diff --git a/packages/client/src/components/Component.svelte b/packages/client/src/components/Component.svelte
index ba5ca95f5a..0f60c7f707 100644
--- a/packages/client/src/components/Component.svelte
+++ b/packages/client/src/components/Component.svelte
@@ -28,7 +28,6 @@
   export let isScreen = false
   export let isBlock = false
   export let parent = null
-  export let index = 0
 
   // Get parent contexts
   const context = getContext("context")
@@ -463,14 +462,13 @@
     data-name={name}
     data-icon={icon}
     data-parent={parent}
-    data-index={index}
   >
     <svelte:component this={constructor} bind:this={ref} {...initialSettings}>
       {#if hasMissingRequiredSettings}
         <ComponentPlaceholder />
       {:else if children.length}
-        {#each children as child, idx (child._id)}
-          <svelte:self instance={child} parent={id} index={idx} />
+        {#each children as child (child._id)}
+          <svelte:self instance={child} parent={id} />
         {/each}
       {:else if emptyState}
         {#if isScreen}
diff --git a/packages/client/src/components/preview/DNDHandler.svelte b/packages/client/src/components/preview/DNDHandler.svelte
index 37bd9d3402..50ea287a9b 100644
--- a/packages/client/src/components/preview/DNDHandler.svelte
+++ b/packages/client/src/components/preview/DNDHandler.svelte
@@ -9,32 +9,14 @@
 
 <script>
   import { onMount, onDestroy } from "svelte"
-  import { get } from "svelte/store"
   import IndicatorSet from "./IndicatorSet.svelte"
-  import DNDPositionIndicator from "./DNDPositionIndicator.svelte"
-  import { builderStore, componentStore } from "stores"
+  import { builderStore } from "stores"
   import PlaceholderOverlay from "./PlaceholderOverlay.svelte"
 
   let dragInfo
   let dropInfo
   let placeholderInfo
 
-  const getEdges = (bounds, mousePoint) => {
-    const { width, height, top, left } = bounds
-    return {
-      [Sides.Top]: [mousePoint[0], top],
-      [Sides.Right]: [left + width, mousePoint[1]],
-      [Sides.Bottom]: [mousePoint[0], top + height],
-      [Sides.Left]: [left, mousePoint[1]],
-    }
-  }
-
-  const calculatePointDelta = (point1, point2) => {
-    const deltaX = Math.abs(point1[0] - point2[0])
-    const deltaY = Math.abs(point1[1] - point2[1])
-    return Math.sqrt(deltaX * deltaX + deltaY * deltaY)
-  }
-
   const getDOMNode = id => {
     const component = document.getElementsByClassName(id)[0]
     return [...component.children][0]
@@ -93,83 +75,16 @@
     }
     e.preventDefault()
 
-    let { id, parent, node, index, acceptsChildren, empty } = dropInfo
+    let { id, parent, node, acceptsChildren, empty } = dropInfo
     const mouseY = e.clientY
     const mouseX = e.clientX
 
-    // if (!dropInfo.bounds) {
-    // } else {
-    //   dropInfo.bounds.top = node.offsetTop
-    //   dropInfo.bounds.left = node.offsetLeft
-    //   console.log(node.offsetTop)
-    // }
-
-    // console.log("calc")
-    // dropInfo.bounds = bounds
-
-    // If we're over something that does not accept children then we must go
-    // above or below this component
+    // If we're over something that does not accept children then we go up a
+    // level and consider the mouse position relative to the parent
     if (!acceptsChildren) {
       id = parent
-      acceptsChildren = true
       empty = false
       node = getDOMNode(parent)
-      //
-      //
-      // const bounds = node.getBoundingClientRect()
-      // const { top, left, height, width } = bounds
-      // const snapFactor = 0.5
-      // const snapLimitV = Math.min(40, height * snapFactor)
-      // const snapLimitH = Math.min(40, width * snapFactor)
-      //
-      // // Determine all sides we are within snap range of
-      // let sides = []
-      // if (mouseY <= top + snapLimitV) {
-      //   sides.push(Sides.Top)
-      // } else if (mouseY >= top + height - snapLimitV) {
-      //   sides.push(Sides.Bottom)
-      // }
-      // if (mouseX < left + snapLimitH) {
-      //   sides.push(Sides.Left)
-      // } else if (mouseX > left + width - snapLimitH) {
-      //   sides.push(Sides.Right)
-      // }
-      //
-      // // If we're somehow not in range of any side, do nothing
-      // if (!sides.length) {
-      //   console.log("no sides match")
-      //   return
-      // }
-      //
-      // let side
-      // if (sides.length === 1) {
-      //   // When one edge matches, use that edge
-      //   side = sides[0]
-      // } else {
-      //   // When 2 edges match, work out which is closer
-      //   const mousePoint = [mouseX, mouseY]
-      //   const edges = getEdges(bounds, mousePoint)
-      //   const edge1 = edges[sides[0]]
-      //   const delta1 = calculatePointDelta(mousePoint, edge1)
-      //   const edge2 = edges[sides[1]]
-      //   const delta2 = calculatePointDelta(mousePoint, edge2)
-      //   side = delta1 < delta2 ? sides[0] : sides[1]
-      // }
-      // if ([Sides.Top, Sides.Left].includes(side)) {
-      //   // Before, so use the current index
-      //   console.log("before")
-      //   placeholderInfo = {
-      //     parent: parent,
-      //     index: index,
-      //   }
-      // } else {
-      //   console.log("after")
-      //   // After, so use the next index
-      //   placeholderInfo = {
-      //     parent: parent,
-      //     index: index + 1,
-      //   }
-      // }
     }
 
     // We're now hovering over something which does accept children.
@@ -184,72 +99,56 @@
 
     // We're now hovering over something which accepts children and is not
     // empty, so we need to work out where to inside the placeholder
-
-    // Check we're actually inside
-    // if (
-    //   mouseY < top ||
-    //   mouseY > top + height ||
-    //   mouseX < left ||
-    //   mouseX > left + width
-    // ) {
-    //   console.log("not inside")
-    //   return
-    // }
-
-    // Get all DOM nodes of children of this component.
-    // Filter out the placeholder as we don't want it to affect the index of
-    // the new placeholder.
-    const children = [...(node.children || [])]
-      .filter(x => !x.classList.contains("placeholder"))
-      .map(x => x.children[0])
-
-    // Calculate centers of each child
-    const centers = children.map(child => {
-      const childBounds = child.getBoundingClientRect()
-      return [
-        childBounds.left + childBounds.width / 2,
-        childBounds.top + childBounds.height / 2,
-      ]
+    // Calculate the coordinates of various locations on each child.
+    // We include the placeholder component in this as it guarantees we have
+    // at least 2 child components, and therefore guarantee there is no
+    // ambiguity in the layout.
+    const childCoords = [...(node.children || [])].map(node => {
+      const bounds = node.children[0].getBoundingClientRect()
+      return {
+        placeholder: node.classList.contains("placeholder"),
+        centerX: bounds.left + bounds.width / 2,
+        centerY: bounds.top + bounds.height / 2,
+        left: bounds.left,
+        right: bounds.right,
+        top: bounds.top,
+        bottom: bounds.bottom,
+      }
     })
 
-    // Calculate variance of X and Y centers to determine layout
-    const xCoords = centers.map(x => x[0])
-    const yCoords = centers.map(x => x[1])
-    const xVariance = variance(xCoords)
-    const yVariance = variance(yCoords)
-    const column = xVariance <= yVariance
+    // Calculate the variance between each set of positions on the children
+    const variances = Object.keys(childCoords[0]).map(key => {
+      const coords = childCoords.map(x => x[key])
+      return {
+        variance: variance(coords),
+        side: key,
+      }
+    })
+
+    // Sort by variance. The lowest variance position indicates whether we are
+    // in a row or column layout
+    variances.sort((a, b) => {
+      return a.variance < b.variance ? -1 : 1
+    })
+    const column = ["centerX", "left", "right"].includes(variances[0].side)
     console.log(column ? "COL" : "ROW")
 
-    // Now that we know the layout, find which children in this axis we are
-    // between
-    const childPositions = column ? yCoords : xCoords
+    // Find the correct index to drop in based on the midpoints of each child
+    // in their primary axis.
+    // Here we filter out the placeholder component as we do not want it to
+    // affect the determination of the new index.
+    const childPositions = column
+      ? childCoords.filter(x => !x.placeholder).map(x => x.centerY)
+      : childCoords.filter(x => !x.placeholder).map(x => x.centerX)
     const mousePosition = column ? mouseY : mouseX
-
     let idx = 0
-    while (idx < children.length && childPositions[idx] < mousePosition) {
+    while (idx < childPositions.length && childPositions[idx] < mousePosition) {
       idx++
     }
-
     placeholderInfo = {
       parent: id,
       index: idx,
     }
-    // // When no edges match, drop inside if possible
-    // if (!sides.length) {
-    //   if (empty) {
-    //     console.log("allowed inside")
-    //     return {
-    //       ...dropInfo,
-    //       mode: "inside",
-    //       side: null,
-    //       bounds,
-    //     }
-    //   } else {
-    //     // No sides but also not empty?
-    //     console.log("no sides match, but not empty")
-    //     return null
-    //   }
-    // }
   }
 
   // Callback when on top of a component
@@ -268,12 +167,6 @@
       return
     }
 
-    // Do nothing if this is the placeholder
-    // if (element.dataset.id === "placeholder") {
-    //   console.log("placeholder")
-    //   return
-    // }
-
     const component = e.target.closest(".component:not(.block)")
     if (
       component &&
@@ -285,38 +178,17 @@
         return
       }
 
-      // Ensure the dragging flag is always set.
-      // There's a bit of a race condition between the app reinitialisation
-      // after selecting the DND component and setting this the first time
-      // if (!get(builderStore).isDragging) {
-      //   builderStore.actions.setDragging(true)
-      // }
-
       // Precompute and store some info to avoid recalculating everything in
       // dragOver
       dropInfo = {
         id: component.dataset.id,
         parent: component.dataset.parent,
-        index: parseInt(component.dataset.index),
         node: getDOMNode(component.dataset.id),
         empty: component.classList.contains("empty"),
         acceptsChildren: component.classList.contains("parent"),
       }
 
-      // console.log(
-      //   "enter",
-      //   component.dataset.name,
-      //   "id",
-      //   dropInfo.id,
-      //   "parent",
-      //   dropInfo.parent,
-      //   "index",
-      //   dropInfo.index
-      // )
-
       handleEvent(e)
-    } else {
-      // dropInfo = null
     }
   }
 
@@ -380,10 +252,3 @@
 {#if $builderStore.isDragging}
   <PlaceholderOverlay />
 {/if}
-
-<!--<DNDPositionIndicator-->
-<!--  {dropInfo}-->
-<!--  color="var(&#45;&#45;spectrum-global-color-static-green-500)"-->
-<!--  zIndex="940"-->
-<!--  transition-->
-<!--/>-->
diff --git a/packages/client/src/components/preview/DNDPositionIndicator.svelte b/packages/client/src/components/preview/DNDPositionIndicator.svelte
deleted file mode 100644
index 4af4674126..0000000000
--- a/packages/client/src/components/preview/DNDPositionIndicator.svelte
+++ /dev/null
@@ -1,66 +0,0 @@
-<script>
-  import Indicator from "./Indicator.svelte"
-  import { Sides } from "./DNDHandler.svelte"
-
-  export let dropInfo
-  export let zIndex
-  export let color
-  export let transition
-
-  $: dimensions = getDimensions(dropInfo)
-  $: prefix = dropInfo?.mode === "above" ? "Before" : "After"
-  $: text = `${prefix} ${dropInfo?.name}`
-  $: icon = dropInfo?.icon
-  $: renderKey = `${dropInfo?.target}-${dropInfo?.side}`
-
-  const getDimensions = info => {
-    const { bounds, side } = info ?? {}
-    if (!bounds || !side) {
-      return null
-    }
-
-    // Get preview offset
-    const root = document.getElementById("clip-root")
-    const rootBounds = root.getBoundingClientRect()
-
-    // Subtract preview offset from bounds
-    let { left, top, width, height } = bounds
-    left -= rootBounds.left
-    top -= rootBounds.top
-
-    // Determine position
-    if (side === Sides.Top || side === Sides.Bottom) {
-      return {
-        top: side === Sides.Top ? top - 4 : top + height,
-        left: left - 2,
-        width: width + 4,
-        height: 0,
-      }
-    } else {
-      return {
-        top: top - 2,
-        left: side === Sides.Left ? left - 4 : left + width,
-        width: 0,
-        height: height + 4,
-      }
-    }
-  }
-</script>
-
-{#key renderKey}
-  {#if dimensions && dropInfo?.mode !== "inside"}
-    <Indicator
-      left={Math.round(dimensions.left)}
-      top={Math.round(dimensions.top)}
-      width={dimensions.width}
-      height={dimensions.height}
-      {text}
-      {icon}
-      {zIndex}
-      {color}
-      {transition}
-      alignRight={dropInfo?.side === Sides.Right}
-      line
-    />
-  {/if}
-{/key}