diff --git a/lib/sequin/consumers/consumers.ex b/lib/sequin/consumers/consumers.ex
index e99fb5df5..fe34519d6 100644
--- a/lib/sequin/consumers/consumers.ex
+++ b/lib/sequin/consumers/consumers.ex
@@ -240,34 +240,6 @@ defmodule Sequin.Consumers do
     round(Sequin.Size.mb(consumer.max_memory_mb) * 0.8)
   end
 
-  @doc """
-  Calculates the maximum memory bytes allowed for a consumer when a system-wide max is in place.
-
-  Takes into account both:
-  - The consumer's configured max_memory_mb setting
-  - The system-wide memory limit divided among all non-disabled consumers
-
-  ## Returns
-    The lower of:
-    * Consumer's max_memory_mb converted to bytes * 0.8
-    * (system_max_memory_bytes / number of non-disabled consumers) * 0.8
-  """
-  @spec max_system_memory_bytes_for_consumer(SinkConsumer.t(), non_neg_integer(), non_neg_integer()) ::
-          non_neg_integer()
-  def max_system_memory_bytes_for_consumer(%SinkConsumer{} = consumer, consumer_count, system_max_memory_bytes) do
-    consumer_max_memory_bytes = max_memory_bytes_for_consumer(consumer)
-
-    # Some tests may call this with 0 consumers actually persisted
-    consumer_count = max(consumer_count, 1)
-
-    system_per_consumer_max_memory_bytes = round(div(system_max_memory_bytes, consumer_count) * 0.8)
-
-    min(
-      consumer_max_memory_bytes,
-      system_per_consumer_max_memory_bytes
-    )
-  end
-
   def earliest_sink_consumer_inserted_at_for_account(account_id) do
     account_id
     |> SinkConsumer.where_account_id()
diff --git a/lib/sequin/runtime/slot_message_store.ex b/lib/sequin/runtime/slot_message_store.ex
index 7d86ca445..6ef82641a 100644
--- a/lib/sequin/runtime/slot_message_store.ex
+++ b/lib/sequin/runtime/slot_message_store.ex
@@ -903,15 +903,7 @@ defmodule Sequin.Runtime.SlotMessageStore do
   defp put_max_memory_bytes(%State{} = state) do
     consumer = state.consumer
 
-    max_memory_bytes =
-      if state.setting_system_max_memory_bytes do
-        # Must be self-hosted/dev. Check consumer's max_memory_mb setting
-        consumer_count = Consumers.count_non_disabled_sink_consumers()
-
-        Consumers.max_system_memory_bytes_for_consumer(consumer, consumer_count, state.setting_system_max_memory_bytes)
-      else
-        Consumers.max_memory_bytes_for_consumer(consumer)
-      end
+    max_memory_bytes = Consumers.max_memory_bytes_for_consumer(consumer)
 
     %{state | max_memory_bytes: div(max_memory_bytes, consumer.partition_count)}
   end
diff --git a/test/sequin/consumers_test.exs b/test/sequin/consumers_test.exs
index ed6060692..eec1b5cc1 100644
--- a/test/sequin/consumers_test.exs
+++ b/test/sequin/consumers_test.exs
@@ -2249,33 +2249,6 @@ defmodule Sequin.ConsumersTest do
     end
   end
 
-  describe "max_system_memory_bytes_for_consumer/3" do
-    test "returns minimum between consumer's and system's per-consumer max memory" do
-      # Set up a consumer with 1000MB max memory
-      consumer = ConsumersFactory.sink_consumer(max_memory_mb: 1000)
-
-      # Mock system having 2000MB total memory
-      system_max_bytes = Size.mb(2000)
-
-      # With single consumer, returns consumer's max_bytes since it's lower
-      expected_consumer_max_bytes = round(Size.mb(1000) * 0.8)
-      assert Consumers.max_system_memory_bytes_for_consumer(consumer, 1, system_max_bytes) == expected_consumer_max_bytes
-
-      # With 5 consumers sharing system memory
-      expected_shared_max_bytes = round(system_max_bytes / 5 * 0.8)
-
-      # Each consumer (even with different memory limits) gets equal share of system memory
-      consumers =
-        for _ <- 1..4 do
-          ConsumersFactory.sink_consumer(max_memory_mb: Enum.random(1000..10_000))
-        end
-
-      Enum.each(consumers, fn consumer ->
-        assert Consumers.max_system_memory_bytes_for_consumer(consumer, 5, system_max_bytes) == expected_shared_max_bytes
-      end)
-    end
-  end
-
   describe "where_wal_cursor_in/2" do
     test "finds events matching WAL cursors for a specific consumer" do
       # Create two consumers
diff --git a/test/sequin/slot_message_store_test.exs b/test/sequin/slot_message_store_test.exs
index 2158aa4ff..751a78513 100644
--- a/test/sequin/slot_message_store_test.exs
+++ b/test/sequin/slot_message_store_test.exs
@@ -742,18 +742,17 @@ defmodule Sequin.SlotMessageStoreTest do
 
   describe "SlotMessageStore load shedding behavior" do
     test "returns error when load_shedding_policy=pause_on_full" do
-      consumer = ConsumersFactory.insert_sink_consumer!(load_shedding_policy: :pause_on_full)
+      consumer = ConsumersFactory.insert_sink_consumer!(load_shedding_policy: :pause_on_full, max_memory_mb: 128)
 
-      start_supervised!(
-        {SlotMessageStoreSupervisor, consumer: consumer, test_pid: self(), setting_system_max_memory_bytes: 1}
-      )
+      start_supervised!({SlotMessageStoreSupervisor, consumer: consumer, test_pid: self()})
 
       # Create a message with a specific group_id to ensure consistent partitioning
       message =
         ConsumersFactory.consumer_message(
           message_kind: consumer.message_kind,
           consumer_id: consumer.id,
-          group_id: "test-group"
+          group_id: "test-group",
+          payload_size_bytes: 130 * 1000 * 1000
         )
 
       # Put message in store