nginx not using root from location

[reaper]

Hello. I'm obviously missing something but I'm not quite sure what.

Here's one of my vhosts.

server {
  listen       80;
  server_name  test.local;

  access_log  /var/log/nginx/access.log;

  root   /data/www/htdocs/web;

  location / {
    index  index.php;
  }

  location /testlocation {
    index index.html
    root /data/www/htdocs/test;
  }
}

When I try to get index.html from /testlocation I always get 404 with
message in errorlog that file is missing in /data/www/htdocs/web. Why?

Posted at Nginx Forum: https://forum.nginx.org/read.php?2,268258,268258#msg-268258