diff --git a/lib/format1/format1.c b/lib/format1/format1.c
index 254b787df..bd618a73e 100644
--- a/lib/format1/format1.c
+++ b/lib/format1/format1.c
@@ -422,10 +422,10 @@ static int _pv_write(const struct format_type *fmt, struct physical_volume *pv,
 static int _vg_setup(struct format_instance *fid, struct volume_group *vg)
 {
 	/* just check max_pv and max_lv */
-	if (vg->max_lv >= MAX_LV)
+	if (!vg->max_lv || vg->max_lv >= MAX_LV)
 		vg->max_lv = MAX_LV - 1;
 
-	if (vg->max_pv >= MAX_PV)
+	if (!vg->max_pv || vg->max_pv >= MAX_PV)
 		vg->max_pv = MAX_PV - 1;
 
 	if (vg->extent_size > MAX_PE_SIZE || vg->extent_size < MIN_PE_SIZE) {
diff --git a/lib/metadata/lv_manip.c b/lib/metadata/lv_manip.c
index 1ea2a83cb..e72abae12 100644
--- a/lib/metadata/lv_manip.c
+++ b/lib/metadata/lv_manip.c
@@ -478,7 +478,7 @@ struct logical_volume *lv_create_empty(struct format_instance *fi,
 	struct logical_volume *lv;
 	char dname[32];
 
-	if (vg->max_lv == vg->lv_count) {
+	if (vg->max_lv && (vg->max_lv == vg->lv_count)) {
 		log_error("Maximum number of logical volumes (%u) reached "
 			  "in volume group %s", vg->max_lv, vg->name);
 		return NULL;
diff --git a/lib/metadata/metadata.c b/lib/metadata/metadata.c
index 50f7be411..bf92ec139 100644
--- a/lib/metadata/metadata.c
+++ b/lib/metadata/metadata.c
@@ -83,7 +83,7 @@ static int _add_pv_to_vg(struct format_instance *fid, struct volume_group *vg,
 		return 0;
 	}
 
-	if (vg->pv_count == vg->max_pv) {
+	if (vg->pv_count && (vg->pv_count == vg->max_pv)) {
 		log_error("No space for '%s' - volume group '%s' "
 			  "holds max %d physical volume(s).", pv_name,
 			  vg->name, vg->max_pv);
diff --git a/tools/vgchange.c b/tools/vgchange.c
index 2f0640ab7..412dbf3bd 100644
--- a/tools/vgchange.c
+++ b/tools/vgchange.c
@@ -132,7 +132,16 @@ static int _vgchange_logicalvolume(struct cmd_context *cmd,
 		return ECMD_FAILED;
 	}
 
-	if (max_lv < vg->lv_count) {
+	if (!(vg->fid->fmt->features & FMT_UNLIMITED_VOLS)) {
+		if (!max_lv)
+			max_lv = 255;
+		else if (max_lv > 255) {
+			log_error("MaxLogicalVolume limit is 255");
+			return ECMD_FAILED;
+		}
+	}
+
+	if (max_lv && max_lv < vg->lv_count) {
 		log_error("MaxLogicalVolume is less than the current number "
 			  "%d of logical volume(s) for \"%s\"", vg->lv_count,
 			  vg->name);
diff --git a/tools/vgcreate.c b/tools/vgcreate.c
index bba795fc5..0530b1e37 100644
--- a/tools/vgcreate.c
+++ b/tools/vgcreate.c
@@ -20,10 +20,6 @@
 
 #include "tools.h"
 
-/* FIXME From config file? */
-#define DEFAULT_PV 256
-#define DEFAULT_LV 256
-
 #define DEFAULT_EXTENT 4096	/* In KB */
 
 int vgcreate(struct cmd_context *cmd, int argc, char **argv)
@@ -46,36 +42,47 @@ int vgcreate(struct cmd_context *cmd, int argc, char **argv)
 	}
 
 	vg_name = argv[0];
-	max_lv = arg_uint_value(cmd, maxlogicalvolumes_ARG, DEFAULT_LV);
-	max_pv = arg_uint_value(cmd, maxphysicalvolumes_ARG, DEFAULT_PV);
+	max_lv = arg_uint_value(cmd, maxlogicalvolumes_ARG, 0);
+	max_pv = arg_uint_value(cmd, maxphysicalvolumes_ARG, 0);
 
-	if (arg_sign_value(cmd, physicalextentsize_ARG, 0) == SIGN_MINUS) {
-		log_error("Physical extent size may not be negative");
-		return EINVALID_CMD_LINE;
-	}
-
-	/* Units of 512-byte sectors */
-	extent_size =
-	    arg_uint_value(cmd, physicalextentsize_ARG, DEFAULT_EXTENT) * 2;
-
-	if (max_lv < 1) {
-		log_error("maxlogicalvolumes too low");
-		return EINVALID_CMD_LINE;
-	}
-
-	if (max_pv < 1) {
-		log_error("maxphysicalvolumes too low");
-		return EINVALID_CMD_LINE;
-	}
+ 	if (!(cmd->fmt->features & FMT_UNLIMITED_VOLS)) {
+ 		if (!max_lv)
+ 			max_lv = 255;
+ 		if (!max_pv)
+ 			max_pv = 255;
+ 		if (max_lv > 255 || max_pv > 255) {
+ 			log_error("Number of volumes may not exceed 255");
+ 			return EINVALID_CMD_LINE;
+ 		}
+ 	}
+  
+  	if (arg_sign_value(cmd, physicalextentsize_ARG, 0) == SIGN_MINUS) {
+  		log_error("Physical extent size may not be negative");
+  		return EINVALID_CMD_LINE;
+  	}
+  
+ 	if (arg_sign_value(cmd, maxlogicalvolumes_ARG, 0) == SIGN_MINUS) {
+ 		log_error("Max Logical Volumes may not be negative");
+  		return EINVALID_CMD_LINE;
+  	}
+  
+ 	if (arg_sign_value(cmd, maxphysicalvolumes_ARG, 0) == SIGN_MINUS) {
+ 		log_error("Max Physical Volumes may not be negative");
+  		return EINVALID_CMD_LINE;
+  	}
+  
+ 	/* Units of 512-byte sectors */
+ 	extent_size =
+ 	    arg_uint_value(cmd, physicalextentsize_ARG, DEFAULT_EXTENT) * 2;
 
 	if (!extent_size) {
 		log_error("Physical extent size may not be zero");
 		return EINVALID_CMD_LINE;
 	}
 
-	/* Strip dev_dir if present */
-	if (!strncmp(vg_name, cmd->dev_dir, strlen(cmd->dev_dir)))
-		vg_name += strlen(cmd->dev_dir);
+  	/* Strip dev_dir if present */
+  	if (!strncmp(vg_name, cmd->dev_dir, strlen(cmd->dev_dir)))
+  		vg_name += strlen(cmd->dev_dir);
 
 	snprintf(vg_path, PATH_MAX, "%s%s", cmd->dev_dir, vg_name);
 	if (path_exists(vg_path)) {
@@ -94,12 +101,12 @@ int vgcreate(struct cmd_context *cmd, int argc, char **argv)
 		return ECMD_FAILED;
 
 	if (max_lv != vg->max_lv)
-		log_error("Warning: Setting maxlogicalvolumes to %d",
-			  vg->max_lv);
+		log_error("Warning: Setting maxlogicalvolumes to %d "
+			  "(0 means unlimited)", vg->max_lv);
 
 	if (max_pv != vg->max_pv)
-		log_error("Warning: Setting maxphysicalvolumes to %d",
-			  vg->max_pv);
+		log_error("Warning: Setting maxphysicalvolumes to %d "
+			  "(0 means unlimited)", vg->max_pv);
 
 	if (!lock_vol(cmd, "", LCK_VG_WRITE)) {
 		log_error("Can't get lock for orphan PVs");
diff --git a/tools/vgmerge.c b/tools/vgmerge.c
index 6efe163e9..dc85fb922 100644
--- a/tools/vgmerge.c
+++ b/tools/vgmerge.c
@@ -94,14 +94,16 @@ static int _vgmerge_single(struct cmd_context *cmd, const char *vg_name_to,
 		goto error;
 	}
 
-	if (vg_to->max_pv < vg_to->pv_count + vg_from->pv_count) {
+	if (vg_to->max_pv &&
+	    (vg_to->max_pv < vg_to->pv_count + vg_from->pv_count)) {
 		log_error("Maximum number of physical volumes (%d) exceeded "
 			  " for \"%s\" and \"%s\"", vg_to->max_pv, vg_to->name,
 			  vg_from->name);
 		goto error;
 	}
 
-	if (vg_to->max_lv < vg_to->lv_count + vg_from->lv_count) {
+	if (vg_to->max_lv &&
+	    (vg_to->max_lv < vg_to->lv_count + vg_from->lv_count)) {
 		log_error("Maximum number of logical volumes (%d) exceeded "
 			  " for \"%s\" and \"%s\"", vg_to->max_lv, vg_to->name,
 			  vg_from->name);