diff --git a/defaults/main.yml b/defaults/main.yml
index fcbfa476..162e9333 100644
--- a/defaults/main.yml
+++ b/defaults/main.yml
@@ -27,6 +27,9 @@ debug: False
 # Options are 'present' and 'latest'
 neutron_package_state: "latest"
 
+# Set installation method.
+neutron_install_method: "source"
+
 ###
 ### Python code details
 ###
diff --git a/releasenotes/notes/openstack-distribution-packages-f5d3174b96fc2372.yaml b/releasenotes/notes/openstack-distribution-packages-f5d3174b96fc2372.yaml
new file mode 100644
index 00000000..f67fb66d
--- /dev/null
+++ b/releasenotes/notes/openstack-distribution-packages-f5d3174b96fc2372.yaml
@@ -0,0 +1,7 @@
+---
+features:
+  - |
+    The role now supports using the distribution packages for the OpenStack
+    services instead of the pip ones. This feature is disabled by default
+    and can be enabled by simply setting the ``neutron_install_method``
+    variable to ``distro``.
diff --git a/tasks/main.yml b/tasks/main.yml
index 2cc984c4..793b44c7 100644
--- a/tasks/main.yml
+++ b/tasks/main.yml
@@ -27,6 +27,21 @@
   tags:
     - always
 
+- name: Fail if service was deployed using a different installation method
+  fail:
+    msg: "Switching installation methods for OpenStack services is not supported"
+  when:
+    - ansible_local is defined
+    - ansible_local.openstack_ansible is defined
+    - ansible_local.openstack_ansible.neutron is defined
+    - ansible_local.openstack_ansible.neutron.install_method is defined
+    - ansible_local.openstack_ansible.neutron.install_method != neutron_install_method
+
+- name: Gather variables for installation method
+  include_vars: "{{ neutron_install_method }}_install.yml"
+  tags:
+    - always
+
 - name: Get CPU info content and store as var
   command: cat /proc/cpuinfo
   register: cpuinfo_contents
diff --git a/tasks/neutron_install.yml b/tasks/neutron_install.yml
index f2a50e8e..01d47d21 100644
--- a/tasks/neutron_install.yml
+++ b/tasks/neutron_install.yml
@@ -13,12 +13,28 @@
 # See the License for the specific language governing permissions and
 # limitations under the License.
 
+- name: Record the installation method
+  ini_file:
+    dest: "/etc/ansible/facts.d/openstack_ansible.fact"
+    section: "neutron"
+    option: "install_method"
+    value: "{{ neutron_install_method }}"
+
+- name: Refresh local facts to ensure the neutron section is present
+  setup:
+    filter: ansible_local
+    gather_subset: "!all"
+
 - name: Install neutron role packages
   package:
     name: "{{ neutron_package_list }}"
     state: "{{ neutron_package_state }}"
     update_cache: "{{ (ansible_pkg_mgr in ['apt', 'zypper']) | ternary('yes', omit) }}"
     cache_valid_time: "{{ (ansible_pkg_mgr == 'apt') | ternary(cache_timeout, omit) }}"
+  register: install_packages
+  until: install_packages|success
+  retries: 5
+  delay: 2
 
 - name: Remove known problem packages
   package:
@@ -30,134 +46,9 @@
   delay: 2
   with_items: "{{ neutron_remove_distro_packages }}"
 
-- name: Create developer mode constraint file
-  copy:
-    dest: "/opt/developer-pip-constraints.txt"
-    content: |
-      {% for item in neutron_developer_constraints %}
-      {{ item }}
-      {% endfor %}
-  when: neutron_developer_mode | bool
-
-- name: Install requires pip packages
-  pip:
-    name: "{{ neutron_requires_pip_packages }}"
-    state: "{{ neutron_pip_package_state }}"
-    extra_args: >-
-      {{ neutron_developer_mode | ternary(pip_install_developer_constraints | default('--constraint /opt/developer-pip-constraints.txt'), '') }}
-      {{ (pip_install_upper_constraints is defined) | ternary('--constraint ' + pip_install_upper_constraints | default(''),'') }}
-      {{ pip_install_options | default('') }}
-  register: install_packages
-  until: install_packages|success
-  retries: 5
-  delay: 2
-
-- name: Retrieve checksum for venv download
-  uri:
-    url: "{{ neutron_venv_download_url | replace('tgz', 'checksum') }}"
-    return_content: yes
-  register: neutron_venv_checksum
-  when: neutron_venv_download | bool
-
-- name: Attempt venv download
-  get_url:
-    url: "{{ neutron_venv_download_url }}"
-    dest: "/var/cache/{{ neutron_venv_download_url | basename }}"
-    checksum: "sha1:{{ neutron_venv_checksum.content | trim }}"
-  register: neutron_get_venv
-  when: neutron_venv_download | bool
-
-- name: Remove existing venv
-  file:
-    path: "{{ neutron_bin | dirname }}"
-    state: absent
-  when: neutron_get_venv | changed
-
-- name: Create neutron venv dir
-  file:
-    path: "{{ neutron_bin | dirname }}"
-    state: directory
-  register: neutron_venv_dir
-  when: neutron_get_venv | changed
-
-- name: Unarchive pre-built venv
-  unarchive:
-    src: "/var/cache/{{ neutron_venv_download_url | basename }}"
-    dest: "{{ neutron_bin | dirname }}"
-    copy: "no"
-  when: neutron_get_venv | changed
-  notify: Restart neutron services
-
-- name: Install pip packages
-  pip:
-    name: "{{ neutron_pip_packages }}"
-    state: "{{ neutron_pip_package_state }}"
-    virtualenv: "{{ neutron_bin | dirname }}"
-    virtualenv_site_packages: "no"
-    extra_args: >-
-      {{ neutron_developer_mode | ternary(pip_install_developer_constraints | default('--constraint /opt/developer-pip-constraints.txt'), '') }}
-      {{ (pip_install_upper_constraints is defined) | ternary('--constraint ' + pip_install_upper_constraints | default(''),'') }}
-      {{ pip_install_options | default('') }}
-  register: install_packages
-  until: install_packages | success
-  retries: 5
-  delay: 2
-  when: neutron_get_venv | failed or neutron_get_venv | skipped
-  notify: Restart neutron services
-
-- name: Remove python from path first (CentOS, openSUSE)
-  file:
-    path:  "{{ neutron_bin | dirname }}/bin/python2.7"
-    state: "absent"
-  when:
-    - ansible_pkg_mgr in ['yum', 'dnf', 'zypper']
-    - neutron_get_venv | changed
-
-# NOTE(odyssey4me):
-# We reinitialize the venv to ensure that the right
-# version of python is in the venv, but we do not
-# want virtualenv to also replace pip, setuptools
-# and wheel so we tell it not to.
-# We do not use --always-copy for CentOS/SuSE due
-# to https://github.com/pypa/virtualenv/issues/565
-- name: Update virtualenv path
-  shell: |
-    find {{ neutron_bin }} -name \*.pyc -delete
-    sed -si '1s/^.*python.*$/#!{{ neutron_bin | replace ('/','\/') }}\/python/' {{ neutron_bin }}/*
-    virtualenv {{ neutron_bin | dirname }} \
-        {{ (ansible_pkg_mgr == 'apt') | ternary('--always-copy', '') }} \
-        --no-pip \
-        --no-setuptools \
-        --no-wheel
-  when: neutron_get_venv | changed
-  tags:
-    - skip_ansible_lint
-
-- name: Install optional pip packages
-  pip:
-    name: >-
-      {{ (neutron_bgp | bool) | ternary(neutron_optional_bgp_pip_packages, []) +
-         (neutron_fwaas | bool) | ternary(neutron_optional_fwaas_pip_packages, []) +
-         (neutron_fwaas_v2 | bool) | ternary(neutron_optional_fwaas_pip_packages, []) +
-         (neutron_lbaasv2 | bool) | ternary(neutron_optional_lbaas_pip_packages, []) +
-         (neutron_vpnaas | bool) | ternary(neutron_optional_vpnaas_pip_packages, []) }}
-    state: "{{ neutron_pip_package_state }}"
-    virtualenv: "{{ neutron_bin | dirname }}"
-    virtualenv_site_packages: "no"
-    extra_args: >-
-      {{ neutron_developer_mode | ternary(pip_install_developer_constraints | default('--constraint /opt/developer-pip-constraints.txt'), '') }}
-      {{ (pip_install_upper_constraints is defined) | ternary('--constraint ' + pip_install_upper_constraints | default(''),'') }}
-      {{ pip_install_options | default('') }}
-  when: neutron_bgp | bool or
-        neutron_fwaas | bool or
-        neutron_fwaas_v2 | bool or
-        neutron_lbaasv2 | bool or
-        neutron_vpnaas | bool
-  register: install_optional_packages
-  until: install_optional_packages | success
-  retries: 5
-  delay: 2
-  notify: Restart neutron services
+- name: Install neutron packages from PIP
+  include_tasks: neutron_install_source.yml
+  when: neutron_install_method == 'source'
 
 - name: Initialise the upgrade facts
   ini_file:
@@ -170,23 +61,17 @@
       state: "True"
     - name: "need_db_contract"
       state: "True"
-  when: (neutron_get_venv | changed) or
-        (neutron_venv_dir | changed) or
+  when: (neutron_install_method == 'source' and
+         ((neutron_get_venv | changed) or
+          (neutron_venv_dir | changed) or
+          (install_optional_packages | changed))) or
         (install_packages | changed) or
-        (install_optional_packages | changed) or
         (ansible_local is not defined) or
         ('openstack_ansible' not in ansible_local) or
         ('neutron' not in ansible_local['openstack_ansible']) or
         ('need_db_expand' not in ansible_local['openstack_ansible']['neutron']) or
         ('need_db_contract' not in ansible_local['openstack_ansible']['neutron'])
 
-- name: Record the venv tag deployed
-  ini_file:
-    dest: "/etc/ansible/facts.d/openstack_ansible.fact"
-    section: neutron
-    option: venv_tag
-    value: "{{ neutron_venv_tag }}"
-
 - include: neutron_selinux.yml
   when:
     - ansible_selinux.status == "enabled"
diff --git a/tasks/neutron_install_source.yml b/tasks/neutron_install_source.yml
new file mode 100644
index 00000000..76756bc6
--- /dev/null
+++ b/tasks/neutron_install_source.yml
@@ -0,0 +1,150 @@
+---
+# Copyright 2018, SUSE Linux GmbH.
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+
+- name: Create developer mode constraint file
+  copy:
+    dest: "/opt/developer-pip-constraints.txt"
+    content: |
+      {% for item in neutron_developer_constraints %}
+      {{ item }}
+      {% endfor %}
+  when: neutron_developer_mode | bool
+
+- name: Install requires pip packages
+  pip:
+    name: "{{ neutron_requires_pip_packages }}"
+    state: "{{ neutron_pip_package_state }}"
+    extra_args: >-
+      {{ neutron_developer_mode | ternary(pip_install_developer_constraints | default('--constraint /opt/developer-pip-constraints.txt'), '') }}
+      {{ (pip_install_upper_constraints is defined) | ternary('--constraint ' + pip_install_upper_constraints | default(''),'') }}
+      {{ pip_install_options | default('') }}
+  register: install_packages
+  until: install_packages|success
+  retries: 5
+  delay: 2
+
+- name: Retrieve checksum for venv download
+  uri:
+    url: "{{ neutron_venv_download_url | replace('tgz', 'checksum') }}"
+    return_content: yes
+  register: neutron_venv_checksum
+  when: neutron_venv_download | bool
+
+- name: Attempt venv download
+  get_url:
+    url: "{{ neutron_venv_download_url }}"
+    dest: "/var/cache/{{ neutron_venv_download_url | basename }}"
+    checksum: "sha1:{{ neutron_venv_checksum.content | trim }}"
+  register: neutron_get_venv
+  when: neutron_venv_download | bool
+
+- name: Remove existing venv
+  file:
+    path: "{{ neutron_bin | dirname }}"
+    state: absent
+  when: neutron_get_venv | changed
+
+- name: Create neutron venv dir
+  file:
+    path: "{{ neutron_bin | dirname }}"
+    state: directory
+  register: neutron_venv_dir
+  when: neutron_get_venv | changed
+
+- name: Unarchive pre-built venv
+  unarchive:
+    src: "/var/cache/{{ neutron_venv_download_url | basename }}"
+    dest: "{{ neutron_bin | dirname }}"
+    copy: "no"
+  when: neutron_get_venv | changed
+  notify: Restart neutron services
+
+- name: Install pip packages
+  pip:
+    name: "{{ neutron_pip_packages }}"
+    state: "{{ neutron_pip_package_state }}"
+    virtualenv: "{{ neutron_bin | dirname }}"
+    virtualenv_site_packages: "no"
+    extra_args: >-
+      {{ neutron_developer_mode | ternary(pip_install_developer_constraints | default('--constraint /opt/developer-pip-constraints.txt'), '') }}
+      {{ (pip_install_upper_constraints is defined) | ternary('--constraint ' + pip_install_upper_constraints | default(''),'') }}
+      {{ pip_install_options | default('') }}
+  register: install_packages
+  until: install_packages | success
+  retries: 5
+  delay: 2
+  when: neutron_get_venv | failed or neutron_get_venv | skipped
+  notify: Restart neutron services
+
+- name: Remove python from path first (CentOS, openSUSE)
+  file:
+    path:  "{{ neutron_bin | dirname }}/bin/python2.7"
+    state: "absent"
+  when:
+    - ansible_pkg_mgr in ['yum', 'dnf', 'zypper']
+    - neutron_get_venv | changed
+
+# NOTE(odyssey4me):
+# We reinitialize the venv to ensure that the right
+# version of python is in the venv, but we do not
+# want virtualenv to also replace pip, setuptools
+# and wheel so we tell it not to.
+# We do not use --always-copy for CentOS/SuSE due
+# to https://github.com/pypa/virtualenv/issues/565
+- name: Update virtualenv path
+  shell: |
+    find {{ neutron_bin }} -name \*.pyc -delete
+    sed -si '1s/^.*python.*$/#!{{ neutron_bin | replace ('/','\/') }}\/python/' {{ neutron_bin }}/*
+    virtualenv {{ neutron_bin | dirname }} \
+        {{ (ansible_pkg_mgr == 'apt') | ternary('--always-copy', '') }} \
+        --no-pip \
+        --no-setuptools \
+        --no-wheel
+  when: neutron_get_venv | changed
+  tags:
+    - skip_ansible_lint
+
+- name: Install optional pip packages
+  pip:
+    name: >-
+      {{ (neutron_bgp | bool) | ternary(neutron_optional_bgp_pip_packages, []) +
+         (neutron_fwaas | bool) | ternary(neutron_optional_fwaas_pip_packages, []) +
+         (neutron_fwaas_v2 | bool) | ternary(neutron_optional_fwaas_pip_packages, []) +
+         (neutron_lbaasv2 | bool) | ternary(neutron_optional_lbaas_pip_packages, []) +
+         (neutron_vpnaas | bool) | ternary(neutron_optional_vpnaas_pip_packages, []) }}
+    state: "{{ neutron_pip_package_state }}"
+    virtualenv: "{{ neutron_bin | dirname }}"
+    virtualenv_site_packages: "no"
+    extra_args: >-
+      {{ neutron_developer_mode | ternary(pip_install_developer_constraints | default('--constraint /opt/developer-pip-constraints.txt'), '') }}
+      {{ (pip_install_upper_constraints is defined) | ternary('--constraint ' + pip_install_upper_constraints | default(''),'') }}
+      {{ pip_install_options | default('') }}
+  when: neutron_bgp | bool or
+        neutron_fwaas | bool or
+        neutron_fwaas_v2 | bool or
+        neutron_lbaasv2 | bool or
+        neutron_vpnaas | bool
+  register: install_optional_packages
+  until: install_optional_packages | success
+  retries: 5
+  delay: 2
+  notify: Restart neutron services
+
+- name: Record the venv tag deployed
+  ini_file:
+    dest: "/etc/ansible/facts.d/openstack_ansible.fact"
+    section: neutron
+    option: venv_tag
+    value: "{{ neutron_venv_tag }}"
diff --git a/tox.ini b/tox.ini
index aab948ee..90131958 100644
--- a/tox.ini
+++ b/tox.ini
@@ -101,6 +101,14 @@ deps =
 commands =
     bash -c "{toxinidir}/tests/common/test-ansible-functional.sh"
 
+[testenv:distro_install]
+deps =
+    {[testenv:ansible]deps}
+setenv =
+    {[testenv]setenv}
+    ANSIBLE_PARAMETERS=-e neutron_install_method=distro
+commands =
+    bash -c "{toxinidir}/tests/common/test-ansible-functional.sh"
 
 [testenv:upgrade]
 deps =
diff --git a/vars/distro_install.yml b/vars/distro_install.yml
new file mode 100644
index 00000000..bbef8722
--- /dev/null
+++ b/vars/distro_install.yml
@@ -0,0 +1,50 @@
+---
+# Copyright 2018, SUSE Linux GmbH.
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+
+###
+### Packages
+###
+
+#
+# Compile a list of the distro packages to install based on
+# whether the host is in the host group and the service is
+# enabled.
+#
+neutron_package_list: |-
+  {% set packages = neutron_distro_packages %}
+  {% if neutron_needs_openvswitch | bool %}
+  {% set _ = packages.extend(neutron_optional_ovs_distro_packages) %}
+  {% if (ovs_nsh_support and ansible_pkg_mgr in ['apt', 'zypper']) %}
+  {% set _ = packages.extend(neutron_ovs_nsh_required_packages) %}
+  {% else %}
+  {% set _ = packages.extend(neutron_ovs_distro_packages) %}
+  {% endif %}
+  {% endif %}
+  {% if neutron_services['neutron-linuxbridge-agent']['group'] in group_names and neutron_services['neutron-linuxbridge-agent'].service_en | bool %}
+  {% set _ = packages.extend(neutron_optional_lxb_distro_packages) %}
+  {% endif %}
+  {% if neutron_services['neutron-lbaasv2-agent']['group'] in group_names and neutron_lbaasv2 | bool %}
+  {% set _ = packages.extend(neutron_optional_lbaas_distro_packages) %}
+  {% endif %}
+  {% if neutron_services['neutron-vpnaas-agent']['group'] in group_names and neutron_vpnaas | bool %}
+  {% set _ = packages.extend(neutron_optional_vpnaas_distro_packages) %}
+  {% endif %}
+  {% if neutron_developer_mode | bool %}
+  {%   set _ = packages.extend(neutron_developer_mode_distro_packages) %}
+  {% endif %}
+  {% set _ = packages.extend(neutron_service_distro_packages) %}
+  {{ packages }}
+
+neutron_bin: "/usr/bin"
diff --git a/vars/main.yml b/vars/main.yml
index 3ca0fa9d..cef4ee80 100644
--- a/vars/main.yml
+++ b/vars/main.yml
@@ -22,117 +22,9 @@ neutron_needs_openvswitch: >-
   or (neutron_services['dragonflow-l3-agent']['group'] in group_names and neutron_services['dragonflow-l3-agent'].service_en | bool)
   or ((neutron_services['neutron-server']['group'] not in group_names) and neutron_plugin_type == 'ml2.opendaylight') }}
 
-###
-### Packages
-###
-
-#
-# Compile a list of the distro packages to install based on
-# whether the host is in the host group and the service is
-# enabled.
-#
-neutron_package_list: |-
-  {% set packages = neutron_distro_packages %}
-  {% if neutron_needs_openvswitch | bool %}
-  {% if (ovs_nsh_support and ansible_pkg_mgr in ['apt', 'zypper']) %}
-  {% set _ = packages.extend(neutron_ovs_nsh_required_packages) %}
-  {% else %}
-  {% set _ = packages.extend(neutron_ovs_distro_packages) %}
-  {% endif %}
-  {% endif %}
-  {% if neutron_services['neutron-linuxbridge-agent']['group'] in group_names and neutron_services['neutron-linuxbridge-agent'].service_en | bool %}
-  {% set _ = packages.extend(neutron_lxb_distro_packages) %}
-  {% endif %}
-  {% if neutron_services['neutron-lbaasv2-agent']['group'] in group_names and neutron_lbaasv2 | bool %}
-  {% set _ = packages.extend(neutron_lbaas_distro_packages) %}
-  {% endif %}
-  {% if neutron_services['neutron-vpnaas-agent']['group'] in group_names and neutron_vpnaas | bool %}
-  {% set _ = packages.extend(neutron_vpnaas_distro_packages) %}
-  {% endif %}
-  {% if neutron_developer_mode | bool %}
-  {%   set _ = packages.extend(neutron_developer_mode_distro_packages) %}
-  {% endif %}
-  {{ packages }}
-
-neutron_ovs_nsh_distro_packages: []
-
 # Set the Calico Felix agent executable destination path
 calico_felix_bin: /usr/local/bin/calico-felix
 
-###
-### Python code details
-###
-
-neutron_requires_pip_packages:
-  - virtualenv
-  - python-keystoneclient # Keystoneclient needed to OSA keystone lib
-  - httplib2
-
-neutron_pip_packages:
-  - cliff
-  - configobj
-  - cryptography
-  - keystonemiddleware
-  - PyMySQL
-  - neutron
-  - python-glanceclient
-  - python-keystoneclient
-  - python-memcached
-  - python-neutronclient
-  - python-novaclient
-  - repoze.lru
-
-neutron_optional_bgp_pip_packages:
-  - neutron_dynamic_routing
-
-neutron_optional_calico_pip_packages:
-  - networking-calico
-  - python-etcd
-
-neutron_optional_fwaas_pip_packages:
-  - neutron_fwaas
-
-neutron_optional_lbaas_pip_packages:
-  - neutron_lbaas
-
-neutron_optional_vpnaas_pip_packages:
-  - neutron_vpnaas
-
-neutron_optional_dragonflow_pip_packages:
-  - dragonflow
-  - python-etcd
-
-neutron_optional_opendaylight_pip_packages:
-  - networking-odl
-  - networking-bgpvpn
-
-neutron_optional_opendaylight_sfc_pip_packages:
-  - networking-sfc
-
-neutron_proprietary_nuage_pip_packages:
-  - nuage-openstack-neutron
-  - nuage-openstack-neutronclient
-  - nuagenetlib
-
-neutron_developer_constraints:
-  - "git+{{ neutron_git_repo }}@{{ neutron_git_install_branch }}#egg=neutron"
-  - "git+{{ neutron_fwaas_git_repo }}@{{ neutron_fwaas_git_install_branch }}#egg=neutron-fwaas"
-  - "git+{{ neutron_lbaas_git_repo }}@{{ neutron_lbaas_git_install_branch }}#egg=neutron-lbaas"
-  - "git+{{ neutron_vpnaas_git_repo }}@{{ neutron_vpnaas_git_install_branch }}#egg=neutron-vpnaas"
-  - "git+{{ neutron_dynamic_routing_git_repo }}@{{ neutron_dynamic_routing_git_install_branch }}#egg=neutron-dynamic-routing"
-  - "git+{{ networking_calico_git_repo }}@{{ networking_calico_git_install_branch }}#egg=networking-calico"
-  - "git+{{ dragonflow_git_repo }}@{{ dragonflow_git_install_branch }}#egg=dragonflow"
-  - "git+{{ networking_odl_git_repo }}@{{ networking_odl_git_install_branch }}#egg=networking-odl"
-  - "git+{{ networking_sfc_git_repo }}@{{ networking_sfc_git_install_branch }}#egg=networking-sfc"
-  - "git+{{ networking_bgpvpn_git_repo }}@{{ networking_bgpvpn_git_install_branch }}#egg=networking-bgpvpn"
-  - "git+{{ openstack_ceilometer_git_repo }}@{{ openstack_ceilometer_git_install_branch }}#egg=ceilometer"
-
-neutron_bin: "/openstack/venvs/neutron-{{ neutron_venv_tag }}/bin"
-
-neutron_venv_download: "{{ not neutron_developer_mode | bool }}"
-
-neutron_lib_dir: "{{ neutron_bin | dirname }}/lib/python2.7/site-packages/"
-
 ###
 ### Generic Neutron Config
 ###
diff --git a/vars/redhat-7.yml b/vars/redhat-7.yml
index 3910faba..2a0f5aa7 100644
--- a/vars/redhat-7.yml
+++ b/vars/redhat-7.yml
@@ -39,6 +39,35 @@ neutron_distro_packages:
   - radvd
   - which
 
+neutron_service_distro_packages:
+  - python-cliff
+  - python-keystonemiddleware
+  - openstack-neutron
+  - openstack-neutron-ml2
+  - openstack-neutron-macvtap-agent
+  - openstack-neutron-l2gw-agent
+  - python-glanceclient
+  - python-keystoneclient
+  - python-memcached
+  - python-neutronclient
+  - python-novaclient
+
+neutron_optional_ovs_distro_packages:
+  - openstack-neutron-openvswitch
+
+neutron_optional_lxb_distro_packages:
+  - openstack-neutron-linuxbridge
+
+neutron_optional_fwaas_distro_packages:
+  - openstack-neutron-fwaas
+
+neutron_optional_lbaas_distro_packages:
+  - openstack-neutron-lbaas
+  - openstack-neutron-lbaas-agent
+
+neutron_optional_vpnaas_distro_packages:
+  - openstack-neutron-vpnaas
+
 neutron_developer_mode_distro_packages:
   - git
 
diff --git a/vars/source_install.yml b/vars/source_install.yml
new file mode 100644
index 00000000..a246a45f
--- /dev/null
+++ b/vars/source_install.yml
@@ -0,0 +1,114 @@
+---
+# Copyright 2018, SUSE Linux GmbH.
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+
+###
+### Packages
+###
+
+#
+# Compile a list of the distro packages to install based on
+# whether the host is in the host group and the service is
+# enabled.
+#
+neutron_package_list: |-
+  {% set packages = neutron_distro_packages %}
+  {% if neutron_needs_openvswitch | bool %}
+  {% if (ovs_nsh_support and ansible_pkg_mgr in ['apt', 'zypper']) %}
+  {% set _ = packages.extend(neutron_ovs_nsh_required_packages) %}
+  {% else %}
+  {% set _ = packages.extend(neutron_ovs_distro_packages) %}
+  {% endif %}
+  {% endif %}
+  {% if neutron_services['neutron-linuxbridge-agent']['group'] in group_names and neutron_services['neutron-linuxbridge-agent'].service_en | bool %}
+  {% set _ = packages.extend(neutron_lxb_distro_packages) %}
+  {% endif %}
+  {% if neutron_services['neutron-lbaasv2-agent']['group'] in group_names and neutron_lbaasv2 | bool %}
+  {% set _ = packages.extend(neutron_lbaas_distro_packages) %}
+  {% endif %}
+  {% if neutron_services['neutron-vpnaas-agent']['group'] in group_names and neutron_vpnaas | bool %}
+  {% set _ = packages.extend(neutron_vpnaas_distro_packages) %}
+  {% endif %}
+  {% if neutron_developer_mode | bool %}
+  {%   set _ = packages.extend(neutron_developer_mode_distro_packages) %}
+  {% endif %}
+  {{ packages }}
+
+neutron_requires_pip_packages:
+  - virtualenv
+  - python-keystoneclient # Keystoneclient needed to OSA keystone lib
+  - httplib2
+
+neutron_pip_packages:
+  - cliff
+  - configobj
+  - cryptography
+  - keystonemiddleware
+  - PyMySQL
+  - neutron
+  - python-glanceclient
+  - python-keystoneclient
+  - python-memcached
+  - python-neutronclient
+  - python-novaclient
+  - repoze.lru
+
+neutron_optional_bgp_pip_packages:
+  - neutron_dynamic_routing
+
+neutron_optional_calico_pip_packages:
+  - networking-calico
+  - python-etcd
+
+neutron_optional_fwaas_pip_packages:
+  - neutron_fwaas
+
+neutron_optional_lbaas_pip_packages:
+  - neutron_lbaas
+
+neutron_optional_vpnaas_pip_packages:
+  - neutron_vpnaas
+
+neutron_optional_dragonflow_pip_packages:
+  - dragonflow
+  - python-etcd
+
+neutron_optional_opendaylight_pip_packages:
+  - networking-odl
+  - networking-bgpvpn
+
+neutron_optional_opendaylight_sfc_pip_packages:
+  - networking-sfc
+
+neutron_proprietary_nuage_pip_packages:
+  - nuage-openstack-neutron
+  - nuage-openstack-neutronclient
+  - nuagenetlib
+
+neutron_developer_constraints:
+  - "git+{{ neutron_git_repo }}@{{ neutron_git_install_branch }}#egg=neutron"
+  - "git+{{ neutron_fwaas_git_repo }}@{{ neutron_fwaas_git_install_branch }}#egg=neutron-fwaas"
+  - "git+{{ neutron_lbaas_git_repo }}@{{ neutron_lbaas_git_install_branch }}#egg=neutron-lbaas"
+  - "git+{{ neutron_vpnaas_git_repo }}@{{ neutron_vpnaas_git_install_branch }}#egg=neutron-vpnaas"
+  - "git+{{ neutron_dynamic_routing_git_repo }}@{{ neutron_dynamic_routing_git_install_branch }}#egg=neutron-dynamic-routing"
+  - "git+{{ networking_calico_git_repo }}@{{ networking_calico_git_install_branch }}#egg=networking-calico"
+  - "git+{{ dragonflow_git_repo }}@{{ dragonflow_git_install_branch }}#egg=dragonflow"
+  - "git+{{ networking_odl_git_repo }}@{{ networking_odl_git_install_branch }}#egg=networking-odl"
+  - "git+{{ networking_sfc_git_repo }}@{{ networking_sfc_git_install_branch }}#egg=networking-sfc"
+  - "git+{{ networking_bgpvpn_git_repo }}@{{ networking_bgpvpn_git_install_branch }}#egg=networking-bgpvpn"
+  - "git+{{ openstack_ceilometer_git_repo }}@{{ openstack_ceilometer_git_install_branch }}#egg=ceilometer"
+
+neutron_bin: "/openstack/venvs/neutron-{{ neutron_venv_tag }}/bin"
+
+neutron_venv_download: "{{ not neutron_developer_mode | bool }}"
diff --git a/vars/suse-42.yml b/vars/suse-42.yml
index 2c1661db..51c1b5ba 100644
--- a/vars/suse-42.yml
+++ b/vars/suse-42.yml
@@ -50,6 +50,34 @@ neutron_distro_packages:
   - radvd
   - which
 
+neutron_service_distro_packages:
+  - python-cliff
+  - python-keystonemiddleware
+  - openstack-neutron
+  - openstack-neutron-server
+  - openstack-neutron-dhcp-agent
+  - python-glanceclient
+  - python-keystoneclient
+  - python-memcached
+  - python-neutronclient
+  - python-novaclient
+
+neutron_optional_ovs_distro_packages:
+  - openstack-neutron-openvswitch-agent
+
+neutron_optional_lxb_distro_packages:
+  - openstack-neutron-linuxbridge-agent
+
+neutron_optional_fwaas_distro_packages:
+  - openstack-neutron-fwaas
+
+neutron_optional_lbaas_distro_packages:
+  - openstack-neutron-lbaas
+  - openstack-neutron-lbaas-agent
+
+neutron_option_vpnaas_distro_packages:
+  - openstack-neutron-vpnaas
+
 neutron_developer_mode_distro_packages:
   - git-core
 
diff --git a/vars/ubuntu-16.04.yml b/vars/ubuntu-16.04.yml
index be807a7b..f20c05cf 100644
--- a/vars/ubuntu-16.04.yml
+++ b/vars/ubuntu-16.04.yml
@@ -47,6 +47,39 @@ neutron_distro_packages:
   - keepalived
   - radvd
 
+neutron_service_distro_packages:
+  - python-cliff
+  - python-keystonemiddleware
+  - neutron-server
+  - neutron-dhcp-agent
+  - neutron-l2gateway-agent
+  - neutron-l3-agent
+  - neutron-macvtap-agent
+  - neutron-metadata-agent
+  - neutron-plugin-ml2
+  - python-glanceclient
+  - python-keystoneclient
+  - python-memcache
+  - python-neutronclient
+  - python-novaclient
+
+neutron_optional_ovs_distro_packages:
+  - neutron-openvswitch-agent
+  - neutron-plugin-openvswitch-agent
+
+neutron_optional_lxb_distro_packages:
+  - neutron-linuxbridge-agent
+  - neutron-plugin-linuxbridge-agent
+
+neutron_optional_fwaas_distro_packages:
+  - python-neutron-fwaas
+
+neutron_optional_lbaas_distro_packages:
+  - neutron-lbaasv2-agent
+
+neutron_optional_vpnaas_distro_packages:
+  - neutron-vpnaas-agent
+
 neutron_developer_mode_distro_packages:
   - git-core
 
diff --git a/zuul.d/project.yaml b/zuul.d/project.yaml
index 369a4bee..6dfeacdc 100644
--- a/zuul.d/project.yaml
+++ b/zuul.d/project.yaml
@@ -29,6 +29,11 @@
         - openstack-ansible-neutron-ssl-nv
         - openstack-ansible-odl-sfc-ubuntu-xenial
         - openstack-ansible-opendaylight-bgpvpn-ubuntu-xenial
+        - openstack-ansible-functional-distro_install-ubuntu-xenial
+          # NOTE(hwoarang) Centos7 is having some troubles with repo dependencies
+          # so disabling until it's investigated.
+        - openstack-ansible-functional-distro_install-centos-7-nv
+        - openstack-ansible-functional-distro_install-opensuse-423
     experimental:
       jobs:
         - openstack-ansible-integrated-deploy-aio
@@ -39,3 +44,5 @@
         - openstack-ansible-functional-opensuse-423
         - openstack-ansible-functional-ubuntu-xenial
         - openstack-ansible-upgrade-ubuntu-xenial
+        - openstack-ansible-functional-distro_install-ubuntu-xenial
+        - openstack-ansible-functional-distro_install-opensuse-423