diff --git a/tools/xen/README.md b/tools/xen/README.md
index 258d7a32a7..8f0c10d0d7 100644
--- a/tools/xen/README.md
+++ b/tools/xen/README.md
@@ -8,6 +8,34 @@ The Openstack services are configured to run within a "privileged" virtual
 machine on the Xenserver host (called OS domU). The VM uses the XAPI toolstack
 to communicate with the host.
 
+The provided localrc helps to build a basic environment.
+The requirements are:
+ - An internet-enabled network with a DHCP server on it
+ - XenServer box plugged in to the same network
+This network will be used as the OpenStack management network. The VM Network
+and the Public Network will not be connected to any physical interfaces, only
+new virtual networks will be created by the `install_os_domU.sh` script.
+
+Steps to follow:
+ - Install XenServer
+ - Download Devstack to XenServer
+ - Customise `localrc`
+ - Start `install_os_domU.sh` script
+
+The `install_os_domU.sh` script will:
+ - Setup XenAPI plugins
+ - Create the named networks, if they don't exist
+ - Install an Ubuntu Virtual Machine, with 4 network interfaces:
+   - eth0 - internal xapi interface
+   - eth1 - VM interface, connected to `VM_BRIDGE_OR_NET_NAME` defaults to
+   `"OpenStack VM Network"`.
+   - eth2 - Management interface, connected to `MGT_BRIDGE_OR_NET_NAME`,
+     defaults to `xenbr0`, XenServer's bridge associated with the Hypervisors
+     `eth0`.
+   - eth3 - Public interface, connected to `PUB_BRIDGE_OR_NET_NAME` defaults to
+   `"OpenStack Public Network"`.
+ - Start devstack inside the created OpenStack VM
+
 ## Step 1: Install Xenserver
 Install XenServer 5.6+ on a clean box. You can get XenServer by signing
 up for an account on citrix.com, and then visiting:
@@ -15,13 +43,12 @@ https://www.citrix.com/English/ss/downloads/details.asp?downloadId=2311504&produ
 
 For details on installation, see: http://wiki.openstack.org/XenServer/Install
 
-Here are some sample Xenserver network settings for when you are just
-getting started (Settings like this have been used with a laptop + cheap wifi router):
-
-* XenServer Host IP: 192.168.1.10
-* XenServer Netmask: 255.255.255.0
-* XenServer Gateway: 192.168.1.1
-* XenServer DNS: 192.168.1.1
+The XenServer IP configuration depends on your local network setup. If you are
+using dhcp, make a reservation for XenServer, so its IP address won't change
+over time. Make a note of the XenServer's IP address, as it has to be specified
+in `localrc`. The other option is to manually specify the IP setup for the
+XenServer box. Please make sure, that a gateway and a nameserver is configured,
+as `install_os_domU.sh` will connect to github.com to get source-code snapshots.
 
 ## Step 2: Download devstack
 On your XenServer host, run the following commands as root:
@@ -32,45 +59,63 @@ On your XenServer host, run the following commands as root:
 
 ## Step 3: Configure your localrc inside the devstack directory
 Devstack uses a localrc for user-specific configuration.  Note that
-the XENAPI_PASSWORD must be your dom0 root password.
+the `XENAPI_PASSWORD` must be your dom0 root password.
 Of course, use real passwords if this machine is exposed.
 
     cat > ./localrc <<EOF
+    # Passwords
+    # NOTE: these need to be specified, otherwise devstack will try
+    # to prompt for these passwords, blocking the install process.
+
     MYSQL_PASSWORD=my_super_secret
     SERVICE_TOKEN=my_super_secret
     ADMIN_PASSWORD=my_super_secret
     SERVICE_PASSWORD=my_super_secret
     RABBIT_PASSWORD=my_super_secret
     SWIFT_HASH="66a3d6b56c1f479c8b4e70ab5c2000f5"
-    # This is the password for the OpenStack VM (for both stack and root users)
+    # This will be the password for the OpenStack VM (both stack and root users)
     GUEST_PASSWORD=my_super_secret
 
     # XenAPI parameters
-    # IMPORTANT: The following must be set to your dom0 root password!
+    # NOTE: The following must be set to your XenServer root password!
+
     XENAPI_PASSWORD=my_xenserver_root_password
+
     XENAPI_CONNECTION_URL="http://address_of_your_xenserver"
     VNCSERVER_PROXYCLIENT_ADDRESS=address_of_your_xenserver
 
-    # Do not download the usual images yet!
+    # Do not download the usual images
     IMAGE_URLS=""
     # Explicitly set virt driver here
     VIRT_DRIVER=xenserver
-    # Explicitly set multi-host
+    # Explicitly enable multi-host
     MULTI_HOST=1
     # Give extra time for boot
     ACTIVE_TIMEOUT=45
-    # Host Interface, i.e. the interface on the nova vm you want to expose the
-    # services on. Usually eth2 (management network) or eth3 (public network) and
-    # not eth0 (private network with XenServer host) or eth1 (VM traffic network)
-    # The default is eth3.
-    # HOST_IP_IFACE=eth3
+    # Host Interface, i.e. the interface on the OpenStack vm you want to expose
+    # the services on. The default is eth3, which means the public network, but
+    # as the public network is going to be virtual, we are setting the services
+    # to listen on the management network, which defaults to 'xenbr0', the
+    # XenServer's network.
+    HOST_IP_IFACE=eth2
+
+    # Use DHCP server to configure the Management IP of OpenStack VM
+    MGT_IP="dhcp"
 
     # Settings for netinstalling Ubuntu
-    # UBUNTU_INST_RELEASE=precise
+    UBUNTU_INST_RELEASE=precise
 
-    # First time Ubuntu network install params
-    # UBUNTU_INST_IFACE="eth3"
-    # UBUNTU_INST_IP="dhcp"
+    # First time Ubuntu network install params, use the DHCP server on the
+    # management network
+    UBUNTU_INST_IFACE="eth2"
+    UBUNTU_INST_IP="dhcp"
+
+    # NOTE: the value of FLAT_NETWORK_BRIDGE will automatically be determined
+    # by install_os_domU.sh script.
+
+    # Public IP address is aligned with the devstack defaults (see FLOATING_RANGE)
+    PUB_IP=172.24.4.10
+    PUB_NETMASK=255.255.255.0
     EOF
 
 ## Step 4: Run `./install_os_domU.sh` from the `tools/xen` directory
diff --git a/tools/xen/functions b/tools/xen/functions
index 26ddb8be49..c6e484d03e 100644
--- a/tools/xen/functions
+++ b/tools/xen/functions
@@ -93,3 +93,84 @@ function find_ip_by_name() {
         fi
     done
 }
+
+function _create_new_network() {
+    local name_label
+    name_label=$1
+
+    xe network-create name-label="$name_label"
+}
+
+function _multiple_networks_with_name() {
+    local name_label
+    name_label=$1
+
+    # A comma indicates multiple matches
+    xe network-list name-label="$name_label" --minimal | grep -q ","
+}
+
+function _network_exists() {
+    local name_label
+    name_label=$1
+
+    ! [ -z $(xe network-list name-label="$name_label" --minimal) ]
+}
+
+function _bridge_exists() {
+    local bridge
+    bridge=$1
+
+    ! [ -z $(xe network-list bridge="$bridge" --minimal) ]
+}
+
+
+function setup_network() {
+    local bridge_or_net_name
+    bridge_or_net_name=$1
+
+    if ! _bridge_exists "$bridge_or_net_name"; then
+        if _network_exists "$bridge_or_net_name"; then
+            if _multiple_networks_with_name "$bridge_or_net_name"; then
+                cat >&2 << EOF
+ERROR: Multiple networks found matching name-label to "$bridge_or_net_name"
+please review your XenServer network configuration / localrc file.
+EOF
+                exit 1
+            fi
+        else
+            _create_new_network "$bridge_or_net_name"
+        fi
+    fi
+}
+
+function bridge_for() {
+    local bridge_or_net_name
+    bridge_or_net_name=$1
+
+    if _bridge_exists "$bridge_or_net_name"; then
+        echo "$bridge_or_net_name"
+    else
+        xe network-list name-label="$bridge_or_net_name" params=bridge --minimal
+    fi
+}
+
+function xenapi_ip_on() {
+    local bridge_or_net_name
+    bridge_or_net_name=$1
+
+    ifconfig $(bridge_for "$bridge_or_net_name") | grep "inet addr" | cut -d ":" -f2 | sed "s/ .*//"
+}
+
+function xenapi_is_listening_on() {
+    local bridge_or_net_name
+    bridge_or_net_name=$1
+
+    ! [ -z $(xenapi_ip_on "$bridge_or_net_name") ]
+}
+
+function parameter_is_specified() {
+    local parameter_name
+    parameter_name=$1
+
+    compgen -v | grep "$parameter_name"
+}
diff --git a/tools/xen/install_os_domU.sh b/tools/xen/install_os_domU.sh
index 0d5e31eebd..161d7e774d 100755
--- a/tools/xen/install_os_domU.sh
+++ b/tools/xen/install_os_domU.sh
@@ -67,97 +67,28 @@ create_directory_for_kernels
 #
 # Configure Networking
 #
+setup_network "$VM_BRIDGE_OR_NET_NAME"
+setup_network "$MGT_BRIDGE_OR_NET_NAME"
+setup_network "$PUB_BRIDGE_OR_NET_NAME"
 
-# Helper to create networks
-# Uses echo trickery to return network uuid
-function create_network() {
-    br=$1
-    dev=$2
-    vlan=$3
-    netname=$4
-    if [ -z $br ]
-    then
-        pif=$(xe_min pif-list device=$dev VLAN=$vlan)
-        if [ -z $pif ]
-        then
-            net=$(xe network-create name-label=$netname)
-        else
-            net=$(xe_min network-list  PIF-uuids=$pif)
-        fi
-        echo $net
-        return 0
-    fi
-    if [ ! $(xe_min network-list  params=bridge | grep -w --only-matching $br) ]
-    then
-        echo "Specified bridge $br does not exist"
-        echo "If you wish to use defaults, please keep the bridge name empty"
-        exit 1
-    else
-        net=$(xe_min network-list  bridge=$br)
-        echo $net
-    fi
-}
-
-function errorcheck() {
-    rc=$?
-    if [ $rc -ne 0 ]
-    then
-        exit $rc
-    fi
-}
-
-# Create host, vm, mgmt, pub networks on XenServer
-VM_NET=$(create_network "$VM_BR" "$VM_DEV" "$VM_VLAN" "vmbr")
-errorcheck
-MGT_NET=$(create_network "$MGT_BR" "$MGT_DEV" "$MGT_VLAN" "mgtbr")
-errorcheck
-PUB_NET=$(create_network "$PUB_BR" "$PUB_DEV" "$PUB_VLAN" "pubbr")
-errorcheck
-
-# Helper to create vlans
-function create_vlan() {
-    dev=$1
-    vlan=$2
-    net=$3
-    # VLAN -1 refers to no VLAN (physical network)
-    if [ $vlan -eq -1 ]
-    then
-        return
-    fi
-    if [ -z $(xe_min vlan-list  tag=$vlan) ]
-    then
-        pif=$(xe_min pif-list  network-uuid=$net)
-        # We created a brand new network this time
-        if [ -z $pif ]
-        then
-            pif=$(xe_min pif-list  device=$dev VLAN=-1)
-            xe vlan-create pif-uuid=$pif vlan=$vlan network-uuid=$net
-        else
-            echo "VLAN does not exist but PIF attached to this network"
-            echo "How did we reach here?"
-            exit 1
-        fi
-    fi
-}
-
-# Create vlans for vm and management
-create_vlan $PUB_DEV $PUB_VLAN $PUB_NET
-create_vlan $VM_DEV $VM_VLAN $VM_NET
-create_vlan $MGT_DEV $MGT_VLAN $MGT_NET
-
-# Get final bridge names
-if [ -z $VM_BR ]; then
-    VM_BR=$(xe_min network-list  uuid=$VM_NET params=bridge)
-fi
-if [ -z $MGT_BR ]; then
-    MGT_BR=$(xe_min network-list  uuid=$MGT_NET params=bridge)
-fi
-if [ -z $PUB_BR ]; then
-    PUB_BR=$(xe_min network-list  uuid=$PUB_NET params=bridge)
+if parameter_is_specified "FLAT_NETWORK_BRIDGE"; then
+    cat >&2 << EOF
+ERROR: FLAT_NETWORK_BRIDGE is specified in localrc file
+This is considered as an error, as its value will be derived from the
+VM_BRIDGE_OR_NET_NAME variable's value.
+EOF
+    exit 1
 fi
 
-# dom0 ip, XenAPI is assumed to be listening
-HOST_IP=${HOST_IP:-`ifconfig xenbr0 | grep "inet addr" | cut -d ":" -f2 | sed "s/ .*//"`}
+if ! xenapi_is_listening_on "$MGT_BRIDGE_OR_NET_NAME"; then
+    cat >&2 << EOF
+ERROR: XenAPI does not have an assigned IP address on the management network.
+please review your XenServer network configuration / localrc file.
+EOF
+    exit 1
+fi
+
+HOST_IP=$(xenapi_ip_on "$MGT_BRIDGE_OR_NET_NAME")
 
 # Set up ip forwarding, but skip on xcp-xapi
 if [ -a /etc/sysconfig/network ]; then
@@ -263,7 +194,15 @@ if [ -z "$templateuuid" ]; then
 
     # create a new VM with the given template
     # creating the correct VIFs and metadata
-    $THIS_DIR/scripts/install-os-vpx.sh -t "$UBUNTU_INST_TEMPLATE_NAME" -v $VM_BR -m $MGT_BR -p $PUB_BR -l $GUEST_NAME -r $OSDOMU_MEM_MB -k "flat_network_bridge=${VM_BR}"
+    FLAT_NETWORK_BRIDGE=$(bridge_for "$VM_BRIDGE_OR_NET_NAME")
+    $THIS_DIR/scripts/install-os-vpx.sh \
+        -t "$UBUNTU_INST_TEMPLATE_NAME" \
+        -v "$VM_BRIDGE_OR_NET_NAME" \
+        -m "$MGT_BRIDGE_OR_NET_NAME" \
+        -p "$PUB_BRIDGE_OR_NET_NAME" \
+        -l "$GUEST_NAME" \
+        -r "$OSDOMU_MEM_MB" \
+        -k "flat_network_bridge=${FLAT_NETWORK_BRIDGE}"
 
     # wait for install to finish
     wait_for_VM_to_halt
diff --git a/tools/xen/scripts/install-os-vpx.sh b/tools/xen/scripts/install-os-vpx.sh
index 241296bd87..6105a1ea5e 100755
--- a/tools/xen/scripts/install-os-vpx.sh
+++ b/tools/xen/scripts/install-os-vpx.sh
@@ -235,7 +235,7 @@ create_gi_vif()
 create_vm_vif()
 {
   local v="$1"
-  echo "Installing management interface on $BRIDGE_V."
+  echo "Installing VM interface on $BRIDGE_V."
   local out_network_uuid=$(find_network "$BRIDGE_V")
   create_vif "$v" "$out_network_uuid" "1" >/dev/null
 }
diff --git a/tools/xen/xenrc b/tools/xen/xenrc
index e50f954715..7aaafd219d 100644
--- a/tools/xen/xenrc
+++ b/tools/xen/xenrc
@@ -16,6 +16,16 @@ VDI_MB=${VDI_MB:-5000}
 OSDOMU_MEM_MB=1024
 OSDOMU_VDI_GB=8
 
+# Network mapping. Specify bridge names or network names. Network names may
+# differ across localised versions of XenServer. If a given bridge/network
+# was not found, a new network will be created with the specified name.
+
+# The management network is specified by the bridge name. xenbr0 is usually
+# the name of the bridge of the network associated with the hypervisor's eth0.
+MGT_BRIDGE_OR_NET_NAME="xenbr0"
+VM_BRIDGE_OR_NET_NAME="OpenStack VM Network"
+PUB_BRIDGE_OR_NET_NAME="OpenStack Public Network"
+
 # VM Password
 GUEST_PASSWORD=${GUEST_PASSWORD:-secrete}
 
@@ -28,28 +38,17 @@ HOST_IP_IFACE=${HOST_IP_IFACE:-eth3}
 # Our nova host's network info
 #
 
-# A host-only ip that let's the interface come up, otherwise unused
-VM_IP=${VM_IP:-10.255.255.255}
+# Management network
 MGT_IP=${MGT_IP:-172.16.100.55}
-PUB_IP=${PUB_IP:-192.168.1.55}
+MGT_NETMASK=${MGT_NETMASK:-255.255.255.0}
+
+# VM Network
+VM_IP=${VM_IP:-10.255.255.255}
+VM_NETMASK=${VM_NETMASK:-255.255.255.0}
 
 # Public network
+PUB_IP=${PUB_IP:-192.168.1.55}
 PUB_NETMASK=${PUB_NETMASK:-255.255.255.0}
-PUB_BR=${PUB_BR:-"xenbr0"}
-PUB_VLAN=${PUB_VLAN:--1}
-PUB_DEV=${PUB_DEV:-eth0}
-
-# VM network params
-VM_NETMASK=${VM_NETMASK:-255.255.255.0}
-VM_BR=${VM_BR:-""}
-VM_VLAN=${VM_VLAN:-100}
-VM_DEV=${VM_DEV:-eth0}
-
-# MGMT network params
-MGT_NETMASK=${MGT_NETMASK:-255.255.255.0}
-MGT_BR=${MGT_BR:-""}
-MGT_VLAN=${MGT_VLAN:-101}
-MGT_DEV=${MGT_DEV:-eth0}
 
 # Decide if you should enable eth0,
 # the guest installer network