diff --git a/server/src/com/cloud/network/NetworkManagerImpl.java b/server/src/com/cloud/network/NetworkManagerImpl.java
index f466b190c21..d97f73b5ccf 100755
--- a/server/src/com/cloud/network/NetworkManagerImpl.java
+++ b/server/src/com/cloud/network/NetworkManagerImpl.java
@@ -438,7 +438,7 @@ public class NetworkManagerImpl implements NetworkManager, NetworkService, Manag
 
     @Override
     public boolean applyIpAssociations(Network network, boolean continueOnError) throws ResourceUnavailableException {
-        List<IPAddressVO> userIps = _ipAddressDao.listByAssociatedNetwork(network.getId());
+        List<IPAddressVO> userIps = _ipAddressDao.listByAssociatedNetwork(network.getId(), null);
         List<PublicIp> publicIps = new ArrayList<PublicIp>();
         if (userIps != null && !userIps.isEmpty()) {
             for (IPAddressVO userIp : userIps) {
@@ -1101,7 +1101,20 @@ public class NetworkManagerImpl implements NetworkManager, NetworkService, Manag
             network.setGateway(result.getGateway());
             network.setMode(result.getMode());
             _networksDao.update(networkId, network);
-
+            
+            //If network if guest virtual and there is no source nat ip, associate a new one
+            if (network.getGuestType() == GuestIpType.Virtual) {
+                List<IPAddressVO> ips = _ipAddressDao.listByAssociatedNetwork(networkId, true);
+                
+                if (ips.isEmpty()) {
+                    s_logger.debug("Creating a source natp ip for " + network);
+                    Account owner = _accountMgr.getAccount(network.getAccountId());
+                    PublicIp sourceNatIp = assignSourceNatIpAddress(owner, network, context.getCaller().getId());
+                    if (sourceNatIp == null) {
+                        throw new InsufficientAddressCapacityException("Unable to assign source nat ip address to the network " + network, DataCenter.class, network.getDataCenterId());
+                    }
+                }
+            }
             
             for (NetworkElement element : _networkElements) {
                 if (s_logger.isDebugEnabled()) {
@@ -1659,14 +1672,6 @@ public class NetworkManagerImpl implements NetworkManager, NetworkService, Manag
             } else {
                 network = networks.get(0);
             }
-            
-            if (network.getGuestType() == GuestIpType.Virtual) {
-                s_logger.debug("Creating a source natp ip for " + network);
-                PublicIp ip = assignSourceNatIpAddress(owner, network, userId);
-                if (ip == null) {
-                    throw new InsufficientAddressCapacityException("Unable to assign source nat ip address to owner for this network", DataCenter.class, zoneId);
-                }
-            }
         }
 
         txn.commit();
@@ -2023,7 +2028,7 @@ public class NetworkManagerImpl implements NetworkManager, NetworkService, Manag
         }
         
         //release all ip addresses
-        List<IPAddressVO> ipsToRelease = _ipAddressDao.listByAssociatedNetwork(networkId);
+        List<IPAddressVO> ipsToRelease = _ipAddressDao.listByAssociatedNetwork(networkId, null);
         for (IPAddressVO ipToRelease : ipsToRelease) {
             IPAddressVO ip = _ipAddressDao.markAsUnavailable(ipToRelease.getId());
             assert (ip != null) : "Unable to mark the ip address id=" + ipToRelease.getId() + " as unavailable.";
diff --git a/server/src/com/cloud/network/dao/IPAddressDao.java b/server/src/com/cloud/network/dao/IPAddressDao.java
index f1d78faba9b..73e67499e4c 100644
--- a/server/src/com/cloud/network/dao/IPAddressDao.java
+++ b/server/src/com/cloud/network/dao/IPAddressDao.java
@@ -36,7 +36,7 @@ public interface IPAddressDao extends GenericDao<IPAddressVO, Long> {
 	
 	List<IPAddressVO> listByDcIdIpAddress(long dcId, String ipAddress);
 	
-	List<IPAddressVO> listByAssociatedNetwork(long networkId);
+	List<IPAddressVO> listByAssociatedNetwork(long networkId, Boolean isSourceNat);
 	
 	int countIPs(long dcId, long vlanDbId, boolean onlyCountAllocated);
 	
@@ -49,4 +49,5 @@ public interface IPAddressDao extends GenericDao<IPAddressVO, Long> {
 	IPAddressVO findByAssociatedVmId(long vmId);
 	
 	IPAddressVO findByAccountAndIp(long accountId, String ipAddress);
+	
 }
diff --git a/server/src/com/cloud/network/dao/IPAddressDaoImpl.java b/server/src/com/cloud/network/dao/IPAddressDaoImpl.java
index cd784a1b151..d848bfdb3c4 100644
--- a/server/src/com/cloud/network/dao/IPAddressDaoImpl.java
+++ b/server/src/com/cloud/network/dao/IPAddressDaoImpl.java
@@ -192,10 +192,14 @@ public class IPAddressDaoImpl extends GenericDaoBase<IPAddressVO, Long> implemen
     }
     
     @Override
-    public List<IPAddressVO> listByAssociatedNetwork(long networkId) {
+    public List<IPAddressVO> listByAssociatedNetwork(long networkId, Boolean isSourceNat) {
         SearchCriteria<IPAddressVO> sc = AllFieldsSearch.create();
         sc.setParameters("network", networkId);
         
+        if (isSourceNat != null) {
+            sc.setParameters("sourceNat", isSourceNat);
+        }
+        
         return listBy(sc);
     }