diff --git a/lib/galaxy/tools/xsd/galaxy.xsd b/lib/galaxy/tools/xsd/galaxy.xsd
index 0abee298b1f..68fb8bb6649 100644
--- a/lib/galaxy/tools/xsd/galaxy.xsd
+++ b/lib/galaxy/tools/xsd/galaxy.xsd
@@ -1937,6 +1937,20 @@ rendered on the tool form as a text area instead of a single line text box.
 <param name="foo" type="text" area="True" size="5x25" />
 ```
 
+As of 17.01, ``text`` parameters can also supply a static list of preset
+defaults options. The user **may** be presented with the option to select one of
+these but will be allowed to supply an arbitrary text value.
+
+```xml
+<param name="foo" type="text" value="foo 1">
+    <option value="foo 1">Foo 1 Display</option>
+    <option value="foo 2">Foo 2 Display</option>
+</param>
+```
+
+See [param_text_option.xml](https://github.com/galaxyproject/galaxy/blob/dev/test/functional/tools/param_text_option.xml)
+for a demonstration of this.
+
 $attribute_list:value,size,area:5
 
 #### ``integer`` and ``float``
diff --git a/test/functional/tools/param_text_option.xml b/test/functional/tools/param_text_option.xml
new file mode 100644
index 00000000000..21426556a14
--- /dev/null
+++ b/test/functional/tools/param_text_option.xml
@@ -0,0 +1,31 @@
+<tool id="param_text_option" name="param_text_option" version="1.0.0">
+    <command>
+        echo "$text_param"  > $out_file1;
+    </command>
+    <inputs>
+        <param name="text_param" type="text" value="foo 1">
+            <option value="foo 1">Foo 1</option>
+            <option value="foo 2">Foo 2</option>
+        </param>
+    </inputs>
+    <outputs>
+        <data name="out_file1" format="txt" />
+    </outputs>
+    <tests>
+        <test>
+            <output name="out_file1">
+                <assert_contents>
+                    <has_line line="foo 1" />
+                </assert_contents>
+            </output>
+        </test>
+        <test>
+            <param name="text_param" value="foo 3" />
+            <output name="out_file1">
+                <assert_contents>
+                    <has_line line="foo 3" />
+                </assert_contents>
+            </output>
+        </test>
+    </tests>
+</tool>
diff --git a/test/functional/tools/samples_tool_conf.xml b/test/functional/tools/samples_tool_conf.xml
index 58ecb3b6f5a..97764633023 100644
--- a/test/functional/tools/samples_tool_conf.xml
+++ b/test/functional/tools/samples_tool_conf.xml
@@ -62,6 +62,7 @@
   <tool file="multi_data_repeat.xml" />
   <tool file="multi_data_optional.xml" />
   <tool file="paths_as_file.xml" />
+  <tool file="param_text_option.xml" />
   <tool file="column_param.xml" />
   <tool file="column_multi_param.xml" />
   <tool file="special_params.xml" />