diff --git a/core/net/src/main/java/org/onosproject/net/intent/impl/compiler/PathCompiler.java b/core/net/src/main/java/org/onosproject/net/intent/impl/compiler/PathCompiler.java
new file mode 100644
index 0000000..7514250
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+++ b/core/net/src/main/java/org/onosproject/net/intent/impl/compiler/PathCompiler.java
@@ -0,0 +1,274 @@
+/*
+ * Copyright 2016 Open Networking Laboratory
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package org.onosproject.net.intent.impl.compiler;
+
+import java.util.Collections;
+import java.util.HashMap;
+import java.util.Iterator;
+import java.util.List;
+import java.util.Map;
+import java.util.Optional;
+import java.util.Set;
+import java.util.stream.Collectors;
+import java.util.stream.Stream;
+
+import org.onlab.packet.VlanId;
+import org.onosproject.net.ConnectPoint;
+import org.onosproject.net.DeviceId;
+import org.onosproject.net.Link;
+import org.onosproject.net.LinkKey;
+import org.onosproject.net.flow.DefaultTrafficSelector;
+import org.onosproject.net.flow.DefaultTrafficTreatment;
+import org.onosproject.net.flow.TrafficSelector;
+import org.onosproject.net.flow.TrafficTreatment;
+import org.onosproject.net.flow.criteria.Criterion;
+import org.onosproject.net.flow.criteria.VlanIdCriterion;
+import org.onosproject.net.flow.instructions.L2ModificationInstruction;
+import org.onosproject.net.intent.PathIntent;
+import org.onosproject.net.intent.constraint.EncapsulationConstraint;
+import org.onosproject.net.intent.impl.IntentCompilationException;
+import org.onosproject.net.newresource.Resource;
+import org.onosproject.net.newresource.ResourceService;
+import org.onosproject.net.newresource.Resources;
+import org.slf4j.Logger;
+
+import com.google.common.collect.ImmutableList;
+import com.google.common.collect.Sets;
+
+import static org.onosproject.net.LinkKey.linkKey;
+
+/**
+ * Shared APIs and implementations for path compilers.
+ */
+
+public class PathCompiler<T> {
+
+    /**
+     * Defines methods used to create objects representing flows.
+     */
+    public interface PathCompilerCreateFlow<T> {
+
+        void createFlow(TrafficSelector originalSelector,
+                        TrafficTreatment originalTreatment,
+                        ConnectPoint ingress, ConnectPoint egress,
+                        int priority,
+                        boolean applyTreatment,
+                        List<T> flows,
+                        List<DeviceId> devices);
+
+        Logger log();
+
+        ResourceService resourceService();
+    }
+
+    private boolean isLast(List<Link> links, int i) {
+        return i == links.size() - 2;
+    }
+
+    private Map<LinkKey, VlanId> assignVlanId(PathCompilerCreateFlow creator, PathIntent intent) {
+        Set<LinkKey> linkRequest =
+                Sets.newHashSetWithExpectedSize(intent.path()
+                        .links().size() - 2);
+        for (int i = 1; i <= intent.path().links().size() - 2; i++) {
+            LinkKey link = linkKey(intent.path().links().get(i));
+            linkRequest.add(link);
+            // add the inverse link. I want that the VLANID is reserved both for
+            // the direct and inverse link
+            linkRequest.add(linkKey(link.dst(), link.src()));
+        }
+
+        Map<LinkKey, VlanId> vlanIds = findVlanIds(creator, linkRequest);
+        if (vlanIds.isEmpty()) {
+            creator.log().warn("No VLAN IDs available");
+            return Collections.emptyMap();
+        }
+
+        //same VLANID is used for both directions
+        Set<Resource> resources = vlanIds.entrySet().stream()
+                .flatMap(x -> Stream.of(
+                        Resources.discrete(x.getKey().src().deviceId(), x.getKey().src().port(), x.getValue())
+                                .resource(),
+                        Resources.discrete(x.getKey().dst().deviceId(), x.getKey().dst().port(), x.getValue())
+                                .resource()
+                ))
+                .collect(Collectors.toSet());
+        List<org.onosproject.net.newresource.ResourceAllocation> allocations =
+                creator.resourceService().allocate(intent.id(), ImmutableList.copyOf(resources));
+        if (allocations.isEmpty()) {
+            Collections.emptyMap();
+        }
+
+        return vlanIds;
+    }
+
+    private Map<LinkKey, VlanId> findVlanIds(PathCompilerCreateFlow creator, Set<LinkKey> links) {
+        Map<LinkKey, VlanId> vlanIds = new HashMap<>();
+        for (LinkKey link : links) {
+            Set<VlanId> forward = findVlanId(creator, link.src());
+            Set<VlanId> backward = findVlanId(creator, link.dst());
+            Set<VlanId> common = Sets.intersection(forward, backward);
+            if (common.isEmpty()) {
+                continue;
+            }
+            vlanIds.put(link, common.iterator().next());
+        }
+        return vlanIds;
+    }
+
+    private Set<VlanId> findVlanId(PathCompilerCreateFlow creator, ConnectPoint cp) {
+        return creator.resourceService().getAvailableResourceValues(
+                Resources.discrete(cp.deviceId(), cp.port()).id(),
+                VlanId.class);
+    }
+
+    private void manageVlanEncap(PathCompilerCreateFlow<T> creator, List<T> flows,
+                                 List<DeviceId> devices,
+                                 PathIntent intent) {
+        Map<LinkKey, VlanId> vlanIds = assignVlanId(creator, intent);
+
+        Iterator<Link> links = intent.path().links().iterator();
+        Link srcLink = links.next();
+
+        Link link = links.next();
+
+        // Ingress traffic
+        VlanId vlanId = vlanIds.get(linkKey(link));
+        if (vlanId == null) {
+            throw new IntentCompilationException("No available VLAN ID for " + link);
+        }
+        VlanId prevVlanId = vlanId;
+
+        Optional<VlanIdCriterion> vlanCriterion = intent.selector().criteria()
+                .stream().filter(criterion -> criterion.type() == Criterion.Type.VLAN_VID)
+                .map(criterion -> (VlanIdCriterion) criterion)
+                .findAny();
+
+        //Push VLAN if selector does not include VLAN
+        TrafficTreatment.Builder treatBuilder = DefaultTrafficTreatment.builder();
+        if (!vlanCriterion.isPresent()) {
+            treatBuilder.pushVlan();
+        }
+        //Tag the traffic with the new encapsulation VLAN
+        treatBuilder.setVlanId(vlanId);
+        creator.createFlow(intent.selector(), treatBuilder.build(),
+                           srcLink.dst(), link.src(), intent.priority(), true,
+                           flows, devices);
+
+        ConnectPoint prev = link.dst();
+
+        while (links.hasNext()) {
+
+            link = links.next();
+
+            if (links.hasNext()) {
+                // Transit traffic
+                VlanId egressVlanId = vlanIds.get(linkKey(link));
+                if (egressVlanId == null) {
+                    throw new IntentCompilationException("No available VLAN ID for " + link);
+                }
+                prevVlanId = egressVlanId;
+
+                TrafficSelector transitSelector = DefaultTrafficSelector.builder()
+                        .matchInPort(prev.port())
+                        .matchVlanId(prevVlanId).build();
+
+                TrafficTreatment.Builder transitTreat = DefaultTrafficTreatment.builder();
+
+                // Set the new vlanId only if the previous one is different
+                if (!prevVlanId.equals(egressVlanId)) {
+                    transitTreat.setVlanId(egressVlanId);
+                }
+                creator.createFlow(transitSelector,
+                                   transitTreat.build(), prev, link.src(),
+                                   intent.priority(), true, flows, devices);
+                prev = link.dst();
+            } else {
+                // Egress traffic
+                TrafficSelector egressSelector = DefaultTrafficSelector.builder()
+                        .matchInPort(prev.port())
+                        .matchVlanId(prevVlanId).build();
+                TrafficTreatment.Builder egressTreat = DefaultTrafficTreatment.builder(intent.treatment());
+
+                Optional<L2ModificationInstruction.ModVlanIdInstruction> modVlanIdInstruction = intent.treatment()
+                        .allInstructions().stream().filter(
+                                instruction -> instruction instanceof L2ModificationInstruction.ModVlanIdInstruction)
+                        .map(x -> (L2ModificationInstruction.ModVlanIdInstruction) x).findAny();
+
+                Optional<L2ModificationInstruction.PopVlanInstruction> popVlanInstruction = intent.treatment()
+                        .allInstructions().stream().filter(
+                                instruction -> instruction instanceof L2ModificationInstruction.PopVlanInstruction)
+                        .map(x -> (L2ModificationInstruction.PopVlanInstruction) x).findAny();
+
+                if (!modVlanIdInstruction.isPresent() && !popVlanInstruction.isPresent()) {
+                    if (vlanCriterion.isPresent()) {
+                        egressTreat.setVlanId(vlanCriterion.get().vlanId());
+                    } else {
+                        egressTreat.popVlan();
+                    }
+                }
+
+                creator.createFlow(egressSelector,
+                                   egressTreat.build(), prev, link.src(),
+                                   intent.priority(), true, flows, devices);
+            }
+        }
+    }
+
+    /**
+     * Compiles an intent down to flows.
+     *
+     * @param creator how to create the flows
+     * @param intent intent to process
+     * @param flows list of generated flows
+     * @param devices list of devices that correspond to the flows
+     */
+    public void compile(PathCompilerCreateFlow<T> creator,
+                        PathIntent intent,
+                        List<T> flows,
+                        List<DeviceId> devices) {
+        // Note: right now recompile is not considered
+        // TODO: implement recompile behavior
+
+        List<Link> links = intent.path().links();
+
+        Optional<EncapsulationConstraint> encapConstraint = intent.constraints().stream()
+                .filter(constraint -> constraint instanceof EncapsulationConstraint)
+                .map(x -> (EncapsulationConstraint) x).findAny();
+        //if no encapsulation or is involved only a single switch use the default behaviour
+        if (!encapConstraint.isPresent() || links.size() == 1) {
+            for (int i = 0; i < links.size() - 1; i++) {
+                ConnectPoint ingress = links.get(i).dst();
+                ConnectPoint egress = links.get(i + 1).src();
+                creator.createFlow(intent.selector(), intent.treatment(),
+                                   ingress, egress, intent.priority(),
+                                   isLast(links, i), flows, devices);
+            }
+        }
+
+        encapConstraint.map(EncapsulationConstraint::encapType)
+                .map(type -> {
+                    switch (type) {
+                        case VLAN:
+                            manageVlanEncap(creator, flows, devices, intent);
+                            // TODO: implement MPLS case here
+                        default:
+                            // Nothing to do
+                    }
+                    return 0;
+                });
+    }
+
+}