Unfortunately, I believe you are encouraging bad behavior... We had originally bought Annie a bigger crate than I guess she needed. They say that rule of thumb is big enough for them to sleep in and turn themselves around in. So in the bigger crate what she would do was sleep on side and pee on the other side. (If you notice she probably won't actually sleep on the half where she goes potty/poop). If you don't want to go out and buy another crate maybe there may be a way you can close of the extra space until you house broken her. You need to teach her to hold it in (as far as poop goes you'd be surprised how long they can hold it in) (I've learned this from our frequent plane trips) and only go where it is acceptable to go