diff --git a/core/src/com/cloud/host/HostVO.java b/core/src/com/cloud/host/HostVO.java
index c6331af3796..16961299d04 100644
--- a/core/src/com/cloud/host/HostVO.java
+++ b/core/src/com/cloud/host/HostVO.java
@@ -383,7 +383,8 @@ public class HostVO implements Host {
 	    this(id, name, type, privateIpAddress, privateNetmask, privateMacAddress, publicIpAddress, publicNetmask, publicMacAddress, storageIpAddress, storageNetmask, storageMacAddress, guid, status, version, iqn, disconnectedOn, dcId, podId, serverId, ping, null, null, null, 0, null);
 	    this.parent = parent;
 	    this.totalSize = totalSize;
-	    this.fsType = fsType;
+	    this.fsType = fsType;
+	    this.hostAllocationState = Host.HostAllocationState.Enabled;
 	}
 	
     public HostVO(long id,
@@ -440,7 +441,8 @@ public class HostVO implements Host {
         this.caps = caps;
         this.disconnectedOn = disconnectedOn;
         this.dom0MinMemory = dom0MinMemory;
-        this.storageUrl = url;
+        this.storageUrl = url;
+        this.hostAllocationState = Host.HostAllocationState.Enabled;
     }
     
     public void setPodId(Long podId) {
diff --git a/server/src/com/cloud/agent/manager/AgentManagerImpl.java b/server/src/com/cloud/agent/manager/AgentManagerImpl.java
index e073e131356..b17cf37a7e5 100755
--- a/server/src/com/cloud/agent/manager/AgentManagerImpl.java
+++ b/server/src/com/cloud/agent/manager/AgentManagerImpl.java
@@ -661,7 +661,7 @@ public class AgentManagerImpl implements AgentManager, HandlerFactory,
 			}
 		}
 		if (allocationState == null) {
-			allocationState = Grouping.AllocationState.Disabled;
+			allocationState = Grouping.AllocationState.Enabled;
 		}
 		
 		Discoverer discoverer = getMatchingDiscover(hypervisorType);
@@ -818,7 +818,7 @@ public class AgentManagerImpl implements AgentManager, HandlerFactory,
 		List<String> hostTags = cmd.getHostTags();
 		String allocationState = cmd.getAllocationState();
 		if (allocationState == null) {
-			allocationState = Host.HostAllocationState.Disabled.toString();
+			allocationState = Host.HostAllocationState.Enabled.toString();
 		}
 		
 		return discoverHostsFull(dcId, podId, clusterId, clusterName, url,
@@ -2549,8 +2549,11 @@ public class AgentManagerImpl implements AgentManager, HandlerFactory,
 					server.setHostAllocationState(hostAllocationState);
 				}
 			}catch(IllegalArgumentException ex){
-				s_logger.error("Unable to resolve " + allocationState + " to a valid supported host allocation State");
+				s_logger.error("Unable to resolve " + allocationState + " to a valid supported host allocation State, defaulting to 'Enabled'");
+				server.setHostAllocationState(Host.HostAllocationState.Enabled);
 			}
+		}else{
+			server.setHostAllocationState(Host.HostAllocationState.Enabled);
 		}
 		
 		updateHost(server, startup, type, _nodeId);
diff --git a/server/src/com/cloud/configuration/ConfigurationManagerImpl.java b/server/src/com/cloud/configuration/ConfigurationManagerImpl.java
index af126abcd68..6802d3a1896 100755
--- a/server/src/com/cloud/configuration/ConfigurationManagerImpl.java
+++ b/server/src/com/cloud/configuration/ConfigurationManagerImpl.java
@@ -735,7 +735,7 @@ public class ConfigurationManagerImpl implements ConfigurationManager, Configura
         String allocationState = cmd.getAllocationState();
         
         if(allocationState == null){
-        	allocationState = Grouping.AllocationState.Disabled.toString();
+        	allocationState = Grouping.AllocationState.Enabled.toString();
         }
         return createPod(userId.longValue(), name, zoneId, gateway, cidr, startIp, endIp, allocationState);
     }
@@ -1289,7 +1289,7 @@ public class ConfigurationManagerImpl implements ConfigurationManager, Configura
         Boolean isBasic = false;
         String allocationState = cmd.getAllocationState();
 		if (allocationState == null) {
-			allocationState = Grouping.AllocationState.Disabled.toString();
+			allocationState = Grouping.AllocationState.Enabled.toString();
 		}
         
         if (!(type.equalsIgnoreCase(NetworkType.Basic.toString())) && !(type.equalsIgnoreCase(NetworkType.Advanced.toString()))) {
diff --git a/server/src/com/cloud/dc/ClusterVO.java b/server/src/com/cloud/dc/ClusterVO.java
index 780e44d72be..14bddac39c4 100644
--- a/server/src/com/cloud/dc/ClusterVO.java
+++ b/server/src/com/cloud/dc/ClusterVO.java
@@ -66,6 +66,7 @@ public class ClusterVO implements Cluster {
     
     public ClusterVO() {
     	clusterType = Cluster.ClusterType.CloudManaged;
+    	allocationState = Grouping.AllocationState.Enabled;
     }
     
     public ClusterVO(long dataCenterId, long podId, String name) {
@@ -73,6 +74,7 @@ public class ClusterVO implements Cluster {
         this.podId = podId;
         this.name = name;
     	this.clusterType = Cluster.ClusterType.CloudManaged;
+    	this.allocationState = Grouping.AllocationState.Enabled;
     }
 
     public long getId() {
diff --git a/server/src/com/cloud/dc/DataCenterVO.java b/server/src/com/cloud/dc/DataCenterVO.java
index 68b426e4a26..d71fa9d5bf1 100644
--- a/server/src/com/cloud/dc/DataCenterVO.java
+++ b/server/src/com/cloud/dc/DataCenterVO.java
@@ -32,6 +32,7 @@ import javax.persistence.TableGenerator;
 import javax.persistence.Transient;
 
 import com.cloud.network.Network.Provider;
+import com.cloud.org.Grouping;
 import com.cloud.utils.NumbersUtil;
 
 @Entity
@@ -165,7 +166,8 @@ public class DataCenterVO implements DataCenter {
 
     public DataCenterVO(long id, String name, String description, String dns1, String dns2, String dns3, String dns4, String vnet, String guestCidr, String domain, Long domainId, NetworkType zoneType) {
         this(name, description, dns1, dns2, dns3, dns4, vnet, guestCidr, domain, domainId, zoneType, false);
-        this.id = id;
+        this.id = id;
+        this.allocationState = Grouping.AllocationState.Enabled;
 	}
 
     public DataCenterVO(String name, String description, String dns1, String dns2, String dns3, String dns4, String vnet, String guestCidr, String domain, Long domainId, NetworkType zoneType, boolean securityGroupEnabled) {
@@ -180,7 +182,7 @@ public class DataCenterVO implements DataCenter {
         this.domain = domain;
         this.domainId = domainId;
         this.networkType = zoneType;
-        
+        this.allocationState = Grouping.AllocationState.Enabled;
         this.securityGroupEnabled = securityGroupEnabled;
         
         if (zoneType == NetworkType.Advanced) {
diff --git a/server/src/com/cloud/dc/HostPodVO.java b/server/src/com/cloud/dc/HostPodVO.java
index 584758408d7..3c9ea73832f 100644
--- a/server/src/com/cloud/dc/HostPodVO.java
+++ b/server/src/com/cloud/dc/HostPodVO.java
@@ -27,6 +27,7 @@ import javax.persistence.GenerationType;
 import javax.persistence.Id;
 import javax.persistence.Table;
 
+import com.cloud.org.Grouping;
 import com.cloud.org.Grouping.AllocationState;
 import com.cloud.utils.NumbersUtil;
 
@@ -66,6 +67,7 @@ public class HostPodVO implements Pod {
 		this.cidrAddress = cidrAddress;
 		this.cidrSize = cidrSize;
 		this.description = description;
+		this.allocationState = Grouping.AllocationState.Enabled;
 	}
 	
 	/*