diff --git a/runscope/resource_runscope_test_.go b/runscope/resource_runscope_test_.go
index 85a10485..66df1be2 100644
--- a/runscope/resource_runscope_test_.go
+++ b/runscope/resource_runscope_test_.go
@@ -37,19 +37,27 @@ func resourceRunscopeTest() *schema.Resource {
 			},
 			"default_environment_id": {
 				Type:     schema.TypeString,
-				Computed: true,
+				Optional: true,
 			},
 		},
 	}
 }
 
+func resourceRequiresTwoPhase(d *schema.ResourceData) bool {
+
+	if _, ok := d.GetOk("default_environment_id"); ok {
+		return true
+	}
+	return false
+}
+
 func resourceTestCreate(d *schema.ResourceData, meta interface{}) error {
 	client := meta.(*runscope.Client)
 
 	name := d.Get("name").(string)
 	log.Printf("[INFO] Creating test with name: %s", name)
 
-	test, err := createTestFromResourceData(d)
+	test, err := createTestFromResourceData(d, true)
 	if err != nil {
 		return fmt.Errorf("Failed to create test: %s", err)
 	}
@@ -60,6 +68,17 @@ func resourceTestCreate(d *schema.ResourceData, meta interface{}) error {
 	if err != nil {
 		return fmt.Errorf("Failed to create test: %s", err)
 	}
+	if resourceRequiresTwoPhase(d) {
+		testUpdate, err := createTestFromResourceData(d, false)
+		if err != nil {
+			return fmt.Errorf("Failed to create test: %s", err)
+		}
+		updatedTest, err := client.UpdateTest(testUpdate)
+		if err != nil {
+			return fmt.Errorf("Failed to create test: %s", err)
+		}
+		createdTest = updatedTest
+	}
 
 	d.SetId(createdTest.ID)
 	log.Printf("[INFO] test ID: %s", d.Id())
@@ -70,7 +89,7 @@ func resourceTestCreate(d *schema.ResourceData, meta interface{}) error {
 func resourceTestRead(d *schema.ResourceData, meta interface{}) error {
 	client := meta.(*runscope.Client)
 
-	testFromResource, err := createTestFromResourceData(d)
+	testFromResource, err := createTestFromResourceData(d, false)
 	if err != nil {
 		return fmt.Errorf("Error reading test: %s", err)
 	}
@@ -93,12 +112,13 @@ func resourceTestRead(d *schema.ResourceData, meta interface{}) error {
 
 func resourceTestUpdate(d *schema.ResourceData, meta interface{}) error {
 	d.Partial(false)
-	testFromResource, err := createTestFromResourceData(d)
+	testFromResource, err := createTestFromResourceData(d, true)
 	if err != nil {
 		return fmt.Errorf("Error updating test: %s", err)
 	}
 
-	if d.HasChange("description") {
+	if d.HasChange("description") ||
+		d.HasChange("default_environment_id") {
 		client := meta.(*runscope.Client)
 		_, err = client.UpdateTest(testFromResource)
 
@@ -113,7 +133,7 @@ func resourceTestUpdate(d *schema.ResourceData, meta interface{}) error {
 func resourceTestDelete(d *schema.ResourceData, meta interface{}) error {
 	client := meta.(*runscope.Client)
 
-	test, err := createTestFromResourceData(d)
+	test, err := createTestFromResourceData(d, false)
 	if err != nil {
 		return fmt.Errorf("Error deleting test: %s", err)
 	}
@@ -126,7 +146,7 @@ func resourceTestDelete(d *schema.ResourceData, meta interface{}) error {
 	return nil
 }
 
-func createTestFromResourceData(d *schema.ResourceData) (*runscope.Test, error) {
+func createTestFromResourceData(d *schema.ResourceData, init bool) (*runscope.Test, error) {
 
 	test := runscope.NewTest()
 	test.ID = d.Id()
@@ -141,6 +161,12 @@ func createTestFromResourceData(d *schema.ResourceData) (*runscope.Test, error)
 	if attr, ok := d.GetOk("description"); ok {
 		test.Description = attr.(string)
 	}
+	// attributes that require create-then-update cycle
+	if !init {
+		if attr, ok := d.GetOk("default_environment_id"); ok {
+			test.DefaultEnvironmentID = attr.(string)
+		}
+	}
 
 	return test, nil
 }
diff --git a/runscope/resource_runscope_test_test.go b/runscope/resource_runscope_test_test.go
index 6fec2425..79a62c21 100644
--- a/runscope/resource_runscope_test_test.go
+++ b/runscope/resource_runscope_test_test.go
@@ -82,10 +82,37 @@ func testAccCheckTestExists(n string, test *runscope.Test) resource.TestCheckFun
 }
 
 const testRunscopeTestConfigA = `
+resource "runscope_environment" "environmentA" {
+  bucket_id    = "${runscope_bucket.bucket.id}"
+  name         = "test-environment"
+
+  integrations = [
+		"${data.runscope_integration.slack.id}"
+  ]
+
+  initial_variables {
+    var1 = "true",
+    var2 = "value2"
+  }
+
+	regions = ["us1", "eu1"]
+
+	remote_agents = [
+		{
+			name = "test agent"
+			uuid = "arbitrary-string"
+		}
+	]
+
+	retry_on_failure = true
+	webhooks = ["https://example.com"]
+}
+
 resource "runscope_test" "test" {
   bucket_id = "${runscope_bucket.bucket.id}"
   name = "runscope test"
   description = "This is a test test..."
+  default_environment_id = "${runscope_environment.environmentA.id}"
 }
 
 resource "runscope_bucket" "bucket" {
diff --git a/website/docs/r/test.html.markdown b/website/docs/r/test.html.markdown
index 6b5169ca..fe9820f1 100644
--- a/website/docs/r/test.html.markdown
+++ b/website/docs/r/test.html.markdown
@@ -37,7 +37,7 @@ The following arguments are supported:
 * `name` - (String, Required) The name of this test.
 * `description` - (String, Optional) Human-readable description of the new test.
   is being created for.
-
+* `default_environment_id` - (String, Optional) ID of an environment to set as default for test steps
 ## Attributes Reference
 
 The following attributes are exported:
@@ -45,3 +45,4 @@ The following attributes are exported:
 * `id` - The unique identifier for the test.
 * `name` - The name of this test.
 * `description` - Human-readable description of the new test.
+* `default_environment_id` - ID of the default environment