diff --git a/cluster/saltbase/salt/top.sls b/cluster/saltbase/salt/top.sls
index e96c6390cea..0f1db45d913 100644
--- a/cluster/saltbase/salt/top.sls
+++ b/cluster/saltbase/salt/top.sls
@@ -80,7 +80,3 @@ base:
 {% if pillar.get('network_provider', '').lower() == 'opencontrail' %}
     - opencontrail-networking-master
 {% endif %}
-
-  'roles:kubernetes-pool-vsphere':
-    - match: grain
-    - static-routes
diff --git a/cluster/vsphere/config-default.sh b/cluster/vsphere/config-default.sh
index a1b8ac2107d..d841d0febf6 100755
--- a/cluster/vsphere/config-default.sh
+++ b/cluster/vsphere/config-default.sh
@@ -27,7 +27,8 @@ MASTER_MEMORY_MB=1024
 MASTER_CPU=1
 
 NODE_NAMES=($(eval echo ${INSTANCE_PREFIX}-minion-{1..${NUM_NODES}}))
-NODE_IP_RANGES=($(eval echo "10.244.{1..${NUM_NODES}}.0/24"))
+NODE_IP_RANGES="10.244.0.0/16"
+MASTER_IP_RANGE="${MASTER_IP_RANGE:-10.246.0.0/24}"
 NODE_MEMORY_MB=2048
 NODE_CPU=1
 
diff --git a/cluster/vsphere/config-test.sh b/cluster/vsphere/config-test.sh
index 0a7013fa5d2..fb4c493c11c 100755
--- a/cluster/vsphere/config-test.sh
+++ b/cluster/vsphere/config-test.sh
@@ -27,7 +27,8 @@ MASTER_MEMORY_MB=1024
 MASTER_CPU=1
 
 NODE_NAMES=($(eval echo ${INSTANCE_PREFIX}-minion-{1..${NUM_NODES}}))
-NODE_IP_RANGES=($(eval echo "10.244.{1..${NUM_NODES}}.0/24"))
+NODE_IP_RANGES="10.244.0.0/16"
+MASTER_IP_RANGE="${MASTER_IP_RANGE:-10.246.0.0/24}"
 NODE_MEMORY_MB=1024
 NODE_CPU=1
 
diff --git a/cluster/vsphere/templates/create-dynamic-salt-files.sh b/cluster/vsphere/templates/create-dynamic-salt-files.sh
index 6273756f799..1dcaa071ff7 100755
--- a/cluster/vsphere/templates/create-dynamic-salt-files.sh
+++ b/cluster/vsphere/templates/create-dynamic-salt-files.sh
@@ -121,7 +121,8 @@ dns_replicas: ${DNS_REPLICAS:-1}
 dns_server: $DNS_SERVER_IP
 dns_domain: $DNS_DOMAIN
 e2e_storage_test_environment: "${E2E_STORAGE_TEST_ENVIRONMENT:-false}"
-
+cluster_cidr: "$NODE_IP_RANGES"
+allocate_node_cidrs: "${ALLOCATE_NODE_CIDRS:-true}"
 EOF
 
 mkdir -p /srv/salt-overlay/salt/nginx
diff --git a/cluster/vsphere/templates/salt-master.sh b/cluster/vsphere/templates/salt-master.sh
index 831c0f820fa..81ab17bcb5c 100755
--- a/cluster/vsphere/templates/salt-master.sh
+++ b/cluster/vsphere/templates/salt-master.sh
@@ -25,6 +25,7 @@ cat <<EOF >/etc/salt/minion.d/grains.conf
 grains:
   roles:
     - kubernetes-master
+  cbr-cidr: $MASTER_IP_RANGE
   cloud: vsphere
 EOF
 
diff --git a/cluster/vsphere/templates/salt-minion.sh b/cluster/vsphere/templates/salt-minion.sh
index e6e74d459e0..57265f0eecc 100755
--- a/cluster/vsphere/templates/salt-minion.sh
+++ b/cluster/vsphere/templates/salt-minion.sh
@@ -41,7 +41,6 @@ grains:
   roles:
     - kubernetes-pool
     - kubernetes-pool-vsphere
-  cbr-cidr: $NODE_IP_RANGE
   cloud: vsphere
 EOF
 
diff --git a/cluster/vsphere/util.sh b/cluster/vsphere/util.sh
index 0bc488cb351..5fb52a7ec23 100755
--- a/cluster/vsphere/util.sh
+++ b/cluster/vsphere/util.sh
@@ -262,9 +262,6 @@ function kube-check {
   done
 }
 
-
-
-
 #
 # verify if salt master is up. check 30 times and then echo out bad output and return 0
 #
@@ -306,6 +303,41 @@ function remote-pgrep {
   done
 }
 
+# identify the pod routes and route them together.
+#
+# Assumptions:
+#  All packages have been installed and kubelet has started running.
+#
+function setup-pod-routes {
+  # wait till the kubelet sets up the bridge.
+  echo "Setting up routes"
+  for (( i=0; i<${#NODE_NAMES[@]}; i++)); do
+     printf "check if cbr0 bridge is ready on ${NODE_NAMES[$i]}\n"
+     kube-check ${KUBE_NODE_IP_ADDRESSES[$i]} 'sudo ifconfig cbr0 | grep -oP "inet addr:\K\S+"'
+  done
+
+
+  # identify the subnet assigned to the node by the kubernertes controller manager.
+  KUBE_NODE_BRIDGE_NETWORK=()
+  for (( i=0; i<${#NODE_NAMES[@]}; i++)); do
+     printf " finding network of cbr0 bridge on node  ${NODE_NAMES[$i]}\n"
+     network=$(kube-ssh ${KUBE_NODE_IP_ADDRESSES[$i]} 'sudo ip route show | grep -E "dev cbr0" | cut -d     " " -f1')
+     KUBE_NODE_BRIDGE_NETWORK+=("${network}")
+  done
+
+
+  # make the pods visible to each other.
+  local j
+  for (( i=0; i<${#NODE_NAMES[@]}; i++)); do
+     printf "setting up routes for ${NODE_NAMES[$i]}"
+     for (( j=0; j<${#NODE_NAMES[@]}; j++)); do
+        if [[ $i != $j ]]; then
+           kube-ssh ${KUBE_NODE_IP_ADDRESSES[$i]} "sudo route add -net ${KUBE_NODE_BRIDGE_NETWORK[$j]} gw ${KUBE_NODE_IP_ADDRESSES[$j]}"
+        fi
+      done
+  done
+}
+
 # Instantiate a kubernetes cluster
 #
 # Assumed vars:
@@ -331,8 +363,10 @@ function kube-up {
     grep -v "^#" "${KUBE_ROOT}/cluster/vsphere/templates/hostname.sh"
     echo "cd /home/kube/cache/kubernetes-install"
     echo "readonly MASTER_NAME='${MASTER_NAME}'"
+    echo "readonly MASTER_IP_RANGE='${MASTER_IP_RANGE}'"
     echo "readonly INSTANCE_PREFIX='${INSTANCE_PREFIX}'"
     echo "readonly NODE_INSTANCE_PREFIX='${INSTANCE_PREFIX}-node'"
+    echo "readonly NODE_IP_RANGES='${NODE_IP_RANGES}'"
     echo "readonly SERVICE_CLUSTER_IP_RANGE='${SERVICE_CLUSTER_IP_RANGE}'"
     echo "readonly ENABLE_NODE_LOGGING='${ENABLE_NODE_LOGGING:-false}'"
     echo "readonly LOGGING_DESTINATION='${LOGGING_DESTINATION:-}'"
@@ -365,7 +399,7 @@ function kube-up {
       grep -v "^#" "${KUBE_ROOT}/cluster/vsphere/templates/hostname.sh"
       echo "KUBE_MASTER=${KUBE_MASTER}"
       echo "KUBE_MASTER_IP=${KUBE_MASTER_IP}"
-      echo "NODE_IP_RANGE=${NODE_IP_RANGES[$i]}"
+      echo "NODE_IP_RANGE=$NODE_IP_RANGES"
       grep -v "^#" "${KUBE_ROOT}/cluster/vsphere/templates/salt-minion.sh"
     ) > "${KUBE_TEMP}/node-start-${i}.sh"
 
@@ -427,8 +461,10 @@ function kube-up {
     done
     printf " OK\n"
   done
-  echo "Kubernetes cluster created."
 
+  setup-pod-routes
+
+  echo "Kubernetes cluster created."
   # TODO use token instead of basic auth
   export KUBE_CERT="/tmp/$RANDOM-kubecfg.crt"
   export KUBE_KEY="/tmp/$RANDOM-kubecfg.key"
@@ -444,6 +480,7 @@ function kube-up {
 
     create-kubeconfig
   )
+  printf "\n"
 
   echo
   echo "Sanity checking cluster..."
@@ -451,7 +488,6 @@ function kube-up {
   sleep 5
 
   # Basic sanity checking
-  local i
   for (( i=0; i<${#NODE_NAMES[@]}; i++)); do
       # Make sure docker is installed
       kube-ssh "${KUBE_NODE_IP_ADDRESSES[$i]}" which docker > /dev/null || {