diff --git a/awx/ui/client/src/inventories-hosts/inventories/related/sources/add/sources-add.controller.js b/awx/ui/client/src/inventories-hosts/inventories/related/sources/add/sources-add.controller.js
index 96c04b7eac..e8e8e41f09 100644
--- a/awx/ui/client/src/inventories-hosts/inventories/related/sources/add/sources-add.controller.js
+++ b/awx/ui/client/src/inventories-hosts/inventories/related/sources/add/sources-add.controller.js
@@ -18,8 +18,9 @@ export default ['$state', '$stateParams', '$scope', 'SourcesFormDefinition',
         init();
 
         function init() {
+            $scope.mode = 'add';
             // apply form definition's default field values
-            GenerateForm.applyDefaults(form, $scope);
+            GenerateForm.applyDefaults(form, $scope, true);
             $scope.canAdd = inventorySourcesOptions.actions.POST;
             $scope.envParseType = 'yaml';
             initSources();
@@ -118,7 +119,6 @@ export default ['$state', '$stateParams', '$scope', 'SourcesFormDefinition',
             });
         };
 
-        $scope.projectBasePath = GetBasePath('projects');
         $scope.credentialBasePath = GetBasePath('credentials') + '?credential_type__kind__in=cloud,network';
 
         $scope.sourceChange = function(source) {
@@ -144,10 +144,11 @@ export default ['$state', '$stateParams', '$scope', 'SourcesFormDefinition',
             }
 
             if (source === 'scm') {
-              $scope.overwrite_vars = true;
-              $scope.inventory_source_form.inventory_file.$setPristine();
+                $scope.projectBasePath = GetBasePath('projects');
+                $scope.overwrite_vars = true;
+                $scope.inventory_source_form.inventory_file.$setPristine();
             } else {
-              $scope.overwrite_vars = false;
+                $scope.overwrite_vars = false;
             }
 
             // reset fields
diff --git a/awx/ui/client/src/shared/directives.js b/awx/ui/client/src/shared/directives.js
index 4fff94bca1..2967ffaba5 100644
--- a/awx/ui/client/src/shared/directives.js
+++ b/awx/ui/client/src/shared/directives.js
@@ -564,10 +564,6 @@ function(ConfigurationUtils, i18n, $rootScope) {
                         _doAutoPopulate();
                     }
                 });
-
-                if (attrs.watchbasepath === 'projectBasePath') {
-                    _doAutoPopulate();
-                }
             }
 
             function _doAutoPopulate() {
diff --git a/awx/ui/client/src/shared/form-generator.js b/awx/ui/client/src/shared/form-generator.js
index ff3bcbf568..10923c5329 100644
--- a/awx/ui/client/src/shared/form-generator.js
+++ b/awx/ui/client/src/shared/form-generator.js
@@ -375,11 +375,13 @@ angular.module('FormGenerator', [GeneratorHelpers.name, 'Utilities', listGenerat
                 return this.build(options);
             },
 
-            applyDefaults: function (form, scope) {
-                // Note: This is a hack. Ideally, mode should be set in each <resource>-<mode>.controller.js
-                // The mode is needed by the awlookup directive to auto-populate form fields when there is a
-                // single related resource.
-                scope.mode = this.mode;
+            applyDefaults: function (form, scope, ignoreMode) {
+                if(!ignoreMode) {
+                    // Note: This is a hack. Ideally, mode should be set in each <resource>-<mode>.controller.js
+                    // The mode is needed by the awlookup directive to auto-populate form fields when there is a
+                    // single related resource.
+                    scope.mode = this.mode;
+                }
 
                 for (var fld in form.fields) {
                     if (form.fields[fld]['default'] || form.fields[fld]['default'] === 0) {