diff --git a/tools/dev/bin/onos-setup-karaf b/tools/dev/bin/onos-setup-karaf
index da63445..2b77e74 100755
--- a/tools/dev/bin/onos-setup-karaf
+++ b/tools/dev/bin/onos-setup-karaf
@@ -17,7 +17,7 @@
 # Validates the specified IP regular expression against existing adapters.
 # Excludes local-loopback.
 function validateIp {
-    ifconfig | awk '{ print $2}' | grep -E -o "([0-9]{1,3}[\.]){3}[0-9]{1,3}" | grep -v "127\.0\.0\.1" | grep $1
+    ifconfig | awk '{ print $2}' | grep -E -o "([0-9]{1,3}[\.]){3}[0-9]{1,3}" | grep $1
 }
 
 # Clean the previous Karaf directory if requested and if it exists.
@@ -26,6 +26,7 @@
     [ -d $KARAF_ROOT ] && rm -fr $KARAF_ROOT $STAGE/apps $STAGE/config
 fi
 
+ONOS_IP=${ONOS_IP:-127.0.0.1}
 IP="${1:-$ONOS_IP}"
 
 # If IP was not given, nor configured attempt to use ONOS_NIC env. variable
@@ -104,11 +105,6 @@
       "partitions": { "p1": [ { "ip": "$IP", "id": "$IP", "tcpPort": 9876 }]}}
 EOF
 
-echo "Setting up hazelcast.xml for subnet $SUBNET.*..."
-cp $ONOS_ROOT/tools/package/etc/hazelcast.xml $KARAF_ROOT/etc/hazelcast.xml
-perl -pi.old -e "s/192.168.56/$SUBNET/" $KARAF_ROOT/etc/hazelcast.xml
-perl -pi.old -e "s/        <name>onos</        <name>$IP</" $KARAF_ROOT/etc/hazelcast.xml
-
 echo "Staging builtin apps..."
 rm -fr $STAGE/apps
 onos-stage-apps $STAGE/apps $KARAF_ROOT/system