diff --git a/labs/lib/functions.guest b/labs/lib/functions.guest
index 4472f1f4..116af206 100644
--- a/labs/lib/functions.guest
+++ b/labs/lib/functions.guest
@@ -303,6 +303,11 @@ function get_ip_from_net_and_fourth {
     echo "${NET%.*}.$FOURTH_OCTET"
 }
 
+function hostname_to_ip {
+    local host_name=$1
+    getent hosts "$host_name"|awk '{print $1}'
+}
+
 function config_network {
     if is_ubuntu; then
         # Configuration functions will append to this file
diff --git a/labs/scripts/setup_neutron_compute.sh b/labs/scripts/setup_neutron_compute.sh
index 51c0dcf6..5d2beaa6 100755
--- a/labs/scripts/setup_neutron_compute.sh
+++ b/labs/scripts/setup_neutron_compute.sh
@@ -68,7 +68,7 @@ iniset_sudo $conf securitygroup firewall_driver neutron.agent.linux.iptables_fir
 iniset_sudo $conf securitygroup enable_security_group True
 
 # Under the ovs section
-iniset_sudo $conf ovs local_ip INSTANCE_TUNNELS_INTERFACE_IP_ADDRESS
+iniset_sudo $conf ovs local_ip "$(hostname_to_ip compute-data)"
 iniset_sudo $conf ovs tunnel_type gre
 iniset_sudo $conf ovs enable_tunneling True