diff --git a/poetry/factory.py b/poetry/factory.py
index fd863ba5991..e6459cc51c3 100755
--- a/poetry/factory.py
+++ b/poetry/factory.py
@@ -70,7 +70,8 @@ def create_poetry(
         )
 
         # Configuring sources
-        for source in poetry.local_config.get("source", []):
+        sources = poetry.local_config.get("source", [])
+        for source in sources:
             repository = self.create_legacy_repository(source, config)
             is_default = source.get("default", False)
             is_secondary = source.get("secondary", False)
@@ -88,9 +89,10 @@ def create_poetry(
             poetry.pool.add_repository(repository, is_default, secondary=is_secondary)
 
         # Always put PyPI last to prefer private repositories
-        # but only if we have no other default source
+        # but only if we have no other default sourced
         if not poetry.pool.has_default():
-            poetry.pool.add_repository(PyPiRepository(), True)
+            has_sources = bool(sources)
+            poetry.pool.add_repository(PyPiRepository(), not has_sources, has_sources)
         else:
             if io.is_debug():
                 io.write_line("Deactivating the PyPI repository")
diff --git a/tests/fixtures/with_non_default_source/README.rst b/tests/fixtures/with_non_default_source/README.rst
new file mode 100644
index 00000000000..f7fe15470f9
--- /dev/null
+++ b/tests/fixtures/with_non_default_source/README.rst
@@ -0,0 +1,2 @@
+My Package
+==========
diff --git a/tests/fixtures/with_non_default_source/pyproject.toml b/tests/fixtures/with_non_default_source/pyproject.toml
new file mode 100644
index 00000000000..d4d127de7e1
--- /dev/null
+++ b/tests/fixtures/with_non_default_source/pyproject.toml
@@ -0,0 +1,60 @@
+[tool.poetry]
+name = "my-package"
+version = "1.2.3"
+description = "Some description."
+authors = [
+    "Sébastien Eustace <sebastien@eustace.io>"
+]
+license = "MIT"
+
+readme = "README.rst"
+
+homepage = "https://python-poetry.org"
+repository = "https://github.com/python-poetry/poetry"
+documentation = "https://python-poetry.org/docs"
+
+keywords = ["packaging", "dependency", "poetry"]
+
+classifiers = [
+    "Topic :: Software Development :: Build Tools",
+    "Topic :: Software Development :: Libraries :: Python Modules"
+]
+
+# Requirements
+[tool.poetry.dependencies]
+python = "~2.7 || ^3.6"
+cleo = "^0.6"
+pendulum = { git = "https://github.com/sdispater/pendulum.git", branch = "2.0" }
+requests = { version = "^2.18", optional = true, extras=[ "security" ] }
+pathlib2 = { version = "^2.2", python = "~2.7" }
+
+orator = { version = "^0.9", optional = true }
+
+# File dependency
+demo = { path = "../distributions/demo-0.1.0-py2.py3-none-any.whl" }
+
+# Dir dependency with setup.py
+my-package = { path = "../project_with_setup/" }
+
+# Dir dependency with pyproject.toml
+simple-project = { path = "../simple_project/" }
+
+
+[tool.poetry.extras]
+db = [ "orator" ]
+
+[tool.poetry.dev-dependencies]
+pytest = "~3.4"
+
+
+[tool.poetry.scripts]
+my-script = "my_package:main"
+
+
+[tool.poetry.plugins."blogtool.parsers"]
+".rst" = "some_module::SomeClass"
+
+
+[[tool.poetry.source]]
+name = "foo"
+url = "https://foo.bar/simple/"
diff --git a/tests/test_factory.py b/tests/test_factory.py
index d7758e8deaa..b2c232b20e7 100644
--- a/tests/test_factory.py
+++ b/tests/test_factory.py
@@ -6,6 +6,8 @@
 
 from poetry.core.toml.file import TOMLFile
 from poetry.factory import Factory
+from poetry.repositories.legacy_repository import LegacyRepository
+from poetry.repositories.pypi_repository import PyPiRepository
 from poetry.utils._compat import PY2
 from poetry.utils._compat import Path
 
@@ -150,6 +152,31 @@ def test_poetry_with_default_source():
     assert 1 == len(poetry.pool.repositories)
 
 
+def test_poetry_with_non_default_source():
+    poetry = Factory().create_poetry(fixtures_dir / "with_non_default_source")
+
+    assert len(poetry.pool.repositories) == 2
+
+    assert not poetry.pool.has_default()
+
+    assert poetry.pool.repositories[0].name == "foo"
+    assert isinstance(poetry.pool.repositories[0], LegacyRepository)
+
+    assert poetry.pool.repositories[1].name == "PyPI"
+    assert isinstance(poetry.pool.repositories[1], PyPiRepository)
+
+
+def test_poetry_with_no_default_source():
+    poetry = Factory().create_poetry(fixtures_dir / "sample_project")
+
+    assert len(poetry.pool.repositories) == 1
+
+    assert poetry.pool.has_default()
+
+    assert poetry.pool.repositories[0].name == "PyPI"
+    assert isinstance(poetry.pool.repositories[0], PyPiRepository)
+
+
 def test_poetry_with_two_default_sources():
     with pytest.raises(ValueError) as e:
         Factory().create_poetry(fixtures_dir / "with_two_default_sources")