diff --git a/playbooks/common-plays/generate-lxc-container-hosts.yml b/playbooks/common-plays/generate-lxc-container-hosts.yml
new file mode 100644
index 0000000000..15a9c70125
--- /dev/null
+++ b/playbooks/common-plays/generate-lxc-container-hosts.yml
@@ -0,0 +1,34 @@
+---
+# Copyright 2016, Rackspace US, Inc.
+#
+# 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: Generate container host list
+  hosts: localhost
+  connection: local
+  gather_facts: false
+  tasks:
+    - set_fact:
+        _container_hosts: >
+          {%- for item in groups['all_containers'] -%}
+          {%-   if hostvars[item]['physical_host'] | default(false) != item -%}
+          {{ hostvars[item]['physical_host'] }}{% if not loop.last %},{% endif %}
+          {%-   endif -%}
+          {%- endfor -%}
+    - set_fact:
+        _known_container_hosts: "{{ _container_hosts | replace('\n', '') }}"
+    - name: Create dynamic lxc_host group
+      add_host:
+        hostname: "{{ item }}"
+        groups: "known_container_hosts"
+      with_items: "{{ _known_container_hosts.split(',') | unique }}"
diff --git a/playbooks/lxc-hosts-setup.yml b/playbooks/lxc-hosts-setup.yml
index 66c77b8724..bda779f942 100644
--- a/playbooks/lxc-hosts-setup.yml
+++ b/playbooks/lxc-hosts-setup.yml
@@ -13,19 +13,10 @@
 # See the License for the specific language governing permissions and
 # limitations under the License.
 
+- include: common-plays/generate-lxc-container-hosts.yml
+
 - name: Basic lxc host setup
-  hosts: >
-    {{ lxc_host_group |
-       default('
-         shared-infra_hosts
-         :os-infra_hosts
-         :repo-infra_hosts
-         :identity_hosts
-         :storage-infra_hosts
-         :log_hosts
-         :network_hosts
-       ')
-    }}
+  hosts: known_container_hosts
   gather_facts: "{{ gather_facts | default(True) }}"
   max_fail_percentage: 20
   user: root