How do I fix a boolean/bisected surface edge? I am trying to slice up my models using the Boolean modifier.

After applying the modifier on my smooth mesh, I get the expected result, a flat dissection to separate my mesh into two.

The problem lies in how I can resolve the visual "jaggered" edge that separates my (smooth) mesh exterior from the flat dissection face.



Is it possible to achieve a smooth-to-flat variation without this artifact? 

I tried to alter a mixture of the two but end up with artifacts, or unwanted blocky flat mesh faces around the dissection edge of my mesh.
Add an Edge Split modifier to your mesh, or turn on Auto Smooth in the Object Data tab of the Properties Window

Also check for duplicate geometry in edit mode with the Remove Doubles operator.