The root cause of this issue was not nova, it was CentOS image defaults
to domain .novalocal, then cloud-init apply that value on startup. With
ubuntu or cirros this don't happen.

Will mark the bug as invalid.

Thanks for your work.

Regards

** Changed in: nova
       Status: Incomplete => Invalid

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https://bugs.launchpad.net/bugs/1694417

Title:
  dhcp_domain used when use_neutron is not set

Status in OpenStack Compute (nova):
  Invalid

Bug description:
  Description
  ===========

  While configuring nova with neutron and designate to provide DNS to
  instances, found that if use_neutron is not explicitly set to True in
  nova.conf it gets ignored and dhcp_domain setting is used (novalocal
  by default). I think designate does nothing here and the issue is
  between nova and neutron configuration because if nova option is not
  used, neutron default dns_domain would be openstacklocal.

  network_opts = [
      cfg.BoolOpt('use_neutron',
          default=True,
          deprecated_for_removal=True,
          deprecated_since='15.0.0',
          deprecated_reason="""
  nova-network is deprecated, as are any related configuration options.
  """,
          help="""
  Enable neutron as the backend for networking.
  Determine whether to use Neutron or Nova Network as the back end. Set to true
  to use neutron.
  """),

  From what I understand from [0] is if use_neutron is True(default
  value, see above), dhcp_domain option is not used and uses neutron
  settings.

      cfg.StrOpt("dhcp_domain",
          default="novalocal",
          deprecated_for_removal=True,
          deprecated_since='15.0.0',
          deprecated_reason="""
  nova-network is deprecated, as are any related configuration options.
  """,
          help="""
  This option allows you to specify the domain for the DHCP server.
  Possible values:
  * Any string that is a valid domain name.
  Related options:
  * ``use_neutron``
  """),

  Steps to reproduce
  ==================

  No set use_neutron=True at nova.conf (is default)
  Set dns_domain = sample.openstack.org. in neutron.conf
  Boot an instance and check fqdn

  Expected results
  ================

  Instance have fqdn <vm-name>.sample.openstack.org

  Actual results
  ==============

  Instance have fqdn <vm-name>.novalocal

  
  Environment
  ===========

  CentOS
  Source code from master
  Deployed with kolla-ansible
  neutron + ml2 + ovs
  nova==16.0.0.0b2.dev511
  Latest commit: 
https://github.com/openstack/nova/commit/98b8e39ac5f7b3f2bb06ca415bbb806705461d74

  If manually set use_neutron=True in nova.conf instance gets domain
  based on dns_domain setting from neutron.

  [0] https://github.com/openstack/nova/blob/master/nova/conf/network.py

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