diff --git a/modules/legacy.nix b/modules/legacy.nix
index 72a736b..40051c2 100644
--- a/modules/legacy.nix
+++ b/modules/legacy.nix
@@ -7,6 +7,8 @@ with lib;
 let
   parentModule = module;
 
+  mkOptionDefault = mkOverride 1001;
+
   mkModuleOptions = moduleDefinition: module:
     let
       # gets file where module is defined by looking into moduleDefinitions
@@ -35,20 +37,16 @@ let
       ./legacy.nix
       (injectModuleAttrs moduleDefinition.module {_file = file;})
       {
-        config.kubernetes.api.defaults = [{
-          default.metadata.namespace = mkOptionDefault module.namespace;
-        }];
+        config.kubernetes.namespace = mkOptionDefault module.namespace;
+        config.kubenix.project = mkOptionDefault config.kubenix.project;
       }
      ] ++ config.kubernetes.defaultModuleConfiguration.all
        ++ (optionals (hasAttr moduleDefinition.name config.kubernetes.defaultModuleConfiguration)
          config.kubernetes.defaultModuleConfiguration.${moduleDefinition.name});
 
   # prefix kubernetes objects with ${serviceName}, this magic was removed in new kubenix
-  prefixResources = resources: serviceName:  map (resource: resource // {
-    metadata = resource.metadata // {
-      name = "${serviceName}-${resource.metadata.name}";
-    };
-  }) resources;
+  prefixResources = resources: serviceName:
+    mapAttrs' (name: resource: nameValuePair "${serviceName}-${name}" resource) resources;
 
   defaultModuleConfigurationOptions = mapAttrs (name: moduleDefinition: mkOption {
     description = "Module default configuration for ${name} module";
@@ -171,13 +169,22 @@ in {
       resource = type.name;
     })) config.kubernetes.defaults;
 
-    kubernetes.objects = mkMerge (
-      mapAttrsToList (name: module: let
-        moduleDefinition = getModuleDefinition module.module;
-      in
-        if moduleDefinition.prefixResources
-        then prefixResources (module.configuration.kubernetes.objects) module.name
-        else module.configuration.kubernetes.objects
+    kubernetes.resources = mkMerge (
+      mapAttrsToList (name: module:
+        mapAttrs' (_: type: let
+          moduleDefinition = getModuleDefinition module.module;
+
+          moduleResources = module.configuration.kubernetes.api.resources.${type.attrName} or {};
+
+          moduleConfig =
+            if moduleDefinition.prefixResources
+            then prefixResources (moduleToAttrs moduleResources) name
+            else moduleToAttrs moduleResources;
+        in nameValuePair type.attrName
+          (if moduleDefinition.assignAsDefaults
+           then mkAllDefault moduleConfig 1000
+           else moduleConfig)
+        ) module.configuration.kubernetes.api.types
       ) config.kubernetes.modules
     );
 
diff --git a/tests/default.nix b/tests/default.nix
index 92c2776..cf65d59 100644
--- a/tests/default.nix
+++ b/tests/default.nix
@@ -30,7 +30,8 @@ let
           ./k8s/order.nix
           ./k8s/submodule.nix
           ./k8s/imports.nix
-          ./k8s/legacy.nix
+          ./legacy/k8s.nix
+          ./legacy/modules.nix
           ./helm/simple.nix
           ./istio/bookinfo.nix
           ./submodules/simple.nix
diff --git a/tests/k8s/legacy.nix b/tests/k8s/legacy.nix
deleted file mode 100644
index 1ab4234..0000000
--- a/tests/k8s/legacy.nix
+++ /dev/null
@@ -1,58 +0,0 @@
-{ config, lib, kubenix, pkgs, k8sVersion, ... }:
-
-with lib;
-
-{
-
-  imports = with kubenix.modules; [ test k8s legacy ];
-
-  test = {
-    name = "k8s-legacy";
-    description = "Simple test tesing kubenix legacy support";
-    assertions = [];
-  };
-
-  kubernetes.version = k8sVersion;
-
-  kubernetes.moduleDefinitions.app.module = { config, k8s, ... }: {
-    options = {
-      replicas = mkOption {
-        description = "Number of replicas to run";
-        type = types.int;
-        default = 2;
-      };
-    };
-
-    config.kubernetes.defaults = {
-      all = [{
-        metadata.labels.default = "value";
-      }];
-
-      deployments = [{
-        metadata.labels.default2 = "value2";
-      } {
-        metadata.labels.default3 = "value3";
-      }];
-    };
-
-    config.kubernetes.resources.deployments.app = {
-      spec = {
-        replicas = config.replicas;
-        selector = {
-          matchLabels.app = "app";
-        };
-        template.spec = {
-          containers.app = {
-            image = "hello-world";
-          };
-        };
-      };
-    };
-  };
-
-  kubernetes.modules.myapp = {
-    module = "app";
-    namespace = "test";
-    configuration.replicas = 3;
-  };
-}
diff --git a/tests/legacy/k8s.nix b/tests/legacy/k8s.nix
new file mode 100644
index 0000000..9745a1d
--- /dev/null
+++ b/tests/legacy/k8s.nix
@@ -0,0 +1,57 @@
+{ config, lib, kubenix, pkgs, k8sVersion, ... }:
+
+with lib;
+
+let
+  cfg = config.kubernetes.api.resources.deployments.app;
+in {
+  imports = with kubenix.modules; [ test k8s legacy ];
+
+  test = {
+    name = "legacy-k8s";
+    description = "Simple test kubenix legacy kubernetes support";
+    assertions = [{
+      message = "should have correct resource options set";
+      assertion =
+        cfg.kind == "Deployment" &&
+        cfg.metadata.name == "app";
+    } {
+      message = "should have correct defaults set";
+      assertion =
+        cfg.metadata.namespace == "test" &&
+        cfg.metadata.labels.label1 == "value1" &&
+        cfg.metadata.labels.label2 == "value2";
+    }];
+  };
+
+  kubernetes.version = k8sVersion;
+
+  kubernetes.resources.deployments.app = {
+    spec = {
+      replicas = 2;
+      selector = {
+        matchLabels.app = "app";
+      };
+      template.spec = {
+        containers.app = {
+          image = "hello-world";
+        };
+      };
+    };
+  };
+
+  kubernetes.resources.configMaps.app = {
+    data."my-conf.json" = builtins.toJSON {};
+  };
+
+  kubernetes.defaults = {
+    all = [{
+      metadata.namespace = "test";
+      metadata.labels.label1 = "value1";
+    }];
+
+    deployments = [{
+      metadata.labels.label2 = "value2";
+    }];
+  };
+}
diff --git a/tests/legacy/modules.nix b/tests/legacy/modules.nix
new file mode 100644
index 0000000..06d179b
--- /dev/null
+++ b/tests/legacy/modules.nix
@@ -0,0 +1,108 @@
+{ options, config, lib, kubenix, pkgs, k8sVersion, ... }:
+
+with lib;
+
+let
+  findObject = { kind, name }: filter (object:
+    object.kind == kind && object.metadata.name == name
+  ) config.kubernetes.objects;
+
+  getObject = filter: head (findObject filter);
+
+  hasObject = { kind, name }: length (findObject { inherit kind name; }) == 1;
+in {
+  imports = with kubenix.modules; [ test k8s legacy ];
+
+  test = {
+    name = "legacy-modules";
+    description = "Simple test tesing kubenix legacy modules";
+    assertions = [{
+    message = "should have all objects";
+    assertion =
+      hasObject {kind = "Deployment"; name = "myapp";} &&
+      hasObject {kind = "Deployment"; name = "myapp2";} &&
+      hasObject {kind = "Deployment"; name = "myapp2-app2";};
+    } {
+      message = "should have default labels set";
+      assertion =
+        (getObject {kind = "Deployment"; name = "myapp2-app2";})
+          .metadata.labels.module-label or false == "value" &&
+        (getObject {kind = "Deployment"; name = "myapp2";})
+          .metadata.labels.module-label or false == "value";
+    } {
+      message = "should passthru resources to root module";
+      assertion =
+        config.kubernetes.resources.deployments.myapp2-app2-app.metadata.labels.module-label or false == "value";
+    }];
+  };
+
+  kubernetes.version = k8sVersion;
+
+  kubernetes.defaults.all.metadata.labels.module-label = "value";
+
+  # propagate default module configuration and defaults
+  kubernetes.defaultModuleConfiguration = {
+    all.kubernetes.defaultModuleConfiguration = mkAliasDefinitions options.kubernetes.defaultModuleConfiguration;
+    all.kubernetes.defaults = mkAliasDefinitions options.kubernetes.defaults;
+  };
+
+  kubernetes.moduleDefinitions.app1.module = { config, k8s, module, ... }: {
+    config.kubernetes.resources.deployments.app = {
+      metadata.name = module.name;
+      spec = {
+        selector = {
+          matchLabels.app = "app";
+        };
+        template.spec = {
+          containers.app = {
+            image = "hello-world";
+          };
+        };
+      };
+    };
+  };
+
+  kubernetes.moduleDefinitions.app2.module = { name, config, k8s, module, ... }: {
+    options = {
+      replicas = mkOption {
+        description = "Number of replicas to run";
+        type = types.int;
+        default = 2;
+      };
+    };
+
+    config = {
+      kubernetes.resources.deployments.app = {
+        metadata.name = module.name;
+        spec = {
+          replicas = config.replicas;
+          selector = {
+            matchLabels.app = "app";
+          };
+          template.spec = {
+            containers.app = {
+              image = "hello-world";
+            };
+          };
+        };
+      };
+
+      kubernetes.modules.app2 = {
+        name = "${name}-app2";
+        module = "app1";
+        namespace = module.namespace;
+      };
+    };
+  };
+
+  kubernetes.modules.myapp = {
+    module = "app1";
+    namespace = "test";
+  };
+
+  kubernetes.modules.myapp2 = {
+    module = "app2";
+    namespace = "test";
+    configuration.replicas = 3;
+  };
+}