diff --git a/lib/neutron b/lib/neutron
index 5cab8e1..b91e880 100644
--- a/lib/neutron
+++ b/lib/neutron
@@ -188,6 +188,9 @@
         cp $NEUTRON_DIR/etc/dhcp_agent.ini.sample $NEUTRON_DHCP_CONF
 
         iniset $NEUTRON_DHCP_CONF DEFAULT debug True
+        # make it so we have working DNS from guests
+        iniset $NEUTRON_DHCP_CONF DEFAULT dnsmasq_local_resolv True
+
         iniset $NEUTRON_DHCP_CONF agent root_helper_daemon "$NEUTRON_ROOTWRAP_DAEMON_CMD"
         iniset $NEUTRON_DHCP_CONF DEFAULT interface_driver $NEUTRON_AGENT
         neutron_plugin_configure_dhcp_agent $NEUTRON_DHCP_CONF
diff --git a/lib/neutron-legacy b/lib/neutron-legacy
index 44db16a..2d85787 100644
--- a/lib/neutron-legacy
+++ b/lib/neutron-legacy
@@ -779,6 +779,8 @@
     cp $NEUTRON_DIR/etc/dhcp_agent.ini.sample $Q_DHCP_CONF_FILE
 
     iniset $Q_DHCP_CONF_FILE DEFAULT debug $ENABLE_DEBUG_LOG_LEVEL
+    # make it so we have working DNS from guests
+    iniset $Q_DHCP_CONF_FILE DEFAULT dnsmasq_local_resolv True
     iniset $Q_DHCP_CONF_FILE AGENT root_helper "$Q_RR_COMMAND"
     if [[ "$Q_USE_ROOTWRAP_DAEMON" == "True" ]]; then
         iniset $Q_DHCP_CONF_FILE AGENT root_helper_daemon "$Q_RR_DAEMON_COMMAND"