diff --git a/src/commands/default/tests.py b/src/commands/default/tests.py
index 7e4c108b2..bf957f8a5 100644
--- a/src/commands/default/tests.py
+++ b/src/commands/default/tests.py
@@ -72,7 +72,7 @@ class CommandTest(TestCase):
         "sets up testing environment"
         self.player = create.create_player("TestPlayer%i" % self.CID, "test@test.com", "testpassword", typeclass=TestPlayerClass)
         self.player2 = create.create_player("TestPlayer%ib" % self.CID, "test@test.com", "testpassword", typeclass=TestPlayerClass)
-        self.room1 = create.create_object("src.objects.objects.Room", key="Room%i"%self.CID, testmode=True)
+        self.room1 = create.create_object("src.objects.objects.Room", key="Room%i"%self.CID, nohome=True)
         self.room1.db.desc = "room_desc"
         self.room2 = create.create_object("src.objects.objects.Room", key="Room%ib" % self.CID)
         self.obj1 = create.create_object(TestObjectClass, key="Obj%i" % self.CID, location=self.room1, home=self.room1)
diff --git a/src/server/initial_setup.py b/src/server/initial_setup.py
index 14aef6773..95399f510 100644
--- a/src/server/initial_setup.py
+++ b/src/server/initial_setup.py
@@ -60,11 +60,11 @@ def create_objects():
     god_player.at_player_creation()
     god_player.locks.add("examine:perm(Immortals);edit:false();delete:false();boot:false();msg:all()")
 
-    # Create the in-game god-character for player #1. We can't set location and home yet since nothing
-    # exists. Also, all properties (name, email, password, is_superuser)
-    # is inherited from the user so we don't specify it again here.
+    # Limbo is the default "nowhere" starting room
+
+    # Create the in-game god-character for player #1 and set it to exist in Limbo.
     character_typeclass = settings.BASE_CHARACTER_TYPECLASS
-    god_character = create.create_object(character_typeclass, key=god_player.username)
+    god_character = create.create_object(character_typeclass, key=god_player.username, nohome=True)
 
     god_character.id = 1
     god_character.db.desc = _('This is User #1.')
@@ -76,10 +76,8 @@ def create_objects():
     god_player.attributes.add("_last_puppet", god_character)
     god_player.db._playable_characters.append(god_character)
 
-    # Limbo is the default "nowhere" starting room
-
     room_typeclass = settings.BASE_ROOM_TYPECLASS
-    limbo_obj = create.create_object(room_typeclass, _('Limbo'))
+    limbo_obj = create.create_object(room_typeclass, _('Limbo'), nohome=True)
     limbo_obj.id = 2
     string = " ".join([
         "Welcome to your new {wEvennia{n-based game. From here you are ready to begin development.",
diff --git a/src/utils/create.py b/src/utils/create.py
index 5cd4c52c3..d726b8882 100644
--- a/src/utils/create.py
+++ b/src/utils/create.py
@@ -53,7 +53,7 @@ _GA = object.__getattribute__
 
 def create_object(typeclass, key=None, location=None,
                   home=None, permissions=None, locks=None,
-                  aliases=None, destination=None, report_to=None, testmode=False):
+                  aliases=None, destination=None, report_to=None, nohome=False):
     """
     Create a new in-game object. Any game object is a combination
     of a database object that stores data persistently to
@@ -69,7 +69,8 @@ def create_object(typeclass, key=None, location=None,
               If report_to is not set, errors will be raised as en Exception
               containing the error message. If set, this method will return
               None upon errors.
-    testmode is only intended for Evennia unittest system
+    nohome - this allows the creation of objects without a default home location;
+             this only used when creating default location itself or during unittests
     """
     global _Object, _ObjectDB
     if not _Object:
@@ -135,11 +136,8 @@ def create_object(typeclass, key=None, location=None,
     # perform a move_to in order to display eventual messages.
     if home:
         new_object.home = home
-    elif testmode:
-        # this is required by unittest
-        pass
     else:
-        new_object.home =  settings.CHARACTER_DEFAULT_HOME
+        new_object.home =  settings.CHARACTER_DEFAULT_HOME if not nohome else None
 
     if location:
         new_object.move_to(location, quiet=True)