diff --git a/src/main/java/io/nats/client/api/Placement.java b/src/main/java/io/nats/client/api/Placement.java
index e90bc6291..16eb68dc7 100644
--- a/src/main/java/io/nats/client/api/Placement.java
+++ b/src/main/java/io/nats/client/api/Placement.java
@@ -15,7 +15,6 @@
 
 import io.nats.client.support.JsonSerializable;
 import io.nats.client.support.JsonValue;
-import io.nats.client.support.Validator;
 
 import java.util.Arrays;
 import java.util.List;
@@ -24,7 +23,7 @@
 import static io.nats.client.support.ApiConstants.TAGS;
 import static io.nats.client.support.JsonUtils.*;
 import static io.nats.client.support.JsonValueUtils.readOptionalStringList;
-import static io.nats.client.support.JsonValueUtils.readString;
+import static io.nats.client.support.JsonValueUtils.readStringEmptyAsNull;
 
 /**
  * Placement directives to consider when placing replicas of a stream
@@ -38,7 +37,7 @@ static Placement optionalInstance(JsonValue vPlacement) {
     }
 
     Placement(JsonValue vPlacement) {
-        this.cluster = readString(vPlacement, CLUSTER);
+        this.cluster = readStringEmptyAsNull(vPlacement, CLUSTER);
         this.tags = readOptionalStringList(vPlacement, TAGS);
     }
 
@@ -48,8 +47,12 @@ static Placement optionalInstance(JsonValue vPlacement) {
      * @param tags the list of tags, may be null
      */
     public Placement(String cluster, List<String> tags) {
-        this.cluster = cluster;
-        this.tags = tags == null || tags.size() == 0 ? null : tags;
+        this.cluster = cluster == null || cluster.isEmpty() ? null : cluster;
+        this.tags = tags == null || tags.isEmpty() ? null : tags;
+    }
+
+    public boolean hasData() {
+        return cluster != null || tags != null;
     }
 
     /**
@@ -133,7 +136,6 @@ public Builder tags(List<String> tags) {
          * @return the Placement
          */
         public Placement build() {
-            Validator.required(cluster, "Cluster");
             return new Placement(cluster, tags);
         }
     }
diff --git a/src/main/java/io/nats/client/api/StreamConfiguration.java b/src/main/java/io/nats/client/api/StreamConfiguration.java
index 20ee6b175..52cbae0d3 100644
--- a/src/main/java/io/nats/client/api/StreamConfiguration.java
+++ b/src/main/java/io/nats/client/api/StreamConfiguration.java
@@ -179,7 +179,9 @@ public String toJson() {
         addField(sb, TEMPLATE_OWNER, templateOwner);
         addField(sb, DISCARD, discardPolicy.toString());
         addFieldAsNanos(sb, DUPLICATE_WINDOW, duplicateWindow);
-        addField(sb, PLACEMENT, placement);
+        if (placement != null && placement.hasData()) {
+            addField(sb, PLACEMENT, placement);
+        }
         addField(sb, REPUBLISH, republish);
         addField(sb, SUBJECT_TRANSFORM, subjectTransform);
         addField(sb, CONSUMER_LIMITS, consumerLimits);
diff --git a/src/main/java/io/nats/client/support/JsonValueUtils.java b/src/main/java/io/nats/client/support/JsonValueUtils.java
index 262d55be2..b98ad733c 100644
--- a/src/main/java/io/nats/client/support/JsonValueUtils.java
+++ b/src/main/java/io/nats/client/support/JsonValueUtils.java
@@ -71,6 +71,10 @@ public static String readString(JsonValue jsonValue, String key) {
         return read(jsonValue, key, v -> v == null ? null : v.string);
     }
 
+    public static String readStringEmptyAsNull(JsonValue jsonValue, String key) {
+        return read(jsonValue, key, v -> v == null ? null : (v.string.isEmpty() ? null : v.string));
+    }
+
     public static String readString(JsonValue jsonValue, String key, String dflt) {
         return read(jsonValue, key, v -> v == null ? dflt : v.string);
     }
diff --git a/src/test/java/io/nats/client/api/StreamConfigurationTests.java b/src/test/java/io/nats/client/api/StreamConfigurationTests.java
index 0c1bc4117..9501250b1 100644
--- a/src/test/java/io/nats/client/api/StreamConfigurationTests.java
+++ b/src/test/java/io/nats/client/api/StreamConfigurationTests.java
@@ -579,19 +579,25 @@ public static void validateSubjectTransforms(List<SubjectTransform> subjectTrans
 
     @Test
     public void testPlacement() {
-        assertThrows(IllegalArgumentException.class, () -> Placement.builder().build());
+        assertFalse(Placement.builder().build().hasData());
+        assertFalse(Placement.builder().cluster(null).build().hasData());
+        assertFalse(Placement.builder().cluster("").build().hasData());
+        assertFalse(Placement.builder().tags((List<String>)null).build().hasData());
 
         Placement p = Placement.builder().cluster("cluster").build();
         assertEquals("cluster", p.getCluster());
         assertNull(p.getTags());
+        assertTrue(p.hasData());
 
         p = Placement.builder().cluster("cluster").tags("a", "b").build();
         assertEquals("cluster", p.getCluster());
         assertEquals(2, p.getTags().size());
+        assertTrue(p.hasData());
 
         p = Placement.builder().cluster("cluster").tags(Arrays.asList("a", "b")).build();
         assertEquals("cluster", p.getCluster());
         assertEquals(2, p.getTags().size());
+        assertTrue(p.hasData());
     }
 
     @Test