diff --git a/src/components/structures/MatrixChat.js b/src/components/structures/MatrixChat.js
index 89303a2e41..3fa628b8a3 100644
--- a/src/components/structures/MatrixChat.js
+++ b/src/components/structures/MatrixChat.js
@@ -773,15 +773,13 @@ module.exports = React.createClass({
             dis.dispatch({action: 'view_set_mxid'});
             return;
         }
-        const TextInputDialog = sdk.getComponent("dialogs.TextInputDialog");
-        Modal.createTrackedDialog('Create Room', '', TextInputDialog, {
-            title: _t('Create Room'),
-            description: _t('Room name (optional)'),
-            button: _t('Create Room'),
-            onFinished: (shouldCreate, name) => {
+        const CreateRoomDialog = sdk.getComponent('dialogs.CreateRoomDialog');
+        Modal.createTrackedDialog('Create Room', '', CreateRoomDialog, {
+            onFinished: (shouldCreate, name, noFederate) => {
                 if (shouldCreate) {
                     const createOpts = {};
                     if (name) createOpts.name = name;
+                    if (noFederate) createOpts.creation_content = {'m.federate': false};
                     createRoom({createOpts}).done();
                 }
             },
diff --git a/src/components/views/dialogs/CreateRoomDialog.js b/src/components/views/dialogs/CreateRoomDialog.js
new file mode 100644
index 0000000000..f7be47b3eb
--- /dev/null
+++ b/src/components/views/dialogs/CreateRoomDialog.js
@@ -0,0 +1,81 @@
+/*
+Copyright 2017 Michael Telatynski <7t3chguy@gmail.com>
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+import React from 'react';
+import sdk from '../../../index';
+import SdkConfig from '../../../SdkConfig';
+import { _t } from '../../../languageHandler';
+
+export default React.createClass({
+    displayName: 'CreateRoomDialog',
+    propTypes: {
+        onFinished: React.PropTypes.func.isRequired,
+    },
+
+    componentDidMount: function() {
+        const config = SdkConfig.get();
+        // Dialog shows inverse of m.federate (noFederate) strict false check to skip undefined check (default = true)
+        this.defaultNoFederate = config.default_federate === false;
+    },
+
+    onOk: function() {
+        this.props.onFinished(true, this.refs.textinput.value, this.refs.checkbox.checked);
+    },
+
+    onCancel: function() {
+        this.props.onFinished(false);
+    },
+
+    render: function() {
+        const BaseDialog = sdk.getComponent('views.dialogs.BaseDialog');
+        return (
+            <BaseDialog className="mx_CreateRoomDialog" onFinished={this.props.onFinished}
+                onEnterPressed={this.onOk}
+                title={_t('Create Room')}
+            >
+                <div className="mx_Dialog_content">
+                    <div className="mx_CreateRoomDialog_label">
+                        <label htmlFor="textinput"> { _t('Room name (optional)') } </label>
+                    </div>
+                    <div>
+                        <input id="textinput" ref="textinput" className="mx_CreateRoomDialog_input" autoFocus={true} size="64" />
+                    </div>
+                    <br />
+
+                    <details className="mx_CreateRoomDialog_details">
+                        <summary className="mx_CreateRoomDialog_details_summary">{ _t('Advanced options') }</summary>
+                        <div>
+                            <input type="checkbox" id="checkbox" ref="checkbox" defaultChecked={this.defaultNoFederate} />
+                            <label htmlFor="checkbox">
+                                { _t('Block users on other matrix homeservers from joining this room') }
+                                <br />
+                                ({ _t('This setting cannot be changed later!') })
+                            </label>
+                        </div>
+                    </details>
+                </div>
+                <div className="mx_Dialog_buttons">
+                    <button onClick={this.onCancel}>
+                        { _t('Cancel') }
+                    </button>
+                    <button className="mx_Dialog_primary" onClick={this.onOk}>
+                        { _t('Create Room') }
+                    </button>
+                </div>
+            </BaseDialog>
+        );
+    },
+});
diff --git a/src/components/views/rooms/RoomSettings.js b/src/components/views/rooms/RoomSettings.js
index b542dbaf55..031e089c4e 100644
--- a/src/components/views/rooms/RoomSettings.js
+++ b/src/components/views/rooms/RoomSettings.js
@@ -395,11 +395,12 @@ module.exports = React.createClass({
 
     _yankValueFromEvent: function(stateEventType, keyName, defaultValue) {
         // E.g.("m.room.name","name") would yank the "name" content key from "m.room.name"
-        var event = this.props.room.currentState.getStateEvents(stateEventType, '');
+        const event = this.props.room.currentState.getStateEvents(stateEventType, '');
         if (!event) {
             return defaultValue;
         }
-        return event.getContent()[keyName] || defaultValue;
+        const content = event.getContent();
+        return keyName in content ? content[keyName] : defaultValue;
     },
 
     _onHistoryRadioToggle: function(ev) {
@@ -678,7 +679,7 @@ module.exports = React.createClass({
         }
 
         var unfederatableSection;
-        if (this._yankValueFromEvent("m.room.create", "m.federate") === false) {
+        if (this._yankValueFromEvent("m.room.create", "m.federate", true) === false) {
              unfederatableSection = (
                 <div className="mx_RoomSettings_powerLevel">
                 { _t('This room is not accessible by remote Matrix servers') }.
diff --git a/src/i18n/strings/en_EN.json b/src/i18n/strings/en_EN.json
index 37c7655ed6..cf2be3c2f8 100644
--- a/src/i18n/strings/en_EN.json
+++ b/src/i18n/strings/en_EN.json
@@ -26,6 +26,7 @@
     "Microphone": "Microphone",
     "Camera": "Camera",
     "Advanced": "Advanced",
+    "Advanced options": "Advanced options",
     "Algorithm": "Algorithm",
     "Hide removed messages": "Hide removed messages",
     "Always show message timestamps": "Always show message timestamps",
@@ -58,6 +59,8 @@
     "Banned users": "Banned users",
     "Bans user with given id": "Bans user with given id",
     "Blacklisted": "Blacklisted",
+    "Block users on other matrix homeservers from joining this room": "Block users on other matrix homeservers from joining this room",
+    "This setting cannot be changed later!": "This setting cannot be changed later!",
     "Bug Report": "Bug Report",
     "Bulk Options": "Bulk Options",
     "Call Timeout": "Call Timeout",