diff --git a/cmd/network/network.go b/cmd/network/network.go
index d7f9b50c..ca4514bf 100644
--- a/cmd/network/network.go
+++ b/cmd/network/network.go
@@ -46,7 +46,15 @@ func Main() {
 		log.Fatal(err)
 	}
 
-	if _, err := resolvconf.Build("/etc/resolv.conf", cfg.Rancher.Network.Dns.Nameservers, cfg.Rancher.Network.Dns.Search, nil); err != nil {
+	nameservers := cfg.Rancher.Network.Dns.Nameservers
+	search := cfg.Rancher.Network.Dns.Search
+	userSetDns := len(nameservers) > 0 || len(search) > 0
+	if !userSetDns {
+		nameservers = cfg.Rancher.DefaultNetwork.Dns.Nameservers
+		search = cfg.Rancher.DefaultNetwork.Dns.Search
+	}
+
+	if _, err := resolvconf.Build("/etc/resolv.conf", nameservers, search, nil); err != nil {
 		log.Error(err)
 	}
 
@@ -58,8 +66,8 @@ func Main() {
 		log.Error(err)
 	}
 
-	dhcpHostname := cfg.Hostname == ""
-	if err := netconf.RunDhcp(&cfg.Rancher.Network, dhcpHostname); err != nil {
+	userSetHostname := cfg.Hostname != ""
+	if err := netconf.RunDhcp(&cfg.Rancher.Network, !userSetHostname, !userSetDns); err != nil {
 		log.Error(err)
 	}
 
diff --git a/config/types.go b/config/types.go
index 7854df55..c29619a3 100644
--- a/config/types.go
+++ b/config/types.go
@@ -90,6 +90,7 @@ type RancherConfig struct {
 	ServicesInclude     map[string]bool                   `yaml:"services_include,omitempty"`
 	Modules             []string                          `yaml:"modules,omitempty"`
 	Network             netconf.NetworkConfig             `yaml:"network,omitempty"`
+	DefaultNetwork      netconf.NetworkConfig             `yaml:"default_network,omitempty"`
 	Repositories        Repositories                      `yaml:"repositories,omitempty"`
 	Ssh                 SshConfig                         `yaml:"ssh,omitempty"`
 	State               StateConfig                       `yaml:"state,omitempty"`
diff --git a/init/init.go b/init/init.go
index ff35d44e..cc549f8d 100644
--- a/init/init.go
+++ b/init/init.go
@@ -164,8 +164,8 @@ func getLaunchConfig(cfg *config.CloudConfig, dockerCfg *config.DockerConfig) (*
 
 	args := dockerlaunch.ParseConfig(&launchConfig, append(dockerCfg.Args, dockerCfg.ExtraArgs...)...)
 
-	launchConfig.DnsConfig.Nameservers = cfg.Rancher.Network.Dns.Nameservers
-	launchConfig.DnsConfig.Search = cfg.Rancher.Network.Dns.Search
+	launchConfig.DnsConfig.Nameservers = cfg.Rancher.DefaultNetwork.Dns.Nameservers
+	launchConfig.DnsConfig.Search = cfg.Rancher.DefaultNetwork.Dns.Search
 	launchConfig.Environment = dockerCfg.Environment
 	launchConfig.EmulateSystemd = true
 
diff --git a/os-config.tpl.yml b/os-config.tpl.yml
index 1ea550f2..dd7e4433 100644
--- a/os-config.tpl.yml
+++ b/os-config.tpl.yml
@@ -61,7 +61,7 @@ rancher:
   cloud_init:
     datasources:
     - configdrive:/media/config-2
-  network:
+  default_network:
     dns:
       nameservers: [8.8.8.8, 8.8.4.4]
   repositories:
diff --git a/tests/integration/assets/test_09/cloud-config.yml b/tests/integration/assets/test_09/cloud-config.yml
index 4303c6cc..79f6d169 100644
--- a/tests/integration/assets/test_09/cloud-config.yml
+++ b/tests/integration/assets/test_09/cloud-config.yml
@@ -22,7 +22,6 @@ rancher:
           mode: 1
         address: 123.123.123.124/32
     dns:
-      override: true
       search:
         - mydomain.com
         - example.com
diff --git a/trash.yml b/trash.yml
index dada9bf9..c75d03d8 100644
--- a/trash.yml
+++ b/trash.yml
@@ -70,7 +70,7 @@ import:
   version: v1.10.3
 
 - package: github.com/rancher/netconf
-  version: 6a771a0593c146f35634c405ab9ccfec50db65e1
+  version: 7880fdeac0923a05b86a0b5774b4dc96a5749d76
 
 - package: github.com/ryanuber/go-glob
   version: 0067a9abd927e50aed5190662702f81231413ae0
diff --git a/vendor/github.com/rancher/netconf/netconf_linux.go b/vendor/github.com/rancher/netconf/netconf_linux.go
index 99f08153..c058dbe6 100644
--- a/vendor/github.com/rancher/netconf/netconf_linux.go
+++ b/vendor/github.com/rancher/netconf/netconf_linux.go
@@ -182,7 +182,7 @@ func ApplyNetworkConfigs(netCfg *NetworkConfig) error {
 	return err
 }
 
-func RunDhcp(netCfg *NetworkConfig, dhcpHostname bool) error {
+func RunDhcp(netCfg *NetworkConfig, setHostname, setDns bool) error {
 	links, err := netlink.LinkList()
 	if err != nil {
 		return err
@@ -200,7 +200,7 @@ func RunDhcp(netCfg *NetworkConfig, dhcpHostname bool) error {
 	for iface, args := range dhcpLinks {
 		wg.Add(1)
 		go func(iface, args string) {
-			runDhcp(netCfg, iface, args, dhcpHostname)
+			runDhcp(netCfg, iface, args, setHostname, setDns)
 			wg.Done()
 		}(iface, args)
 	}
@@ -209,7 +209,7 @@ func RunDhcp(netCfg *NetworkConfig, dhcpHostname bool) error {
 	return err
 }
 
-func runDhcp(netCfg *NetworkConfig, iface string, argstr string, dhcpHostname bool) {
+func runDhcp(netCfg *NetworkConfig, iface string, argstr string, setHostname, setDns bool) {
 	log.Infof("Running DHCP on %s", iface)
 	args := []string{}
 	if argstr != "" {
@@ -223,12 +223,12 @@ func runDhcp(netCfg *NetworkConfig, iface string, argstr string, dhcpHostname bo
 		args = defaultDhcpArgs
 	}
 
-	if netCfg.Dns.Override {
-		args = append(args, "--nohook", "resolv.conf")
+	if setHostname {
+		args = append(args, "-e", "force_hostname=true")
 	}
 
-	if dhcpHostname {
-		args = append(args, "-e", "force_hostname=true")
+	if !setDns {
+		args = append(args, "--nohook", "resolv.conf")
 	}
 
 	args = append(args, iface)
diff --git a/vendor/github.com/rancher/netconf/types.go b/vendor/github.com/rancher/netconf/types.go
index fa7f2d0c..1f17e972 100644
--- a/vendor/github.com/rancher/netconf/types.go
+++ b/vendor/github.com/rancher/netconf/types.go
@@ -26,7 +26,6 @@ type InterfaceConfig struct {
 }
 
 type DnsConfig struct {
-	Override    bool     `yaml:"override"`
 	Nameservers []string `yaml:"nameservers,flow,omitempty"`
 	Search      []string `yaml:"search,flow,omitempty"`
 }