diff --git a/apps/k8s-networking/api/src/main/java/org/onosproject/k8snetworking/api/Constants.java b/apps/k8s-networking/api/src/main/java/org/onosproject/k8snetworking/api/Constants.java
index 1c3ee7f..fea0736 100644
--- a/apps/k8s-networking/api/src/main/java/org/onosproject/k8snetworking/api/Constants.java
+++ b/apps/k8s-networking/api/src/main/java/org/onosproject/k8snetworking/api/Constants.java
@@ -49,9 +49,6 @@
     public static final String SRC = "src";
     public static final String DST = "dst";
 
-    // TODO: need to inject service IP CIDR through REST
-    public static final String SERVICE_IP_CIDR = "10.96.0.0/24";
-
     public static final String PORT_NAME_PREFIX_CONTAINER = "veth";
 
     public static final String ANNOTATION_NETWORK_ID = "networkId";
@@ -68,6 +65,7 @@
     public static final int PRIORITY_CT_RULE = 32000;
     public static final int PRIORITY_CT_DROP_RULE = 32500;
     public static final int PRIORITY_NAT_RULE = 30000;
+    public static final int PRIORITY_SERVICE_CIDR_RULE = 32000;
     public static final int PRIORITY_GATEWAY_RULE = 30000;
     public static final int PRIORITY_SWITCHING_RULE = 30000;
     public static final int PRIORITY_CIDR_RULE = 30000;
diff --git a/apps/k8s-networking/app/src/main/java/org/onosproject/k8snetworking/impl/K8sFlowRuleManager.java b/apps/k8s-networking/app/src/main/java/org/onosproject/k8snetworking/impl/K8sFlowRuleManager.java
index f6f1033..4ed2f99 100644
--- a/apps/k8s-networking/app/src/main/java/org/onosproject/k8snetworking/impl/K8sFlowRuleManager.java
+++ b/apps/k8s-networking/app/src/main/java/org/onosproject/k8snetworking/impl/K8sFlowRuleManager.java
@@ -63,12 +63,8 @@
 import static org.onosproject.k8snetworking.api.Constants.JUMP_TABLE;
 import static org.onosproject.k8snetworking.api.Constants.K8S_NETWORKING_APP_ID;
 import static org.onosproject.k8snetworking.api.Constants.PRIORITY_CIDR_RULE;
-import static org.onosproject.k8snetworking.api.Constants.PRIORITY_CT_RULE;
 import static org.onosproject.k8snetworking.api.Constants.PRIORITY_SNAT_RULE;
 import static org.onosproject.k8snetworking.api.Constants.ROUTING_TABLE;
-import static org.onosproject.k8snetworking.api.Constants.SERVICE_FAKE_MAC_STR;
-import static org.onosproject.k8snetworking.api.Constants.SERVICE_IP_CIDR;
-import static org.onosproject.k8snetworking.api.Constants.SHIFTED_IP_CIDR;
 import static org.onosproject.k8snetworking.api.Constants.STAT_INBOUND_TABLE;
 import static org.onosproject.k8snetworking.api.Constants.STAT_OUTBOUND_TABLE;
 import static org.onosproject.k8snetworking.api.Constants.VTAG_TABLE;
@@ -336,38 +332,6 @@
         }
     }
 
-    private void setGroupingRule(IpPrefix srcPrefix) {
-        TrafficSelector.Builder sBuilder = DefaultTrafficSelector.builder()
-                .matchEthType(Ethernet.TYPE_IPV4)
-                .matchIPSrc(srcPrefix);
-
-        TrafficTreatment.Builder tBuilder = DefaultTrafficTreatment.builder()
-                .transition(ROUTING_TABLE);
-
-        for (K8sNode node : k8sNodeService.completeNodes()) {
-            FlowRule flowRule = DefaultFlowRule.builder()
-                    .forDevice(node.intgBridge())
-                    .withSelector(sBuilder.build())
-                    .withTreatment(tBuilder.build())
-                    .withPriority(PRIORITY_CT_RULE)
-                    .fromApp(appId)
-                    .makePermanent()
-                    .forTable(JUMP_TABLE)
-                    .build();
-            applyRule(flowRule, true);
-        }
-    }
-
-    private void setupTransientRoutingRule() {
-        setGroupingRule(IpPrefix.valueOf(SHIFTED_IP_CIDR));
-    }
-
-    private void setupServiceRoutingRule(K8sNetwork k8sNetwork) {
-        setGroupingRule(IpPrefix.valueOf(SERVICE_IP_CIDR));
-        setAnyRoutingRule(IpPrefix.valueOf(SERVICE_IP_CIDR),
-                MacAddress.valueOf(SERVICE_FAKE_MAC_STR), k8sNetwork);
-    }
-
     private void setupHostRoutingRule(K8sNetwork k8sNetwork) {
         setAnyRoutingRule(IpPrefix.valueOf(
                 k8sNetwork.gatewayIp(), 32), null, k8sNetwork);
@@ -399,12 +363,8 @@
             }
 
             initializePipeline(node);
-            setupTransientRoutingRule();
 
-            k8sNetworkService.networks().forEach(n -> {
-                setupHostRoutingRule(n);
-                setupServiceRoutingRule(n);
-            });
+            k8sNetworkService.networks().forEach(K8sFlowRuleManager.this::setupHostRoutingRule);
         }
     }
 
@@ -434,7 +394,6 @@
             }
 
             setupHostRoutingRule(network);
-            setupServiceRoutingRule(network);
         }
     }
 }
diff --git a/apps/k8s-networking/app/src/main/java/org/onosproject/k8snetworking/impl/K8sServiceHandler.java b/apps/k8s-networking/app/src/main/java/org/onosproject/k8snetworking/impl/K8sServiceHandler.java
index 26d8400..76785df 100644
--- a/apps/k8s-networking/app/src/main/java/org/onosproject/k8snetworking/impl/K8sServiceHandler.java
+++ b/apps/k8s-networking/app/src/main/java/org/onosproject/k8snetworking/impl/K8sServiceHandler.java
@@ -28,6 +28,7 @@
 import org.onlab.packet.IPv4;
 import org.onlab.packet.IpAddress;
 import org.onlab.packet.IpPrefix;
+import org.onlab.packet.MacAddress;
 import org.onlab.packet.TpPort;
 import org.onlab.util.Tools;
 import org.onosproject.cfg.ComponentConfigService;
@@ -42,6 +43,9 @@
 import org.onosproject.k8snetworking.api.K8sEndpointsService;
 import org.onosproject.k8snetworking.api.K8sFlowRuleService;
 import org.onosproject.k8snetworking.api.K8sGroupRuleService;
+import org.onosproject.k8snetworking.api.K8sNetwork;
+import org.onosproject.k8snetworking.api.K8sNetworkEvent;
+import org.onosproject.k8snetworking.api.K8sNetworkListener;
 import org.onosproject.k8snetworking.api.K8sNetworkService;
 import org.onosproject.k8snetworking.api.K8sPodEvent;
 import org.onosproject.k8snetworking.api.K8sPodListener;
@@ -56,6 +60,7 @@
 import org.onosproject.k8snode.api.K8sNodeListener;
 import org.onosproject.k8snode.api.K8sNodeService;
 import org.onosproject.net.DeviceId;
+import org.onosproject.net.PortNumber;
 import org.onosproject.net.device.DeviceService;
 import org.onosproject.net.driver.DriverService;
 import org.onosproject.net.flow.DefaultTrafficSelector;
@@ -93,20 +98,25 @@
 import static org.onosproject.k8snetworking.api.Constants.NAT_STATELESS;
 import static org.onosproject.k8snetworking.api.Constants.NAT_TABLE;
 import static org.onosproject.k8snetworking.api.Constants.POD_TABLE;
+import static org.onosproject.k8snetworking.api.Constants.PRIORITY_CIDR_RULE;
 import static org.onosproject.k8snetworking.api.Constants.PRIORITY_CT_RULE;
 import static org.onosproject.k8snetworking.api.Constants.PRIORITY_INTER_ROUTING_RULE;
 import static org.onosproject.k8snetworking.api.Constants.PRIORITY_NAT_RULE;
 import static org.onosproject.k8snetworking.api.Constants.ROUTING_TABLE;
-import static org.onosproject.k8snetworking.api.Constants.SERVICE_IP_CIDR;
+import static org.onosproject.k8snetworking.api.Constants.SERVICE_FAKE_MAC_STR;
 import static org.onosproject.k8snetworking.api.Constants.SERVICE_TABLE;
 import static org.onosproject.k8snetworking.api.Constants.SHIFTED_IP_CIDR;
 import static org.onosproject.k8snetworking.api.Constants.SHIFTED_IP_PREFIX;
 import static org.onosproject.k8snetworking.api.Constants.SRC;
+import static org.onosproject.k8snetworking.api.Constants.STAT_OUTBOUND_TABLE;
+import static org.onosproject.k8snetworking.impl.OsgiPropertyConstants.SERVICE_CIDR;
+import static org.onosproject.k8snetworking.impl.OsgiPropertyConstants.SERVICE_IP_CIDR_DEFAULT;
 import static org.onosproject.k8snetworking.impl.OsgiPropertyConstants.SERVICE_IP_NAT_MODE;
 import static org.onosproject.k8snetworking.impl.OsgiPropertyConstants.SERVICE_IP_NAT_MODE_DEFAULT;
-import static org.onosproject.k8snetworking.api.Constants.STAT_OUTBOUND_TABLE;
 import static org.onosproject.k8snetworking.util.K8sNetworkingUtil.nodeIpGatewayIpMap;
+import static org.onosproject.k8snetworking.util.K8sNetworkingUtil.tunnelPortNumByNetId;
 import static org.onosproject.k8snetworking.util.RulePopulatorUtil.CT_NAT_DST_FLAG;
+import static org.onosproject.k8snetworking.util.RulePopulatorUtil.buildExtension;
 import static org.onosproject.k8snetworking.util.RulePopulatorUtil.buildGroupBucket;
 import static org.onosproject.k8snetworking.util.RulePopulatorUtil.buildLoadExtension;
 import static org.onosproject.k8snetworking.util.RulePopulatorUtil.buildResubmitExtension;
@@ -122,7 +132,8 @@
 @Component(
     immediate = true,
     property = {
-            SERVICE_IP_NAT_MODE + "=" + SERVICE_IP_NAT_MODE_DEFAULT
+            SERVICE_IP_NAT_MODE + "=" + SERVICE_IP_NAT_MODE_DEFAULT,
+            SERVICE_CIDR + "=" + SERVICE_IP_CIDR_DEFAULT
     }
 )
 public class K8sServiceHandler {
@@ -135,6 +146,7 @@
     private static final String CLUSTER_IP = "ClusterIP";
     private static final String TCP = "TCP";
     private static final String UDP = "UDP";
+    private static final String SERVICE_IP_NAT_MODE = "serviceIpNatMode";
 
     private static final String GROUP_ID_COUNTER_NAME = "group-id-counter";
 
@@ -186,6 +198,9 @@
     /** Service IP address translation mode. */
     private String serviceIpNatMode = SERVICE_IP_NAT_MODE_DEFAULT;
 
+    /** Ranges of IP address of service VIP. */
+    private String serviceCidr = SERVICE_IP_CIDR_DEFAULT;
+
     private final ExecutorService eventExecutor = newSingleThreadExecutor(
             groupedThreads(this.getClass().getSimpleName(), "event-handler", log));
     private final InternalNodeEventListener internalNodeEventListener =
@@ -196,6 +211,8 @@
             new InternalK8sPodListener();
     private final InternalK8sEndpointsListener internalK8sEndpointsListener =
             new InternalK8sEndpointsListener();
+    private final InternalK8sNetworkListener internalK8sNetworkListener =
+            new InternalK8sNetworkListener();
 
     private AtomicCounter groupIdCounter;
 
@@ -212,6 +229,7 @@
         k8sServiceService.addListener(internalK8sServiceListener);
         k8sPodService.addListener(internalK8sPodListener);
         k8sEndpointsService.addListener(internalK8sEndpointsListener);
+        k8sNetworkService.addListener(internalK8sNetworkListener);
 
         groupIdCounter = storageService.getAtomicCounter(GROUP_ID_COUNTER_NAME);
 
@@ -225,6 +243,7 @@
         k8sNodeService.removeListener(internalNodeEventListener);
         k8sServiceService.removeListener(internalK8sServiceListener);
         k8sEndpointsService.removeListener(internalK8sEndpointsListener);
+        k8sNetworkService.removeListener(internalK8sNetworkListener);
         configService.unregisterProperties(getClass(), false);
         eventExecutor.shutdown();
 
@@ -245,7 +264,7 @@
 
         k8sNetworkService.networks().forEach(n -> {
             // TODO: need to provide a way to add multiple service IP CIDR ranges
-            setUntrack(deviceId, ctUntrack, ctMaskUntrack, n.cidr(), SERVICE_IP_CIDR,
+            setUntrack(deviceId, ctUntrack, ctMaskUntrack, n.cidr(), serviceCidr,
                     JUMP_TABLE, NAT_TABLE, PRIORITY_CT_RULE, install);
             setUntrack(deviceId, ctUntrack, ctMaskUntrack, n.cidr(), n.cidr(),
                     JUMP_TABLE, ROUTING_TABLE, PRIORITY_CT_RULE, install);
@@ -274,7 +293,7 @@
                 k8sNodeService.node(deviceId).hostname()).cidr();
 
         k8sNetworkService.networks().forEach(n -> {
-            setSrcDstCidrRules(deviceId, n.cidr(), SERVICE_IP_CIDR, null, JUMP_TABLE,
+            setSrcDstCidrRules(deviceId, n.cidr(), serviceCidr, null, JUMP_TABLE,
                     SERVICE_TABLE, PRIORITY_CT_RULE, install);
             setSrcDstCidrRules(deviceId, n.cidr(), SHIFTED_IP_CIDR, null, JUMP_TABLE,
                     POD_TABLE, PRIORITY_CT_RULE, install);
@@ -314,10 +333,6 @@
                 install);
     }
 
-    private String servicePortStr(String ip, int port, String protocol) {
-        return ip + "_" + port + "_" + protocol;
-    }
-
     /**
      * Obtains the service port to endpoint address paired map.
      *
@@ -558,6 +573,52 @@
                 install);
     }
 
+    private void setCidrRoutingRule(IpPrefix prefix, MacAddress mac,
+                                    K8sNetwork network, boolean install) {
+        TrafficSelector.Builder sBuilder = DefaultTrafficSelector.builder()
+                .matchEthType(Ethernet.TYPE_IPV4)
+                .matchIPSrc(prefix)
+                .matchIPDst(IpPrefix.valueOf(network.cidr()));
+
+        k8sNodeService.completeNodes().forEach(n -> {
+            TrafficTreatment.Builder tBuilder = DefaultTrafficTreatment.builder()
+                    .setTunnelId(Long.valueOf(network.segmentId()));
+
+            if (n.hostname().equals(network.name())) {
+                if (mac != null) {
+                    tBuilder.setEthSrc(mac);
+                }
+                tBuilder.transition(STAT_OUTBOUND_TABLE);
+            } else {
+                PortNumber portNum = tunnelPortNumByNetId(network.networkId(),
+                        k8sNetworkService, n);
+                K8sNode localNode = k8sNodeService.node(network.name());
+
+                tBuilder.extension(buildExtension(
+                        deviceService,
+                        n.intgBridge(),
+                        localNode.dataIp().getIp4Address()),
+                        n.intgBridge())
+                        .setOutput(portNum);
+            }
+
+            k8sFlowRuleService.setRule(
+                    appId,
+                    n.intgBridge(),
+                    sBuilder.build(),
+                    tBuilder.build(),
+                    PRIORITY_CIDR_RULE,
+                    ROUTING_TABLE,
+                    install
+            );
+        });
+    }
+
+    private void setupServiceDefaultRule(K8sNetwork k8sNetwork, boolean install) {
+        setCidrRoutingRule(IpPrefix.valueOf(serviceCidr),
+                MacAddress.valueOf(SERVICE_FAKE_MAC_STR), k8sNetwork, install);
+    }
+
     private void setStatefulGroupFlowRules(DeviceId deviceId, long ctState,
                                            long ctMask, Service service,
                                            boolean install) {
@@ -727,6 +788,10 @@
         }
     }
 
+    private String servicePortStr(String ip, int port, String protocol) {
+        return ip + "_" + port + "_" + protocol;
+    }
+
     /**
      * Extracts properties from the component configuration context.
      *
@@ -738,6 +803,11 @@
         String updatedNatMode = Tools.get(properties, SERVICE_IP_NAT_MODE);
         serviceIpNatMode = updatedNatMode != null ? updatedNatMode : SERVICE_IP_NAT_MODE_DEFAULT;
         log.info("Configured. Service IP NAT mode is {}", serviceIpNatMode);
+
+        String updatedServiceCidr = Tools.get(properties, SERVICE_CIDR);
+        serviceCidr = updatedServiceCidr != null ?
+                updatedServiceCidr : SERVICE_IP_CIDR_DEFAULT;
+        log.info("Configured. Service VIP range is {}", serviceCidr);
     }
 
     private void setServiceNatRules(DeviceId deviceId, boolean install) {
@@ -926,8 +996,36 @@
             }
 
             setServiceNatRules(node.intgBridge(), true);
-
             k8sEndpointsService.endpointses().forEach(e -> setK8sApiRules(node, e, true));
+            k8sNetworkService.networks().forEach(n -> setupServiceDefaultRule(n, true));
+        }
+    }
+
+    private class InternalK8sNetworkListener implements K8sNetworkListener {
+
+        private boolean isRelevantHelper() {
+            return Objects.equals(localNodeId, leadershipService.getLeader(appId.name()));
+        }
+
+        @Override
+        public void event(K8sNetworkEvent event) {
+            switch (event.type()) {
+                case K8S_NETWORK_CREATED:
+                    eventExecutor.execute(() -> processNetworkCreation(event.subject()));
+                    break;
+                case K8S_NETWORK_UPDATED:
+                case K8S_NETWORK_REMOVED:
+                default:
+                    break;
+            }
+        }
+
+        private void processNetworkCreation(K8sNetwork network) {
+            if (!isRelevantHelper()) {
+                return;
+            }
+
+            setupServiceDefaultRule(network, true);
         }
     }
 }
diff --git a/apps/k8s-networking/app/src/main/java/org/onosproject/k8snetworking/impl/OsgiPropertyConstants.java b/apps/k8s-networking/app/src/main/java/org/onosproject/k8snetworking/impl/OsgiPropertyConstants.java
index 04705f3..6a6979b 100644
--- a/apps/k8s-networking/app/src/main/java/org/onosproject/k8snetworking/impl/OsgiPropertyConstants.java
+++ b/apps/k8s-networking/app/src/main/java/org/onosproject/k8snetworking/impl/OsgiPropertyConstants.java
@@ -34,4 +34,6 @@
 
     static final String SERVICE_IP_NAT_MODE = "serviceIpNatMode";
     static final String SERVICE_IP_NAT_MODE_DEFAULT = "stateless";
+    static final String SERVICE_CIDR = "serviceCidr";
+    static final String SERVICE_IP_CIDR_DEFAULT = "10.96.0.0/12";
 }