diff --git a/java/google/registry/flows/domain/DomainCreateFlow.java b/java/google/registry/flows/domain/DomainCreateFlow.java
index 894d2421f..3feb56153 100644
--- a/java/google/registry/flows/domain/DomainCreateFlow.java
+++ b/java/google/registry/flows/domain/DomainCreateFlow.java
@@ -23,6 +23,7 @@ import static google.registry.flows.domain.DomainFlowUtils.cloneAndLinkReference
 import static google.registry.flows.domain.DomainFlowUtils.createFeeCreateResponse;
 import static google.registry.flows.domain.DomainFlowUtils.getReservationTypes;
 import static google.registry.flows.domain.DomainFlowUtils.isAnchorTenant;
+import static google.registry.flows.domain.DomainFlowUtils.isReserved;
 import static google.registry.flows.domain.DomainFlowUtils.isValidReservedCreate;
 import static google.registry.flows.domain.DomainFlowUtils.validateCreateCommandContactsAndNameservers;
 import static google.registry.flows.domain.DomainFlowUtils.validateDomainAllowedOnCreateRestrictedTld;
@@ -320,7 +321,14 @@ public class DomainCreateFlow implements TransactionalFlow {
     // Bill for the create.
     BillingEvent.OneTime createBillingEvent =
         createOneTimeBillingEvent(
-            registry, isAnchorTenant, isSunriseCreate, years, feesAndCredits, historyEntry, now);
+            registry,
+            isAnchorTenant,
+            isSunriseCreate,
+            isReserved(domainName, isSunriseCreate),
+            years,
+            feesAndCredits,
+            historyEntry,
+            now);
     // Create a new autorenew billing event and poll message starting at the expiration time.
     BillingEvent.Recurring autorenewBillingEvent =
         createAutorenewBillingEvent(historyEntry, registrationExpirationTime);
@@ -507,6 +515,7 @@ public class DomainCreateFlow implements TransactionalFlow {
       Registry registry,
       boolean isAnchorTenant,
       boolean isSunriseCreate,
+      boolean isReserved,
       int years,
       FeesAndCredits feesAndCredits,
       HistoryEntry historyEntry,
@@ -518,6 +527,10 @@ public class DomainCreateFlow implements TransactionalFlow {
     }
     if (isAnchorTenant) {
       flagsBuilder.add(Flag.ANCHOR_TENANT);
+    } else if (isReserved) {
+      // Don't add this flag if the domain is an anchor tenant (which are also reserved); only add
+      // it if it's reserved for other reasons.
+      flagsBuilder.add(Flag.RESERVED);
     }
     return new BillingEvent.OneTime.Builder()
         .setReason(Reason.CREATE)
diff --git a/java/google/registry/flows/domain/DomainFlowUtils.java b/java/google/registry/flows/domain/DomainFlowUtils.java
index 85843db84..8830a032a 100644
--- a/java/google/registry/flows/domain/DomainFlowUtils.java
+++ b/java/google/registry/flows/domain/DomainFlowUtils.java
@@ -453,7 +453,7 @@ public class DomainFlowUtils {
   private static final ImmutableSet<ReservationType> RESERVED_TYPES =
       ImmutableSet.of(RESERVED_FOR_SPECIFIC_USE, RESERVED_FOR_ANCHOR_TENANT, FULLY_BLOCKED);
 
-  private static boolean isReserved(InternetDomainName domainName, boolean isSunrise) {
+  static boolean isReserved(InternetDomainName domainName, boolean isSunrise) {
     ImmutableSet<ReservationType> types = getReservationTypes(domainName);
     return !Sets.intersection(types, RESERVED_TYPES).isEmpty()
         || !(isSunrise || intersection(TYPES_ALLOWED_FOR_CREATE_ONLY_IN_SUNRISE, types).isEmpty());
diff --git a/java/google/registry/model/billing/BillingEvent.java b/java/google/registry/model/billing/BillingEvent.java
index 4d3c364dc..934eefd95 100644
--- a/java/google/registry/model/billing/BillingEvent.java
+++ b/java/google/registry/model/billing/BillingEvent.java
@@ -71,6 +71,14 @@ public abstract class BillingEvent extends ImmutableObject
     ANCHOR_TENANT,
     AUTO_RENEW,
     LANDRUSH,
+    /**
+     * This flag is used on create {@link OneTime} billing events for domains that were reserved.
+     *
+     * <p>This can happen when allocation tokens are used or superusers override a domain
+     * reservation. These cases can need special handling in billing/invoicing. Anchor tenants will
+     * never have this flag applied; they will have ANCHOR_TENANT instead.
+     */
+    RESERVED,
     SUNRISE,
     /**
      * This flag will be added to any {@link OneTime} events that are created via, e.g., an
diff --git a/javatests/google/registry/flows/domain/DomainCreateFlowTest.java b/javatests/google/registry/flows/domain/DomainCreateFlowTest.java
index da4f3a562..e7fff05bd 100644
--- a/javatests/google/registry/flows/domain/DomainCreateFlowTest.java
+++ b/javatests/google/registry/flows/domain/DomainCreateFlowTest.java
@@ -1060,7 +1060,7 @@ public class DomainCreateFlowTest extends ResourceFlowTestCase<DomainCreateFlow,
     persistContactsAndHosts();
     runFlowAssertResponse(
         loadFile("domain_create_response.xml", ImmutableMap.of("DOMAIN", "resdom.tld")));
-    assertSuccessfulCreate("tld", ImmutableSet.of());
+    assertSuccessfulCreate("tld", ImmutableSet.of(Flag.RESERVED));
     assertNoLordn();
     AllocationToken reloadedToken = ofy().load().entity(token).now();
     assertThat(reloadedToken.isRedeemed()).isTrue();
@@ -1074,7 +1074,7 @@ public class DomainCreateFlowTest extends ResourceFlowTestCase<DomainCreateFlow,
     persistContactsAndHosts();
     runFlowAssertResponse(
         CommitMode.LIVE, SUPERUSER, loadFile("domain_create_reserved_response.xml"));
-    assertSuccessfulCreate("tld", ImmutableSet.of());
+    assertSuccessfulCreate("tld", ImmutableSet.of(Flag.RESERVED));
   }
 
   @Test
diff --git a/javatests/google/registry/model/testdata/schema.txt b/javatests/google/registry/model/testdata/schema.txt
index 86cab3126..7f0c4f045 100644
--- a/javatests/google/registry/model/testdata/schema.txt
+++ b/javatests/google/registry/model/testdata/schema.txt
@@ -21,6 +21,7 @@ enum google.registry.model.billing.BillingEvent$Flag {
   ANCHOR_TENANT;
   AUTO_RENEW;
   LANDRUSH;
+  RESERVED;
   SUNRISE;
   SYNTHETIC;
 }