diff --git a/lib/neutron b/lib/neutron
index 603987216b..6594334e2d 100644
--- a/lib/neutron
+++ b/lib/neutron
@@ -203,6 +203,13 @@ OVS_PHYSICAL_BRIDGE=${OVS_PHYSICAL_BRIDGE:-}
 # Example: ``LB_PHYSICAL_INTERFACE=eth1``
 LB_PHYSICAL_INTERFACE=${LB_PHYSICAL_INTERFACE:-}
 
+# When Neutron tunnels are enabled it is needed to specify the
+# IP address of the end point in the local server. This IP is set
+# by default to the same IP address that the HOST IP.
+# This variable can be used to specify a different end point IP address
+# Example: ``TUNNEL_ENDPOINT_IP=1.1.1.1``
+TUNNEL_ENDPOINT_IP=${TUNNEL_ENDPOINT_IP:-$HOST_IP}
+
 # With the openvswitch plugin, set to True in ``localrc`` to enable
 # provider GRE tunnels when ``ENABLE_TENANT_TUNNELS`` is False.
 #
diff --git a/lib/neutron_plugins/ml2 b/lib/neutron_plugins/ml2
index 99663733e1..8e131bbb94 100644
--- a/lib/neutron_plugins/ml2
+++ b/lib/neutron_plugins/ml2
@@ -99,7 +99,7 @@ function neutron_plugin_configure_service {
     fi
 
     # Since we enable the tunnel TypeDrivers, also enable a local_ip
-    iniset /$Q_PLUGIN_CONF_FILE ovs local_ip $HOST_IP
+    iniset /$Q_PLUGIN_CONF_FILE ovs local_ip $TUNNEL_ENDPOINT_IP
 
     populate_ml2_config /$Q_PLUGIN_CONF_FILE ml2 mechanism_drivers=$Q_ML2_PLUGIN_MECHANISM_DRIVERS
 
diff --git a/lib/neutron_plugins/ofagent_agent b/lib/neutron_plugins/ofagent_agent
index b8321f3375..66283ad67c 100644
--- a/lib/neutron_plugins/ofagent_agent
+++ b/lib/neutron_plugins/ofagent_agent
@@ -54,7 +54,7 @@ function neutron_plugin_configure_plugin_agent {
             die $LINENO "You are running OVS version $OVS_VERSION. OVS 1.4+ is required for tunneling between multiple hosts."
         fi
         iniset /$Q_PLUGIN_CONF_FILE ovs enable_tunneling True
-        iniset /$Q_PLUGIN_CONF_FILE ovs local_ip $HOST_IP
+        iniset /$Q_PLUGIN_CONF_FILE ovs local_ip $TUNNEL_ENDPOINT_IP
     fi
 
     # Setup physical network bridge mappings.  Override
diff --git a/lib/neutron_plugins/openvswitch_agent b/lib/neutron_plugins/openvswitch_agent
index fbc013f565..5adb0c5e43 100644
--- a/lib/neutron_plugins/openvswitch_agent
+++ b/lib/neutron_plugins/openvswitch_agent
@@ -48,7 +48,7 @@ function neutron_plugin_configure_plugin_agent {
             die $LINENO "You are running OVS version $OVS_VERSION. OVS 1.4+ is required for tunneling between multiple hosts."
         fi
         iniset /$Q_PLUGIN_CONF_FILE ovs enable_tunneling True
-        iniset /$Q_PLUGIN_CONF_FILE ovs local_ip $HOST_IP
+        iniset /$Q_PLUGIN_CONF_FILE ovs local_ip $TUNNEL_ENDPOINT_IP
     fi
 
     # Setup physical network bridge mappings.  Override