diff --git a/addon/models/resource.js b/addon/models/resource.js
index 73f97bd..5bb66ed 100644
--- a/addon/models/resource.js
+++ b/addon/models/resource.js
@@ -103,7 +103,7 @@ const Resource = Ember.Object.extend(ResourceOperationsMixin, {
   _attributes: null,
 
   /**
-    Flag for new instance, e.g. not peristed
+    Flag for new instance, e.g. not persisted
 
     @property isNew
     @type Boolean
@@ -413,21 +413,24 @@ Resource.reopenClass({
       `attributes`, `links` and `relationships`
   */
   create(properties) {
+    properties = properties || {};
     const prototype = {};
     const attrs = Ember.String.w('_attributes attributes links meta relationships');
     for (let i = 0; i < attrs.length; i++) {
       prototype[attrs[i]] = {};
     }
 
+    // JSONAPI ids MUST be strings.
+    // Without an id we default isNew to true (unless otherwise specified)
+    if (properties.hasOwnProperty('id')) {
+      properties.id = properties.id.toString();
+    } else if (typeof properties.isNew === 'undefined') {
+      properties.isNew = true;
+    }
+
     const instance = this._super(prototype);
-    if (properties) {
-      if (properties.hasOwnProperty('id')) {
-        // JSONAPI ids MUST be strings.
-        properties.id = properties.id.toString();
-      }
+    instance.setProperties(properties);
 
-      instance.setProperties(properties);
-    }
     let type = singularize(instance.get('type'));
     let msg = (type) ? Ember.String.capitalize(type) : 'Resource';
     let factory = 'model:' + type;
diff --git a/blueprints/jsonapi-model/files/__root__/__path__/__name__.js b/blueprints/jsonapi-model/files/__root__/__path__/__name__.js
index fa45305..cc5d41a 100644
--- a/blueprints/jsonapi-model/files/__root__/__path__/__name__.js
+++ b/blueprints/jsonapi-model/files/__root__/__path__/__name__.js
@@ -13,7 +13,6 @@ let <%= classifiedModuleName %> = Resource.extend({
 
   getDefaults() {
     return {
-      isNew: true,
       attributes: {}
     };
   }
diff --git a/tests/unit/adapters/application-test.js b/tests/unit/adapters/application-test.js
index 63c1852..a95c333 100644
--- a/tests/unit/adapters/application-test.js
+++ b/tests/unit/adapters/application-test.js
@@ -276,7 +276,7 @@ test('#findRelated is called with optional type for the resource', function (ass
 });
 
 test('#createResource', function(assert) {
-  assert.expect(6);
+  assert.expect(8);
   let done = assert.async();
 
   const adapter = this.subject({type: 'posts', url: '/posts'});
@@ -287,6 +287,7 @@ test('#createResource', function(assert) {
   let newResource = postFactory.create(data);
 
   assert.equal(newResource.get('id'), null, 'new resource does not have an id');
+  assert.equal(newResource.get('isNew'), true, 'new resource isNew');
 
   adapter.serializer = { serialize: function () { return data; } };
   let persistedResource = postFactory.create(postMock.data);
@@ -301,6 +302,7 @@ test('#createResource', function(assert) {
       '#fetch called with url and options with data'
     );
     assert.equal(newResource.get('id'), postMock.data.id, 'new resource now has an id');
+    assert.equal(newResource.get('isNew'), false, 'new resource no longer isNew');
     assert.deepEqual(resp, newResource, 'response is the same resource instance sent as arg');
     done();
   });
diff --git a/tests/unit/models/resource-test.js b/tests/unit/models/resource-test.js
index d6ba535..3f67c1d 100644
--- a/tests/unit/models/resource-test.js
+++ b/tests/unit/models/resource-test.js
@@ -27,12 +27,25 @@ moduleFor('model:resource', 'Unit | Model | resource', {
   }
 });
 
-test('it creates an instance, default flag for isNew is false', function(assert) {
+test('it creates an instance', function (assert) {
   let resource = this.subject();
   assert.ok(!!resource);
-  assert.equal(resource.get('isNew'), false, 'default value for isNew flag set to `false`');
 });
+test('creating an instance WITHOUT id has flag for isNew set to true', function(assert) {
+  let resource = this.subject();
+  assert.equal(resource.get('isNew'), true, 'without id, default value for isNew flag set to `true`');
+});
+test('creating an instance WITH id has flag for isNew set to false', function(assert) {
+  let resource = this.subject({id: 1});
+  assert.equal(resource.get('isNew'), false, 'without id, default value for isNew flag set to `false`');
+});
+test('creating an instance allows isNew regardless of id/defaults', function (assert) {
+  let notIsNewResource = this.subject({isNew: false});
+  let yesIsNewResource = this.subject({id: 1, isNew: true});
 
+  assert.equal(notIsNewResource.get('isNew'), false, 'without id, isNew property is honored');
+  assert.equal(yesIsNewResource.get('isNew'), true, 'with id, isNew property is honored');
+});
 test('in creating instances, ids are cast to string', function (assert) {
   let id = 1;
   let post = this.container.lookup('model:post').create({
@@ -118,7 +131,8 @@ test('attr() helper creates a computed property using a unique (protected) attri
 
 test('#changedAttributes', function(assert) {
   let post = this.container.lookup('model:post').create({
-    attributes: {id: '1', title: 'Wyatt Earp', excerpt: 'Was a gambler.'}
+    id: 1,
+    attributes: {title: 'Wyatt Earp', excerpt: 'Was a gambler.'}
   });
   assert.equal(post.get('excerpt'), 'Was a gambler.', 'excerpt is set "Was a gambler."');
   post.set('excerpt', 'Became a deputy.');
@@ -131,7 +145,8 @@ test('#changedAttributes', function(assert) {
 
 test('#previousAttributes', function(assert) {
   let post = this.container.lookup('model:post').create({
-    id: '1', attributes: {title: 'Wyatt Earp', excerpt: 'Was a gambler.'}
+    id: '1',
+    attributes: {title: 'Wyatt Earp', excerpt: 'Was a gambler.'}
   });
   assert.equal(post.get('excerpt'), 'Was a gambler.', 'excerpt is set to "Was a gambler."');
   post.set('excerpt', 'Became a deputy.');
@@ -144,7 +159,8 @@ test('#previousAttributes', function(assert) {
 
 test('#rollback resets attributes based on #previousAttributes', function(assert) {
   let post = this.container.lookup('model:post').create({
-    id: '1', attributes: {title: 'Wyatt Earp', excerpt: 'Was a gambler.'}
+    id: '1',
+    attributes: {title: 'Wyatt Earp', excerpt: 'Was a gambler.'}
   });
   assert.equal(post.get('excerpt'), 'Was a gambler.', 'excerpt is set to "Was a gambler."');
   post.set('excerpt', 'Became a deputy.');