diff --git a/xos/observers/vcpe/files/vcpe.dnsmasq b/xos/observers/vcpe/files/vcpe.dnsmasq
new file mode 100644
index 0000000..2b2687b
--- /dev/null
+++ b/xos/observers/vcpe/files/vcpe.dnsmasq
@@ -0,0 +1,2 @@
+listen-address=192.168.0.1
+dhcp-range=192.168.0.2,192.168.0.254,6
diff --git a/xos/observers/vcpe/steps/sync_vcpetenant.yaml b/xos/observers/vcpe/steps/sync_vcpetenant.yaml
index 1d748d7..e350f61 100644
--- a/xos/observers/vcpe/steps/sync_vcpetenant.yaml
+++ b/xos/observers/vcpe/steps/sync_vcpetenant.yaml
@@ -73,10 +73,17 @@
     notify:
     - restart vcpe
 
+  - name: vCPE basic dnsmasq config
+    copy: src=/opt/xos/observers/vcpe/files/vcpe.dnsmasq dest=/etc/dnsmasq.d/vcpe.conf owner=root group=root
+    notify:
+    - stop dnsmasq
+    - start dnsmasq
+
   - name: dnsmasq config
     template: src=/opt/xos/observers/vcpe/templates/dnsmasq_servers.j2 dest=/etc/dnsmasq.d/servers.conf owner=root group=root
     notify:
-    - restart vcpe
+    - stop dnsmasq
+    - start dnsmasq
 
 # These are samples, not necessary for correct function of demo
 
@@ -90,8 +97,11 @@
     service: name=vcpe state=started
 
   handlers:
-  - name: reload dnsmasq config
-    shell: docker exec -t -i vcpe killall -HUP /usr/sbin/dnsmasq
+  - name: stop dnsmasq
+    shell: docker exec vcpe /usr/bin/killall dnsmasq
+
+  - name: start dnsmasq
+    shell: docker exec vcpe /usr/sbin/service dnsmasq start
 
   - name: restart vcpe
     shell: service vcpe stop; sleep 1; service vcpe start
diff --git a/xos/observers/vcpe/templates/start-vcpe.sh.j2 b/xos/observers/vcpe/templates/start-vcpe.sh.j2
index c199bb3..8ae66ee 100755
--- a/xos/observers/vcpe/templates/start-vcpe.sh.j2
+++ b/xos/observers/vcpe/templates/start-vcpe.sh.j2
@@ -7,7 +7,7 @@
 if [ "$?" == 1 ]
 then
     docker pull andybavier/docker-vcpe
-    docker run -d --name=vcpe --privileged=true --net=none -v /etc/dnsmasq.d/servers.conf:/etc/dnsmasq.d/servers.conf andybavier/docker-vcpe
+    docker run -d --name=vcpe --privileged=true --net=none -v /etc/dnsmasq.d:/etc/dnsmasq.d andybavier/docker-vcpe
 else
     docker start vcpe
 fi