diff --git a/README.md b/README.md
index 7a2e4b38ab..f0c8808da3 100644
--- a/README.md
+++ b/README.md
@@ -34,9 +34,10 @@ metadata:
 spec:
   rules:
   - name: check-pod-resources
-    resource:
-      kinds:
-      - Pod
+    match:
+      resources:
+        kinds:
+        - Pod
     validate:
       message: "CPU and memory resource requests and limits are required"
       pattern:
@@ -67,9 +68,10 @@ metadata:
 spec:
   rules:
   - name: set-image-pull-policy
-    resource:
-      kinds:
-      - Deployment
+    match:
+      resources:
+        kinds:
+        - Deployment
     mutate:
       overlay:
         spec:
@@ -94,12 +96,13 @@ metadata:
 spec:
   rules:
   - name: "zk-kafka-address"
-    resource:
-      kinds:
-        - Namespace
-      selector:
-        matchExpressions:
-        - {key: kafka, operator: Exists}
+    match:
+      resources:
+        kinds:
+          - Namespace
+        selector:
+          matchExpressions:
+          - {key: kafka, operator: Exists}
     generate:
       kind: ConfigMap
       name: zk-kafka-address
diff --git a/examples/policy_generate_networkPolicy.yaml b/examples/policy_generate_networkPolicy.yaml
index 6c4ea2bf55..7f76d46312 100644
--- a/examples/policy_generate_networkPolicy.yaml
+++ b/examples/policy_generate_networkPolicy.yaml
@@ -1,7 +1,7 @@
 apiVersion: kyverno.io/v1alpha1
 kind: Policy
 metadata:
-  name: "default-networkpolicy"
+  name: defaultgeneratenetworkpolicy
 spec:
   rules:
   - name: "default-networkpolicy"
@@ -12,7 +12,7 @@ spec:
         name: "devtest"
     generate: 
       kind: NetworkPolicy
-      name: default-networkpolicy
+      name: defaultnetworkpolicy
       data:
         spec:
           # select all pods in the namespace
diff --git a/pkg/annotations/annotations.go b/pkg/annotations/annotations.go
index 21f4e71747..46725b8cc2 100644
--- a/pkg/annotations/annotations.go
+++ b/pkg/annotations/annotations.go
@@ -78,6 +78,16 @@ func (p *Policy) updatePolicy(obj *Policy, ruleType pinfo.RuleType) bool {
 	updates := false
 	// Check Mutation rules
 	switch ruleType {
+	case pinfo.All:
+		if p.compareMutationRules(obj.MutationRules) {
+			updates = true
+		}
+		if p.compareValidationRules(obj.ValidationRules) {
+			updates = true
+		}
+		if p.compareGenerationRules(obj.GenerationRules) {
+			updates = true
+		}
 	case pinfo.Mutation:
 		if p.compareMutationRules(obj.MutationRules) {
 			updates = true
@@ -214,6 +224,59 @@ func ParseAnnotationsFromObject(bytes []byte) map[string]string {
 	return ann
 }
 
+func PatchAnnotations(ann map[string]string, pi *pinfo.PolicyInfo, ruleType pinfo.RuleType) ([]byte, error) {
+	if ruleType != pinfo.All && !pi.ContainsRuleType(ruleType) {
+		// the rule was not proceesed in the current policy application
+		return nil, nil
+	}
+	// transform the PolicyInfo to anotation struct
+	policyObj := newAnnotationForPolicy(pi)
+	if ann == nil {
+		ann = make(map[string]string, 0)
+		policyByte, err := json.Marshal(policyObj)
+		if err != nil {
+			return nil, err
+		}
+		// create a json patch to add annotation object
+		ann[BuildKeyString(pi.Name)] = string(policyByte)
+		// patch adds the annotation map with the policy information
+		jsonPatch, err := createAddJSONPatchMap(ann)
+		return jsonPatch, err
+	}
+	// if the annotations map already exists then we need to update it by adding a patch to the field inside the annotation
+	cPolicy, ok := ann[BuildKey(pi.Name)]
+	if !ok {
+		// annotations does not contain the policy
+		policyByte, err := json.Marshal(policyObj)
+		if err != nil {
+			return nil, err
+		}
+		jsonPatch, err := createAddJSONPatch(BuildKey(pi.Name), string(policyByte))
+		return jsonPatch, err
+	}
+	// an annotaion exists for the policy, we need to update the information if anything has changed
+	cPolicyObj := Policy{}
+	err := json.Unmarshal([]byte(cPolicy), &cPolicyObj)
+	if err != nil {
+		// error while unmarshallign the content
+		return nil, err
+	}
+	// update policy information inside the annotation
+	// 1> policy status
+	// 2> rule (name, status,changes,type)
+	update := cPolicyObj.updatePolicy(policyObj, ruleType)
+	if !update {
+		// there is not update, so we dont
+		return nil, nil
+	}
+	policyByte, err := json.Marshal(cPolicyObj)
+	if err != nil {
+		return nil, err
+	}
+	jsonPatch, err := createAddJSONPatch(BuildKey(pi.Name), string(policyByte))
+	return jsonPatch, err
+}
+
 //AddPolicyJSONPatch generate JSON Patch to add policy informatino JSON patch
 func AddPolicyJSONPatch(ann map[string]string, pi *pinfo.PolicyInfo, ruleType pinfo.RuleType) (map[string]string, []byte, error) {
 	if !pi.ContainsRuleType(ruleType) {
diff --git a/pkg/controller/controller.go b/pkg/controller/controller.go
index 471aa1d61a..40b5e283c8 100644
--- a/pkg/controller/controller.go
+++ b/pkg/controller/controller.go
@@ -5,8 +5,6 @@ import (
 	"reflect"
 	"time"
 
-	jsonpatch "github.com/evanphx/json-patch"
-
 	"github.com/nirmata/kyverno/pkg/annotations"
 	"github.com/nirmata/kyverno/pkg/info"
 	"github.com/nirmata/kyverno/pkg/utils"
@@ -207,7 +205,6 @@ func (pc *PolicyController) syncHandler(obj interface{}) error {
 
 func (pc *PolicyController) createAnnotations(policyInfos []*info.PolicyInfo) {
 	for _, pi := range policyInfos {
-		var patch []byte
 		//get resource
 		obj, err := pc.client.GetResource(pi.RKind, pi.RNamespace, pi.RName)
 		if err != nil {
@@ -216,61 +213,14 @@ func (pc *PolicyController) createAnnotations(policyInfos []*info.PolicyInfo) {
 		}
 		// add annotation for policy application
 		ann := obj.GetAnnotations()
-		// Mutation rules
-		ann, mpatch, err := annotations.AddPolicyJSONPatch(ann, pi, info.Mutation)
-		if err != nil {
-			glog.Error(err)
-			continue
-		}
-		// Validation rules
-		ann, vpatch, err := annotations.AddPolicyJSONPatch(ann, pi, info.Validation)
-		if err != nil {
-			glog.Error(err)
-		}
-
-		// Generation rules
-		ann, gpatch, err := annotations.AddPolicyJSONPatch(ann, pi, info.Generation)
-		if err != nil {
-			glog.Error(err)
-		}
-
-		if mpatch == nil && vpatch == nil && gpatch == nil {
-			//nothing to patch
-			continue
-		}
-		// merge the patches
-		if mpatch != nil && vpatch != nil {
-			patch, err = jsonpatch.MergePatch(mpatch, vpatch)
-			if err != nil {
-				glog.Error(err)
-				continue
-			}
-		}
-
-		if mpatch == nil {
-			patch = vpatch
-		} else {
-			patch = mpatch
-		}
-
-		if gpatch != nil {
-			// generation
-			if patch != nil {
-				patch, err = jsonpatch.MergePatch(patch, gpatch)
-				if err != nil {
-					glog.Error(err)
-					continue
-				}
-			} else {
-				patch = gpatch
-			}
-		}
-
+		// if annotations are nil then create a map and patch
+		// else
+		// add the exact patch
+		patch, err := annotations.PatchAnnotations(ann, pi, info.All)
 		if patch == nil {
+			/// nothing to patch
 			return
 		}
-
-		//		add the anotation to the resource
 		_, err = pc.client.PatchResource(pi.RKind, pi.RNamespace, pi.RName, patch)
 		if err != nil {
 			glog.Error(err)
diff --git a/pkg/engine/generation.go b/pkg/engine/generation.go
index 2bc02fc2f5..f34479b043 100644
--- a/pkg/engine/generation.go
+++ b/pkg/engine/generation.go
@@ -2,13 +2,14 @@ package engine
 
 import (
 	"encoding/json"
-	"errors"
+	"fmt"
 
 	"github.com/golang/glog"
 	v1alpha1 "github.com/nirmata/kyverno/pkg/apis/policy/v1alpha1"
 	client "github.com/nirmata/kyverno/pkg/dclient"
 	"github.com/nirmata/kyverno/pkg/info"
 	"github.com/nirmata/kyverno/pkg/utils"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 	"k8s.io/apimachinery/pkg/apis/meta/v1/unstructured"
 	"k8s.io/apimachinery/pkg/runtime"
 )
@@ -21,7 +22,7 @@ func Generate(client *client.Client, policy *v1alpha1.Policy, ns unstructured.Un
 			continue
 		}
 		ri := info.NewRuleInfo(rule.Name, info.Generation)
-		err := applyRuleGenerator(client, ns, rule.Generation)
+		err := applyRuleGenerator(client, ns, rule.Generation, policy.GetCreationTimestamp())
 		if err != nil {
 			ri.Fail()
 			ri.Addf("Rule %s: Failed to apply rule generator, err %v.", rule.Name, err)
@@ -34,11 +35,15 @@ func Generate(client *client.Client, policy *v1alpha1.Policy, ns unstructured.Un
 	return ris
 }
 
-func applyRuleGenerator(client *client.Client, ns unstructured.Unstructured, gen *v1alpha1.Generation) error {
+func applyRuleGenerator(client *client.Client, ns unstructured.Unstructured, gen *v1alpha1.Generation, policyCreationTime metav1.Time) error {
 	var err error
 	resource := &unstructured.Unstructured{}
 	var rdata map[string]interface{}
-
+	// To manage existing resource , we compare the creation time for the default resource to be generate and policy creation time
+	processExisting := func() bool {
+		nsCreationTime := ns.GetCreationTimestamp()
+		return nsCreationTime.Before(&policyCreationTime)
+	}()
 	if gen.Data != nil {
 		// 1> Check if resource exists
 		obj, err := client.GetResource(gen.Kind, ns.GetName(), gen.Name)
@@ -51,7 +56,7 @@ func applyRuleGenerator(client *client.Client, ns unstructured.Unstructured, gen
 				return err
 			}
 			if !ok {
-				return errors.New("rule configuration not present in resource")
+				return fmt.Errorf("rule configuration not present in resource %s/%s", ns.GetName(), gen.Name)
 			}
 			return nil
 		}
@@ -74,12 +79,15 @@ func applyRuleGenerator(client *client.Client, ns unstructured.Unstructured, gen
 		}
 		rdata = resource.UnstructuredContent()
 	}
+	if processExisting {
+		// for existing resources we generate an error which indirectly generates a policy violation
+		return fmt.Errorf("resource %s not found in existing namespace %s", gen.Name, ns.GetName())
+	}
 	resource.SetUnstructuredContent(rdata)
 	resource.SetName(gen.Name)
 	resource.SetNamespace(ns.GetName())
 	// Reset resource version
 	resource.SetResourceVersion("")
-
 	_, err = client.CreateResource(gen.Kind, ns.GetName(), resource, false)
 	if err != nil {
 		return err
diff --git a/pkg/gencontroller/generation.go b/pkg/gencontroller/generation.go
index 72989a8cc5..81ff8a3e4e 100644
--- a/pkg/gencontroller/generation.go
+++ b/pkg/gencontroller/generation.go
@@ -140,7 +140,7 @@ func (c *Controller) createAnnotations(pi *info.PolicyInfo) {
 	// add annotation for policy application
 	ann := obj.GetAnnotations()
 	// Generation rules
-	ann, gpatch, err := annotations.AddPolicyJSONPatch(ann, pi, info.Generation)
+	gpatch, err := annotations.PatchAnnotations(ann, pi, info.Generation)
 	if err != nil {
 		glog.Error(err)
 		return
diff --git a/pkg/info/info.go b/pkg/info/info.go
index fbde19e160..8d61b764f0 100644
--- a/pkg/info/info.go
+++ b/pkg/info/info.go
@@ -99,6 +99,7 @@ const (
 	Mutation RuleType = iota
 	Validation
 	Generation
+	All
 )
 
 func (ri RuleType) String() string {
@@ -106,6 +107,7 @@ func (ri RuleType) String() string {
 		"Mutation",
 		"Validation",
 		"Generation",
+		"All",
 	}[ri]
 }
 
diff --git a/pkg/webhooks/report.go b/pkg/webhooks/report.go
index d40a291efb..97116c87fa 100644
--- a/pkg/webhooks/report.go
+++ b/pkg/webhooks/report.go
@@ -68,7 +68,7 @@ func addAnnotationsToResource(rawResource []byte, pi *info.PolicyInfo, ruleType
 	}
 	// get annotations
 	ann := annotations.ParseAnnotationsFromObject(rawResource)
-	ann, patch, err := annotations.AddPolicyJSONPatch(ann, pi, ruleType)
+	patch, err := annotations.PatchAnnotations(ann, pi, ruleType)
 	if err != nil {
 		glog.Error(err)
 		return nil