diff --git a/CHANGELOG.md b/CHANGELOG.md
index bfc40a3633d..6df4896454e 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -3,6 +3,7 @@
 ### Bugfixes
 - [#1917](https://github.com/influxdb/influxdb/pull/1902): Creating Infinite Retention Policy Failed.
 - [#1758](https://github.com/influxdb/influxdb/pull/1758): Add Graphite Integration Test.
+- [#1929](https://github.com/influxdb/influxdb/pull/1929): Default Retention Policy incorrectly auto created.
 
 ### Features
 - [#1902](https://github.com/influxdb/influxdb/pull/1902): Enforce retention policies to have a minimum duration.
diff --git a/server.go b/server.go
index bb48fd5f449..9c2649a2f81 100644
--- a/server.go
+++ b/server.go
@@ -766,10 +766,11 @@ func (s *Server) applyCreateDatabase(m *messaging.Message) (err error) {
 
 	if s.RetentionAutoCreate {
 		// Create the default retention policy.
-		db.policies[c.Name] = &RetentionPolicy{
-			Name:     DefaultRetentionPolicyName,
-			Duration: 0,
-			ReplicaN: 1,
+		db.policies[DefaultRetentionPolicyName] = &RetentionPolicy{
+			Name:               DefaultRetentionPolicyName,
+			Duration:           0,
+			ShardGroupDuration: calculateShardGroupDuration(0),
+			ReplicaN:           1,
 		}
 		db.defaultRetentionPolicy = DefaultRetentionPolicyName
 		s.Logger.Printf("retention policy '%s' auto-created for database '%s'", DefaultRetentionPolicyName, c.Name)
@@ -1277,32 +1278,33 @@ func (s *Server) CreateRetentionPolicy(database string, rp *RetentionPolicy) err
 		return ErrRetentionPolicyMinDuration
 	}
 
-	const (
-		day   = time.Hour * 24
-		month = day * 30
-	)
-
-	var sgd time.Duration
-	switch {
-	case rp.Duration > 6*month || rp.Duration == 0:
-		sgd = 7 * day
-	case rp.Duration > 2*day:
-		sgd = 1 * day
-	default:
-		sgd = 1 * time.Hour
-	}
-
 	c := &createRetentionPolicyCommand{
 		Database:           database,
 		Name:               rp.Name,
 		Duration:           rp.Duration,
-		ShardGroupDuration: sgd,
+		ShardGroupDuration: calculateShardGroupDuration(rp.Duration),
 		ReplicaN:           rp.ReplicaN,
 	}
 	_, err := s.broadcast(createRetentionPolicyMessageType, c)
 	return err
 }
 
+func calculateShardGroupDuration(d time.Duration) time.Duration {
+	const (
+		day   = time.Hour * 24
+		month = day * 30
+	)
+
+	switch {
+	case d > 6*month || d == 0:
+		return 7 * day
+	case d > 2*day:
+		return 1 * day
+	default:
+		return 1 * time.Hour
+	}
+}
+
 func (s *Server) applyCreateRetentionPolicy(m *messaging.Message) error {
 	var c createRetentionPolicyCommand
 	mustUnmarshalJSON(m.Data, &c)
diff --git a/server_test.go b/server_test.go
index cc37f875005..8de079b0ca3 100644
--- a/server_test.go
+++ b/server_test.go
@@ -585,6 +585,38 @@ func TestServer_CreateRetentionPolicyInfinite(t *testing.T) {
 	}
 }
 
+// Ensure the database can creates a default retention policy.
+func TestServer_CreateRetentionPolicyDefault(t *testing.T) {
+	s := OpenServer(NewMessagingClient())
+	defer s.Close()
+
+	s.RetentionAutoCreate = true
+
+	// Create a database.
+	if err := s.CreateDatabase("foo"); err != nil {
+		t.Fatal(err)
+	}
+
+	s.Restart()
+
+	rp := &influxdb.RetentionPolicy{
+		Name:               "default",
+		Duration:           0,
+		ShardGroupDuration: time.Hour * 24 * 7,
+		ReplicaN:           1,
+	}
+
+	// Verify that the policy exists.
+	if o, err := s.RetentionPolicy("foo", "default"); err != nil {
+		t.Fatalf("unexpected error: %s", err)
+	} else if o == nil {
+		t.Fatalf("retention policy not found")
+	} else if !reflect.DeepEqual(rp, o) {
+		t.Logf("expected: %#v\n", rp)
+		t.Fatalf("retention policy mismatch: %#v", o)
+	}
+}
+
 // Ensure the server returns an error when creating a retention policy with an invalid db.
 func TestServer_CreateRetentionPolicy_ErrDatabaseNotFound(t *testing.T) {
 	s := OpenServer(NewMessagingClient())