diff --git a/frontend_tests/node_tests/dispatch.js b/frontend_tests/node_tests/dispatch.js
index e9b10388a7..1e75fa3ddc 100644
--- a/frontend_tests/node_tests/dispatch.js
+++ b/frontend_tests/node_tests/dispatch.js
@@ -54,6 +54,10 @@ set_global('message_edit', {
     update_message_topic_editing_pencil: noop,
 });
 
+set_global('settings_bots', {
+    update_bot_permissions_ui: noop,
+});
+
 // page_params is highly coupled to dispatching now
 set_global('page_params', {test_suite: false});
 var page_params = global.page_params;
@@ -195,11 +199,11 @@ var event_fixtures = {
         value: false,
     },
 
-    realm__update__create_generic_bot_by_admins_only: {
+    realm__update__bot_creation_policy: {
         type: 'realm',
         op: 'update',
-        property: 'create_generic_bot_by_admins_only',
-        value: false,
+        property: 'bot_creation_policy',
+        value: 1,
     },
 
     realm__update_dict__default: {
diff --git a/static/js/admin.js b/static/js/admin.js
index 13a3b0e83a..a34bcbac03 100644
--- a/static/js/admin.js
+++ b/static/js/admin.js
@@ -41,8 +41,6 @@ function _setup_page() {
         realm_email_changes_disabled: page_params.realm_email_changes_disabled,
         realm_add_emoji_by_admins_only: page_params.realm_add_emoji_by_admins_only,
         can_admin_emojis: page_params.is_admin || !page_params.realm_add_emoji_by_admins_only,
-        realm_create_generic_bot_by_admins_only:
-            page_params.realm_create_generic_bot_by_admins_only,
         realm_allow_message_deleting: page_params.realm_allow_message_deleting,
         realm_allow_message_editing: page_params.realm_allow_message_editing,
         realm_message_content_edit_limit_minutes:
@@ -62,10 +60,14 @@ function _setup_page() {
         realm_send_welcome_emails: page_params.realm_send_welcome_emails,
     };
 
+    options.bot_creation_policy_values = settings_bots.bot_creation_policy_values;
     var admin_tab = templates.render('admin_tab', options);
     $("#settings_content .organization-box").html(admin_tab);
     $("#settings_content .alert").removeClass("show");
 
+    settings_bots.update_bot_settings_tip();
+    $("#id_realm_bot_creation_policy").val(page_params.realm_bot_creation_policy);
+
     // Since we just swapped in a whole new page, we need to
     // tell admin_sections nothing is loaded.
     admin_sections.reset_sections();
diff --git a/static/js/server_events_dispatch.js b/static/js/server_events_dispatch.js
index d7eeb00301..c54f834027 100644
--- a/static/js/server_events_dispatch.js
+++ b/static/js/server_events_dispatch.js
@@ -56,7 +56,7 @@ exports.dispatch_normal_event = function dispatch_normal_event(event) {
             allow_edit_history: noop,
             allow_message_deleting: noop,
             allow_message_editing: noop,
-            create_generic_bot_by_admins_only: noop,
+            bot_creation_policy: settings_bots.update_bot_permissions_ui,
             create_stream_by_admins_only: noop,
             default_language: settings_org.reset_realm_default_language,
             description: settings_org.update_realm_description,
diff --git a/static/js/settings.js b/static/js/settings.js
index 5cf22943cf..6430bd5016 100644
--- a/static/js/settings.js
+++ b/static/js/settings.js
@@ -99,12 +99,17 @@ function _setup_page() {
         return tab;
     }());
 
+    settings_bots.setup_bot_creation_policy_values();
+
     var settings_tab = templates.render('settings_tab', {
         full_name: people.my_full_name(),
         page_params: page_params,
         zuliprc: 'zuliprc',
         flaskbotrc: 'flaskbotrc',
         timezones: moment.tz.names(),
+        admin_only_bot_creation: page_params.is_admin ||
+            page_params.realm_bot_creation_policy !==
+            settings_bots.bot_creation_policy_values.admins_only.code,
     });
 
     $(".settings-box").html(settings_tab);
diff --git a/static/js/settings_bots.js b/static/js/settings_bots.js
index aa60348985..41b828f28b 100644
--- a/static/js/settings_bots.js
+++ b/static/js/settings_bots.js
@@ -83,6 +83,57 @@ exports.generate_flaskbotrc_content = function (email, api_key) {
            "\n";
 };
 
+exports.bot_creation_policy_values = {};
+
+exports.setup_bot_creation_policy_values = function () {
+    exports.bot_creation_policy_values = {
+        everyone: {
+            code: 1,
+            description: i18n.t("Everyone"),
+        },
+        admins_only: {
+            code: 3,
+            description: i18n.t("Admins only"),
+        },
+        restricted: {
+            code: 2,
+            description: i18n.t("Everyone, but only admins can add generic bots"),
+        },
+    };
+};
+
+exports.update_bot_settings_tip = function () {
+    var permission_type = exports.bot_creation_policy_values;
+    var current_permission = page_params.realm_bot_creation_policy;
+    var tip_text;
+    if (current_permission === permission_type.admins_only.code) {
+        tip_text = i18n.t("Only organization administrators can add bots to this organization");
+    } else if (current_permission === permission_type.restricted.code) {
+        tip_text = i18n.t("Only orgainzation administrators can add generic bots");
+    } else {
+        tip_text = i18n.t("Anyone in this organization can add bots");
+    }
+    $(".bot-settings-tip").text(tip_text);
+};
+
+exports.update_bot_permissions_ui = function () {
+    exports.update_bot_settings_tip();
+    $('#bot_table_error').hide();
+    $("#id_realm_bot_creation_policy").val(page_params.realm_bot_creation_policy);
+    if (page_params.realm_bot_creation_policy ===
+        exports.bot_creation_policy_values.admins_only.code &&
+        !page_params.is_admin) {
+        $('#create_bot_form').hide();
+        $('.add-a-new-bot-tab').hide();
+        $('.account-api-key-section').hide();
+        $("#bots_lists_navbar .active-bots-tab").click();
+    } else {
+        $('#create_bot_form').show();
+        $('.add-a-new-bot-tab').show();
+        $('.account-api-key-section').show();
+    }
+};
+
 exports.set_up = function () {
     $('#payload_url_inputbox').hide();
     $('#create_payload_url').val('');
@@ -393,6 +444,7 @@ exports.set_up = function () {
         $("#add-a-new-bot-form").hide();
         $("#active_bots_list").show();
         $("#inactive_bots_list").hide();
+        $('#bot_table_error').hide();
     });
 
     $("#bots_lists_navbar .inactive-bots-tab").click(function (e) {
diff --git a/static/js/settings_org.js b/static/js/settings_org.js
index 6e70341269..94bfc4c40f 100644
--- a/static/js/settings_org.js
+++ b/static/js/settings_org.js
@@ -309,10 +309,9 @@ function _set_up() {
                 checked_msg: i18n.t("Only administrators may now add new emoji!"),
                 unchecked_msg: i18n.t("Any user may now add new emoji!"),
             },
-            create_generic_bot_by_admins_only: {
-                type: 'bool',
-                checked_msg: i18n.t("Only administrators may now create new generic bots!"),
-                unchecked_msg: i18n.t("Any user may now create new generic bots!"),
+            bot_creation_policy: {
+                type: 'integer',
+                msg: i18n.t("Permissions changed"),
             },
         },
     };
@@ -361,7 +360,7 @@ function _set_up() {
                 return;
             }
 
-            if (setting_type === 'text') {
+            if (setting_type === 'text' || setting_type === 'integer') {
                 ui_report.success(field_info.msg,
                                   property_type_status_element(key));
                 return;
diff --git a/static/styles/settings.css b/static/styles/settings.css
index 07293d68c3..e38aec347f 100644
--- a/static/styles/settings.css
+++ b/static/styles/settings.css
@@ -353,7 +353,7 @@ input[type=checkbox] + .inline-block {
     margin-top: 10px;
 }
 
-.organization-submission {
+.org-settings-form .organization-submission {
     margin-top: 0px;
 }
 
@@ -1192,7 +1192,8 @@ input[type=checkbox].inline-block {
     transform: translateY(-50%);
 }
 
-#id_realm_create_stream_permission {
+#id_realm_create_stream_permission,
+#id_realm_bot_creation_policy {
     width: 100%;
 }
 
diff --git a/static/templates/settings/bot-list-admin.handlebars b/static/templates/settings/bot-list-admin.handlebars
index ccd6c680ba..17578d98da 100644
--- a/static/templates/settings/bot-list-admin.handlebars
+++ b/static/templates/settings/bot-list-admin.handlebars
@@ -1,4 +1,5 @@
 <div id="admin-bot-list" class="settings-section" data-name="bot-list-admin">
+    <div class="tip bot-settings-tip"></div>
     <input type="text" class="search" placeholder="{{t 'Filter bots' }}" aria-label="{{t 'Filter bots' }}"/>
     <div class="clear-float"></div>
     <table class="table table-condensed table-striped wrapped-table">
diff --git a/static/templates/settings/bot-settings.handlebars b/static/templates/settings/bot-settings.handlebars
index fc41f44531..ec1577efc5 100644
--- a/static/templates/settings/bot-settings.handlebars
+++ b/static/templates/settings/bot-settings.handlebars
@@ -3,6 +3,7 @@
         <div class="tip">
             {{#tr this}}Looking for our <a href="/integrations" target="_blank">Integrations</a> or <a href="/api" target="_blank">API</a> documentation?{{/tr}}
         </div>
+        <div class="tip bot-settings-tip"></div>
 
         <div>
             <span>{{t 'Download config of all active outgoing webhook bots in Zulip Botserver format.' }}</span>
@@ -14,7 +15,7 @@
         <ul class="nav nav-tabs nav-justified" id="bots_lists_navbar">
             <li class="active active-bots-tab"><a>{{t "Active bots" }}</a></li>
             <li class="inactive-bots-tab"><a>{{t "Inactive bots" }}</a></li>
-            <li class="add-a-new-bot-tab"><a>{{t "Add a new bot" }}</a></li>
+            <li class="add-a-new-bot-tab {{#unless admin_only_bot_creation}}hide{{/unless}}"><a>{{t "Add a new bot" }}</a></li>
         </ul>
 
         <ol class="bots_list required-text" id="active_bots_list" data-empty="{{t 'You have no active bots.' }}">
@@ -26,7 +27,8 @@
         <div id="bot_table_error" class="alert alert-error hide"></div>
 
         <div id="add-a-new-bot-form">
-            <form id="create_bot_form" class="form-horizontal no-padding">
+            <form id="create_bot_form"
+                class="form-horizontal no-padding {{#unless admin_only_bot_creation}}hide{{/unless}}">
                 <div class="new-bot-form">
                     <div class="input-group">
                         <label for="bot_type">
diff --git a/static/templates/settings/organization-permissions-admin.handlebars b/static/templates/settings/organization-permissions-admin.handlebars
index 39987a0e6f..69be71b434 100644
--- a/static/templates/settings/organization-permissions-admin.handlebars
+++ b/static/templates/settings/organization-permissions-admin.handlebars
@@ -9,7 +9,7 @@
         <div class="alert" id="admin-realm-name-changes-disabled-status"></div>
         <div class="alert" id="admin-realm-add-emoji-by-admins-only-status"></div>
         <div class="alert" id="admin-realm-create-stream-by-admins-only-status"></div>
-        <div class="alert" id="admin-realm-create-generic-bot-by-admins-only-status"></div>
+        <div class="alert" id="admin-realm-bot-creation-policy-status"></div>
 
         <div class="inline-block organization-permissions-parent">
             <div class="input-group admin-restricted-to-domain">
@@ -74,8 +74,8 @@
         </div>
 
         <h3>{{t "Other permissions" }}</h3>
-        <div class="organization-permissions-parent">
-            <div class="inline-block create-stream-dropdown">
+        <div class="m-10 inline-block organization-permissions-parent">
+            <div class="input-group create-stream-dropdown">
                 <label for="realm_create_stream_permission" class="dropdown-title">{{t "Who can create streams" }}</label>
                 <select name="realm_create_stream_permission" id="id_realm_create_stream_permission">
                     <option value="by_anyone">{{t "Everyone" }}</option>
@@ -91,8 +91,16 @@
                      class="admin-realm-message-content-edit-limit-minutes"
                      value="{{ realm_waiting_period_threshold }}"/>
             </div>
-        </div>
-        <div class="m-t-10 inline-block organization-permissions-parent">
+
+            <div class="input-group">
+                <label for="realm_bot_creation_policy">{{t "Who can add bots" }}</label>
+                <select name="realm_bot_creation_policy" id="id_realm_bot_creation_policy">
+                    {{#each bot_creation_policy_values}}
+                    <option value='{{this.code}}'>{{this.description}}</option>
+                    {{/each}}
+                </select>
+            </div>
+
             <div class="inline-block">
                 <label for="realm_add_emoji_by_admins_only" class="dropdown-title">{{t "Who can add emoji" }}</label>
                 <select name="realm_add_emoji_by_admins_only" id="id_realm_add_emoji_by_admins_only">
@@ -102,21 +110,6 @@
             </div>
         </div>
 
-        <h3>{{t "Interactive bots" }}</h3>
-        <div class="inline-block organization-permissions-parent">
-            <div class="input-group">
-                <label class="checkbox">
-                    <input type="checkbox" id="id_realm_create_generic_bot_by_admins_only" name="realm_create_generic_bot_by_admins_only"
-                           {{#if realm_create_generic_bot_by_admins_only}}checked="checked"{{/if}} />
-                    <span></span>
-                </label>
-                <label for="id_realm_create_generic_bot_by_admins_only" id="id_realm_create_generic_bot_by_admins_only_label" class="inline-block"
-                    title="{{t 'If checked, only administrators may create new generic bots.' }}">
-                    {{t "Prevent users from creating generic bots" }}
-                </label>
-            </div>
-        </div>
-
         {{#if is_admin }}
         <div class="input-group organization-submission">
             <button type="submit" class="button rounded sea-green">
diff --git a/zerver/lib/users.py b/zerver/lib/users.py
index b54dfd2f49..be2310893f 100644
--- a/zerver/lib/users.py
+++ b/zerver/lib/users.py
@@ -40,6 +40,19 @@ def check_valid_bot_config(service_name: str, config_data: Dict[str, str]) -> No
         # error message.
         raise JsonableError(_("Invalid configuration data!"))
 
+def check_bot_creation_policy(user_profile: UserProfile, bot_type: int) -> None:
+    # Realm administrators can always add bot
+    if user_profile.is_realm_admin:
+        return
+
+    if user_profile.realm.bot_creation_policy == Realm.BOT_CREATION_EVERYONE:
+        return
+    if user_profile.realm.bot_creation_policy == Realm.BOT_CREATION_ADMINS_ONLY:
+        raise JsonableError(_("Must be an organization administrator"))
+    if user_profile.realm.bot_creation_policy == Realm.BOT_CREATION_LIMIT_GENERIC_BOTS and \
+            bot_type == UserProfile.DEFAULT_BOT:
+        raise JsonableError(_("Must be an organization administrator"))
+
 def check_valid_bot_type(user_profile: UserProfile, bot_type: int) -> None:
     if bot_type not in user_profile.allowed_bot_types:
         raise JsonableError(_('Invalid bot type'))
diff --git a/zerver/migrations/0143_realm_bot_creation_policy.py b/zerver/migrations/0143_realm_bot_creation_policy.py
new file mode 100644
index 0000000000..0ba1744dd4
--- /dev/null
+++ b/zerver/migrations/0143_realm_bot_creation_policy.py
@@ -0,0 +1,41 @@
+# -*- coding: utf-8 -*-
+# Generated by Django 1.11.6 on 2018-03-09 18:00
+from __future__ import unicode_literals
+
+from django.db import migrations, models
+from django.db.backends.postgresql_psycopg2.schema import DatabaseSchemaEditor
+from django.db.migrations.state import StateApps
+
+def set_initial_value_for_bot_creation_policy(apps: StateApps, schema_editor: DatabaseSchemaEditor) -> None:
+    Realm = apps.get_model("zerver", "Realm")
+    for realm in Realm.objects.all():
+        if realm.create_generic_bot_by_admins_only:
+            realm.bot_creation_policy = 2   # BOT_CREATION_LIMIT_GENERIC_BOTS
+        else:
+            realm.bot_creation_policy = 1   # BOT_CREATION_EVERYONE
+        realm.save(update_fields=["bot_creation_policy"])
+
+def reverse_code(apps: StateApps, schema_editor: DatabaseSchemaEditor) -> None:
+    Realm = apps.get_model("zerver", "Realm")
+    for realm in Realm.objects.all():
+        if realm.bot_creation_policy == 1:  # BOT_CREATION_EVERYONE
+            realm.create_generic_bot_by_admins_only = False
+        else:
+            realm.create_generic_bot_by_admins_only = True
+        realm.save(update_fields=["create_generic_bot_by_admins_only"])
+
+class Migration(migrations.Migration):
+
+    dependencies = [
+        ('zerver', '0142_userprofile_translate_emoticons'),
+    ]
+
+    operations = [
+        migrations.AddField(
+            model_name='realm',
+            name='bot_creation_policy',
+            field=models.PositiveSmallIntegerField(default=1),
+        ),
+        migrations.RunPython(set_initial_value_for_bot_creation_policy,
+                             reverse_code=reverse_code),
+    ]
diff --git a/zerver/migrations/0144_remove_realm_create_generic_bot_by_admins_only.py b/zerver/migrations/0144_remove_realm_create_generic_bot_by_admins_only.py
new file mode 100644
index 0000000000..d0152dd527
--- /dev/null
+++ b/zerver/migrations/0144_remove_realm_create_generic_bot_by_admins_only.py
@@ -0,0 +1,19 @@
+# -*- coding: utf-8 -*-
+# Generated by Django 1.11.6 on 2018-03-09 21:21
+from __future__ import unicode_literals
+
+from django.db import migrations
+
+
+class Migration(migrations.Migration):
+
+    dependencies = [
+        ('zerver', '0143_realm_bot_creation_policy'),
+    ]
+
+    operations = [
+        migrations.RemoveField(
+            model_name='realm',
+            name='create_generic_bot_by_admins_only',
+        ),
+    ]
diff --git a/zerver/models.py b/zerver/models.py
index 4c8e5fa434..a487237488 100644
--- a/zerver/models.py
+++ b/zerver/models.py
@@ -144,7 +144,6 @@ class Realm(models.Model):
     inline_url_embed_preview = models.BooleanField(default=True)  # type: bool
     create_stream_by_admins_only = models.BooleanField(default=False)  # type: bool
     add_emoji_by_admins_only = models.BooleanField(default=False)  # type: bool
-    create_generic_bot_by_admins_only = models.BooleanField(default=False)  # type: bool
     mandatory_topics = models.BooleanField(default=False)  # type: bool
     show_digest_email = models.BooleanField(default=True)  # type: bool
     name_changes_disabled = models.BooleanField(default=False)  # type: bool
@@ -164,6 +163,13 @@ class Realm(models.Model):
     COMMUNITY = 2
     org_type = models.PositiveSmallIntegerField(default=CORPORATE)  # type: int
 
+    # This value is also being used in static/js/settings_bots.bot_creation_policy_values.
+    # On updating it here, update it there as well.
+    BOT_CREATION_EVERYONE = 1
+    BOT_CREATION_LIMIT_GENERIC_BOTS = 2
+    BOT_CREATION_ADMINS_ONLY = 3
+    bot_creation_policy = models.PositiveSmallIntegerField(default=BOT_CREATION_EVERYONE)  # type: int
+
     date_created = models.DateTimeField(default=timezone_now)  # type: datetime.datetime
     notifications_stream = models.ForeignKey('Stream', related_name='+', null=True, blank=True, on_delete=CASCADE)  # type: Optional[Stream]
     signup_notifications_stream = models.ForeignKey('Stream', related_name='+', null=True, blank=True, on_delete=CASCADE)  # type: Optional[Stream]
@@ -183,7 +189,7 @@ class Realm(models.Model):
         add_emoji_by_admins_only=bool,
         allow_edit_history=bool,
         allow_message_deleting=bool,
-        create_generic_bot_by_admins_only=bool,
+        bot_creation_policy=int,
         create_stream_by_admins_only=bool,
         default_language=Text,
         description=Text,
@@ -214,6 +220,12 @@ class Realm(models.Model):
     DEFAULT_NOTIFICATION_STREAM_NAME = u'announce'
     INITIAL_PRIVATE_STREAM_NAME = u'core team'
 
+    BOT_CREATION_POLICY_TYPES = [
+        BOT_CREATION_EVERYONE,
+        BOT_CREATION_LIMIT_GENERIC_BOTS,
+        BOT_CREATION_ADMINS_ONLY,
+    ]
+
     def authentication_methods_dict(self) -> Dict[Text, bool]:
         """Returns the a mapping from authentication flags to their status,
         showing only those authentication flags that are supported on
@@ -724,7 +736,8 @@ class UserProfile(AbstractBaseUser, PermissionsMixin):
     def allowed_bot_types(self):
         # type: () -> List[int]
         allowed_bot_types = []
-        if self.is_realm_admin or not self.realm.create_generic_bot_by_admins_only:
+        if self.is_realm_admin or \
+                not self.realm.bot_creation_policy == Realm.BOT_CREATION_LIMIT_GENERIC_BOTS:
             allowed_bot_types.append(UserProfile.DEFAULT_BOT)
         allowed_bot_types += [
             UserProfile.INCOMING_WEBHOOK_BOT,
diff --git a/zerver/tests/test_bots.py b/zerver/tests/test_bots.py
index 3bfee56242..1dfdcd81f2 100644
--- a/zerver/tests/test_bots.py
+++ b/zerver/tests/test_bots.py
@@ -570,7 +570,7 @@ class BotTest(ZulipTestCase, UploadSerializeMixin):
         self.assert_num_bots_equal(0)
         self.assert_json_error(result, 'Invalid bot type')
 
-    def test_add_bot_with_bot_type_not_allowed(self) -> None:
+    def test_no_generic_bots_allowed_for_non_admins(self) -> None:
         bot_info = {
             'full_name': 'The Bot of Hamlet',
             'short_name': 'hambot',
@@ -578,15 +578,15 @@ class BotTest(ZulipTestCase, UploadSerializeMixin):
         }
         bot_email = 'hambot-bot@zulip.testserver'
         bot_realm = get_realm('zulip')
-        bot_realm.create_generic_bot_by_admins_only = True
-        bot_realm.save(update_fields=['create_generic_bot_by_admins_only'])
+        bot_realm.bot_creation_policy = Realm.BOT_CREATION_LIMIT_GENERIC_BOTS
+        bot_realm.save(update_fields=['bot_creation_policy'])
 
         # A regular user cannot create a generic bot
         self.login(self.example_email('hamlet'))
         self.assert_num_bots_equal(0)
         result = self.client_post("/json/bots", bot_info)
         self.assert_num_bots_equal(0)
-        self.assert_json_error(result, 'Invalid bot type')
+        self.assert_json_error(result, 'Must be an organization administrator')
 
         # But can create an incoming webhook
         self.assert_num_bots_equal(0)
@@ -595,11 +595,50 @@ class BotTest(ZulipTestCase, UploadSerializeMixin):
         profile = get_user(bot_email, bot_realm)
         self.assertEqual(profile.bot_type, UserProfile.INCOMING_WEBHOOK_BOT)
 
-    def test_add_bot_with_bot_type_not_allowed_admin(self) -> None:
+    def test_no_generic_bots_allowed_for_admins(self) -> None:
         bot_email = 'hambot-bot@zulip.testserver'
         bot_realm = get_realm('zulip')
-        bot_realm.create_generic_bot_by_admins_only = True
-        bot_realm.save(update_fields=['create_generic_bot_by_admins_only'])
+        bot_realm.bot_creation_policy = Realm.BOT_CREATION_LIMIT_GENERIC_BOTS
+        bot_realm.save(update_fields=['bot_creation_policy'])
+
+        # An administrator can create any type of bot
+        self.login(self.example_email('iago'))
+        self.assert_num_bots_equal(0)
+        self.create_bot(bot_type=UserProfile.DEFAULT_BOT)
+        self.assert_num_bots_equal(1)
+        profile = get_user(bot_email, bot_realm)
+        self.assertEqual(profile.bot_type, UserProfile.DEFAULT_BOT)
+
+    def test_no_bots_allowed_for_non_admins(self) -> None:
+        bot_info = {
+            'full_name': 'The Bot of Hamlet',
+            'short_name': 'hambot',
+            'bot_type': 1,
+        }
+        bot_realm = get_realm('zulip')
+        bot_realm.bot_creation_policy = Realm.BOT_CREATION_ADMINS_ONLY
+        bot_realm.save(update_fields=['bot_creation_policy'])
+
+        # A regular user cannot create a generic bot
+        self.login(self.example_email('hamlet'))
+        self.assert_num_bots_equal(0)
+        result = self.client_post("/json/bots", bot_info)
+        self.assert_num_bots_equal(0)
+        self.assert_json_error(result, 'Must be an organization administrator')
+
+        # Also, a regular user cannot create a incoming bot
+        bot_info['bot_type'] = 2
+        self.login(self.example_email('hamlet'))
+        self.assert_num_bots_equal(0)
+        result = self.client_post("/json/bots", bot_info)
+        self.assert_num_bots_equal(0)
+        self.assert_json_error(result, 'Must be an organization administrator')
+
+    def test_no_bots_allowed_for_admins(self) -> None:
+        bot_email = 'hambot-bot@zulip.testserver'
+        bot_realm = get_realm('zulip')
+        bot_realm.bot_creation_policy = Realm.BOT_CREATION_ADMINS_ONLY
+        bot_realm.save(update_fields=['bot_creation_policy'])
 
         # An administrator can create any type of bot
         self.login(self.example_email('iago'))
diff --git a/zerver/tests/test_events.py b/zerver/tests/test_events.py
index 24c4cdc09a..12091c37d9 100644
--- a/zerver/tests/test_events.py
+++ b/zerver/tests/test_events.py
@@ -1231,6 +1231,7 @@ class EventsRegisterTest(ZulipTestCase):
             message_retention_days=[10, 20],
             name=[u'Zulip', u'New Name'],
             waiting_period_threshold=[10, 20],
+            bot_creation_policy=[Realm.BOT_CREATION_EVERYONE],
         )  # type: Dict[str, Any]
 
         vals = test_values.get(name)
diff --git a/zerver/tests/test_home.py b/zerver/tests/test_home.py
index b7040c6fb0..0be4ff6d66 100644
--- a/zerver/tests/test_home.py
+++ b/zerver/tests/test_home.py
@@ -109,9 +109,9 @@ class HomeTest(ZulipTestCase):
             "realm_allow_message_deleting",
             "realm_allow_message_editing",
             "realm_authentication_methods",
+            "realm_bot_creation_policy",
             "realm_bot_domain",
             "realm_bots",
-            "realm_create_generic_bot_by_admins_only",
             "realm_create_stream_by_admins_only",
             "realm_default_language",
             "realm_default_stream_groups",
diff --git a/zerver/tests/test_realm.py b/zerver/tests/test_realm.py
index 4cb46392e2..02d3be56d6 100644
--- a/zerver/tests/test_realm.py
+++ b/zerver/tests/test_realm.py
@@ -295,6 +295,19 @@ class RealmTest(ZulipTestCase):
         realm = get_realm('zulip')
         self.assertFalse(realm.deactivated)
 
+    def test_change_bot_creation_policy(self) -> None:
+        # We need an admin user.
+        email = 'iago@zulip.com'
+        self.login(email)
+        req = dict(bot_creation_policy = ujson.dumps(Realm.BOT_CREATION_LIMIT_GENERIC_BOTS))
+        result = self.client_patch('/json/realm', req)
+        self.assert_json_success(result)
+
+        invalid_add_bot_permission = 4
+        req = dict(bot_creation_policy = ujson.dumps(invalid_add_bot_permission))
+        result = self.client_patch('/json/realm', req)
+        self.assert_json_error(result, 'Invalid bot creation policy')
+
 
 class RealmAPITest(ZulipTestCase):
 
@@ -329,6 +342,7 @@ class RealmAPITest(ZulipTestCase):
             message_retention_days=[10, 20],
             name=[u'Zulip', u'New Name'],
             waiting_period_threshold=[10, 20],
+            bot_creation_policy=[1, 2],
         )  # type: Dict[str, Any]
         vals = test_values.get(name)
         if Realm.property_types[name] is bool:
diff --git a/zerver/views/realm.py b/zerver/views/realm.py
index 8b886b40f6..df09a3fd95 100644
--- a/zerver/views/realm.py
+++ b/zerver/views/realm.py
@@ -38,7 +38,6 @@ def update_realm(
         inline_url_embed_preview: Optional[bool]=REQ(validator=check_bool, default=None),
         create_stream_by_admins_only: Optional[bool]=REQ(validator=check_bool, default=None),
         add_emoji_by_admins_only: Optional[bool]=REQ(validator=check_bool, default=None),
-        create_generic_bot_by_admins_only: Optional[bool]=REQ(validator=check_bool, default=None),
         allow_message_deleting: Optional[bool]=REQ(validator=check_bool, default=None),
         allow_message_editing: Optional[bool]=REQ(validator=check_bool, default=None),
         mandatory_topics: Optional[bool]=REQ(validator=check_bool, default=None),
@@ -50,7 +49,8 @@ def update_realm(
         notifications_stream_id: Optional[int]=REQ(validator=check_int, default=None),
         signup_notifications_stream_id: Optional[int]=REQ(validator=check_int, default=None),
         message_retention_days: Optional[int]=REQ(converter=to_not_negative_int_or_none, default=None),
-        send_welcome_emails: Optional[bool]=REQ(validator=check_bool, default=None)
+        send_welcome_emails: Optional[bool]=REQ(validator=check_bool, default=None),
+        bot_creation_policy: Optional[int]=REQ(converter=to_not_negative_int_or_none, default=None)
 ) -> HttpResponse:
     realm = user_profile.realm
 
@@ -67,6 +67,9 @@ def update_realm(
     if signup_notifications_stream_id is not None and settings.NEW_USER_BOT is None:
         return json_error(_("NEW_USER_BOT must configured first."))
 
+    # Additional validation of permissions values to add new bot
+    if bot_creation_policy is not None and bot_creation_policy not in Realm.BOT_CREATION_POLICY_TYPES:
+        return json_error(_("Invalid bot creation policy"))
     # The user of `locals()` here is a bit of a code smell, but it's
     # restricted to the elements present in realm.property_types.
     #
diff --git a/zerver/views/users.py b/zerver/views/users.py
index 239d3fde50..61ff0a4887 100644
--- a/zerver/views/users.py
+++ b/zerver/views/users.py
@@ -26,7 +26,7 @@ from zerver.lib.response import json_error, json_success
 from zerver.lib.streams import access_stream_by_name
 from zerver.lib.upload import upload_avatar_image
 from zerver.lib.validator import check_bool, check_string, check_int, check_url, check_dict
-from zerver.lib.users import check_valid_bot_type, \
+from zerver.lib.users import check_valid_bot_type, check_bot_creation_policy, \
     check_full_name, check_short_name, check_valid_interface_type, check_valid_bot_config
 from zerver.lib.utils import generate_random_token
 from zerver.models import UserProfile, Stream, Message, email_allowed_for_realm, \
@@ -299,6 +299,7 @@ def add_bot_backend(
         return json_error(_("Username already in use"))
     except UserProfile.DoesNotExist:
         pass
+    check_bot_creation_policy(user_profile, bot_type)
     check_valid_bot_type(user_profile, bot_type)
     check_valid_interface_type(interface_type)