diff --git a/network/setup-ip b/network/setup-ip
index 08d2d5c..3e5340b 100755
--- a/network/setup-ip
+++ b/network/setup-ip
@@ -6,6 +6,12 @@ else
 	XENSTORE_READ="/usr/bin/xenstore-read"
 fi
 
+# setup-ip is potentially invoked before qubes-sysinit.sh is done, therefore
+# we perform our xenstore reads here instead of relying on qvm-service 
+# files under /var/run/qubes-service/
+disablegw=`$XENSTORE_READ qubes-service/disable-default-route 2> /dev/null`
+disabledns=`$XENSTORE_READ qubes-service/disable-dns-server 2> /dev/null`
+
 ip=`$XENSTORE_READ qubes-ip 2> /dev/null`
 if [ x$ip != x ]; then
     netmask=`$XENSTORE_READ qubes-netmask`
@@ -14,13 +20,13 @@ if [ x$ip != x ]; then
     /sbin/ifconfig $INTERFACE $ip netmask 255.255.255.255
     /sbin/ifconfig $INTERFACE up
     /sbin/route add -host $gateway dev $INTERFACE
-    if [ -f /var/run/qubes-service/set-default-route ]; then
+    if [ "x$disablegw" != "x1" ]; then
         /sbin/route add default gw $gateway
     fi
     /sbin/ethtool -K $INTERFACE sg off
     /sbin/ethtool -K $INTERFACE tx off
     echo > /etc/resolv.conf
-    if [ -f /var/run/qubes-service/set-dns-server ]; then
+    if [ "x$disabledns" != "x1" ]; then
         echo "nameserver $gateway" > /etc/resolv.conf
         echo "nameserver $secondary_dns" >> /etc/resolv.conf
     fi
@@ -45,10 +51,10 @@ method=ignore
 method=manual
 may-fail=false
 __EOF__
-        if [ -f /var/run/qubes-service/set-dns-server ]; then
+        if [ "x$disabledns" != "x1" ]; then
             echo "dns=$gateway;$secondary_dns" >> $nm_config
         fi
-        if [ -f /var/run/qubes-service/set-default-route ]; then
+        if [ "x$disablegw" != "x1" ]; then
             echo "address1=$ip/32,$gateway" >> $nm_config
         else
             echo "address1=$ip/32" >> $nm_config
@@ -56,7 +62,7 @@ __EOF__
         chmod 600 $nm_config
     fi
 	network=$($XENSTORE_READ qubes-netvm-network 2>/dev/null)
-	if [ "x$network" != "x" ] && [ -f /var/run/qubes-service/set-dns-server ]; then
+	if [ "x$network" != "x" ] && [ "x$disabledns" != "x1" ]; then
 		gateway=$($XENSTORE_READ qubes-netvm-gateway)
 		netmask=$($XENSTORE_READ qubes-netvm-netmask)
 		secondary_dns=$($XENSTORE_READ qubes-netvm-secondary-dns)
diff --git a/vm-init.d/qubes-core b/vm-init.d/qubes-core
index 432979e..77a71bf 100755
--- a/vm-init.d/qubes-core
+++ b/vm-init.d/qubes-core
@@ -38,8 +38,6 @@ start()
 		echo "ZONE=\"$timezone\"" >> /etc/sysconfig/clock
 	fi
 
-    touch /var/run/qubes-service/set-default-route
-    touch /var/run/qubes-service/set-dns-server
 	yum_proxy_setup=$(/usr/bin/xenstore-read qubes-service/yum-proxy-setup 2> /dev/null || /usr/bin/xenstore-read qubes-service/updates-proxy-setup 2>/dev/null )
     type=$(/usr/bin/xenstore-read qubes-vm-type)
 	if [ "$yum_proxy_setup" != "0" ] || [ -z "$yum_proxy_setup" -a "$type" == "TemplateVM" ]; then
diff --git a/vm-systemd/qubes-sysinit.sh b/vm-systemd/qubes-sysinit.sh
index dac90d0..54f7138 100755
--- a/vm-systemd/qubes-sysinit.sh
+++ b/vm-systemd/qubes-sysinit.sh
@@ -1,12 +1,11 @@
 #!/bin/bash
 
 # List of services enabled by default (in case of absence of xenstore entry)
-DEFAULT_ENABLED_ALL="set-default-route set-dns-server"
-DEFAULT_ENABLED_NETVM="$DEFAULT_ENABLED_ALL network-manager qubes-network qubes-update-check qubes-updates-proxy"
-DEFAULT_ENABLED_PROXYVM="$DEFAULT_ENABLED_ALL meminfo-writer qubes-network qubes-firewall qubes-netwatcher qubes-update-check"
-DEFAULT_ENABLED_APPVM="$DEFAULT_ENABLED_ALL meminfo-writer cups qubes-update-check"
+DEFAULT_ENABLED_NETVM="network-manager qubes-network qubes-update-check qubes-updates-proxy"
+DEFAULT_ENABLED_PROXYVM="meminfo-writer qubes-network qubes-firewall qubes-netwatcher qubes-update-check"
+DEFAULT_ENABLED_APPVM="meminfo-writer cups qubes-update-check"
 DEFAULT_ENABLED_TEMPLATEVM="$DEFAULT_ENABLED_APPVM updates-proxy-setup"
-DEFAULT_ENABLED="$DEFAULT_ENABLED_ALL meminfo-writer"
+DEFAULT_ENABLED="meminfo-writer"
 
 XS_READ=/usr/bin/xenstore-read
 [ -x /usr/sbin/xenstore-read ] && XS_READ=/usr/sbin/xenstore-read