diff --git a/labs/osbash/config/openstack b/labs/osbash/config/openstack
index feaa9646..09e07e15 100644
--- a/labs/osbash/config/openstack
+++ b/labs/osbash/config/openstack
@@ -26,10 +26,10 @@ CIRROS_URL="http://download.cirros-cloud.net/0.3.3/cirros-0.3.3-x86_64-disk.img"
 # DEMO_NET
 : ${TENANT_NETWORK_GATEWAY:=192.168.1.1}
 : ${TENANT_NETWORK_CIDR:=192.168.1.0/24}
-# Comma-separated list of DNS name servers used by dnsmasq to serve instance
-# VMs in neutron subnets with dns_nameservers unset.
-# Default is Google Public DNS (8.8.8.8); to disable, set to "".
-: ${TENANT_VM_DNS_SERVER:=8.8.8.8}
+
+# DNS name server used by instance VMs.
+# Default is Google Public DNS (8.8.4.4).
+: ${TENANT_VM_DNS_SERVER:=8.8.4.4}
 
 : ${REGION:=RegionOne}
 
diff --git a/labs/osbash/scripts/config_tenant_network.sh b/labs/osbash/scripts/config_tenant_network.sh
index bc06bca0..578a34e0 100755
--- a/labs/osbash/scripts/config_tenant_network.sh
+++ b/labs/osbash/scripts/config_tenant_network.sh
@@ -28,6 +28,7 @@ echo "Creating a subnet on the tenant network."
 neutron subnet-create demo-net \
     "$TENANT_NETWORK_CIDR" \
     --name demo-subnet \
+    --dns-nameserver "$TENANT_VM_DNS_SERVER" \
     --gateway "$TENANT_NETWORK_GATEWAY"
 
 echo "Creating a router on the tenant network."
diff --git a/labs/osbash/scripts/ubuntu/setup_neutron_network.sh b/labs/osbash/scripts/ubuntu/setup_neutron_network.sh
index e0ff154d..c2b59f40 100755
--- a/labs/osbash/scripts/ubuntu/setup_neutron_network.sh
+++ b/labs/osbash/scripts/ubuntu/setup_neutron_network.sh
@@ -116,11 +116,6 @@ iniset_sudo $conf DEFAULT dhcp_delete_namespaces True
 iniset_sudo $conf DEFAULT verbose True
 iniset_sudo $conf DEFAULT dnsmasq_config_file /etc/neutron/dnsmasq-neutron.conf
 
-# Configure a DNS server to be used by VM instances
-if [ -n "${TENANT_VM_DNS_SERVER:-''}" ]; then
-    iniset_sudo $conf DEFAULT dnsmasq_dns_servers "$TENANT_VM_DNS_SERVER"
-fi
-
 cat << DNSMASQ | sudo tee /etc/neutron/dnsmasq-neutron.conf
 # Set interface MTU to 1454 (for instance, ssh authentication may fail
 # otherwise due to GRE overhead)