Comment 4 for bug 1314751

Darren,

You are correct. The "local_ip" in the [ovs] section is necessary in order to setup the GRE tunnel. The tunnel is created by the neutron-openvswitch-agent. Only neutron-openvswitch-agent needs the [ovs] section, not the neutron-server process. When you look at the compute nodes, there is no neutron-server, there is only the neutron-openvswitch-agent so it makes sense that all of the [ovs] logic is handled by the agent instead of the neutron-server.

I'm guessing the reason why the GRE tunnel did you get created for you is because the neutron-openvswitch-agent (on Ubuntu) is hardcoded to look at ml2_conf.ini instead of the ovs_neutron_plugin.ini.

Ideally, I think all of the plugin .ini files should go away and everything should be added to neutron.conf. To accomplish this we would need to get the OpenStack neutron community to agree that this is the correct thing for neutron.