Covenants And Dispensations

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COVENANTS AND DISPENSATIONS


Time Periods in Salvation-History

The Bible records the history of God’s saving work in the world. The term Salvation-History refers to the story of God arranging our SALVATION throughout human history. The main outlines of Salvation-History are fairly well agreed on (see General Article: Introduction to Salvation-History). But the details are not. Does God relate to us today in the same way that He related to ISRAELITES? Or does He relate to different groups in different ways?

Christian scholars differ in their approach to these questions. All agree that the Bible, especially the Old Testament, describes different arrangements between God and different groups of peoples at different times in Salvation-History. Although some things remained the same, new arrangements were made in different time periods. The most obvious change occurred at the time of the death and resurrection of Jesus Christ. This is the kind of change we are talking about—though the changes in the Old Testament period were smaller and less obvious.

In past centuries, some Christian scholars developed systematic ways to describe the overall redemptive plans of God. They worked out two main systems (or theologies) to show God’s work in history for our salvation. Quite a few Christians accept one or the other of these two systems, so we need to know about them. Remember, however, that many Christians do not agree with either of these two systems. They see some truth in both of these theologies, but do not believe that the Bible divides Salvation-History in such a systematic way.

Covenant Theology

One of the systematic approaches to this question has been called Covenant Theology. This view has focused on the word “covenant,” which is used in both the Old and New Testaments to describe the promises God made to a specific person or group of people, and the obligations He asked those people to fulfill. Several specific covenants can be found in the Old Testament. For example, the covenant with Noah (Genesis 9:8-17) and the covenant with ABRAHAM (Genesis Chapters 15,17) are clearly described. Covenant theologians have gone beyond the Bible’s named covenants and have used the term for covenant-like relationships between God and His people that are not called covenants in the Bible. By doing so, they can cover all of Salvation-History with the concept of covenant. This is an important foundation for their system of theology.

From the details of specific covenants in the Old Testament, these Christians have developed a general description for all of God’s covenant-like relationships. Biblical covenants between God and human beings were not simply contracts between two equal parties. They were similar to ancient Middle Eastern covenants between a ruler and his people. God’s covenants were made by God alone, but for the benefit of the people involved. God promised to be responsible for a person or group, and God expected them to accept covenant duties. The basic elements normally included statements about: 1) the two parties involved in the covenant, 2) conditions for remaining in the covenant, and 3) promises of blessing for obedience or of punishment for disobedience. Usually a sacrifice sealed the covenant, and God often provided a special sign—such as the rainbow for Noah, and CIRCUMCISION for Abraham.

These Christians believe that God made a covenant with Adam and Eve before their fall into SIN (see General Article: The Fall into Sin), even though the word “covenant” is not used in the Genesis stories. This has been called the Edenic Covenant, since God expected Adam and Eve to tend the Garden of Eden and to care for the animals in it. There was no clear sign given for this covenant-like relationship. This is more often called the Covenant of Works, since God expected Adam and Eve to remain in the covenant through their works of obedience.1 Before they sinned, there was no need for REDEMPTION, or for FAITH in God’s GRACE to save them.

These Christians propose that after the fall into sin all the rest of Salvation-History is covered by one over-arching Covenant of Grace. This term is not used in the Bible, but they find the three basic elements of a covenant in all of God’s redemptive plans.2 The parties involved are God and His redeemed people. God promises, “I will be your God. You will be my people.” The requirement for sharing in this Covenant of Grace is faith in Jesus Christ, whether directly during the New Testament period, or indirectly during the Old Testament period by looking forward to the unnamed redeemer or MESSIAH who was to come. The promised blessing is ETERNAL LIFE. Rejection of God’s grace results in eternal death.

Covenant theologians usually divide up this over-arching Covenant of Grace into a number of separate covenants that cover all of Salvation-History. They believe that all these covenants are basically the same Covenant of Grace, but that the “administration” or “dispensation” (see below) of this Covenant of Grace was different in different times with different groups of people. First of all, some scholars propose that after the fall into sin God made an Adamic Covenant, although that term is not used in the Old Testament (Genesis 3:14-24). God’s promise to cause the downfall of SATAN appears to be the blessing involved (Genesis 3:15), and God’s killing of animals for garments of skin (Genesis 3:21) can be viewed as the sacrifice sealing this “covenant.” No clear sign is given.

The first time the word covenant is used in the Old Testament is in reference to the Noahic Covenant (Genesis 9:8-17). God made this covenant with all living things that survived the Flood, and He confirmed it by a sacrifice. The sign was a rainbow in the sky. The second named covenant was primarily made with Abraham and his descendants (Genesis 12:2-3; 15:1-21; 17:1-27), although God promised to bless all the earth through Abraham. Again, God confirmed His covenant with a sacrifice, and the sign of the Abrahamic Covenant was the circumcision of all male infants.

God established the Mosaic Covenant at Mount Sinai (Exodus Chapters 19-24), so it is often called the Sinaitic Covenant. Obedience to the entire Mosaic LAW was the requirement God asked the Israelites to fulfill. This included offering many sacrifices, and observing many rituals and feasts. Circumcision continued as a sign in this covenant, but some would add the original PASSOVER or the stone tablets of the Law as further signs of the Mosaic Covenant. This is also called the Old Covenant, or first covenant (Hebrews 8:7,13; 9:15). On the basis of passages such as these, some Covenant scholars view the Mosaic Covenant as an inferior “law-covenant” in between two “promise-covenants”—the Abrahamic Covenant and the New Covenant. Some scholars point to a separate Palestinian Covenant (Deuteronomy Chapters 29-30), and to a Levitical Covenant (Numbers 18:19; 25:12-13; Jeremiah 33:21). Others see these two as part of the Mosaic Covenant. Some also add a Davidic Covenant in accordance with the promises in 2 Samuel 7:5-16 and Jeremiah 33:21 (the word “covenant” is used only in Jeremiah).

The new covenant was predicted in the Old Testament (Jeremiah 31:31-34), but only established by Jesus in His own blood (Luke 22:20). Jesus Christ was Himself the required sacrifice (Hebrews Chapters 8-10). Covenant theologians believe that the blessings of the New Covenant have already been fully given to the New Testament church. They believe that the new covenant is only a different administration or dispensation of the one Covenant of Grace. Therefore, they teach that many of the details of the Mosaic Law continue to help Christians live holy lives (see General Article: The Purpose of the Mosaic Law). Most view water baptism as the sign of entering into the New Covenant, just as circumcision was the sign of entering into the older Abrahamic and Mosaic Covenants (Colossians 2:11-12). They teach that the Lord’s Supper is the sign of our continued sharing in this New Covenant (1 Corinthians 11:25). Because Covenant theologians do not believe in a literal, earthly millennial kingdom, they teach that immediately after Jesus second coming, God will create a new heaven and a new earth3 (2 Peter 3:13; Revelation 21:1).

Dispensational Theology

Another systematic approach to the overall plan of God for Salvation-History has been called Dispensational Theology. This view focuses on the word “dispensation,” which is an older translation of a common Greek word (economia). It is used in the New Testament to describe both the stewardship or arrangement of a household, and also God’s special plans for a period of time. “Administration” or “management” may be good alternative translations. These Christians point to two dispensations mentioned in the Bible. Paul wrote about a present administration or commission of grace through the church (same Greek word in Ephesians 3:2,9 and Colossians 1:24-26), mentioning different ages before this present one. And in Ephesians 1:10, Paul uses the same Greek word for a future dispensation or plan (the word is not translated in the NIV). Dispensational theologians have gone beyond the Bible’s more limited use of the concept and have used the term for many dispensation-like relationships between God and His people that are not specifically called “dispensations” or “administrations” in the Bible. They view all Salvation-History as covered by a number of dispensations. This is the basis for their larger system of theology.

By examining the details of the Bible’s teaching about being a manager or administrator (Luke 12:42-48; 16:1-13 uses a related Greek word), these theologians have developed a general description for God’s dispensations or administrations throughout Salvation-History. They teach that a biblical “dispensation” is God’s special method of governing mankind or any part of it during a specific period of human history. Similar to the idea of covenant, there are two parties involved and the two parties are not equal. One party (God) has the authority to order the other party (a special people) to carry out special responsibilities. The people are accountable to God, and will be punished if unfaithful. Among the characteristics of a dispensation are: 1) a special revelation from God, such as the promise and covenant which Abraham received; 2) a special test, such as the tree of the knowledge of good and evil, but sometimes simply a clear responsibility that does not culminate in a specific test; 3) the failure of the people to live up to their responsibilities; and 4) God’s judgment on the people—either a final punishment such as the Flood, or a more general punishment through repeated trials.

Similar Time Periods in Both Systems

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Dispensational theologians basically divide Salvation-History into two main periods: the Dispensation of Law (Old Testament) and the Dispensation of Grace (New Testament). They usually go on to expand this simple system into five to seven dispensations. Recently Dispensational scholars have emphasized that these different arrangements during human history are not different methods of obtaining salvation, since the people in each and every dispensation fail God’s test and do not fulfill the responsibilities asked of them. Therefore, in each dispensation God’s grace remains the only way of salvation.

God’s method of governing humanity before the fall into sin is usually called the Dispensation of Innocence (or Freedom). God directly spoke to Adam, giving His command not to eat the fruit of the tree of the knowledge of good and evil (Genesis 2:17). Although Adam and Eve were free from slavery to sin, they failed the test and were punished by the loss of immortality and by expulsion from the Garden of Eden (Genesis Chapter 3).

The period of time between the fall into sin and the Flood has been called the Dispensation of Conscience (or Moral Responsibility). By sinful experience men and women had come to know the difference between good and evil. They were expected to obey the dictates of their conscience and to offer acceptable blood sacrifices to God (Genesis 4:4). Only a few tried to obey, and God finally punished the earth with a flood during Noah’s lifetime (Genesis Chapters 6-8). After the Flood, God’s next arrangement has been called the Dispensation of Human Government. New revelation from God allowed man to eat the flesh of animals, and commanded that murderers be punished with death, which required some sort of human government. God specifically commanded humanity to fill the earth (Genesis 9:1-7). But they refused to obey this, building the Tower of Babel in- stead. God punished them by bringing confusion to their language, causing them to spread apart over the earth (Genesis Chapter 11).

By the time of Abraham we reach the Dispensation of Promise, given only to a special family. This was clearly a different arrangement from God’s plans before or after (see Galatians 3:15-29; Hebrews 6:15; 11:9). It has also been called the Dispensation of Patriarchal Rule. The patriarchs (Abraham, Isaac and JACOB) were expected to trust and obey God. God had promised to give them the land of Canaan, but they failed God’s tests—and their descendants were finally punished with slavery in Egypt.

God eventually delivered the Israelites from EGYPT and gave them the Mosaic Law at Sinai (Exodus Chapters 19-24). This Dispensation of Law applied only to the chosen people, the Israelites, who were required to obey the rules and regulations given to them (James 2:10). Again they failed, but the Law taught them the nature of sin (Romans 3:20). During this period, there were many times of captivity and many times when God delivered them. As part of God’s revelation during this dispensation, the Israelites were given the hope of a future age in which God would gather them and restore to them their own land.

Clearly a new dispensation began at the death and resurrection of Jesus Christ. This has been called the Dispensation of Grace. Many teach that this new arrangement began at Pentecost, when the HOLY SPIRIT established and empowered the church. Therefore some call this the Dispensation of the Church. The new revelation was both the New Testament and the New Covenant established by Jesus Christ. These scholars believe that the Mosaic Law was fulfilled completely by Jesus, so that the Law’s usefulness for Christians has ended (see Romans 10:4; General Article: The Purpose of the Mosaic Law). Our responsibility is to trust in Jesus work on the cross, a trust that should result in good works (Ephesians 2:9-10). However, most people will not place their trust in Jesus, and there will be a final judgment at His second coming. According to Dispensational theologians, after the second coming an actual millennial kingdom will be established on the earth for a thousand years (Revelation 20:1-6). This earthly government, led by Jesus Himself, has been called the Dispensation of the Kingdom. During that dispensation, the full blessings of the New Covenant will finally be made available. Those who refuse to believe, who rebel against Jesus, will face the final judgment at the end of the thousand years (Revelation 20:7-15) when all unbelievers will be resurrected for judgment. After that God will create a new heaven and a new earth (Revelation 21:1).

One Big Difference: Israel and the Church

Although similar in many ways, these two systems of theology end up with two different ways to understand the PROPHECIES found in the Old and New Testaments. Dispensational theologians believe that as far as possible prophecies should be understood in the most natural, literal sense, while Covenant theologians believe that many, if not most, must be understood symbolically (see General Article: Prophecy and Predictive Words.) This difference is most clearly seen in two very different views about the relationship between Israel and the church.

Almost all Covenant theologians believe that the church replaced Israel as the people of God. They point out that Jesus Christ has replaced Adam as the head of the human race (Romans 5:12-19; 1 Corinthians 15:45). These scholars believe that such headship is a representative, or legal, headship. When Jesus replaced Adam as head of the people of God, the church replaced Israel as the people of God. They believe that all Old Testament prophecies and promises to Israel that still remained unfulfilled when the church age began were completely transferred over to the church. Jesus Christ not only is the ultimate representative of the Israel of the Old Testament (Acts 13:22-24; Romans 11:26), but He is also the head of the true Israel of the New Testament, which is the believing church (Galatians 6:16). According to this view, the church becomes the only true, spiritual seed of Abraham (Romans 4:16-17; Galatians 3:29). Most Covenant scholars do not believe that the present-day nation of Israel is the fulfillment of God’s Old Testament prophecies to the Israelites. Nor do they believe that the JEWS will have any special relationship with God after Jesus second coming. In addition, they see all kingdom promises being fulfilled in the church. They believe that the millennial kingdom (Revelation 20:1-6) is symbolic of the present spiritual rule of Christ in heaven and in the hearts of believers. In this view, the kingdom and the church are basically the same.

Dispensational theologians, on the other hand, do not believe that the church replaced Israel as the people of God. They believe that the nation of Israel and the church have different futures in God’s plans. They point out that some promises are earthly and refer to the nation Israel, and other promises are spiritual and refer to the body of Christ, the church. Paul wrote that God did not reject the Israelites (Romans 11:1-2), and He continued to distinguish the Jews from the church (1 Corinthians 10:32). Many prophecies speak about a blessed future for Israel (Isaiah 11:1-16; Jeremiah 23:3-8; Ezekiel 37:15-28), even in the New Testament (Luke 22:30; Romans 11:25-28). Concerning the Jews, Paul wrote that God’s gifts and his call are irrevocable (Romans 11:29). Therefore, Dispensational theologians believe that Israel as a nation will have a special relationship with God after Jesus second coming, which is not the same as His relationship with the church. They believe that God is helping the present nation of Israel today, in order to fulfill His promises in the Old Testament. They say the church is of primary importance in this present dispensation, whereas the millennial kingdom is of primary importance during the next, final dispensation. This means that the body of Christ, the church, is not the same as the future kingdom, in which Israel will have a special place. In this view, the church will share in the earthly kingdom, but not in the same way as the nation of Israel.

Recently, some Covenant theologians have begun to recognize a literal fulfillment of the promised new earth that is described in Revelation Chapters 21-22. This has brought Covenant theology closer to Dispensational theology’s teaching on a future earthly kingdom ruled by Jesus Christ. But for Covenant theologians, this earthly kingdom will not take place during the thousand-year Millennium before the last battle (as the Dispensationalists believe), and Israel as a group will not have any special role. On the other side, some Dispensationalists now recognize the spiritual kingdom of God throughout Salvation-History. They accept that Jesus is already reigning in heaven as the Davidic King, and that the kingdom has already begun to show its blessings within the church. This has brought Dispensational theology closer to Covenant theology’s teaching that many prophecies must be interpreted in a symbolic sense. However, these newer Dispensationalists continue to see a special future for Israel as a nation in an earthly millennial kingdom of Jesus after His second coming and before the final judgment.

Summary of Similarities and Differences

Both Covenant Theology and Dispensational Theology divide Salvation-History into time periods or ages. Both recognize the importance of the specific “covenants” described in the Old Testament. Both have used the word “dispensation” (or “administration”) and both see God’s arrangements with mankind as somewhat different during the different ages. Both see an underlying unity in God’s grace as it has been finally and ultimately shown in Jesus Christ’s death and resurrection.

Some distinctive features of Covenant Theology are as follows. 1) All of Salvation-History is covered by a series of covenants. 2) Many or most Bible prophecies must be interpreted symbolically or spiritually. 3) The church has replaced Israel in Old Testament prophecy. Outside the church, Israel has no special future in God’s redemptive plan.

Some distinctive features of Dispensational Theology are as follows. 1) All of Salvation-History is covered by a series of dispensations. 2) As much as possible, Bible prophecies must be interpreted literally or in the most natural sense. 3) The church has not completely replaced Israel in Old Testament prophecy. Israel as a nation has a special future in God’s redemptive plans.

Covenant Theology emphasizes the unity of God’s redemptive plan, whereas Dispensational Theology emphasizes the important differences throughout Salvation-History. If Dispensational Theology tends to over-emphasize the difference between Law and Grace, Covenant Theology has often failed to admit how big the difference is between Promise and Law in Paul’s writings and in the book of Hebrews. Again, Dispensationalists must admit that the church has always taken many psalms and prophecies originally given to Israel and applied them to the lives of Christian believers; but Covenant theologians must admit that this does not require all of God’s promises to be transferred to the church alone.

Some Christians believe the Covenant system is correct. Others believe the Dispensational system is correct. Many Christians don’t believe either of these two systems is fully correct, and limit their teaching to only those covenants and dispensations clearly named in the Bible. Some simply divide Salvation-History into two time periods (before Christ and after Christ), or three time periods, labeled Promise, Law, and Gospel (Galatians 3:8-10, 17-25). We should not allow different views such as these to break our fellowship with each other. We all believe that God is in control of history and of our salvation: “Surely, as I have planned, so it will be, and as I have purposed, so it will stand” (Isaiah 14:24). Paul assures us that God chose us in [Jesus] before the creation of the world to be holy and blameless in his sight (Ephesians 1:4).


1 A few scholars call this a Covenant of Creation, one not based on works but on God’s gift of creation (Jeremiah 33:20). This name highlights God’s grace, but this is not yet the grace that saves sinners, seen in the Covenant of Grace that follows.

2 Some add a Covenant of Redemption before creation—an agreement between the members of the Trinity to redeem the world through Jesus death.

3 Compare Revelation 20:1-15. For further discussion, see General Article: The Second Coming of Jesus Christ, in The Applied New Testament Commentary.