diff --git a/test/e2e/framework/providers/azure/BUILD b/test/e2e/framework/providers/azure/BUILD
index 07058db97bd..0f4d90bb384 100644
--- a/test/e2e/framework/providers/azure/BUILD
+++ b/test/e2e/framework/providers/azure/BUILD
@@ -10,6 +10,7 @@ go_library(
         "//staging/src/k8s.io/apimachinery/pkg/util/uuid:go_default_library",
         "//staging/src/k8s.io/legacy-cloud-providers/azure:go_default_library",
         "//test/e2e/framework:go_default_library",
+        "//vendor/github.com/Azure/azure-sdk-for-go/services/compute/mgmt/2019-07-01/compute:go_default_library",
     ],
 )
 
diff --git a/test/e2e/framework/providers/azure/azure.go b/test/e2e/framework/providers/azure/azure.go
index 5e7be561398..57ca3aac8d2 100644
--- a/test/e2e/framework/providers/azure/azure.go
+++ b/test/e2e/framework/providers/azure/azure.go
@@ -21,6 +21,8 @@ import (
 	"fmt"
 	"os"
 
+	"github.com/Azure/azure-sdk-for-go/services/compute/mgmt/2019-07-01/compute"
+
 	v1 "k8s.io/api/core/v1"
 	"k8s.io/apimachinery/pkg/util/uuid"
 	"k8s.io/kubernetes/test/e2e/framework"
@@ -62,16 +64,24 @@ func (p *Provider) DeleteNode(node *v1.Node) error {
 // CreatePD creates a persistent volume
 func (p *Provider) CreatePD(zone string) (string, error) {
 	pdName := fmt.Sprintf("%s-%s", framework.TestContext.Prefix, string(uuid.NewUUID()))
-	_, diskURI, _, err := p.azureCloud.CreateVolume(pdName, "" /* account */, "" /* sku */, "" /* location */, 1 /* sizeGb */)
-	if err != nil {
-		return "", err
+
+	volumeOptions := &azure.ManagedDiskOptions{
+		DiskName:           pdName,
+		StorageAccountType: compute.StandardLRS,
+		ResourceGroup:      "",
+		PVCName:            pdName,
+		SizeGB:             1,
+		Tags:               nil,
+		AvailabilityZone:   zone,
+		DiskIOPSReadWrite:  "",
+		DiskMBpsReadWrite:  "",
 	}
-	return diskURI, nil
+	return p.azureCloud.CreateManagedDisk(volumeOptions)
 }
 
 // DeletePD deletes a persistent volume
 func (p *Provider) DeletePD(pdName string) error {
-	if err := p.azureCloud.DeleteVolume(pdName); err != nil {
+	if err := p.azureCloud.DeleteManagedDisk(pdName); err != nil {
 		framework.Logf("failed to delete Azure volume %q: %v", pdName, err)
 		return err
 	}
diff --git a/test/e2e/storage/drivers/in_tree.go b/test/e2e/storage/drivers/in_tree.go
index 4c0bcf10a54..1d55d2969b0 100644
--- a/test/e2e/storage/drivers/in_tree.go
+++ b/test/e2e/storage/drivers/in_tree.go
@@ -1440,10 +1440,12 @@ func (a *azureDriver) GetVolumeSource(readOnly bool, fsType string, volume tests
 
 	diskName := av.volumeName[(strings.LastIndex(av.volumeName, "/") + 1):]
 
+	kind := v1.AzureManagedDisk
 	volSource := v1.VolumeSource{
 		AzureDisk: &v1.AzureDiskVolumeSource{
 			DiskName:    diskName,
 			DataDiskURI: av.volumeName,
+			Kind:        &kind,
 			ReadOnly:    &readOnly,
 		},
 	}
@@ -1459,10 +1461,12 @@ func (a *azureDriver) GetPersistentVolumeSource(readOnly bool, fsType string, vo
 
 	diskName := av.volumeName[(strings.LastIndex(av.volumeName, "/") + 1):]
 
+	kind := v1.AzureManagedDisk
 	pvSource := v1.PersistentVolumeSource{
 		AzureDisk: &v1.AzureDiskVolumeSource{
 			DiskName:    diskName,
 			DataDiskURI: av.volumeName,
+			Kind:        &kind,
 			ReadOnly:    &readOnly,
 		},
 	}
@@ -1498,6 +1502,13 @@ func (a *azureDriver) PrepareTest(f *framework.Framework) (*testsuites.PerTestCo
 
 func (a *azureDriver) CreateVolume(config *testsuites.PerTestConfig, volType testpatterns.TestVolType) testsuites.TestVolume {
 	ginkgo.By("creating a test azure disk volume")
+	if volType == testpatterns.InlineVolume {
+		// Volume will be created in framework.TestContext.CloudConfig.Zone zone,
+		// so pods should be also scheduled there.
+		config.ClientNodeSelector = map[string]string{
+			v1.LabelZoneFailureDomain: framework.TestContext.CloudConfig.Zone,
+		}
+	}
 	volumeName, err := framework.CreatePDWithRetry()
 	framework.ExpectNoError(err)
 	return &azureVolume{