diff --git a/elements/neutron/os-apply-config/etc/neutron/dhcp_agent.ini b/elements/neutron/os-apply-config/etc/neutron/dhcp_agent.ini
index 1b07e3372..c05b93e4e 100644
--- a/elements/neutron/os-apply-config/etc/neutron/dhcp_agent.ini
+++ b/elements/neutron/os-apply-config/etc/neutron/dhcp_agent.ini
@@ -10,5 +10,5 @@ dhcp_driver = neutron.agent.linux.dhcp.Dnsmasq
 use_namespaces = True
 
 {{#neutron.dnsmasq-options}}
-dnsmasq_config_file=/etc/neutron/dnsmasq-neutron.conf
+dnsmasq_config_file=/etc/neutron/dnsmasq/dnsmasq-neutron.conf
 {{/neutron.dnsmasq-options}}
diff --git a/elements/neutron/os-apply-config/etc/neutron/dnsmasq-neutron.conf b/elements/neutron/os-apply-config/etc/neutron/dnsmasq/dnsmasq-neutron.conf
similarity index 100%
rename from elements/neutron/os-apply-config/etc/neutron/dnsmasq-neutron.conf
rename to elements/neutron/os-apply-config/etc/neutron/dnsmasq/dnsmasq-neutron.conf