A method of managing route tables in a data center for virtual routers of an overlay network and an underlay network router of an underlay network, wherein the data center comprises a plurality of hosts, each of the plurality of hosts including one or more virtual compute instances, VCIs, (120, 128, 129, 136) and a virtual router, the plurality of hosts being coupled to the underlay network, each VCI and each of the plurality of hosts having a corresponding IP address, the method comprising: generating a route table by a controller in a control plane of the overlay network, the route table including at least one entry including a first entry associating a first route corresponding to a first VCI on a first host to a first next hop indicating an IP address of the underlay network router; and transmitting, by the controller, the generated route table to each of the plurality of hosts (105a-c), wherein each of the plurality of hosts (105a-c) accepts the generated route table as a route table (304a-c) of its corresponding virtual router, wherein the first host updates the first entry in the route table of its corresponding virtual router to update the first next hop to indicate that the first VCI is local to the first host, and wherein the first host updates a route table of the underlay network router with an entry associating the first route to a next hop indicating an IP address of the first host. wherein the data center comprises a plurality of hosts, each of the plurality of hosts including one or more virtual compute instances, VCIs, (120, 128, 129, 136) and a virtual router, the plurality of hosts being coupled to the underlay network, each VCI and each of the plurality of hosts having a corresponding IP address, the method comprising: generating a route table by a controller in a control plane of the overlay network, the route table including at least one entry including a first entry associating a first route corresponding to a first VCI on a first host to a first next hop indicating an IP address of the underlay network router; and transmitting, by the controller, the generated route table to each of the plurality of hosts (105a-c), wherein each of the plurality of hosts (105a-c) accepts the generated route table as a route table (304a-c) of its corresponding virtual router, wherein the first host updates the first entry in the route table of its corresponding virtual router to update the first next hop to indicate that the first VCI is local to the first host, and wherein the first host updates a route table of the underlay network router with an entry associating the first route to a next hop indicating an IP address of the first host. generating a route table by a controller in a control plane of the overlay network, the route table including at least one entry including a first entry associating a first route corresponding to a first VCI on a first host to a first next hop indicating an IP address of the underlay network router; and transmitting, by the controller, the generated route table to each of the plurality of hosts (105a-c), wherein each of the plurality of hosts (105a-c) accepts the generated route table as a route table (304a-c) of its corresponding virtual router, wherein the first host updates the first entry in the route table of its corresponding virtual router to update the first next hop to indicate that the first VCI is local to the first host, and wherein the first host updates a route table of the underlay network router with an entry associating the first route to a next hop indicating an IP address of the first host.