diff --git a/templates/icehouse/dhcp_agent.ini b/templates/icehouse/dhcp_agent.ini
index 4fe46e8f..ff1ff906 100644
--- a/templates/icehouse/dhcp_agent.ini
+++ b/templates/icehouse/dhcp_agent.ini
@@ -17,11 +17,12 @@ enable_metadata_network = True
 enable_isolated_metadata = True
 {% endif -%}
 
-ovs_use_veth = False
 {% if plugin == 'n1kv' %}
 enable_metadata_network = True
 enable_isolated_metadata = True
 resync_interval = 30
 use_namespaces = True
 dhcp_lease_time=3600
+{% else %}
+ovs_use_veth = True
 {% endif %}
diff --git a/templates/icehouse/l3_agent.ini b/templates/icehouse/l3_agent.ini
index 2a59a467..0f5de24e 100644
--- a/templates/icehouse/l3_agent.ini
+++ b/templates/icehouse/l3_agent.ini
@@ -11,11 +11,13 @@ admin_user = {{ service_username }}
 admin_password = {{ service_password }}
 root_helper = sudo /usr/bin/neutron-rootwrap /etc/neutron/rootwrap.conf
 handle_internal_only_routers = {{ handle_internal_only_router }}
-ovs_use_veth = False
 {% if plugin == 'n1kv' %}
 l3_agent_manager = neutron.agent.l3_agent.L3NATAgentWithStateReport
 external_network_bridge = br-int
+ovs_use_veth = False
 use_namespaces = True
+{% else %}
+ovs_use_veth = True
 {% endif %}
 {% if external_configuration_new -%}
 gateway_external_network_id =
diff --git a/templates/juno/l3_agent.ini b/templates/juno/l3_agent.ini
index 997a9a93..6376978b 100644
--- a/templates/juno/l3_agent.ini
+++ b/templates/juno/l3_agent.ini
@@ -11,11 +11,13 @@ admin_user = {{ service_username }}
 admin_password = {{ service_password }}
 root_helper = sudo /usr/bin/neutron-rootwrap /etc/neutron/rootwrap.conf
 handle_internal_only_routers = {{ handle_internal_only_router }}
-ovs_use_veth = False
 {% if plugin == 'n1kv' %}
 l3_agent_manager = neutron.agent.l3_agent.L3NATAgentWithStateReport
 external_network_bridge = br-int
+ovs_use_veth = False
 use_namespaces = True
+{% else %}
+ovs_use_veth = True
 {% endif %}
 {% if external_configuration_new -%}
 gateway_external_network_id =
diff --git a/templates/mitaka/dhcp_agent.ini b/templates/mitaka/dhcp_agent.ini
index fc11c1c7..b70d74c5 100644
--- a/templates/mitaka/dhcp_agent.ini
+++ b/templates/mitaka/dhcp_agent.ini
@@ -28,9 +28,10 @@ dhcp_domain = {{ dns_domain }}
 enable_metadata_network = {{ enable_metadata_network }}
 enable_isolated_metadata = {{ enable_isolated_metadata }}
 
-ovs_use_veth = False
 {% if plugin == 'n1kv' %}
 resync_interval = 30
 use_namespaces = True
 dhcp_lease_time=3600
+{% else %}
+ovs_use_veth = True
 {% endif %}
diff --git a/templates/mitaka/l3_agent.ini b/templates/mitaka/l3_agent.ini
index 23b379bd..2342e869 100644
--- a/templates/mitaka/l3_agent.ini
+++ b/templates/mitaka/l3_agent.ini
@@ -11,11 +11,13 @@ admin_user = {{ service_username }}
 admin_password = {{ service_password }}
 root_helper = sudo /usr/bin/neutron-rootwrap /etc/neutron/rootwrap.conf
 handle_internal_only_routers = {{ handle_internal_only_router }}
-ovs_use_veth = False
 {% if plugin == 'n1kv' %}
 l3_agent_manager = neutron.agent.l3_agent.L3NATAgentWithStateReport
 external_network_bridge = br-int
+ovs_use_veth = False
 use_namespaces = True
+{% else %}
+ovs_use_veth = True
 {% endif %}
 {% if external_configuration_new -%}
 gateway_external_network_id =
diff --git a/templates/newton/l3_agent.ini b/templates/newton/l3_agent.ini
index 18f1ae0d..4ff0c2cc 100644
--- a/templates/newton/l3_agent.ini
+++ b/templates/newton/l3_agent.ini
@@ -12,11 +12,13 @@ admin_user = {{ service_username }}
 admin_password = {{ service_password }}
 root_helper = sudo /usr/bin/neutron-rootwrap /etc/neutron/rootwrap.conf
 handle_internal_only_routers = {{ handle_internal_only_router }}
-ovs_use_veth = False
 {% if plugin == 'n1kv' %}
 l3_agent_manager = neutron.agent.l3_agent.L3NATAgentWithStateReport
 external_network_bridge = br-int
+ovs_use_veth = False
 use_namespaces = True
+{% else %}
+ovs_use_veth = True
 {% endif %}
 {% if external_configuration_new -%}
 gateway_external_network_id =
diff --git a/templates/queens/l3_agent.ini b/templates/queens/l3_agent.ini
index 68b64ad5..d5e003e3 100644
--- a/templates/queens/l3_agent.ini
+++ b/templates/queens/l3_agent.ini
@@ -7,11 +7,13 @@
 interface_driver = openvswitch
 root_helper = sudo /usr/bin/neutron-rootwrap /etc/neutron/rootwrap.conf
 handle_internal_only_routers = {{ handle_internal_only_router }}
-ovs_use_veth = False
 {% if plugin == 'n1kv' %}
 l3_agent_manager = neutron.agent.l3_agent.L3NATAgentWithStateReport
 external_network_bridge = br-int
+ovs_use_veth = False
 use_namespaces = True
+{% else %}
+ovs_use_veth = True
 {% endif %}
 {% if external_configuration_new -%}
 gateway_external_network_id =
diff --git a/templates/stein/l3_agent.ini b/templates/stein/l3_agent.ini
index 4fcec16e..78fee431 100644
--- a/templates/stein/l3_agent.ini
+++ b/templates/stein/l3_agent.ini
@@ -7,11 +7,13 @@
 interface_driver = openvswitch
 root_helper = sudo /usr/bin/neutron-rootwrap /etc/neutron/rootwrap.conf
 handle_internal_only_routers = {{ handle_internal_only_router }}
-ovs_use_veth = False
 {% if plugin == 'n1kv' %}
 l3_agent_manager = neutron.agent.l3_agent.L3NATAgentWithStateReport
 external_network_bridge = br-int
+ovs_use_veth = False
 use_namespaces = True
+{% else %}
+ovs_use_veth = True
 {% endif %}
 {% if external_configuration_new -%}
 gateway_external_network_id =
diff --git a/tests/basic_deployment.py b/tests/basic_deployment.py
index d3a30449..c46987ad 100644
--- a/tests/basic_deployment.py
+++ b/tests/basic_deployment.py
@@ -562,6 +562,7 @@ class NeutronGatewayBasicDeployment(OpenStackAmuletDeployment):
             'dhcp_driver': 'neutron.agent.linux.dhcp.Dnsmasq',
             'root_helper': 'sudo /usr/bin/neutron-rootwrap '
                            '/etc/neutron/rootwrap.conf',
+            'ovs_use_veth': 'True'
         }
         section = 'DEFAULT'
 
@@ -622,6 +623,7 @@ class NeutronGatewayBasicDeployment(OpenStackAmuletDeployment):
             'interface_driver': interface_driver,
             'root_helper': 'sudo /usr/bin/neutron-rootwrap '
                            '/etc/neutron/rootwrap.conf',
+            'ovs_use_veth': 'True',
             'handle_internal_only_routers': 'True'
         }
         section = 'DEFAULT'
@@ -649,6 +651,7 @@ class NeutronGatewayBasicDeployment(OpenStackAmuletDeployment):
             'DEFAULT': {
                 'interface_driver': interface_driver,
                 'periodic_interval': '10',
+                'ovs_use_veth': 'False',
             },
             'haproxy': {
                 'loadbalancer_state_path': '$state_path/lbaas',
@@ -661,6 +664,7 @@ class NeutronGatewayBasicDeployment(OpenStackAmuletDeployment):
                 ('neutron_lbaas.drivers.haproxy.namespace_driver.'
                  'HaproxyNSDriver')
             expected['DEFAULT'].pop('periodic_interval')
+            expected['DEFAULT'].pop('ovs_use_veth')
         elif self._get_openstack_release() >= self.trusty_kilo:
             expected['DEFAULT']['device_driver'] = \
                 ('neutron_lbaas.services.loadbalancer.drivers.haproxy.'