Index: modeshape-graph/src/main/java/org/modeshape/graph/connector/inmemory/InMemoryRepositorySource.java
===================================================================
--- modeshape-graph/src/main/java/org/modeshape/graph/connector/inmemory/InMemoryRepositorySource.java	(revision 1814)
+++ modeshape-graph/src/main/java/org/modeshape/graph/connector/inmemory/InMemoryRepositorySource.java	(working copy)
@@ -268,10 +268,16 @@ public class InMemoryRepositorySource implements BaseRepositorySource, ObjectFac
             ExecutionContext context = repositoryContext != null ? repositoryContext.getExecutionContext() : defaultContext;
             repository = new InMemoryRepository(context, name, rootNodeUuid, defaultWorkspaceName);
 
-            // Create the set of initial workspaces ...
-            for (String initialName : getPredefinedWorkspaceNames()) {
-                repository.createWorkspace(null, initialName, CreateConflictBehavior.DO_NOT_CREATE, null);
+            InMemoryTransaction txn = repository.startTransaction(context, false);
+            try {
+                // Create the set of initial workspaces ...
+                for (String initialName : getPredefinedWorkspaceNames()) {
+                    repository.createWorkspace(txn, initialName, CreateConflictBehavior.DO_NOT_CREATE, null);
+                }
+            } finally {
+                txn.commit();
             }
+
         }
         return new Connection<InMemoryNode, InMemoryWorkspace>(this, repository);
     }
Index: modeshape-graph/src/test/java/org/modeshape/graph/connector/inmemory/InMemoryRepositorySourceTest.java
new file mode 100644
===================================================================
--- /dev/null	(revision 1814)
+++ modeshape-graph/src/test/java/org/modeshape/graph/connector/inmemory/InMemoryRepositorySourceTest.java	(working copy)
@@ -0,0 +1,44 @@
+package org.modeshape.graph.connector.inmemory;
+
+import static org.hamcrest.CoreMatchers.is;
+import static org.junit.Assert.assertThat;
+import java.util.Arrays;
+import java.util.HashSet;
+import java.util.Set;
+import org.junit.Before;
+import org.junit.Test;
+import org.modeshape.graph.ExecutionContext;
+import org.modeshape.graph.connector.RepositoryConnection;
+import org.modeshape.graph.request.GetWorkspacesRequest;
+
+public class InMemoryRepositorySourceTest {
+
+    private ExecutionContext context;
+    private InMemoryRepositorySource source;
+    private String[] predefinedWorkspaces = new String[] {"foo", "bar", "baz"};
+
+    @Before
+    public void beforeEach() {
+        context = new ExecutionContext();
+
+        source = new InMemoryRepositorySource();
+        source.setName("In-Memory Repository Source");
+        source.setPredefinedWorkspaceNames(predefinedWorkspaces);
+        // Have to do this or the comparison later will be off when the default workspace is also created
+        source.setDefaultWorkspaceName(predefinedWorkspaces[0]);
+    }
+
+    @Test
+    public void shouldCreatePredefinedWorkspaces() {
+        RepositoryConnection connection = source.getConnection();
+
+        GetWorkspacesRequest request = new GetWorkspacesRequest();
+        connection.execute(context, request);
+
+        Set<String> workspaces = request.getAvailableWorkspaceNames();
+        Set<String> graphWorkspaces = new HashSet<String>(Arrays.asList(predefinedWorkspaces));
+        assertThat(workspaces, is(graphWorkspaces));
+
+    }
+
+}