diff --git a/reddwarf/dns/manager.py b/reddwarf/dns/manager.py
index 356af9826c..1c8c04fcab 100644
--- a/reddwarf/dns/manager.py
+++ b/reddwarf/dns/manager.py
@@ -71,18 +71,15 @@ class DnsManager(object):
         if entry:
             self.driver.delete_entry(entry.name, entry.type)
 
-    def update_hostname(self, instance):
+    def determine_hostname(self, instance_id):
         """
         Create the hostname field based on the instance id.
-        Use instance by default
+        Use instance by default.
         """
-        dns_support = config.Config.get('reddwarf_dns_support', 'False')
-        LOG.debug(_("reddwarf dns support = %s") % dns_support)
-        if utils.bool_from_string(dns_support):
-            entry = self.entry_factory.create_entry(instance.id)
-            instance.hostname = entry.name
-            instance.save()
-            LOG.debug("Saved the hostname as %s " % instance.hostname)
+        entry = self.entry_factory.create_entry(instance_id)
+        if entry:
+            return entry.name
         else:
-            instance.hostname = instance.name
-            instance.save()
+            return None
+
+
diff --git a/reddwarf/instance/models.py b/reddwarf/instance/models.py
index 9712053f3c..716727b25a 100644
--- a/reddwarf/instance/models.py
+++ b/reddwarf/instance/models.py
@@ -24,6 +24,7 @@ import netaddr
 from novaclient import exceptions as nova_exceptions
 from reddwarf.common import config
 from reddwarf.common import exception
+from reddwarf.common import utils
 from reddwarf.common.remote import create_dns_client
 from reddwarf.common.remote import create_guest_client
 from reddwarf.common.remote import create_nova_client
@@ -366,11 +367,17 @@ class Instance(BuiltInstance):
         service_status = InstanceServiceStatus.create(instance_id=db_info.id,
             status=ServiceStatuses.NEW)
 
-        dns_client = create_dns_client(context)
-        dns_client.update_hostname(db_info)
+        dns_support = config.Config.get("reddwarf_dns_support", 'False')
+        if utils.bool_from_string(dns_support):
+            dns_client = create_dns_client(context)
+            hostname = dns_client.determine_hostname(db_info.id)
+            db_info.hostname=hostname
+            db_info.save()
+
         task_api.API(context).create_instance(db_info.id, name, flavor_id,
             flavor.ram, image_id, databases, users, service_type, volume_size)
 
+
         return SimpleInstance(context, db_info, service_status)
 
     def _validate_can_perform_action(self):
diff --git a/reddwarf/instance/views.py b/reddwarf/instance/views.py
index eacfd8406c..d8015e560d 100644
--- a/reddwarf/instance/views.py
+++ b/reddwarf/instance/views.py
@@ -93,7 +93,7 @@ class InstanceDetailView(InstanceView):
 
         dns_support = config.Config.get("reddwarf_dns_support", 'False')
         if utils.bool_from_string(dns_support):
-            result['hostname'] = self.instance.hostname
+            result['instance']['hostname'] = self.instance.hostname
 
         if self.add_addresses:
             ip = get_ip_address(self.instance.addresses)