diff --git a/cluster/ubuntu/deployAddons.sh b/cluster/ubuntu/deployAddons.sh
index ba764e140c1..2c1636c055d 100755
--- a/cluster/ubuntu/deployAddons.sh
+++ b/cluster/ubuntu/deployAddons.sh
@@ -23,8 +23,8 @@ source "config-default.sh"
 
 if [ "${ENABLE_CLUSTER_DNS}" == true ]; then
 	echo "Deploying DNS on kubernetes"
-	sed -e "s/{{ pillar\['dns_replicas'\] }}/${DNS_REPLICAS}/g;s/{{ pillar\['dns_domain'\] }}/${DNS_DOMAIN}/g" ../../cluster/addons/dns/skydns-rc.yaml.in > skydns-rc.yaml
-	sed -e "s/{{ pillar\['dns_server'\] }}/${DNS_SERVER_IP}/g" ../../cluster/addons/dns/skydns-svc.yaml.in > skydns-svc.yaml
+	sed -e "s/{{ pillar\['dns_replicas'\] }}/${DNS_REPLICAS}/g;s/{{ pillar\['dns_domain'\] }}/${DNS_DOMAIN}/g" skydns-rc.yaml.template > skydns-rc.yaml
+	sed -e "s/{{ pillar\['dns_server'\] }}/${DNS_SERVER_IP}/g" skydns-svc.yaml.template > skydns-svc.yaml
 	# use kubectl to create skydns rc and service
 	"${KUBE_ROOT}/cluster/kubectl.sh" create -f skydns-rc.yaml
 	"${KUBE_ROOT}/cluster/kubectl.sh" create -f skydns-svc.yaml
diff --git a/cluster/ubuntu/skydns-rc.yaml b/cluster/ubuntu/skydns-rc.yaml
deleted file mode 100644
index 86fbae18b0a..00000000000
--- a/cluster/ubuntu/skydns-rc.yaml
+++ /dev/null
@@ -1,66 +0,0 @@
-apiVersion: v1beta3
-kind: ReplicationController
-metadata:
-  labels:
-    k8s-app: kube-dns
-    kubernetes.io/cluster-service: "true"
-  name: kube-dns
-  namespace: default
-spec:
-  replicas: 1
-  selector:
-    k8s-app: kube-dns
-  template:
-    metadata:
-      labels:
-        k8s-app: kube-dns
-        kubernetes.io/cluster-service: "true"
-        name: kube-dns
-    spec:
-      containers:
-      - name: etcd
-        image: gcr.io/google_containers/etcd:2.0.9
-        command:
-        - /usr/local/bin/etcd
-        - --addr
-        - 127.0.0.1:4001
-        - --bind-addr
-        - 127.0.0.1:4001
-        - -initial-cluster-token=skydns-etcd
-      - name: kube2sky
-        image: gcr.io/google_containers/kube2sky:1.4
-        args:
-        # entrypoint = "/kube2sky"
-        - -domain=cluster.local
-        - -kubecfg_file=/etc/dns_token/kubeconfig
-        volumeMounts:
-        - mountPath: /etc/dns_token
-          name: dns-token
-          readOnly: true
-      - name: skydns
-        image: gcr.io/google_containers/skydns:2015-03-11-001
-        args:
-        # entrypoint = "/skydns"
-        - -machines=http://localhost:4001
-        - -addr=0.0.0.0:53
-        - -domain=cluster.local.
-        ports:
-        - containerPort: 53
-          name: dns
-          protocol: UDP
-        livenessProbe:
-          exec:
-            command:
-            - "/bin/sh"
-            - "-c"
-            # The health check succeeds by virtue of not hanging. It'd be nice
-            # to also check local services are known, but if that's broken then
-            # etcd or kube2sky has to be restarted, not skydns.
-            - "nslookup foobar 127.0.0.1 &> /dev/null; echo ok"
-          initialDelaySeconds: 30
-          timeoutSeconds: 5
-      dnsPolicy: Default  # Don't use cluster DNS.
-      volumes:
-      - name: dns-token
-        secret:
-          secretName: token-system-dns
diff --git a/cluster/ubuntu/skydns-rc.yaml.template b/cluster/ubuntu/skydns-rc.yaml.template
new file mode 100644
index 00000000000..2e989d62f2e
--- /dev/null
+++ b/cluster/ubuntu/skydns-rc.yaml.template
@@ -0,0 +1,49 @@
+kind: ReplicationController
+apiVersion: v1beta1
+id: kube-dns
+namespace: default
+labels:
+  k8s-app: kube-dns
+  kubernetes.io/cluster-service: "true"
+desiredState:
+  replicas: {{ pillar['dns_replicas'] }}
+  replicaSelector:
+    k8s-app: kube-dns
+  podTemplate:
+    labels:
+      name: kube-dns
+      k8s-app: kube-dns
+      kubernetes.io/cluster-service: "true"
+    desiredState:
+      manifest:
+        version: v1beta2
+        id: kube-dns
+        dnsPolicy: "Default"  # Don't use cluster DNS.
+        containers:
+          - name: etcd
+            image: quay.io/coreos/etcd:v2.0.3
+            command: [
+                    # entrypoint = "/etcd",
+                    "-listen-client-urls=http://0.0.0.0:2379,http://0.0.0.0:4001",
+                    "-initial-cluster-token=skydns-etcd",
+                    "-advertise-client-urls=http://127.0.0.1:4001",
+            ]
+          - name: kube2sky
+            image: gcr.io/google_containers/kube2sky:1.1
+            command: [
+                    # entrypoint = "/kube2sky",
+                    "-domain={{ pillar['dns_domain'] }}",
+            ]
+          - name: skydns
+            image: gcr.io/google_containers/skydns:2015-03-11-001
+            command: [
+                    # entrypoint = "/skydns",
+                    "-machines=http://localhost:4001",
+                    "-addr=0.0.0.0:53",
+                    "-domain={{ pillar['dns_domain'] }}.",
+            ]
+            ports:
+              - name: dns
+                containerPort: 53
+                protocol: UDP
+
diff --git a/cluster/ubuntu/skydns-svc.yaml b/cluster/ubuntu/skydns-svc.yaml.template
similarity index 85%
rename from cluster/ubuntu/skydns-svc.yaml
rename to cluster/ubuntu/skydns-svc.yaml.template
index d86379b24b1..3df270de7dc 100644
--- a/cluster/ubuntu/skydns-svc.yaml
+++ b/cluster/ubuntu/skydns-svc.yaml.template
@@ -4,7 +4,7 @@ id: kube-dns
 namespace: default
 protocol: UDP
 port: 53
-portalIP: 192.168.3.10
+portalIP: {{ pillar['dns_server'] }}
 containerPort: 53
 labels:
   k8s-app: kube-dns