It appears that lxc-net starts up before all of the network interfaces (eth0 in this case) are online. When it checks to see if anything is using ips in 10.0.3.X/16 nothing is (because eth0 isn't up). Then ifup-wait-all triggers an ifup eth0 which gets an ip from the hosts 10.0.3.1 lxcbr0 bridge but since the internal lxcbr0 is on 10.0.3.1, none of the traffic gets to eth0 (or out of it). [ 11.456968] cloud-init[558]: Cloud-init v. 0.7.7 running 'init-local' at Tue, 27 Oct 2015 16:49:58 +0000. Up 11.03 seconds.^M^M [^[[32m OK ^[[0m] Started Initial cloud-init job (pre-networking).^M^M cloud-init-local.service^M^M [^[[32m OK ^[[0m] Started Container hypervisor based on LXC - boot time check.^M^M [^[[32m OK ^[[0m] Started Wait for all "auto" /etc/ne...be up for network-online.target.^M^M [^[[32m OK ^[[0m] Reached target Network is Online.^M^M Starting /etc/rc.local Compatibility...^M^M Starting Initial cloud-init job (metadata service crawler)...^M^M ifup-wait-all-auto.service^M^M [^[[32m OK ^[[0m] Started /etc/rc.local Compatibility.^M^M rc-local.service^M^M tmp-tmpv77mgee6.mount^M^M [ 13.042028] cloud-init[880]: Oct 27 16:50:00 ubuntu <13>Oct 27 16:50:00 pollinate[941]: ERROR: Network communication failed [6]\n % Total % Received % Xferd Average Speed Time Time Time Current^M^M [ 13.045474] cloud-init[880]: Dload Upload Total Spent Left Speed^M^M [ 13.046276] cloud-init[880]: 0 0 0 0 0 0 0 0 --:--:-- --:--:-- --:--:-- 016:50:00.039432 * Could not resolve host: entropy.ubuntu.com^M^M [ 13.046467] cloud-init[880]: 16:50:00.039489 * Closing connection 0^M^M [ 13.046648] cloud-init[880]: curl: (6) Could not resolve host: entropy.ubuntu.com^M^M [ 13.050804] cloud-init[880]: Cloud-init v. 0.7.7 running 'init' at Tue, 27 Oct 2015 16:50:00 +0000. Up 12.60 seconds.^M^M [ 13.052244] cloud-init[880]: ci-info: ++++++++++++++++++++++++++++++++++++++Net device info+++++++++++++++++++++++++++++++++++++++^M^M [ 13.052431] cloud-init[880]: ci-info: +--------+------+------------------------------+---------------+-------+-------------------+^M^M [ 13.052615] cloud-init[880]: ci-info: | Device | Up | Address | Mask | Scope | Hw-Address |^M^M [ 13.052794] cloud-init[880]: ci-info: +--------+------+------------------------------+---------------+-------+-------------------+^M^M [ 13.052973] cloud-init[880]: ci-info: | eth0 | True | 10.0.3.90 | 255.255.255.0 | . | 52:54:00:77:2e:57 |^M^M [ 13.053149] cloud-init[880]: ci-info: | eth0 | True | fe80::5054:ff:fe77:2e57/64 | . | link | 52:54:00:77:2e:57 |^M^M [ 13.053368] cloud-init[880]: ci-info: | lo | True | 127.0.0.1 | 255.0.0.0 | . | . |^M^M [ 13.055164] cloud-init[880]: ci-info: | lo | True | ::1/128 | . | host | . |^M^M [ 13.055340] cloud-init[880]: ci-info: | lxcbr0 | True | 10.0.3.1 | 255.255.255.0 | . | 1e:e1:f4:04:a6:85 |^M^M [ 13.055516] cloud-init[880]: ci-info: | lxcbr0 | True | fe80::1ce1:f4ff:fe04:a685/64 | . | link | 1e:e1:f4:04:a6:85 |^M^M [ 13.055689] cloud-init[880]: ci-info: +--------+------+------------------------------+---------------+-------+-------------------+^M^M [ 13.055861] cloud-init[880]: ci-info: +++++++++++++++++++++++++++Route IPv4 info++++++++++++++++++++++++++++^M^M