diff --git a/packages/client/src/classes/client.js b/packages/client/src/classes/client.js
index 713dcc31..c0c051fe 100644
--- a/packages/client/src/classes/client.js
+++ b/packages/client/src/classes/client.js
@@ -24,6 +24,7 @@ class Client {
   constructor() {
     this.auth = '';
     this.impersonateSubuser = '';
+    this.sendgrid_region = '';
 
     this.defaultHeaders = {
       Accept: 'application/json',
@@ -43,8 +44,10 @@ class Client {
 
   setApiKey(apiKey) {
     this.auth = 'Bearer ' + apiKey;
-    this.setDefaultRequest('baseUrl', SENDGRID_BASE_URL);
-
+    // this means that region was never set before
+    if (this.sendgrid_region == '') {
+      this.setDefaultRequest('baseUrl', SENDGRID_BASE_URL);
+    }
     if (!this.isValidApiKey(apiKey)) {
       console.warn(`API key does not start with "${API_KEY_PREFIX}".`);
     }
@@ -108,6 +111,7 @@ class Client {
     if (!REGION_HOST_MAP.hasOwnProperty(region)) {
       console.warn('Region can only be "global" or "eu".');
     } else {
+      this.sendgrid_region = region;
       this.setDefaultRequest('baseUrl', REGION_HOST_MAP[region]);
     }
     return this;
diff --git a/packages/client/src/client.spec.js b/packages/client/src/client.spec.js
index 2dfc8a4a..b2be9286 100644
--- a/packages/client/src/client.spec.js
+++ b/packages/client/src/client.spec.js
@@ -1,7 +1,7 @@
 'use strict';
 const nock = require('nock');
 const sgClient = require('./client');
-const testClient = require('./client');
+let testClient = require('./client');
 const testRequest = (request, statusCode) => {
   const sgClient = require('./client');
   sgClient.setApiKey('SG.API Key');
@@ -3094,16 +3094,18 @@ describe('test_whitelabel_links__link_id__subuser_post', () => {
 });
 
 describe('setDataResidency', () => {
-  const testClient = require('./client');
   let consoleWarnSpy;
-
   beforeEach(() => {
+    testClient = require('./client');
     consoleWarnSpy = sinon.spy(console, 'warn');
   });
   afterEach(() => {
     console.warn.restore();
   });
-
+  it('should have default value of hostname as https://api.sendgrid.com/', () => {
+    expect(testClient.defaultRequest.baseUrl).to.equal('https://api.sendgrid.com/');
+    expect(testClient.sendgrid_region).to.equal('');
+  });
   it('should send to host EU', () => {
     testClient.setDataResidency('eu');
     expect(testClient.defaultRequest.baseUrl).to.equal('https://api.eu.sendgrid.com/');
@@ -3111,6 +3113,7 @@ describe('setDataResidency', () => {
   it('should send to host Global/default', () => {
     testClient.setDataResidency('global');
     expect(testClient.defaultRequest.baseUrl).to.equal('https://api.sendgrid.com/');
+    expect(testClient.sendgrid_region).to.equal('global');
   });
   it('should override the existing set hostname, if data residency setter is called after', () => {
     testClient.setApiKey('SG.1234567890');
@@ -3125,13 +3128,19 @@ describe('setDataResidency', () => {
     testClient.setDataResidency(null);
     expect(consoleWarnSpy.calledOnce).to.equal(true);
   });
-  it('should give precedence to the order of execution', () => {
+  it('setting the API Key wont reset the region set', () => {
     testClient.setDataResidency('eu');
     testClient.setApiKey('SG.1234567890');
-    expect(testClient.defaultRequest.baseUrl).to.equal('https://api.sendgrid.com/');
+    expect(testClient.defaultRequest.baseUrl).to.equal('https://api.eu.sendgrid.com/');
+    expect(testClient.sendgrid_region).to.equal('eu');
   });
-  it('should have default value of hostname as https://api.sendgrid.com/', () => {
+  it('should send to host global and then call setApiKey', () => {
+    testClient.setDataResidency('global');
+    testClient.setApiKey('SG.1234567890');
     expect(testClient.defaultRequest.baseUrl).to.equal('https://api.sendgrid.com/');
+    expect(testClient.sendgrid_region).to.equal('global');
+
+
   });
 });