diff --git a/group_vars/all/octavia.yml b/group_vars/all/octavia.yml
new file mode 100644
index 0000000000..fcdbf08cf1
--- /dev/null
+++ b/group_vars/all/octavia.yml
@@ -0,0 +1,22 @@
+---
+# Copyright 2017, 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.
+
+octavia_service_port: 9876
+octavia_service_proto: http
+octavia_service_internaluri_proto: "{{ openstack_service_internaluri_proto | default(octavia_service_proto) }}"
+octavia_service_internaluri: "{{ octavia_service_internaluri_proto }}://{{ internal_lb_vip_address }}:{{ octavia_service_port }}"
+
+# this var below is referenced by neutron if Octavia is activated with V1 API
+octavia_service_url: "{{ octavia_service_internaluri }}"
\ No newline at end of file
diff --git a/group_vars/octavia_all.yml b/group_vars/octavia_all.yml
index 47994df4b6..669d25f722 100644
--- a/group_vars/octavia_all.yml
+++ b/group_vars/octavia_all.yml
@@ -13,14 +13,8 @@
 # See the License for the specific language governing permissions and
 # limitations under the License.
 
-octavia_service_port: 9876
-octavia_service_proto: http
-octavia_service_internaluri_proto: "{{ openstack_service_internaluri_proto | default(octavia_service_proto) }}"
-octavia_service_internaluri: "{{ octavia_service_internaluri_proto }}://{{ internal_lb_vip_address }}:{{ octavia_service_port }}"
 octavia_service_internalurl: "{{ octavia_service_internaluri }}/v1/%(tenant_id)s"
-
 octavia_service_user_name: octavia
-octavia_service_url: "{{ octavia_service_internaluri }}"
 
 # RPC
 octavia_rabbitmq_userid: octavia