diff --git a/elements/base/install.d/10-cloud-init b/elements/base/install.d/10-cloud-init
index 17b1c4b8..9411bad5 100755
--- a/elements/base/install.d/10-cloud-init
+++ b/elements/base/install.d/10-cloud-init
@@ -5,5 +5,5 @@ set -eu
 set -o pipefail
 
 dd of=/etc/cloud/cloud.cfg.d/10_etc_hosts.cfg << EOF
-manage_etc_hosts: True
+manage_etc_hosts: localhost
 EOF