diff --git a/data/users/__init__.py b/data/users/__init__.py
index ccc9e7f7e..01c5ebe7d 100644
--- a/data/users/__init__.py
+++ b/data/users/__init__.py
@@ -174,6 +174,12 @@ class UserAuthentication(object):
     """
     return self.state.federated_service
 
+  @property
+  def requires_distinct_cli_password(self):
+    """ Returns whether this auth system requires a distinct CLI password to be created,
+        in-system, before the CLI can be used. """
+    return self.state.requires_distinct_cli_password
+
   @property
   def supports_encrypted_credentials(self):
     """ Returns whether this auth system supports using encrypted credentials. """
diff --git a/data/users/database.py b/data/users/database.py
index 09a8ccf7f..6c85db3bc 100644
--- a/data/users/database.py
+++ b/data/users/database.py
@@ -13,6 +13,11 @@ class DatabaseUsers(object):
   def supports_encrypted_credentials(self):
     return True
 
+  @property
+  def requires_distinct_cli_password(self):
+    # Since the database stores its own password.
+    return True
+
   def verify_credentials(self, username_or_email, password):
     """ Simply delegate to the model implementation. """
     result = model.user.verify_user(username_or_email, password)
diff --git a/data/users/federated.py b/data/users/federated.py
index 7a79444e6..047234a65 100644
--- a/data/users/federated.py
+++ b/data/users/federated.py
@@ -28,6 +28,11 @@ class FederatedUsers(object):
   def supports_encrypted_credentials(self):
     return True
 
+  @property
+  def requires_distinct_cli_password(self):
+    # Since the federated auth provides a password which works on the CLI.
+    return False
+
   def get_user(self, username_or_email):
     """ Retrieves the user with the given username or email, returning a tuple containing
         a UserInformation (if success) and the error message (on failure).
diff --git a/data/users/oidc.py b/data/users/oidc.py
index 30314f19f..c077a3b21 100644
--- a/data/users/oidc.py
+++ b/data/users/oidc.py
@@ -29,6 +29,11 @@ class OIDCInternalAuth(object):
   def federated_service(self):
     return None
 
+  @property
+  def requires_distinct_cli_password(self):
+    # Since the "password" is the generated ID token.
+    return False
+
   @property
   def supports_encrypted_credentials(self):
     # Since the "password" is already a signed JWT.
diff --git a/endpoints/oauth/login.py b/endpoints/oauth/login.py
index 54f0c7dc5..3a0e1cc2b 100644
--- a/endpoints/oauth/login.py
+++ b/endpoints/oauth/login.py
@@ -105,9 +105,10 @@ def _conduct_oauth_login(auth_system, login_service, lid, lusername, lemail, met
       new_username = valid
       break
 
+    requires_password = auth_system.requires_distinct_cli_password
     prompts = model.user.get_default_user_prompts(features)
     user_obj = model.user.create_federated_user(new_username, lemail, service_id, lid,
-                                                set_password_notification=True,
+                                                set_password_notification=requires_password,
                                                 metadata=metadata or {},
                                                 prompts=prompts,
                                                 email_required=features.MAILING)
diff --git a/endpoints/oauth/test/test_login.py b/endpoints/oauth/test/test_login.py
index 40a51dc91..12a26e7ee 100644
--- a/endpoints/oauth/test/test_login.py
+++ b/endpoints/oauth/test/test_login.py
@@ -73,6 +73,10 @@ def test_new_account_via_database(login_service):
   federated_login = model.user.lookup_federated_login(new_user, login_service.service_id())
   assert federated_login is not None
 
+  # Ensure that a notification was created.
+  assert list(model.notification.list_notifications(result.user_obj,
+                                                    kind_name='password_required'))
+
 @pytest.mark.parametrize('open_creation, invite_only, has_invite, expect_success', [
   # Open creation -> Success!
   (True, False, False, True),
@@ -173,6 +177,9 @@ def test_new_account_via_ldap(binding_field, lid, lusername, lemail, expected_er
       else:
         assert internal_login is None
 
+      # Ensure that no notification was created.
+      assert not list(model.notification.list_notifications(result.user_obj,
+                                                            kind_name='password_required'))
     else:
       # Ensure that no addtional users were created.
       assert current_user_count == existing_user_count