diff --git a/docs/history.rst b/docs/history.rst
index 2b32e4e..b0c19df 100644
--- a/docs/history.rst
+++ b/docs/history.rst
@@ -3,7 +3,7 @@ History
 
 Latest
 ------
-
+- BUG: Recalc transform when vectorizing (issue #165)
 
 0.5.1
 ------
diff --git a/geocube/vector.py b/geocube/vector.py
index e873c0c..26ff29d 100644
--- a/geocube/vector.py
+++ b/geocube/vector.py
@@ -51,7 +51,7 @@ def vectorize(data_array: xarray.DataArray) -> geopandas.GeoDataFrame:
         (value, shapely.geometry.shape(polygon))
         for polygon, value in rasterio.features.shapes(
             data_array,
-            transform=data_array.rio.transform(),
+            transform=data_array.rio.transform(recalc=True),
             mask=mask,
         )
     )
diff --git a/test/integration/test_vector.py b/test/integration/test_vector.py
index 111a812..0bf203a 100644
--- a/test/integration/test_vector.py
+++ b/test/integration/test_vector.py
@@ -1,20 +1,27 @@
 import geopandas
 import pytest
 import xarray
+from numpy.testing import assert_almost_equal
 
 from geocube.vector import vectorize
 from test.conftest import TEST_COMPARE_DATA_DIR
 
 
+@pytest.mark.parametrize("invert_y", [True, False])
 @pytest.mark.parametrize("mask_and_scale", [True, False])
-def test_vectorize(mask_and_scale):
+def test_vectorize(mask_and_scale, invert_y):
     xds = xarray.open_dataset(
         TEST_COMPARE_DATA_DIR / "soil_grid_flat.nc",
         decode_coords="all",
         mask_and_scale=mask_and_scale,
     )
+    if invert_y:
+        # https://github.com/corteva/geocube/issues/165
+        xds.rio.write_transform(xds.rio.transform(), inplace=True)
+        xds = xds.sortby("y")
     gdf = vectorize(xds.om_r)
     assert isinstance(gdf, geopandas.GeoDataFrame)
+    assert_almost_equal(gdf.total_bounds, [700330, 4595210, 701750, 4597070])
     assert gdf.dtypes.astype(str).to_dict() == {
         "geometry": "geometry",
         "om_r": "float64",