diff --git a/x/perp/v2/keeper/admin.go b/x/perp/v2/keeper/admin.go
index 85f50346f..6e43d9f57 100644
--- a/x/perp/v2/keeper/admin.go
+++ b/x/perp/v2/keeper/admin.go
@@ -104,7 +104,8 @@ func (k admin) CreateMarket(
 		return err
 	}
 
-	lastVersion := k.MarketLastVersion.GetOr(ctx, pair, types.MarketLastVersion{Version: 1})
+	lastVersion := k.MarketLastVersion.GetOr(ctx, pair, types.MarketLastVersion{Version: 0})
+	lastVersion.Version += 1
 	market.Version = lastVersion.Version
 
 	k.Markets.Insert(ctx, collections.Join(pair, lastVersion.Version), market)
diff --git a/x/perp/v2/keeper/admin_test.go b/x/perp/v2/keeper/admin_test.go
index 15d28e1ab..ec1ebd64f 100644
--- a/x/perp/v2/keeper/admin_test.go
+++ b/x/perp/v2/keeper/admin_test.go
@@ -152,4 +152,19 @@ func TestCreateMarketFail(t *testing.T) {
 		SqrtDepth:       amm.SqrtDepth,
 	})
 	require.ErrorContains(t, err, "already exists")
+
+	// Disable the market to test that we can create it again but with an increased version
+	err = app.PerpKeeperV2.ChangeMarketEnabledParameter(ctx, pair, false)
+	require.NoError(t, err)
+
+	err = app.PerpKeeperV2.Admin().CreateMarket(ctx, keeper.ArgsCreateMarket{
+		Pair:            pair,
+		PriceMultiplier: amm.PriceMultiplier,
+		SqrtDepth:       amm.SqrtDepth,
+	})
+	require.NoError(t, err)
+
+	lastVersion, err = app.PerpKeeperV2.MarketLastVersion.Get(ctx, pair)
+	require.NoError(t, err)
+	require.Equal(t, uint64(2), lastVersion.Version)
 }