diff --git a/scripts/vm/hypervisor/xenserver/ovstunnel b/scripts/vm/hypervisor/xenserver/ovstunnel
index 98a9d0b82f5..fec0072452e 100755
--- a/scripts/vm/hypervisor/xenserver/ovstunnel
+++ b/scripts/vm/hypervisor/xenserver/ovstunnel
@@ -103,6 +103,8 @@ def setup_ovs_bridge(session, args):
                                 "bridge=%s" % bridge, "--minimal"])
         lib.do_cmd([lib.XE_PATH, "network-param-set", "uuid=%s" % xs_nw_uuid,
                    "other-config:is-ovs-tun-network=True"])
+        lib.do_cmd([lib.XE_PATH, "network-param-set", "uuid=%s" % xs_nw_uuid,
+                   "other-config:is-ovs_vpc_distributed_vr_network=False"])
         conf_hosts = lib.do_cmd([lib.XE_PATH, "network-param-get",
                                 "uuid=%s" % xs_nw_uuid,
                                 "param-name=other-config",
@@ -155,6 +157,8 @@ def setup_ovs_bridge_for_distributed_routing(session, args):
         # been configured
         xs_nw_uuid = lib.do_cmd([lib.XE_PATH, "network-list",
                                 "bridge=%s" % bridge, "--minimal"])
+        lib.do_cmd([lib.XE_PATH, "network-param-set", "uuid=%s" % xs_nw_uuid,
+                   "other-config:is-ovs-tun-network=False"])
         lib.do_cmd([lib.XE_PATH, "network-param-set", "uuid=%s" % xs_nw_uuid,
                    "other-config:is-ovs_vpc_distributed_vr_network=True"])
         conf_hosts = lib.do_cmd([lib.XE_PATH, "network-param-get",
diff --git a/server/src/com/cloud/network/vpc/VpcManagerImpl.java b/server/src/com/cloud/network/vpc/VpcManagerImpl.java
index 3ccb250daed..39b92f98206 100644
--- a/server/src/com/cloud/network/vpc/VpcManagerImpl.java
+++ b/server/src/com/cloud/network/vpc/VpcManagerImpl.java
@@ -387,8 +387,10 @@ public class VpcManagerImpl extends ManagerBase implements VpcManager, VpcProvis
         }
 
         validateConnectivtyServiceCapablitlies(svcProviderMap.get(Service.Connectivity), serviceCapabilitystList);
+
         boolean supportsDistributedRouter = isVpcOfferingSupportsDistributedRouter(serviceCapabilitystList);
         boolean offersRegionLevelVPC = isVpcOfferingForRegionLevelVpc(serviceCapabilitystList);
+
         VpcOffering offering = createVpcOffering(name, displayText, svcProviderMap, false, null,
                 serviceOfferingId, supportsDistributedRouter, offersRegionLevelVPC);
         CallContext.current().setEventDetails(" Id: " + offering.getId() + " Name: " + name);