diff --git a/site/src/api/errors.ts b/site/src/api/errors.ts
index f16f422154848..052dd303f9e97 100644
--- a/site/src/api/errors.ts
+++ b/site/src/api/errors.ts
@@ -33,6 +33,14 @@ export const isApiError = (err: any): err is ApiError => {
   return false
 }
 
+/**
+ * ApiErrors contain useful error messages in their response body. They contain an overall message
+ * and may also contain errors for specific form fields.
+ * @param error ApiError
+ * @returns true if the ApiError contains error messages for specific form fields.
+ */
+export const hasApiFieldErrors = (error: ApiError): boolean => Array.isArray(error.response.data.errors)
+
 export const mapApiErrorToFieldErrors = (apiErrorResponse: ApiErrorResponse): FieldErrors => {
   const result: FieldErrors = {}
 
diff --git a/site/src/pages/UsersPage/CreateUserPage/CreateUserPage.test.tsx b/site/src/pages/UsersPage/CreateUserPage/CreateUserPage.test.tsx
index 0aae2f9f35695..907807afe47c4 100644
--- a/site/src/pages/UsersPage/CreateUserPage/CreateUserPage.test.tsx
+++ b/site/src/pages/UsersPage/CreateUserPage/CreateUserPage.test.tsx
@@ -7,7 +7,7 @@ import { Language as FooterLanguage } from "../../../components/FormFooter/FormF
 import { history, render } from "../../../testHelpers/renderHelpers"
 import { server } from "../../../testHelpers/server"
 import { Language as UserLanguage } from "../../../xServices/users/usersXService"
-import { CreateUserPage, Language } from "./CreateUserPage"
+import { CreateUserPage } from "./CreateUserPage"
 
 const fillForm = async ({
   username = "someuser",
@@ -46,7 +46,7 @@ describe("Create User Page", () => {
     })
     render(<CreateUserPage />)
     await fillForm({})
-    const errorMessage = await screen.findByText(Language.unknownError)
+    const errorMessage = await screen.findByText(UserLanguage.createUserError)
     expect(errorMessage).toBeDefined()
   })
 
diff --git a/site/src/pages/UsersPage/CreateUserPage/CreateUserPage.tsx b/site/src/pages/UsersPage/CreateUserPage/CreateUserPage.tsx
index 6b1bd0367ff7c..c5ddc98adcb3e 100644
--- a/site/src/pages/UsersPage/CreateUserPage/CreateUserPage.tsx
+++ b/site/src/pages/UsersPage/CreateUserPage/CreateUserPage.tsx
@@ -15,11 +15,11 @@ export const CreateUserPage: React.FC = () => {
   const xServices = useContext(XServiceContext)
   const myOrgId = useSelector(xServices.authXService, selectOrgId)
   const [usersState, usersSend] = useActor(xServices.usersXService)
-  const { createUserError, createUserFormErrors } = usersState.context
+  const { createUserErrorMessage, createUserFormErrors } = usersState.context
   const navigate = useNavigate()
   // There is no field for organization id in Community Edition, so handle its field error like a generic error
   const genericError =
-    createUserError || createUserFormErrors?.organization_id || !myOrgId ? Language.unknownError : undefined
+    createUserErrorMessage || createUserFormErrors?.organization_id || (!myOrgId ? Language.unknownError : undefined)
 
   return (
     <Margins>
diff --git a/site/src/xServices/users/usersXService.ts b/site/src/xServices/users/usersXService.ts
index 7566f17ed4623..abbd1d5cf49b6 100644
--- a/site/src/xServices/users/usersXService.ts
+++ b/site/src/xServices/users/usersXService.ts
@@ -1,25 +1,33 @@
 import { assign, createMachine } from "xstate"
 import * as API from "../../api/api"
-import { ApiError, FieldErrors, getErrorMessage, isApiError, mapApiErrorToFieldErrors } from "../../api/errors"
+import {
+  ApiError,
+  FieldErrors,
+  getErrorMessage,
+  hasApiFieldErrors,
+  isApiError,
+  mapApiErrorToFieldErrors,
+} from "../../api/errors"
 import * as TypesGen from "../../api/typesGenerated"
 import { displayError, displaySuccess } from "../../components/GlobalSnackbar/utils"
 import { generateRandomString } from "../../util/random"
 
 export const Language = {
   createUserSuccess: "Successfully created user.",
+  createUserError: "Error on creating the user.",
   suspendUserSuccess: "Successfully suspended the user.",
-  suspendUserError: "Error on suspend the user.",
+  suspendUserError: "Error on suspending the user.",
   resetUserPasswordSuccess: "Successfully updated the user password.",
-  resetUserPasswordError: "Error on reset the user password.",
+  resetUserPasswordError: "Error on resetting the user password.",
   updateUserRolesSuccess: "Successfully updated the user roles.",
-  updateUserRolesError: "Error on update the user roles.",
+  updateUserRolesError: "Error on updating the user roles.",
 }
 
 export interface UsersContext {
   // Get users
   users?: TypesGen.User[]
   getUsersError?: Error | unknown
-  createUserError?: Error | unknown
+  createUserErrorMessage?: string
   createUserFormErrors?: FieldErrors
   // Suspend user
   userIdToSuspend?: TypesGen.User["id"]
@@ -122,7 +130,7 @@ export const usersMachine = createMachine(
           onError: [
             {
               target: "idle",
-              cond: "isFormError",
+              cond: "hasFieldErrors",
               actions: ["assignCreateUserFormErrors"],
             },
             {
@@ -235,7 +243,7 @@ export const usersMachine = createMachine(
       },
     },
     guards: {
-      isFormError: (_, event) => isApiError(event.data),
+      hasFieldErrors: (_, event) => isApiError(event.data) && hasApiFieldErrors(event.data),
     },
     actions: {
       assignUsers: assign({
@@ -258,7 +266,7 @@ export const usersMachine = createMachine(
         getUsersError: undefined,
       })),
       assignCreateUserError: assign({
-        createUserError: (_, event) => event.data,
+        createUserErrorMessage: (_, event) => getErrorMessage(event.data, Language.createUserError),
       }),
       assignCreateUserFormErrors: assign({
         // the guard ensures it is ApiError