The goal of the present study was to investigate the locus of the memory advantage for words that are generated according to a nonsemantic rule (letter transposition) over words that are presented intact (read words). In the first two experiments, a category instance generation task was used to test the possibility that the semantic features of generated words are more readily available than those of read words. This possibility was not supported. In Experiment 3, generation effects were found to depend on the level of meaningfulness of words in recall, but not in recognition. In Experiment 4, a between-list design eliminated the generation effect found in recall, but did not affect the generation effect in recognition. Taken together, these findings suggest that generating a target according to a letter transposition rule enhances the distinctiveness of the word along a nonsemantic dimension.