diff --git a/packages/gatsby-source-url/src/common/ioTs.ts b/packages/gatsby-source-url/src/common/ioTs.ts
new file mode 100644
index 00000000..1a7048b3
--- /dev/null
+++ b/packages/gatsby-source-url/src/common/ioTs.ts
@@ -0,0 +1,44 @@
+import { pipe } from 'fp-ts/lib/function';
+import * as t from 'io-ts';
+import { Optional } from './tsUtils';
+
+const typeOptional = <P extends t.Props>(obj: P) =>
+  pipe(obj, (v) => t.type<P>(v), fixOptionals);
+
+/**
+ * Type lambda returning a union of key names from input type P having type A
+ */
+type FieldsWithType<T, Type> = {
+  [K in keyof T]-?: Type extends T[K] ? K : never;
+}[keyof T];
+
+/**
+ * Dual for FieldsWith - returns the rest of the fields
+ */
+type FieldsWithoutType<T, Type> = Exclude<keyof T, FieldsWithType<T, Type>>;
+
+// Original implementation
+// type MakeOptional<T, Type = undefined> = Pick<T, FieldsWithoutType<T, Type>> & Partial<Pick<T, FieldsWithType<T, Type>>>;
+
+/**
+ * Type lambda returning new type with all fields within P having type U marked as optional
+ */
+type MakeOptional<T, Type = undefined> = Optional<T, FieldsWithType<T, Type>>;
+
+/**
+ * Fix signature by marking all fields with undefined as optional
+ */
+const fixOptionals = <C extends t.Mixed>(
+  c: C,
+): t.Type<MakeOptional<t.TypeOf<C>>, t.OutputOf<C>, t.InputOf<C>> => c;
+
+/**
+ * Just an alias for T | undefined coded
+ */
+const optional = <C extends t.Mixed>(
+  c: C,
+): t.Type<t.TypeOf<C> | undefined, t.OutputOf<C>, t.InputOf<C>> =>
+  t.union([t.undefined, c]);
+
+export * from 'io-ts';
+export { typeOptional, optional };
diff --git a/packages/gatsby-source-url/src/common/tsUtils.ts b/packages/gatsby-source-url/src/common/tsUtils.ts
new file mode 100644
index 00000000..3aafb594
--- /dev/null
+++ b/packages/gatsby-source-url/src/common/tsUtils.ts
@@ -0,0 +1 @@
+export type Optional<T, K extends keyof T> = Omit<T, K> & Partial<T>;
diff --git a/packages/gatsby-source-url/src/gatsby-node.ts b/packages/gatsby-source-url/src/gatsby-node.ts
index 09fcb0cd..dd0e054a 100644
--- a/packages/gatsby-source-url/src/gatsby-node.ts
+++ b/packages/gatsby-source-url/src/gatsby-node.ts
@@ -48,7 +48,9 @@ export const createResolvers: GatsbyNode['createResolvers'] = async (
           ),
         ),
       )
-      .bindL('imgixClient', ({ options }) => createImgixClient(options))
+      .bindL('imgixClient', ({ options: { domain } }) =>
+        createImgixClient({ domain }),
+      )
       .bind(
         'packageVersion',
         pipe(
@@ -56,9 +58,11 @@ export const createResolvers: GatsbyNode['createResolvers'] = async (
           E.fromNullable(new Error('Could not read package version.')),
         ),
       )
-      .doL(({ imgixClient, packageVersion }) => {
+      .doL(({ options, imgixClient, packageVersion }) => {
         imgixClient.includeLibraryParam = false;
-        (imgixClient as any).settings.libraryParam = `gatsby-source-url-${packageVersion}`;
+        if (options.disableIxlibParam !== true) {
+          (imgixClient as any).settings.libraryParam = `gatsby-source-url-${packageVersion}`;
+        }
         return E.right(imgixClient);
       })
       .letL('rootQueryTypeMap', ({ imgixClient, options }) => ({
diff --git a/packages/gatsby-source-url/src/publicTypes.ts b/packages/gatsby-source-url/src/publicTypes.ts
index cea44b63..5c8529c5 100644
--- a/packages/gatsby-source-url/src/publicTypes.ts
+++ b/packages/gatsby-source-url/src/publicTypes.ts
@@ -1,6 +1,6 @@
 import imgixUrlParameters from 'imgix-url-params/dist/parameters.json';
-import * as t from 'io-ts';
 import R from 'ramda';
+import * as t from './common/ioTs';
 
 type IImgixParamsKey =
   | keyof ImgixUrlParametersSpec['parameters']
@@ -28,18 +28,13 @@ const ImgixParamsIOTS = t.partial({
 });
 export type IImgixParams = t.TypeOf<typeof ImgixParamsIOTS>;
 
-export const GatsbySourceUrlOptions = t.type({
+export const GatsbySourceUrlOptions = t.typeOptional({
   domain: t.string,
-  defaultImgixParams: t.union([ImgixParamsIOTS, t.undefined]),
+  defaultImgixParams: t.optional(ImgixParamsIOTS),
+  disableIxlibParam: t.optional(t.boolean),
 });
 export type IGatsbySourceUrlOptions = t.TypeOf<typeof GatsbySourceUrlOptions>;
 
-const imgixParamsTest2: IImgixParams = {
-  auto: ['format'],
-};
-
-export type IImgixFixedImageData = {};
-
 export type IGatsbySourceUrlRootArgs = {
   url: string;
 };