diff --git a/ansible/roles/neutron/templates/ml2_conf.ini.j2 b/ansible/roles/neutron/templates/ml2_conf.ini.j2
index ba7647deec..51d6e665e1 100644
--- a/ansible/roles/neutron/templates/ml2_conf.ini.j2
+++ b/ansible/roles/neutron/templates/ml2_conf.ini.j2
@@ -89,4 +89,7 @@ physical_interface_mappings = physnet1:{{ neutron_external_interface }}
 l2_population = true
 {% endif %}
 {% endif %}
+
+{% if inventory_hostname in groups["network"] or inventory_hostname in groups["compute"] %}
 local_ip = {{ tunnel_interface_address }}
+{% endif %}