diff --git a/lib/registry.js b/lib/registry.js
index 8b581066..6e0289e2 100644
--- a/lib/registry.js
+++ b/lib/registry.js
@@ -239,6 +239,19 @@ registry.createDataSource = function (name, options) {
   var self = this;
   var ds = new DataSource(name, options, self.modelBuilder);
   ds.createModel = function (name, properties, settings) {
+    settings = settings || {};
+    var BaseModel = settings.base || settings.super;
+    if (!BaseModel) {
+      // Check the connector types
+      var connectorTypes = ds.connector && ds.connector.getTypes();
+      if (Array.isArray(connectorTypes) && connectorTypes.indexOf('db') !== -1) {
+        // Only set up the base model to PersistedModel if the connector is DB
+        BaseModel = self.PersistedModel;
+      } else {
+        BaseModel = self.Model;
+      }
+      settings.base = BaseModel;
+    }
     var ModelCtor = self.createModel(name, properties, settings);
     ModelCtor.attachTo(ds);
     return ModelCtor;
diff --git a/test/data-source.test.js b/test/data-source.test.js
index a1e0e126..b8354c04 100644
--- a/test/data-source.test.js
+++ b/test/data-source.test.js
@@ -33,6 +33,34 @@ describe('DataSource', function() {
       assert.isFunc(Color.prototype, 'updateAttributes');
       assert.isFunc(Color.prototype, 'reload');  
     });
+
+    it("should honor settings.base", function() {
+      var Base = memory.createModel('base');
+      var Color = memory.createModel('color', {name: String}, {base: Base});
+      assert.equal(Color.super_, Base);
+    });
+
+    it("should use loopback.PersistedModel as the base for DBs", function() {
+      var Color = memory.createModel('color', {name: String});
+      assert.equal(Color.super_, loopback.PersistedModel);
+    });
+
+    it("should use loopback.Model as the base for non DBs", function() {
+      // Mock up a non-DB connector
+      var Connector = function() {
+      };
+      Connector.prototype.getTypes = function() {
+        return ['rest'];
+      };
+
+      var ds = loopback.createDataSource({
+        connector: new Connector()
+      });
+
+      var Color = ds.createModel('color', {name: String});
+      assert.equal(Color.super_, loopback.Model);
+    });
+
   });
 
   describe.skip('PersistedModel Methods', function() {