diff --git a/server/src/com/cloud/configuration/ConfigurationManager.java b/server/src/com/cloud/configuration/ConfigurationManager.java
index 20242a188b2..c7f8188e23e 100644
--- a/server/src/com/cloud/configuration/ConfigurationManager.java
+++ b/server/src/com/cloud/configuration/ConfigurationManager.java
@@ -183,5 +183,7 @@ public interface ConfigurationManager extends Manager {
     NetworkOfferingVO createNetworkOffering(long userId, String name, String displayText, GuestIpType type, TrafficType trafficType, String tags, Integer maxConnections, boolean specifyVlan);
     
     Vlan createVlanAndPublicIpRange(Long userId, Long zoneId, Long podId, String startIP, String endIP, String vlanGateway, String vlanNetmask, boolean forVirtualNetwork, String vlanId, Account account, Long networkId) throws InsufficientCapacityException, ConcurrentOperationException, InvalidParameterValueException;
+    
+    void createDefaultNetworks(long zoneId) throws ConcurrentOperationException;
 	
 }
diff --git a/server/src/com/cloud/configuration/ConfigurationManagerImpl.java b/server/src/com/cloud/configuration/ConfigurationManagerImpl.java
index 60fd393883e..b4a2625c330 100755
--- a/server/src/com/cloud/configuration/ConfigurationManagerImpl.java
+++ b/server/src/com/cloud/configuration/ConfigurationManagerImpl.java
@@ -1019,7 +1019,6 @@ public class ConfigurationManagerImpl implements ConfigurationManager, Configura
             }           
             
     	}
-
     	
     	saveConfigurationEvent(userId, null, EventTypes.EVENT_ZONE_EDIT, "Successfully edited zone with name: " + zone.getName() + ".", "dcId=" + zone.getId(), "dns1=" + dns1, "dns2=" + dns2, "internalDns1=" + internalDns1, "internalDns2=" + internalDns2, "vnetRange=" + vnetRange, "guestCidr=" + guestCidr);
     	
@@ -1063,27 +1062,8 @@ public class ConfigurationManagerImpl implements ConfigurationManager, Configura
                 _zoneDao.addVnet(zone.getId(), vnetStart, vnetEnd);
             }
             
-            //if zone is basic, create a untagged network
-            if (zone != null && zone.getNetworkType() == NetworkType.Basic) {
-                //Create network
-                DataCenterDeployment plan = new DataCenterDeployment(zone.getId(), null, null, null);
-                NetworkVO userNetwork = new NetworkVO();
-                userNetwork.setBroadcastDomainType(BroadcastDomainType.Native);
-                
-                Account systemAccount = _accountDao.findById(Account.ACCOUNT_ID_SYSTEM);
-                
-                List<NetworkOfferingVO> networkOffering = _networkOfferingDao.findByType(GuestIpType.DirectPodBased);
-                if (networkOffering == null || networkOffering.isEmpty()) {
-                    throw new CloudRuntimeException("No default DirectPodBased network offering is found");
-                }
-                
-                List<NetworkVO> networks = _networkMgr.setupNetwork(systemAccount, networkOffering.get(0), userNetwork, plan, null, null, true);
-                
-                if (networks == null || networks.isEmpty()) {
-                    txn.rollback();
-                    throw new CloudRuntimeException("Fail to create a network");
-                } 
-            }
+            //Create deafult networks
+            createDefaultNetworks(zone.getId());
             
             if (vnetRange != null) {
                 saveConfigurationEvent(userId, null, EventTypes.EVENT_ZONE_CREATE, "Successfully created new zone with name: " + zoneName + ".", "dcId=" + zone.getId(), "dns1=" + dns1, "dns2=" + dns2, "internalDns1=" + internalDns1, "internalDns2=" + internalDns2, "vnetRange=" + vnetRange, "guestCidr=" + guestCidr);
@@ -1100,7 +1080,52 @@ public class ConfigurationManagerImpl implements ConfigurationManager, Configura
         }finally {
             txn.close();
         }
-  
+    }
+    
+    @Override
+    public void createDefaultNetworks(long zoneId) throws ConcurrentOperationException{
+        DataCenterVO zone = _zoneDao.findById(zoneId);
+        //Create public, management, control and storage networks as a part of the zone creation 
+        if (zone != null) {
+            List<NetworkOfferingVO> ntwkOff = _networkOfferingDao.listSystemNetworkOfferings();
+            
+            for (NetworkOfferingVO offering : ntwkOff) {
+                DataCenterDeployment plan = new DataCenterDeployment(zone.getId(), null, null, null);
+                NetworkVO userNetwork = new NetworkVO();
+
+                Account systemAccount = _accountDao.findById(Account.ACCOUNT_ID_SYSTEM);
+                
+                BroadcastDomainType broadcastDomainType = null;
+                if (offering.getGuestIpType() != GuestIpType.DirectPodBased) {
+                    if (offering.getTrafficType() == TrafficType.Management) {
+                        broadcastDomainType = BroadcastDomainType.Native;
+                    } else if (offering.getTrafficType() == TrafficType.Public) {
+                        broadcastDomainType = BroadcastDomainType.Vlan;
+                    } else if (offering.getTrafficType() == TrafficType.Control) {
+                        broadcastDomainType = BroadcastDomainType.LinkLocal;
+                    }  
+                    userNetwork.setBroadcastDomainType(broadcastDomainType);
+                    _networkMgr.setupNetwork(systemAccount, offering, userNetwork, plan, null, null, true); 
+                }  
+            }
+        }
+        
+        //if zone is basic, create a untagged network
+        if (zone != null && zone.getNetworkType() == NetworkType.Basic) {
+            //Create network
+            DataCenterDeployment plan = new DataCenterDeployment(zone.getId(), null, null, null);
+            NetworkVO userNetwork = new NetworkVO();
+            userNetwork.setBroadcastDomainType(BroadcastDomainType.Native);
+            
+            Account systemAccount = _accountDao.findById(Account.ACCOUNT_ID_SYSTEM);
+            
+            List<NetworkOfferingVO> networkOffering = _networkOfferingDao.findByType(GuestIpType.DirectPodBased);
+            if (networkOffering == null || networkOffering.isEmpty()) {
+                throw new CloudRuntimeException("No default DirectPodBased network offering is found");
+            }
+           
+            _networkMgr.setupNetwork(systemAccount, networkOffering.get(0), userNetwork, plan, null, null, true);
+        }
     }
 
     @Override
diff --git a/server/src/com/cloud/offerings/dao/NetworkOfferingDao.java b/server/src/com/cloud/offerings/dao/NetworkOfferingDao.java
index ad51255546c..c7bc7188910 100644
--- a/server/src/com/cloud/offerings/dao/NetworkOfferingDao.java
+++ b/server/src/com/cloud/offerings/dao/NetworkOfferingDao.java
@@ -37,5 +37,7 @@ public interface NetworkOfferingDao extends GenericDao<NetworkOfferingVO, Long>
     
     List<NetworkOfferingVO> listNonSystemNetworkOfferings();
     
+    List<NetworkOfferingVO> listSystemNetworkOfferings();
+    
     List<NetworkOfferingVO> findByType(GuestIpType type);
 }
diff --git a/server/src/com/cloud/offerings/dao/NetworkOfferingDaoImpl.java b/server/src/com/cloud/offerings/dao/NetworkOfferingDaoImpl.java
index ec6df0bc068..505e2742b19 100644
--- a/server/src/com/cloud/offerings/dao/NetworkOfferingDaoImpl.java
+++ b/server/src/com/cloud/offerings/dao/NetworkOfferingDaoImpl.java
@@ -107,9 +107,17 @@ public class NetworkOfferingDaoImpl extends GenericDaoBase<NetworkOfferingVO, Lo
         return this.listIncludingRemovedBy(sc, null);
     }
     
+    @Override
     public List<NetworkOfferingVO> findByType(GuestIpType type) {
         SearchCriteria<NetworkOfferingVO> sc = TypeSearch.create();
         sc.setParameters("guestIpType", type);
         return listBy(sc);
     }
+    
+    @Override
+    public List<NetworkOfferingVO> listSystemNetworkOfferings() {
+        SearchCriteria<NetworkOfferingVO> sc = SystemOfferingSearch.create();
+        sc.setParameters("system", true);
+        return this.listIncludingRemovedBy(sc, null);
+    }
 }