diff --git a/src/addon/NUOPC/src/NUOPC_Base.F90 b/src/addon/NUOPC/src/NUOPC_Base.F90
index 2f3bf35a4a..891b39f808 100644
--- a/src/addon/NUOPC/src/NUOPC_Base.F90
+++ b/src/addon/NUOPC/src/NUOPC_Base.F90
@@ -154,12 +154,13 @@ module NUOPC_Base
 ! !IROUTINE: NUOPC_AddNamespace - Add a nested state with Namespace to a State
 ! !INTERFACE:
   subroutine NUOPC_AddNamespace(state, Namespace, nestedStateName, &
-    nestedState, rc)
+    nestedState, vm, rc)
 ! !ARGUMENTS:
     type(ESMF_State), intent(inout)         :: state
     character(len=*), intent(in)            :: Namespace
     character(len=*), intent(in),  optional :: nestedStateName
     type(ESMF_State), intent(out), optional :: nestedState
+    type(ESMF_VM),    intent(in),  optional :: vm
     integer,          intent(out), optional :: rc
 ! !DESCRIPTION:
 !   Add a Namespace to {\tt state}. Namespaces are implemented via nested 
@@ -178,6 +179,10 @@ subroutine NUOPC_AddNamespace(state, Namespace, nestedStateName, &
 !     Name of the nested state. Defaults to {\tt Namespace}.
 !   \item[{[nestedState]}]
 !     Optional return of the newly created nested state.
+!   \item[{[vm]}]
+!     If present, the nested State created to hold the namespace is created on
+!     the specified {\tt ESMF\_VM} object. The default is to create the nested
+!     State on the VM of the current component context.
 !   \item[{[rc]}]
 !     Return code; equals {\tt ESMF\_SUCCESS} if there are no errors.
 !   \end{description}
@@ -189,9 +194,10 @@ subroutine NUOPC_AddNamespace(state, Namespace, nestedStateName, &
     type(ESMF_State)            :: nestedS
     character(len=80)           :: nestedSName
     type(ESMF_StateIntent_Flag) :: stateIntent
-    
+    logical                     :: stateIsCreated
+
     if (present(rc)) rc = ESMF_SUCCESS
-    
+
     call ESMF_StateGet(state, stateIntent=stateIntent, rc=localrc)
     if (ESMF_LogFoundError(rcToCheck=localrc, msg=ESMF_LOGERR_PASSTHRU, &
       line=__LINE__, file=FILENAME, rcToReturn=rc)) return  ! bail out
@@ -201,31 +207,39 @@ subroutine NUOPC_AddNamespace(state, Namespace, nestedStateName, &
     else
       nestedSName = trim(Namespace)
     endif
-    
+
     nestedS = ESMF_StateCreate(name=nestedSName, stateIntent=stateIntent, &
-      rc=localrc)
-    if (ESMF_LogFoundError(rcToCheck=localrc, msg=ESMF_LOGERR_PASSTHRU, &
-      line=__LINE__, file=FILENAME, rcToReturn=rc)) return  ! bail out
-      
-    call NUOPC_InitAttributes(nestedS, rc=localrc)
+      vm=vm, rc=localrc)
     if (ESMF_LogFoundError(rcToCheck=localrc, msg=ESMF_LOGERR_PASSTHRU, &
       line=__LINE__, file=FILENAME, rcToReturn=rc)) return  ! bail out
 
-    call NUOPC_SetAttribute(nestedS, name="Namespace", &
-      value=trim(Namespace), rc=localrc)
-    if (ESMF_LogFoundError(rcToCheck=localrc, msg=ESMF_LOGERR_PASSTHRU, &
-      line=__LINE__, file=FILENAME, rcToReturn=rc)) return  ! bail out
-    
-    call ESMF_StateAdd(state, (/nestedS/), rc=localrc)
+    stateIsCreated = ESMF_StateIsCreated(nestedS, rc=rc)
     if (ESMF_LogFoundError(rcToCheck=localrc, msg=ESMF_LOGERR_PASSTHRU, &
       line=__LINE__, file=FILENAME, rcToReturn=rc)) return  ! bail out
 
+    if (stateIsCreated) then
+
+      call NUOPC_InitAttributes(nestedS, rc=localrc)
+      if (ESMF_LogFoundError(rcToCheck=localrc, msg=ESMF_LOGERR_PASSTHRU, &
+        line=__LINE__, file=FILENAME, rcToReturn=rc)) return  ! bail out
+
+      call NUOPC_SetAttribute(nestedS, name="Namespace", &
+        value=trim(Namespace), rc=localrc)
+      if (ESMF_LogFoundError(rcToCheck=localrc, msg=ESMF_LOGERR_PASSTHRU, &
+        line=__LINE__, file=FILENAME, rcToReturn=rc)) return  ! bail out
+
+      call ESMF_StateAdd(state, (/nestedS/), rc=localrc)
+      if (ESMF_LogFoundError(rcToCheck=localrc, msg=ESMF_LOGERR_PASSTHRU, &
+        line=__LINE__, file=FILENAME, rcToReturn=rc)) return  ! bail out
+
+    endif
+
     if (present(nestedState)) &
       nestedState = nestedS
-    
+
   end subroutine
-  !---------------------------------------------------------------------
-  
+  !-----------------------------------------------------------------------------
+
   !-----------------------------------------------------------------------------
 !BOP
 ! !IROUTINE: NUOPC_AddNestedState - Add a nested state to a state with NUOPC attributes
diff --git a/src/addon/NUOPC/src/NUOPC_Connector.F90 b/src/addon/NUOPC/src/NUOPC_Connector.F90
index 075734a624..7540b577fd 100644
--- a/src/addon/NUOPC/src/NUOPC_Connector.F90
+++ b/src/addon/NUOPC/src/NUOPC_Connector.F90
@@ -618,10 +618,10 @@ subroutine InitializeIPDv05p1(connector, importState, exportState, clock, rc)
       call ESMF_StateGet(exportState, name=stateName, rc=rc)
       if (ESMF_LogFoundError(rcToCheck=rc, msg=ESMF_LOGERR_PASSTHRU, &
         line=__LINE__, file=trim(name)//":"//FILENAME)) return  ! bail out
-      ! set namespace on exportState, creating a nestedState
+      ! set namespace on exportState, creating a nestedState on acceptor VM
       call NUOPC_AddNamespace(exportState, namespace=trim(namespace), &
         nestedStateName=trim(stateName)//"-namespace:"//trim(namespace), &
-        nestedState=exportNestedState, rc=rc)
+        nestedState=exportNestedState, vm=vm, rc=rc)
       if (ESMF_LogFoundError(rcToCheck=rc, msg=ESMF_LOGERR_PASSTHRU, &
         line=__LINE__, file=trim(name)//":"//FILENAME)) return  ! bail out
       ! mirror importState items into exportNestedState
@@ -713,10 +713,10 @@ subroutine InitializeIPDv05p1(connector, importState, exportState, clock, rc)
       call ESMF_StateGet(importState, name=stateName, rc=rc)
       if (ESMF_LogFoundError(rcToCheck=rc, msg=ESMF_LOGERR_PASSTHRU, &
         line=__LINE__, file=trim(name)//":"//FILENAME)) return  ! bail out
-      ! set namespace on importState, creating a nestedState
+      ! set namespace on importState, creating a nestedState on acceptor VM
       call NUOPC_AddNamespace(importState, namespace=trim(namespace), &
         nestedStateName=trim(stateName)//"-namespace:"//trim(namespace), &
-        nestedState=importNestedState, rc=rc)
+        nestedState=importNestedState, vm=vm, rc=rc)
       ! mirror exportState items into importNestedState
       call doMirror(exportState, importNestedState, acceptorVM=vm, rc=rc)
       if (ESMF_LogFoundError(rcToCheck=rc, msg=ESMF_LOGERR_PASSTHRU, &