diff --git a/congress/api/error_codes.py b/congress/api/error_codes.py
index 75e4428be..cd8b51cdb 100644
--- a/congress/api/error_codes.py
+++ b/congress/api/error_codes.py
@@ -49,6 +49,8 @@ errors['service_action_syntax'] = (
 errors['execute_action_args_syntax'] = (
     1018, "Incorrect argument syntax. "
     "Requires: {'positional': [<args>], 'named': {<key>:<value>,}}")
+errors['rule_not_permitted'] = (
+    1019, "Rules not permitted on non persisted policies.")
 
 
 def get(name):
diff --git a/congress/api/rule_model.py b/congress/api/rule_model.py
index 3467eb224..6d2f6177d 100644
--- a/congress/api/rule_model.py
+++ b/congress/api/rule_model.py
@@ -115,6 +115,17 @@ class RuleModel(deepsix.deepSix):
         if id_ is not None:
             raise webservice.DataModelException(
                 *error_codes.get('add_item_id'))
+        # Reject rules inserted into non-persisted policies
+        # (i.e. datasource policies)
+        policy_name = self.policy_name(context)
+        policies = db_policy_rules.get_policies()
+        persisted_policies = set([p.name for p in policies])
+        if policy_name not in persisted_policies:
+            LOG.debug("add_item error: rule not permitted for policy %s",
+                      policy_name)
+            (num, desc) = error_codes.get('rule_not_permitted')
+            raise webservice.DataModelException(num, desc)
+
         str_rule = item['rule']
         try:
             rule = self.engine.parse(str_rule)
@@ -137,7 +148,6 @@ class RuleModel(deepsix.deepSix):
                      'id': str(uuid.uuid4()),
                      'comment': None,
                      'name': item.get('name')}
-                policy_name = self.policy_name(context)
                 try:
                     db_policy_rules.add_policy_rule(
                         d['id'], policy_name, str_rule, d['comment'],