diff --git a/api/src/com/cloud/api/commands/CreateLoadBalancerRuleCmd.java b/api/src/com/cloud/api/commands/CreateLoadBalancerRuleCmd.java
index f0aeff3aaa6..c34224144f8 100644
--- a/api/src/com/cloud/api/commands/CreateLoadBalancerRuleCmd.java
+++ b/api/src/com/cloud/api/commands/CreateLoadBalancerRuleCmd.java
@@ -232,5 +232,9 @@ public class CreateLoadBalancerRuleCmd extends BaseAsyncCmd  /*implements LoadBa
         /*FIXME*/
         return null;
     }
+
+    public void setSourceIpAddressId(Long ipId) {
+        this.publicIpId = ipId;
+    }
 
 }
diff --git a/server/src/com/cloud/network/lb/ElasticLoadBalancerManager.java b/server/src/com/cloud/network/lb/ElasticLoadBalancerManager.java
index 06ccd5448f2..3a7165e96d2 100644
--- a/server/src/com/cloud/network/lb/ElasticLoadBalancerManager.java
+++ b/server/src/com/cloud/network/lb/ElasticLoadBalancerManager.java
@@ -20,13 +20,10 @@ package com.cloud.network.lb;
 import java.util.List;
 
 import com.cloud.api.commands.CreateLoadBalancerRuleCmd;
-import com.cloud.exception.ConcurrentOperationException;
 import com.cloud.exception.InsufficientAddressCapacityException;
-import com.cloud.exception.InsufficientCapacityException;
+import com.cloud.exception.NetworkRuleConflictException;
 import com.cloud.exception.ResourceUnavailableException;
 import com.cloud.network.Network;
-import com.cloud.network.NetworkVO;
-import com.cloud.network.lb.LoadBalancingRule.LbDestination;
 import com.cloud.network.rules.FirewallRule;
 import com.cloud.network.rules.LoadBalancer;
 import com.cloud.user.Account;
@@ -39,6 +36,6 @@ public interface ElasticLoadBalancerManager {
             List<? extends FirewallRule> rules) 
             throws ResourceUnavailableException;
 
-    public LoadBalancer handleCreateLoadBalancerRule(CreateLoadBalancerRuleCmd lb, Account caller) throws InsufficientAddressCapacityException;
+    public LoadBalancer handleCreateLoadBalancerRule(CreateLoadBalancerRuleCmd lb, Account caller) throws InsufficientAddressCapacityException, NetworkRuleConflictException;
 
 }
diff --git a/server/src/com/cloud/network/lb/ElasticLoadBalancerManagerImpl.java b/server/src/com/cloud/network/lb/ElasticLoadBalancerManagerImpl.java
index 4beb8345f2b..7ab5fc76fdf 100644
--- a/server/src/com/cloud/network/lb/ElasticLoadBalancerManagerImpl.java
+++ b/server/src/com/cloud/network/lb/ElasticLoadBalancerManagerImpl.java
@@ -517,6 +517,7 @@ public class ElasticLoadBalancerManagerImpl implements
         }
         Network frontEndNetwork = networks.get(0);
         Transaction txn = Transaction.currentTxn();
+        txn.start();
         PublicIp ip = _networkMgr.assignPublicIpAddress(lb.getZoneId(), null, account, VlanType.DirectAttached, frontEndNetwork.getId(), null);
         IPAddressVO ipvo = _ipAddressDao.findById(ip.getId());
         ipvo.setAssociatedWithNetworkId(frontEndNetwork.getId()); 
@@ -534,7 +535,7 @@ public class ElasticLoadBalancerManagerImpl implements
 
     @Override
     @DB
-    public LoadBalancer handleCreateLoadBalancerRule( CreateLoadBalancerRuleCmd lb, Account account) throws InsufficientAddressCapacityException  {
+    public LoadBalancer handleCreateLoadBalancerRule( CreateLoadBalancerRuleCmd lb, Account account) throws InsufficientAddressCapacityException, NetworkRuleConflictException  {
         Long ipId = lb.getSourceIpAddressId();
         boolean newIp = false;
         account = _accountDao.acquireInLockTable(account.getId());
@@ -556,7 +557,12 @@ public class ElasticLoadBalancerManagerImpl implements
                         ipId = ip.getId();
                         newIp = true;
                     }
+                } else {
+                    ipId = existingLbs.get(0).getSourceIpAddressId();
                 }
+            } else {
+                s_logger.warn("Found existing load balancers matching requested new LB");
+                throw new NetworkRuleConflictException("Found existing load balancers matching requested new LB");
             }
 
             IPAddressVO ipAddr = _ipAddressDao.findById(ipId);
@@ -570,6 +576,7 @@ public class ElasticLoadBalancerManagerImpl implements
             }
             LoadBalancer result = null;
             try {
+                lb.setSourceIpAddressId(ipId);
                 result = _lbMgr.createLoadBalancer(lb);
             } catch (NetworkRuleConflictException e) {
                 s_logger.warn("Failed to create LB rule, not continuing with ELB deployment");