	output->x = (config->gaps_outer + config->gaps_inner) / 2;
-	output->y = (config->gaps_outer + config->gaps_inner) / 2;
-	output->width = size->w - (config->gaps_outer + config->gaps_inner);
-	output->height = size->h - (config->gaps_outer + config->gaps_inner);
+	output->width = size->w;
+	output->height = size->h;
 	output->handle = handle;
 	output->name = name ? strdup(name) : NULL;
+	output->gaps = config->gaps_outer;
 
 	add_child(&root_container, output);
 
@@ -176,7 +175,6 @@ swayc_t *new_view(swayc_t *sibling, wlc_handle handle) {
 	view->desired_width = -1;
 	view->desired_height = -1;
 
-	// TODO: properly set this
 	view->is_floating = false;
 
 	if (sibling->type == C_WORKSPACE) {
diff --git a/sway/handlers.c b/sway/handlers.c
index 1fe2dc27f..9b96a5cf6 100644
--- a/sway/handlers.c
+++ b/sway/handlers.c
@@ -168,7 +168,11 @@ static bool handle_view_created(wlc_handle handle) {
 	}
 	if (newview) {
 		set_focused_container(newview);
-		arrange_windows(newview->parent, -1, -1);
+		swayc_t *output = newview->parent;
+		while (output && output->type != C_OUTPUT) {
+			output = output->parent;
+		}
+		arrange_windows(output, -1, -1);
 	}
 	return true;
 }
diff --git a/sway/layout.c b/sway/layout.c
index 02c92026a..7cb9186ac 100644
--- a/sway/layout.c
+++ b/sway/layout.c
@@ -4,6 +4,7 @@
 #include "layout.h"
 #include "log.h"
 #include "list.h"
+#include "config.h"
 #include "container.h"
 #include "workspace.h"
 #include "focus.h"
@@ -123,11 +124,11 @@ void arrange_windows(swayc_t *container, int width, int height) {
 		// y -= container->y;
 		for (i = 0; i < container->children->length; ++i) {
 			swayc_t *child = container->children->items[i];
-			sway_log(L_DEBUG, "Arranging workspace #%d", i);
-			child->x = x;
-			child->y = y;
-			child->width = width;
-			child->height = height;
+			child->x = x + container->gaps;
+			child->y = y + container->gaps;
+			child->width = width - container->gaps * 2;
+			child->height = height - container->gaps * 2;
+			sway_log(L_DEBUG, "Arranging workspace #%d at %d, %d", i, child->x, child->y);
 			arrange_windows(child, -1, -1);
 		}
 		return;
@@ -135,12 +136,12 @@ void arrange_windows(swayc_t *container, int width, int height) {
 		{
 			struct wlc_geometry geometry = {
 				.origin = {
-					.x = container->x + container->gaps / 2,
-					.y = container->y + container->gaps / 2
+					.x = container->x + container->gaps,
+					.y = container->y + container->gaps
 				},
 				.size = {
-					.w = width - container->gaps,
-					.h = height - container->gaps
+					.w = width - container->gaps * 2,
+					.h = height - container->gaps * 2
 				}
 			};
 			if (wlc_view_get_state(container->handle) & WLC_BIT_FULLSCREEN) {
@@ -148,10 +149,10 @@ void arrange_windows(swayc_t *container, int width, int height) {
 				while (parent->type != C_OUTPUT) {
 					parent = parent->parent;
 				}
-				geometry.origin.x = container->gaps / 2;
-				geometry.origin.y = container->gaps / 2;
-				geometry.size.w = parent->width - container->gaps;
-				geometry.size.h = parent->height - container->gaps;
+				geometry.origin.x = 0;
+				geometry.origin.y = 0;
+				geometry.size.w = parent->width;
+				geometry.size.h = parent->height;
 				wlc_view_set_geometry(container->handle, 0, &geometry);
 				wlc_view_bring_to_front(container->handle);
 			} else {