diff --git a/dom0/qvm-core/qubes.py b/dom0/qvm-core/qubes.py
index 1171501e..4556c3e7 100755
--- a/dom0/qvm-core/qubes.py
+++ b/dom0/qvm-core/qubes.py
@@ -1055,10 +1055,14 @@ class QubesNetVm(QubesCowVm):
             "/usr/bin/xenstore-write",
             "/local/domain/{0}/qubes_netvm_external_ip".format(xid),
             ""])
-        self.update_external_ip_permissions()
+        self.update_external_ip_permissions(xid)
+
+    def update_external_ip_permissions(self, xid = -1):
+        if xid < 0:
+            xid = self.get_xid()
+        if xid < 0:
+            return
 
-    def update_external_ip_permissions(self):
-        xid = self.get_xid()
         command = [
                 "/usr/bin/xenstore-chmod",
                 "/local/domain/{0}/qubes_netvm_external_ip".format(xid)
@@ -1104,13 +1108,19 @@ class QubesProxyVm(QubesNetVm):
     def __init__(self, **kwargs):
         super(QubesProxyVm, self).__init__(uses_default_netvm=False, **kwargs)
         self.rules_applied = None
-        if self.netvm_vm is not None:
-            self.netvm_vm.add_external_ip_permission(self.get_xid())
 
     @property
     def type(self):
         return "ProxyVM"
 
+    def start(self, debug_console = False, verbose = False, preparing_dvm = False):
+        if dry_run:
+            return
+        retcode = super(QubesFirewallVm, self).start(debug_console=debug_console, verbose=verbose, preparing_dvm=preparing_dvm)
+        self.netvm_vm.add_external_ip_permission(self.get_xid())
+        self.write_netvm_domid_entry()
+        return retcode
+
     def force_shutdown(self):
         if dry_run:
             return
@@ -1122,10 +1132,6 @@ class QubesProxyVm(QubesNetVm):
             return
 
         super(QubesProxyVm, self).create_xenstore_entries(xid)
-        retcode = subprocess.check_call ([
-            "/usr/bin/xenstore-write",
-            "/local/domain/{0}/qubes_netvm_domid".format(xid),
-            "{0}".format(self.netvm_vm.get_xid())])
         retcode = subprocess.check_call ([
             "/usr/bin/xenstore-write",
             "/local/domain/{0}/qubes_iptables_error".format(xid),
@@ -1136,6 +1142,15 @@ class QubesProxyVm(QubesNetVm):
             "r{0}".format(xid), "w{0}".format(xid)])
         self.write_iptables_xenstore_entry()
 
+    def write_netvm_domid_entry(self, xid = -1):
+        if xid < 0:
+            xid = self.get_xid()
+
+        return subprocess.check_call ([
+            "/usr/bin/xenstore-write", "--",
+            "/local/domain/{0}/qubes_netvm_domid".format(xid),
+            "{0}".format(self.netvm_vm.get_xid())])
+
     def write_iptables_xenstore_entry(self):
         iptables =  "# Generated by Qubes Core on {0}\n".format(datetime.now().ctime())
         iptables += "*filter\n"
@@ -1194,7 +1209,9 @@ class QubesProxyVm(QubesNetVm):
                 iptables += " -j {0}\n".format(rules_action)
 
             if conf["allowDns"]:
-                iptables += "-A FORWARD -i vif{0}.0 -p udp --dport 53 -j ACCEPT\n".format(xid)
+                # PREROUTING does DNAT to NetVM DNSes, so we need self.netvm_vm. properties
+                iptables += "-A FORWARD -i vif{0}.0 -p udp -d {1} --dport 53 -j ACCEPT\n".format(xid,self.netvm_vm.gateway)
+                iptables += "-A FORWARD -i vif{0}.0 -p udp -d {1} --dport 53 -j ACCEPT\n".format(xid,self.netvm_vm.secondary_dns)
 
             iptables += "-A FORWARD -i vif{0}.0 -j {1}\n".format(xid, default_action)
 
@@ -1204,6 +1221,8 @@ class QubesProxyVm(QubesNetVm):
 
         iptables += "COMMIT"
 
+        self.write_netvm_domid_entry()
+
         self.rules_applied = None
         return subprocess.check_call ([
             "/usr/bin/xenstore-write",
diff --git a/proxyvm/bin/qubes_netwatcher b/proxyvm/bin/qubes_netwatcher
new file mode 100755
index 00000000..8f9d2e9c
--- /dev/null
+++ b/proxyvm/bin/qubes_netwatcher
@@ -0,0 +1,27 @@
+#!/bin/bash
+set -e
+
+PIDFILE=/var/run/qubes/qubes_netwatcher.pid
+CURR_NETCFG=""
+
+# PIDfile handling
+[[ -e $PIDFILE ]] && kill -s 0 $(<$PIDFILE) 2>/dev/null && exit 0
+echo $$ >$PIDFILE
+
+trap 'exit 0' SIGTERM
+
+while true; do
+	NET_DOMID=$(/usr/bin/xenstore-read qubes_netvm_domid)
+	if [[ -n "$NET_DOMID" ]] && [[ $NET_DOMID -gt 0 ]]; then
+		NETCFG=$(/usr/bin/xenstore-read /local/domain/$NET_DOMID/qubes_netvm_external_ip)
+		if [[ "$NETCFG" != "$CURR_NETCFG" ]]; then
+			/sbin/service qubes_firewall stop
+			/sbin/service qubes_firewall start
+			CURR_NETCFG="$NETCFG"
+		fi
+
+		/usr/bin/xenstore-watch /local/domain/$NET_DOMID/qubes_netvm_external_ip
+	else
+		/usr/bin/xenstore-watch qubes_netvm_domid
+	fi
+done
diff --git a/proxyvm/init.d/qubes_firewall b/proxyvm/init.d/qubes_firewall
index 1d3c0266..2d1218ec 100755
--- a/proxyvm/init.d/qubes_firewall
+++ b/proxyvm/init.d/qubes_firewall
@@ -26,7 +26,7 @@ stop()
     type=$(/usr/bin/xenstore-read qubes_vm_type)
     if [ "$type" == "ProxyVM" ]; then
         echo -n "Stopping Qubes Firewall monitor:"
-        kill $(cat $PIDFILE) 2>/dev/null  && success || failure
+        kill -9 $(cat $PIDFILE) 2>/dev/null  && success || failure
         echo ""
     fi
 	return 0
diff --git a/proxyvm/init.d/qubes_netwatcher b/proxyvm/init.d/qubes_netwatcher
new file mode 100755
index 00000000..e8d9af46
--- /dev/null
+++ b/proxyvm/init.d/qubes_netwatcher
@@ -0,0 +1,48 @@
+#!/bin/sh
+#
+# chkconfig: 345 92 92
+# description: Starts Qubes Network monitor
+#
+# Source function library.
+. /etc/rc.d/init.d/functions
+
+PIDFILE=/var/run/qubes/qubes_netwatcher.pid
+
+start()
+{
+    type=$(/usr/bin/xenstore-read qubes_vm_type)
+    if [ "$type" == "ProxyVM" ]; then
+        echo -n $"Starting Qubes Network monitor:"
+        /sbin/ethtool -K eth0 sg off
+        /usr/sbin/qubes_netwatcher &
+        success
+        echo ""
+    fi
+	return 0
+}
+
+stop()
+{
+    type=$(/usr/bin/xenstore-read qubes_vm_type)
+    if [ "$type" == "ProxyVM" ]; then
+        echo -n "Stopping Qubes Network monitor:"
+        kill -9 $(cat $PIDFILE) 2>/dev/null  && success || failure
+        echo ""
+    fi
+	return 0
+}
+
+case "$1" in
+  start)
+	start
+	;;
+  stop)
+	stop
+	;;
+  *)
+	echo $"Usage: $0 {start|stop}"
+	exit 3
+	;;
+esac
+
+exit $RETVAL