diff --git a/cluster/addons/cluster-monitoring/google/heapster-controller.yaml b/cluster/addons/cluster-monitoring/google/heapster-controller.yaml
index c4e0a38bc06..d2864c14b0b 100644
--- a/cluster/addons/cluster-monitoring/google/heapster-controller.yaml
+++ b/cluster/addons/cluster-monitoring/google/heapster-controller.yaml
@@ -79,7 +79,7 @@ spec:
             - /eventer
             - --source=kubernetes:''
             - --sink=gcl
-        - image: k8s.gcr.io/addon-resizer:1.8.2
+        - image: k8s.gcr.io/addon-resizer:1.8.3
           name: heapster-nanny
           resources:
             limits:
@@ -112,6 +112,9 @@ spec:
             - --container=heapster
             - --poll-period=300000
             - --estimator=exponential
+            # Specifies the smallest cluster (defined in number of nodes)
+            # resources will be scaled to.
+            - --minClusterSize={{ heapster_min_cluster_size }}
         - image: k8s.gcr.io/addon-resizer:1.8.2
           name: eventer-nanny
           resources:
diff --git a/cluster/addons/cluster-monitoring/googleinfluxdb/heapster-controller-combined.yaml b/cluster/addons/cluster-monitoring/googleinfluxdb/heapster-controller-combined.yaml
index c192ca8fbbf..fb5446626aa 100644
--- a/cluster/addons/cluster-monitoring/googleinfluxdb/heapster-controller-combined.yaml
+++ b/cluster/addons/cluster-monitoring/googleinfluxdb/heapster-controller-combined.yaml
@@ -80,7 +80,7 @@ spec:
             - /eventer
             - --source=kubernetes:''
             - --sink=gcl
-        - image: k8s.gcr.io/addon-resizer:1.8.2
+        - image: k8s.gcr.io/addon-resizer:1.8.3
           name: heapster-nanny
           resources:
             limits:
@@ -113,6 +113,9 @@ spec:
             - --container=heapster
             - --poll-period=300000
             - --estimator=exponential
+            # Specifies the smallest cluster (defined in number of nodes)
+            # resources will be scaled to.
+            - --minClusterSize={{ heapster_min_cluster_size }}
         - image: k8s.gcr.io/addon-resizer:1.8.2
           name: eventer-nanny
           resources:
diff --git a/cluster/addons/cluster-monitoring/influxdb/heapster-controller.yaml b/cluster/addons/cluster-monitoring/influxdb/heapster-controller.yaml
index ebba295af2f..8c22aaece75 100644
--- a/cluster/addons/cluster-monitoring/influxdb/heapster-controller.yaml
+++ b/cluster/addons/cluster-monitoring/influxdb/heapster-controller.yaml
@@ -79,7 +79,7 @@ spec:
             - /eventer
             - --source=kubernetes:''
             - --sink=influxdb:http://monitoring-influxdb:8086
-        - image: k8s.gcr.io/addon-resizer:1.8.2
+        - image: k8s.gcr.io/addon-resizer:1.8.3
           name: heapster-nanny
           resources:
             limits:
@@ -112,6 +112,9 @@ spec:
             - --container=heapster
             - --poll-period=300000
             - --estimator=exponential
+            # Specifies the smallest cluster (defined in number of nodes)
+            # resources will be scaled to.
+            - --minClusterSize={{ heapster_min_cluster_size }}
         - image: k8s.gcr.io/addon-resizer:1.8.2
           name: eventer-nanny
           resources:
diff --git a/cluster/addons/cluster-monitoring/stackdriver/heapster-controller.yaml b/cluster/addons/cluster-monitoring/stackdriver/heapster-controller.yaml
index 97feefb587d..0cd6d6fa24f 100644
--- a/cluster/addons/cluster-monitoring/stackdriver/heapster-controller.yaml
+++ b/cluster/addons/cluster-monitoring/stackdriver/heapster-controller.yaml
@@ -81,7 +81,7 @@ spec:
                 fieldRef:
                   fieldPath: metadata.namespace
         # END_PROMETHEUS_TO_SD
-        - image: k8s.gcr.io/addon-resizer:1.8.2
+        - image: k8s.gcr.io/addon-resizer:1.8.3
           name: heapster-nanny
           resources:
             limits:
@@ -114,6 +114,9 @@ spec:
             - --container=heapster
             - --poll-period=300000
             - --estimator=exponential
+            # Specifies the smallest cluster (defined in number of nodes)
+            # resources will be scaled to.
+            - --minClusterSize={{ heapster_min_cluster_size }}
       volumes:
         - name: heapster-config-volume
           configMap:
diff --git a/cluster/addons/cluster-monitoring/standalone/heapster-controller.yaml b/cluster/addons/cluster-monitoring/standalone/heapster-controller.yaml
index f8b6bdb0e17..a6ee6a8ca61 100644
--- a/cluster/addons/cluster-monitoring/standalone/heapster-controller.yaml
+++ b/cluster/addons/cluster-monitoring/standalone/heapster-controller.yaml
@@ -59,7 +59,7 @@ spec:
           command:
             - /heapster
             - --source=kubernetes.summary_api:''
-        - image: k8s.gcr.io/addon-resizer:1.8.2
+        - image: k8s.gcr.io/addon-resizer:1.8.3
           name: heapster-nanny
           resources:
             limits:
@@ -92,6 +92,9 @@ spec:
             - --container=heapster
             - --poll-period=300000
             - --estimator=exponential
+            # Specifies the smallest cluster (defined in number of nodes)
+            # resources will be scaled to.
+            - --minClusterSize={{ heapster_min_cluster_size }}
       volumes:
         - name: heapster-config-volume
           configMap:
diff --git a/cluster/gce/gci/configure-helper.sh b/cluster/gce/gci/configure-helper.sh
index 9248f8dafa5..093fa832edd 100644
--- a/cluster/gce/gci/configure-helper.sh
+++ b/cluster/gce/gci/configure-helper.sh
@@ -2350,10 +2350,17 @@ EOF
     base_eventer_memory="190Mi"
     base_metrics_cpu="${HEAPSTER_GCP_BASE_CPU:-80m}"
     nanny_memory="90Mi"
-    local -r metrics_memory_per_node="${HEAPSTER_GCP_MEMORY_PER_NODE:-4}"
+    local heapster_min_cluster_size="16"
+    local metrics_memory_per_node="${HEAPSTER_GCP_MEMORY_PER_NODE:-4}"
     local -r metrics_cpu_per_node="${HEAPSTER_GCP_CPU_PER_NODE:-0.5}"
     local -r eventer_memory_per_node="500"
     local -r nanny_memory_per_node="200"
+    if [[ "${ENABLE_SYSTEM_ADDON_RESOURCE_OPTIMIZATIONS:-}" == "true" ]]; then
+      base_metrics_memory="${HEAPSTER_GCP_BASE_MEMORY:-100Mi}"
+      base_metrics_cpu="${HEAPSTER_GCP_BASE_CPU:-10m}"
+      metrics_memory_per_node="${HEAPSTER_GCP_MEMORY_PER_NODE:-4}"
+      heapster_min_cluster_size="5"
+    fi
     if [[ -n "${NUM_NODES:-}" && "${NUM_NODES}" -ge 1 ]]; then
       num_kube_nodes="$((${NUM_NODES}+1))"
       nanny_memory="$((${num_kube_nodes} * ${nanny_memory_per_node} + 90 * 1024))Ki"
@@ -2374,6 +2381,7 @@ EOF
     sed -i -e "s@{{ *eventer_memory_per_node *}}@${eventer_memory_per_node}@g" "${controller_yaml}"
     sed -i -e "s@{{ *nanny_memory *}}@${nanny_memory}@g" "${controller_yaml}"
     sed -i -e "s@{{ *metrics_cpu_per_node *}}@${metrics_cpu_per_node}@g" "${controller_yaml}"
+    sed -i -e "s@{{ *heapster_min_cluster_size *}}@${heapster_min_cluster_size}@g" "${controller_yaml}"
     update-prometheus-to-sd-parameters ${controller_yaml}
 
     if [[ "${ENABLE_CLUSTER_MONITORING:-}" == "stackdriver" ]]; then