Covenants And Dispensations

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.