diff --git a/docs/spec/spec.md b/docs/spec/spec.md
index 49580325ea76..e42c9740f682 100644
--- a/docs/spec/spec.md
+++ b/docs/spec/spec.md
@@ -52,7 +52,7 @@ metadata:
   name: my-service
   namespace: default
   labels:
-    knative.dev/type: ...  # +optional convention: function|app
+    knative.dev/service: ...  # name of the Service automatically filled in   
 
   # system generated meta
   uid: ...
@@ -113,7 +113,9 @@ kind: Configuration
 metadata:
   name: my-service
   namespace: default
-
+  labels:
+    knative.dev/service: ...  # name of the Service automatically filled in
+    knative.dev/route: ...  # name of the Route automatically filled in
   # system generated meta
   uid: ...
   resourceVersion: ...  # used for optimistic concurrency control
@@ -222,10 +224,8 @@ metadata:
   name: myservice-a1e34  # system generated
   namespace: default
   labels:
-    knative.dev/configuration: ...  # to list configurations/revisions by service
-    knative.dev/type: "function"  # convention, one of "function" or "app"
-    knative.dev/revision: ... # generated revision name
-    knative.dev/revisionUID: ... # generated revision UID
+    knative.dev/configuration: ...  # name of the Configuration automatically filled in 
+    knative.dev/service: ...  # name of the Service automatically filled in
   annotations:
     knative.dev/configurationGeneration: ...  # generation of configuration that created this Revision
   # system generated meta
diff --git a/test/conformance/labels_test.go b/test/conformance/labels_test.go
new file mode 100644
index 000000000000..15fecea318de
--- /dev/null
+++ b/test/conformance/labels_test.go
@@ -0,0 +1,100 @@
+// +build e2e
+
+/*
+Copyright 2018 The Knative Authors
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+package conformance
+
+import (
+	"testing"
+
+	"github.com/knative/pkg/test/logging"
+	serviceresourcenames "github.com/knative/serving/pkg/reconciler/v1alpha1/service/resources/names"
+	"github.com/knative/serving/test"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+)
+
+func TestLabelsPropagation(t *testing.T) {
+	clients := setup(t)
+
+	// Add test case specific name to its own logger.
+	logger := logging.GetContextLogger("TestLabelsPropagation")
+
+	names := test.ResourceNames{Service: test.AppendRandomString("pizzaplanet-service", logger)}
+	var imagePath = test.ImagePath("helloworld")
+
+	defer tearDown(clients, names)
+	test.CleanupOnInterrupt(func() { tearDown(clients, names) }, logger)
+
+	logger.Info("Creating a new Service")
+	svc, err := test.CreateLatestService(logger, clients, names, imagePath)
+	if err != nil {
+		t.Fatalf("Failed to create Service: %v", err)
+	}
+	names.Route = serviceresourcenames.Route(svc)
+	names.Config = serviceresourcenames.Configuration(svc)
+
+	logger.Info("The Service will be updated with the name of the Revision once it is created")
+	names.Revision, err = waitForServiceLatestCreatedRevision(clients, names)
+	if err != nil {
+		t.Fatalf("Service %s was not updated with the new revision: %v", names.Service, err)
+	}
+
+	logger.Info("When the Service reports as Ready, everything should be ready.")
+	if err := test.WaitForServiceState(clients.ServingClient, names.Service, test.IsServiceReady, "ServiceIsReady"); err != nil {
+		t.Fatalf("The Service %s was not marked as Ready to serve traffic to Revision %s: %v", names.Service, names.Revision, err)
+	}
+
+	// Now that the Serive is ready, we can validate the Labels on the Revision, Configuration
+	// and Route objects
+	// see spec here: https://github.com/knative/serving/blob/master/docs/spec/spec.md#revision
+
+	logger.Info("Validate Labels on Revision Object")
+	revision, err := clients.ServingClient.Revisions.Get(names.Revision, metav1.GetOptions{})
+	if err != nil {
+		t.Errorf("Error fetching Revision %s: %v", names.Revision, err)
+	}
+
+	if revision.Labels["serving.knative.dev/configuration"] != names.Config {
+		t.Errorf("Expect Confguration name in Revision label %q but got %q ", names.Config, revision.Labels["serving.knative.dev/configuration"])
+	}
+	if revision.Labels["serving.knative.dev/service"] != names.Service {
+		t.Errorf("Expect Service name in Revision label %q but got %q ", names.Service, revision.Labels["serving.knative.dev/service"])
+	}
+
+	logger.Info("Validate Labels on Configuration Object")
+	config, err := clients.ServingClient.Configs.Get(names.Config, metav1.GetOptions{})
+	if err != nil {
+		t.Errorf("Error fetching Configuration %s: %v", names.Config, err)
+	}
+
+	if config.Labels["serving.knative.dev/service"] != names.Service {
+		t.Errorf("Expect Service name in Configuration label %q but got %q ", names.Service, config.Labels["serving.knative.dev/service"])
+	}
+	if config.Labels["serving.knative.dev/route"] != names.Route {
+		t.Errorf("Expect Route name in Configuration label %q but got %q ", names.Route, config.Labels["serving.knative.dev/route"])
+	}
+
+	logger.Info("Validate Labels on Route Object")
+	route, err := clients.ServingClient.Routes.Get(names.Route, metav1.GetOptions{})
+	if err != nil {
+		t.Errorf("Error fetching Route %s: %v", names.Route, err)
+	}
+
+	if route.Labels["serving.knative.dev/service"] != names.Service {
+		t.Errorf("Expect Service name in Route label %q but got %q ", names.Service, route.Labels["serving.knative.dev/service"])
+	}
+}