diff --git a/magnum/drivers/common/templates/kubernetes/fragments/configure-kubernetes-master.sh b/magnum/drivers/common/templates/kubernetes/fragments/configure-kubernetes-master.sh
index 9bf97a4bd5..74e3474666 100644
--- a/magnum/drivers/common/templates/kubernetes/fragments/configure-kubernetes-master.sh
+++ b/magnum/drivers/common/templates/kubernetes/fragments/configure-kubernetes-master.sh
@@ -17,6 +17,38 @@ fi
 atomic install --storage ostree --system --system-package=no --name=kube-apiserver ${_prefix}kubernetes-apiserver:${KUBE_TAG}
 atomic install --storage ostree --system --system-package=no --name=kube-controller-manager ${_prefix}kubernetes-controller-manager:${KUBE_TAG}
 atomic install --storage ostree --system --system-package=no --name=kube-scheduler ${_prefix}kubernetes-scheduler:${KUBE_TAG}
+atomic install --storage ostree --system --system-package=no --name=kube-proxy ${_prefix}kubernetes-proxy:${KUBE_TAG}
+
+CERT_DIR=/etc/kubernetes/certs
+
+# kube-proxy config
+PROXY_KUBECONFIG=/etc/kubernetes/proxy-kubeconfig.yaml
+cat > /etc/kubernetes/proxy << EOF
+KUBE_PROXY_ARGS="--kubeconfig=${PROXY_KUBECONFIG} --cluster-cidr=${PODS_NETWORK_CIDR}"
+EOF
+
+cat > ${PROXY_KUBECONFIG} << EOF
+apiVersion: v1
+clusters:
+- cluster:
+    certificate-authority: ${CERT_DIR}/ca.crt
+    server: http://127.0.0.1:8080
+  name: kubernetes
+contexts:
+- context:
+    cluster: kubernetes
+    user: kube-proxy
+  name: default
+current-context: default
+kind: Config
+preferences: {}
+users:
+- name: kube-proxy
+  user:
+    as-user-extra: {}
+EOF
+
+
 if [ "$NETWORK_DRIVER" = "flannel" ]; then
     atomic install --storage ostree --system --system-package=no \
     --name=flanneld ${_prefix}flannel:${FLANNEL_TAG}
@@ -27,8 +59,6 @@ sed -i '
     /^KUBE_MASTER=/ s|=.*|="--master=http://127.0.0.1:8080"|
 ' /etc/kubernetes/config
 
-CERT_DIR=/etc/kubernetes/certs
-
 KUBE_API_ARGS="--runtime-config=api/all=true"
 KUBE_API_ARGS="$KUBE_API_ARGS --kubelet-preferred-address-types=InternalIP,Hostname,ExternalIP"
 KUBE_API_ARGS="$KUBE_API_ARGS $KUBEAPI_OPTIONS"
diff --git a/magnum/drivers/common/templates/kubernetes/fragments/configure-kubernetes-minion.sh b/magnum/drivers/common/templates/kubernetes/fragments/configure-kubernetes-minion.sh
index b76cea8350..bc90e59bf6 100644
--- a/magnum/drivers/common/templates/kubernetes/fragments/configure-kubernetes-minion.sh
+++ b/magnum/drivers/common/templates/kubernetes/fragments/configure-kubernetes-minion.sh
@@ -179,9 +179,9 @@ sed -i '
     /^KUBELET_ARGS=/ s|=.*|="'"\$(/etc/kubernetes/get_require_kubeconfig.sh) ${KUBELET_ARGS}"'"|
 ' /etc/kubernetes/kubelet
 
-sed -i '
-    /^KUBE_PROXY_ARGS=/ s|=.*|=--kubeconfig='"$PROXY_KUBECONFIG"'|
-' /etc/kubernetes/proxy
+cat > /etc/kubernetes/proxy << EOF
+KUBE_PROXY_ARGS="--kubeconfig=${PROXY_KUBECONFIG} --cluster-cidr=${PODS_NETWORK_CIDR}"
+EOF
 
 if [ "$NETWORK_DRIVER" = "flannel" ]; then
     atomic install --storage ostree --system --system-package=no \
diff --git a/magnum/drivers/common/templates/kubernetes/fragments/enable-services-master.sh b/magnum/drivers/common/templates/kubernetes/fragments/enable-services-master.sh
index 0db1cef0da..94e0d46841 100644
--- a/magnum/drivers/common/templates/kubernetes/fragments/enable-services-master.sh
+++ b/magnum/drivers/common/templates/kubernetes/fragments/enable-services-master.sh
@@ -14,7 +14,7 @@ while [ ! -f /etc/kubernetes/certs/ca.key ] && \
 done
 
 echo "starting services"
-for service in etcd docker kube-apiserver kube-controller-manager kube-scheduler; do
+for service in etcd docker kube-apiserver kube-controller-manager kube-scheduler kube-proxy; do
     echo "activating service $service"
     systemctl enable $service
     systemctl --no-block start $service
diff --git a/magnum/drivers/common/templates/kubernetes/fragments/write-heat-params.yaml b/magnum/drivers/common/templates/kubernetes/fragments/write-heat-params.yaml
index 330f21c645..00f83a4d73 100644
--- a/magnum/drivers/common/templates/kubernetes/fragments/write-heat-params.yaml
+++ b/magnum/drivers/common/templates/kubernetes/fragments/write-heat-params.yaml
@@ -39,6 +39,8 @@ write_files:
       WAIT_CURL="$WAIT_CURL"
       KUBE_TAG="$KUBE_TAG"
       FLANNEL_TAG="$FLANNEL_TAG"
+      FLANNEL_NETWORK_CIDR="$FLANNEL_NETWORK_CIDR"
+      PODS_NETWORK_CIDR="$PODS_NETWORK_CIDR"
       KUBE_VERSION="$KUBE_VERSION"
       TRUSTEE_USER_ID="$TRUSTEE_USER_ID"
       TRUSTEE_PASSWORD="$TRUSTEE_PASSWORD"
diff --git a/magnum/drivers/k8s_fedora_atomic_v1/templates/kubeminion.yaml b/magnum/drivers/k8s_fedora_atomic_v1/templates/kubeminion.yaml
index e38a218ac1..0494f279bc 100644
--- a/magnum/drivers/k8s_fedora_atomic_v1/templates/kubeminion.yaml
+++ b/magnum/drivers/k8s_fedora_atomic_v1/templates/kubeminion.yaml
@@ -333,6 +333,8 @@ resources:
             $NO_PROXY: {get_param: no_proxy}
             $KUBE_TAG: {get_param: kube_tag}
             $FLANNEL_TAG: {get_param: flannel_tag}
+            $FLANNEL_NETWORK_CIDR: {get_param: flannel_network_cidr}
+            $PODS_NETWORK_CIDR: {get_param: pods_network_cidr}
             $KUBE_VERSION: {get_param: kube_version}
             $WAIT_CURL: {get_attr: [minion_wait_handle, curl_cli]}
             $TRUSTEE_USER_ID: {get_param: trustee_user_id}