diff --git a/cloudinit/config/cc_set_hostname.py b/cloudinit/config/cc_set_hostname.py
index 2327a2c7cac9..daa0f88d8cd9 100644
--- a/cloudinit/config/cc_set_hostname.py
+++ b/cloudinit/config/cc_set_hostname.py
@@ -60,10 +60,19 @@
         dedent(
             """\
             hostname: myhost
+            ceate_hostname_file: true
             fqdn: myhost.example.com
             prefer_fqdn_over_hostname: true
             """
         ),
+        dedent(
+            """\
+            # On a machine without an ``/etc/hostname`` file, don't create it
+            # In most clouds, this will results in a DHCP configured hostname
+            # provided by the cloud
+            create_hostname_file: false
+            """
+        ),
     ],
     "activate_by_schema_keys": [],
 }
diff --git a/cloudinit/config/cc_update_hostname.py b/cloudinit/config/cc_update_hostname.py
index 177b9db4cb7b..0b14abd43595 100644
--- a/cloudinit/config/cc_update_hostname.py
+++ b/cloudinit/config/cc_update_hostname.py
@@ -65,6 +65,7 @@
         fqdn: external.fqdn.me
         hostname: myhost
         prefer_fqdn_over_hostname: true
+        create_hostname_file: true
         """
         ),
         dedent(
@@ -74,6 +75,14 @@
         prefer_fqdn_over_hostname: false
         """
         ),
+        dedent(
+            """\
+        # On a machine without an ``/etc/hostname`` file, don't create it
+        # In most clouds, this will results in a DHCP configured hostname
+        # provided by the cloud
+        create_hostname_file: false
+        """
+        ),
     ],
     "frequency": PER_ALWAYS,
     "activate_by_schema_keys": [],