diff --git a/lib/neutron_plugins/ml2 b/lib/neutron_plugins/ml2
index d2700156ee..42dd57f3d2 100644
--- a/lib/neutron_plugins/ml2
+++ b/lib/neutron_plugins/ml2
@@ -9,7 +9,7 @@ set +o xtrace
 # Select either 'gre', 'vxlan', or '(gre vxlan)'
 Q_ML2_TENANT_NETWORK_TYPE=${Q_ML2_TENANT_NETWORK_TYPE:-"vxlan"}
 # This has to be set here since the agent will set this in the config file
-if [[ "$Q_ML2_TENANT_NETWORK_TYPE" != "local" ]]; then
+if [[ "$Q_ML2_TENANT_NETWORK_TYPE" == "gre" || "$Q_ML2_TENANT_NETWORK_TYPE" == "vxlan" ]]; then
     Q_AGENT_EXTRA_AGENT_OPTS+=(tunnel_types=$Q_ML2_TENANT_NETWORK_TYPE)
 elif [[ "$ENABLE_TENANT_TUNNELS" == "True" ]]; then
     Q_AGENT_EXTRA_AGENT_OPTS+=(tunnel_types=gre)