diff --git a/systemvm/debian/etc/vpcdnsmasq.conf b/systemvm/debian/etc/vpcdnsmasq.conf
index 1a4b0c29552..4016374caa2 100644
--- a/systemvm/debian/etc/vpcdnsmasq.conf
+++ b/systemvm/debian/etc/vpcdnsmasq.conf
@@ -462,3 +462,4 @@ log-facility=/var/log/dnsmasq.log
 conf-dir=/etc/dnsmasq.d
 
 dhcp-optsfile=/etc/dhcpopts.txt
+localise-queries
diff --git a/systemvm/debian/opt/cloud/bin/cs/CsDhcp.py b/systemvm/debian/opt/cloud/bin/cs/CsDhcp.py
index 2c0deea4abe..91b95c6c676 100755
--- a/systemvm/debian/opt/cloud/bin/cs/CsDhcp.py
+++ b/systemvm/debian/opt/cloud/bin/cs/CsDhcp.py
@@ -127,6 +127,9 @@ class CsDhcp(CsDataBag):
                 listen_address.append(gateway)
             else:
                 listen_address.append(ip)
+            # Add localized "data-server" records in /etc/hosts for VPC routers
+            if self.config.is_vpc():
+                self.add_host(gateway, "%s data-server" % CsHelper.get_hostname())
             idx += 1
 
         # Listen Address