diff --git a/config-object-store/src/main/java/org/hypertrace/config/objectstore/IdentifiedObjectStore.java b/config-object-store/src/main/java/org/hypertrace/config/objectstore/IdentifiedObjectStore.java
index 5e53bca2a3..1c0a0b9c00 100644
--- a/config-object-store/src/main/java/org/hypertrace/config/objectstore/IdentifiedObjectStore.java
+++ b/config-object-store/src/main/java/org/hypertrace/config/objectstore/IdentifiedObjectStore.java
@@ -86,6 +86,10 @@ protected String buildClassNameForChangeEvent(T data) {
     return data.getClass().getName();
   }
 
+  protected Optional<Value> getDefaultPreviousValue(RequestContext requestContext, T data) {
+    return Optional.empty();
+  }
+
   protected List<ContextualConfigObject<T>> orderFetchedObjects(
       List<ContextualConfigObject<T>> objects) {
     return objects;
@@ -279,7 +283,7 @@ private Optional<ContextualConfigObject<T>> processUpsertResult(
           if (response.hasPrevConfig()) {
             tryReportUpdate(requestContext, result, response.getPrevConfig());
           } else {
-            tryReportCreation(requestContext, result);
+            reportCreationOrDefaultUpdate(requestContext, result);
           }
         });
     return optionalResult;
@@ -295,12 +299,23 @@ private Optional<ContextualConfigObject<T>> processUpsertResult(
           if (upsertedConfig.hasPrevConfig()) {
             tryReportUpdate(requestContext, result, upsertedConfig.getPrevConfig());
           } else {
-            tryReportCreation(requestContext, result);
+            reportCreationOrDefaultUpdate(requestContext, result);
           }
         });
     return optionalResult;
   }
 
+  private void reportCreationOrDefaultUpdate(
+      RequestContext requestContext, ContextualConfigObject<T> result) {
+    Optional<Value> defaultPreviousValue =
+        getDefaultPreviousValue(requestContext, result.getData());
+    if (defaultPreviousValue.isPresent()) {
+      tryReportUpdate(requestContext, result, defaultPreviousValue.get());
+    } else {
+      tryReportCreation(requestContext, result);
+    }
+  }
+
   private DeletedContextualConfigObject<T> processDeleteResult(
       RequestContext requestContext, ContextSpecificConfig deletedConfig) {
     DeletedContextualConfigObject<T> deletedContextualConfigObject =
diff --git a/config-service/gradle.lockfile b/config-service/gradle.lockfile
index 93520b694b..ab8c268c76 100644
--- a/config-service/gradle.lockfile
+++ b/config-service/gradle.lockfile
@@ -105,6 +105,10 @@ org.eclipse.jetty:jetty-util:11.0.26=integrationTestRuntimeClasspath,runtimeClas
 org.hamcrest:hamcrest:2.1=integrationTestRuntimeClasspath
 org.hdrhistogram:HdrHistogram:2.2.2=integrationTestRuntimeClasspath,runtimeClasspath,testRuntimeClasspath
 org.hypertrace.bom:hypertrace-bom:0.3.74=compileClasspath,integrationTestCompileClasspath,integrationTestRuntimeClasspath,runtimeClasspath,testCompileClasspath,testRuntimeClasspath
+org.hypertrace.config.service:label-application-rule-config-service-api:0.1.74=integrationTestRuntimeClasspath,runtimeClasspath,testRuntimeClasspath
+org.hypertrace.config.service:labels-config-service-api:0.1.74=integrationTestRuntimeClasspath,runtimeClasspath,testRuntimeClasspath
+org.hypertrace.config.service:spaces-config-service-api:0.1.74=integrationTestRuntimeClasspath,runtimeClasspath,testRuntimeClasspath
+org.hypertrace.config.service:span-processing-config-service-api:0.1.74=integrationTestRuntimeClasspath,runtimeClasspath,testRuntimeClasspath
 org.hypertrace.core.documentstore:document-store:0.8.6=integrationTestCompileClasspath,integrationTestRuntimeClasspath,runtimeClasspath,testRuntimeClasspath
 org.hypertrace.core.eventstore:event-store:0.1.5=integrationTestRuntimeClasspath,runtimeClasspath,testRuntimeClasspath
 org.hypertrace.core.grpcutils:grpc-client-rx-utils:0.13.22=integrationTestRuntimeClasspath,runtimeClasspath,testRuntimeClasspath