diff --git a/ovn/controller/binding.c b/ovn/controller/binding.c
index 95e9deb..d033df0 100644
--- a/ovn/controller/binding.c
+++ b/ovn/controller/binding.c
@@ -380,7 +380,9 @@ consider_local_datapath(struct controller_ctx *ctx,
         if (iface_rec && qos_map && ctx->ovs_idl_txn) {
             get_qos_params(binding_rec, qos_map);
         }
-        our_chassis = true;
+        /* This port is in our chassis unless it is a localport */
+	    if(strcmp(binding_rec->type, "localport"))
+            our_chassis = true;
     } else if (!strcmp(binding_rec->type, "l2gateway")) {
         const char *chassis_id = smap_get(&binding_rec->options,
                                           "l2gateway-chassis");
diff --git a/ovn/controller/ovn-controller.c b/ovn/controller/ovn-controller.c
index f22551d..0f4dd35 100644
--- a/ovn/controller/ovn-controller.c
+++ b/ovn/controller/ovn-controller.c
@@ -655,7 +655,7 @@ main(int argc, char *argv[])
 
                     physical_run(&ctx, mff_ovn_geneve,
                                  br_int, chassis, &ct_zones, &lports,
-                                 &flow_table, &local_datapaths);
+                                 &flow_table, &local_datapaths, &local_lports);
 
                     ofctrl_put(&flow_table, &pending_ct_zones,
                                get_nb_cfg(ctx.ovnsb_idl));
diff --git a/ovn/controller/physical.c b/ovn/controller/physical.c
index 457fc45..2172dd8 100644
--- a/ovn/controller/physical.c
+++ b/ovn/controller/physical.c
@@ -769,7 +769,8 @@ physical_run(struct controller_ctx *ctx, enum mf_field_id mff_ovn_geneve,
              const struct ovsrec_bridge *br_int,
              const struct sbrec_chassis *chassis,
              const struct simap *ct_zones, struct lport_index *lports,
-             struct hmap *flow_table, struct hmap *local_datapaths)
+             struct hmap *flow_table, struct hmap *local_datapaths,
+             const struct sset *local_lports)
 {
 
     /* This bool tracks physical mapping changes. */
@@ -988,15 +989,40 @@ physical_run(struct controller_ctx *ctx, enum mf_field_id mff_ovn_geneve,
      */
     struct match match;
     match_init_catchall(&match);
-    ofpbuf_clear(&ofpacts);
     match_set_reg_masked(&match, MFF_LOG_FLAGS - MFF_REG0,
                          MLF_RCV_FROM_VXLAN, MLF_RCV_FROM_VXLAN);
 
     /* Resubmit to table 33. */
+    ofpbuf_clear(&ofpacts);
     put_resubmit(OFTABLE_LOCAL_OUTPUT, &ofpacts);
     ofctrl_add_flow(flow_table, OFTABLE_REMOTE_OUTPUT, 150, 0,
                     &match, &ofpacts);
 
+    /* Table 32, priority 150.
+     * =======================
+     *
+     * Handles packets received from ports of type "localport".  These ports
+     * are present on every hypervisor.  Traffic that originates at one should
+     * never go over a tunnel to a remote hypervisor, so resubmit them to table
+     * 33 for local delivery. */
+    match_init_catchall(&match);
+    ofpbuf_clear(&ofpacts);
+    put_resubmit(OFTABLE_LOCAL_OUTPUT, &ofpacts);
+    const char *localport;
+    SSET_FOR_EACH (localport, local_lports) {
+        /* Iterate over all local logical ports and insert a drop
+         * rule with higher priority for every localport in this
+         * datapath. */
+        const struct sbrec_port_binding *pb = lport_lookup_by_name(
+            lports, localport);
+        if (pb && !strcmp(pb->type, "localport")) {
+            match_set_reg(&match, MFF_LOG_INPORT - MFF_REG0, pb->tunnel_key);
+            match_set_metadata(&match, htonll(pb->datapath->tunnel_key));
+            ofctrl_add_flow(flow_table, OFTABLE_REMOTE_OUTPUT, 150, 0,
+                            &match, &ofpacts);
+        }
+    }
+
     /* Table 32, Priority 0.
      * =======================
      *
diff --git a/ovn/controller/physical.h b/ovn/controller/physical.h
index e2debed..66aa80e 100644
--- a/ovn/controller/physical.h
+++ b/ovn/controller/physical.h
@@ -32,6 +32,7 @@ struct hmap;
 struct ovsdb_idl;
 struct ovsrec_bridge;
 struct simap;
+struct sset;
 
 /* OVN Geneve option information.
  *
@@ -45,6 +46,7 @@ void physical_run(struct controller_ctx *, enum mf_field_id mff_ovn_geneve,
                   const struct ovsrec_bridge *br_int,
                   const struct sbrec_chassis *chassis,
                   const struct simap *ct_zones, struct lport_index *,
-                  struct hmap *flow_table, struct hmap *local_datapaths);
+                  struct hmap *flow_table, struct hmap *local_datapaths,
+                  const struct sset *local_lports);
 
 #endif /* ovn/physical.h */
diff --git a/ovn/northd/ovn-northd.8.xml b/ovn/northd/ovn-northd.8.xml
index c0b4c5e..7ff5245 100644
--- a/ovn/northd/ovn-northd.8.xml
+++ b/ovn/northd/ovn-northd.8.xml
@@ -492,8 +492,8 @@ output;
         </pre>
 
         <p>
-          These flows are omitted for logical ports (other than router ports)
-          that are down.
+          These flows are omitted for logical ports (other than router ports or
+          <code>localport</code> ports) that are down.
         </p>
       </li>
 
@@ -519,8 +519,8 @@ nd_na {
         </pre>
 
         <p>
-          These flows are omitted for logical ports (other than router ports)
-          that are down.
+          These flows are omitted for logical ports (other than router ports or
+          <code>localport</code> ports) that are down.
         </p>
       </li>
 
diff --git a/ovn/northd/ovn-northd.c b/ovn/northd/ovn-northd.c
index 83db753..a3bd859 100644
--- a/ovn/northd/ovn-northd.c
+++ b/ovn/northd/ovn-northd.c
@@ -3305,9 +3305,11 @@ build_lswitch_flows(struct hmap *datapaths, struct hmap *ports,
         /*
          * Add ARP/ND reply flows if either the
          *  - port is up or
-         *  - port type is router
+         *  - port type is router or
+         *  - port type is localport
          */
-        if (!lsp_is_up(op->nbsp) && strcmp(op->nbsp->type, "router")) {
+        if (!lsp_is_up(op->nbsp) && strcmp(op->nbsp->type, "router") &&
+            strcmp(op->nbsp->type, "localport")) {
             continue;
         }
 
diff --git a/ovn/ovn-architecture.7.xml b/ovn/ovn-architecture.7.xml
index d8114f1..085a6ae 100644
--- a/ovn/ovn-architecture.7.xml
+++ b/ovn/ovn-architecture.7.xml
@@ -409,6 +409,21 @@
           logical patch ports at each such point of connectivity, one on
           each side.
         </li>
+        <li>
+          <dfn>Localport ports</dfn> represent the points of local
+          connectivity between logical switches and VIFs. These ports are
+          present in every chassis (not bound to any particular one) and
+          traffic from them will never go through a tunnel. A
+          <code>localport</code> is expected to only generate traffic destined
+          for a local destination, typically in response to a request it
+          received.
+          One use case is how OpenStack Neutron uses a <code>localport</code>
+          port for serving metadata to VM's residing on every hypervisor. A
+          metadata proxy process is attached to this port on every host and all
+          VM's within the same network will reach it at the same IP/MAC address
+          without any traffic being sent over a tunnel. Further details can be
+          seen at https://docs.openstack.org/developer/networking-ovn/design/metadata_api.html.
+        </li>
       </ul>
     </li>
   </ul>
@@ -993,15 +1008,31 @@
         hypervisor, in the same way as for unicast destinations.  If a
         multicast group includes a logical port or ports on the local
         hypervisor, then its actions also resubmit to table 33.  Table 32 also
-        includes a fallback flow that resubmits to table 33 if there is no
-        other match.  Table 32 also contains a higher priority rule to match
-        packets received from VXLAN tunnels, based on flag MLF_RCV_FROM_VXLAN
-        and resubmit these packets to table 33 for local delivery. Packets
-        received from VXLAN tunnels reach here because of a lack of logical
-        output port field in the tunnel key and thus these packets needed to
-        be submitted to table 16 to determine the output port.
+        includes:
       </p>
 
+      <ul>
+        <li>
+          A higher-priority rule to match packets received from VXLAN tunnels,
+          based on flag MLF_RCV_FROM_VXLAN, and resubmit these packets to table
+          33 for local delivery.  Packets received from VXLAN tunnels reach
+          here because of a lack of logical output port field in the tunnel key
+          and thus these packets needed to be submitted to table 16 to
+          determine the output port.
+        </li>
+        <li>
+          A higher-priority rule to match packets received from ports of type
+          <code>localport</code>, based on the logical input port, and resubmit
+          these packets to table 33 for local delivery.  Ports of type
+          <code>localport</code> exist on every hypervisor and by definition
+          their traffic should never go out through a tunnel.
+        </li>
+        <li>
+          A fallback flow that resubmits to table 33 if there is no other
+          match.
+        </li>
+      </ul>
+
       <p>
         Flows in table 33 resemble those in table 32 but for logical ports that
         reside locally rather than remotely.  For unicast logical output ports
diff --git a/ovn/ovn-nb.xml b/ovn/ovn-nb.xml
index f5be9e2..eb348fe 100644
--- a/ovn/ovn-nb.xml
+++ b/ovn/ovn-nb.xml
@@ -283,6 +283,15 @@
             to model direct connectivity to an existing network.
           </dd>
 
+          <dt><code>localport</code></dt>
+          <dd>
+            A connection to a local VIF. Traffic that arrives on a
+            <code>localport</code> is never forwarded over a tunnel to another
+            chassis. These ports are present on every chassis and have the same
+            address in all of them. This is used to model connectivity to local
+            services that run on every hypervisor.
+          </dd>
+
           <dt><code>l2gateway</code></dt>
           <dd>
             A connection to a physical network.
diff --git a/ovn/ovn-sb.xml b/ovn/ovn-sb.xml
index 387adb8..f3c3212 100644
--- a/ovn/ovn-sb.xml
+++ b/ovn/ovn-sb.xml
@@ -1802,6 +1802,11 @@ tcp.flags = RST;
             connectivity to the corresponding physical network.
           </dd>
 
+          <dt>localport</dt>
+          <dd>
+            Always empty.  A localport port is present on every chassis.
+          </dd>
+
           <dt>l3gateway</dt>
           <dd>
             The physical location of the L3 gateway.  To successfully identify a
@@ -1882,6 +1887,15 @@ tcp.flags = RST;
             to model direct connectivity to an existing network.
           </dd>
 
+          <dt><code>localport</code></dt>
+          <dd>
+            A connection to a local VIF. Traffic that arrives on a
+            <code>localport</code> is never forwarded over a tunnel to another
+            chassis. These ports are present on every chassis and have the same
+            address in all of them. This is used to model connectivity to local
+            services that run on every hypervisor.
+          </dd>
+
           <dt><code>l2gateway</code></dt>
           <dd>
             An L2 connection to a physical network.  The chassis this
diff --git a/tests/ovn.at b/tests/ovn.at
index b30315e..8abf45a 100644
--- a/tests/ovn.at
+++ b/tests/ovn.at
@@ -7374,3 +7374,125 @@ OVN_CHECK_PACKETS([hv2/vif1-tx.pcap], [expected])
 OVN_CLEANUP([hv1],[hv2])
 
 AT_CLEANUP
+
+AT_SETUP([ovn -- 2 HVs, 1 lport/HV, localport ports])
+AT_SKIP_IF([test $HAVE_PYTHON = no])
+ovn_start
+
+ovn-nbctl ls-add ls1
+
+# Add localport to the switch
+ovn-nbctl lsp-add ls1 lp01
+ovn-nbctl lsp-set-addresses lp01 f0:00:00:00:00:01
+ovn-nbctl lsp-set-type lp01 localport
+
+net_add n1
+
+for i in 1 2; do
+    sim_add hv$i
+    as hv$i
+    ovs-vsctl add-br br-phys
+    ovn_attach n1 br-phys 192.168.0.$i
+    ovs-vsctl add-port br-int vif01 -- \
+        set Interface vif01 external-ids:iface-id=lp01 \
+                              options:tx_pcap=hv${i}/vif01-tx.pcap \
+                              options:rxq_pcap=hv${i}/vif01-rx.pcap \
+                              ofport-request=${i}0
+
+    ovs-vsctl add-port br-int vif${i}1 -- \
+        set Interface vif${i}1 external-ids:iface-id=lp${i}1 \
+                              options:tx_pcap=hv${i}/vif${i}1-tx.pcap \
+                              options:rxq_pcap=hv${i}/vif${i}1-rx.pcap \
+                              ofport-request=${i}1
+
+    ovn-nbctl lsp-add ls1 lp${i}1
+    ovn-nbctl lsp-set-addresses lp${i}1 f0:00:00:00:00:${i}1
+    ovn-nbctl lsp-set-port-security lp${i}1 f0:00:00:00:00:${i}1
+
+        OVS_WAIT_UNTIL([test x`ovn-nbctl lsp-get-up lp${i}1` = xup])
+done
+
+ovn-nbctl --wait=sb sync
+ovn-sbctl dump-flows
+
+ovn_populate_arp
+
+# Given the name of a logical port, prints the name of the hypervisor
+# on which it is located.
+vif_to_hv() {
+    echo hv${1%?}
+}
+#
+# test_packet INPORT DST SRC ETHTYPE EOUT LOUT DEFHV
+#
+# This shell function causes a packet to be received on INPORT.  The packet's
+# content has Ethernet destination DST and source SRC (each exactly 12 hex
+# digits) and Ethernet type ETHTYPE (4 hex digits).  INPORT is specified as
+# logical switch port numbers, e.g. 11 for vif11.
+#
+# EOUT is the end-to-end output port, that is, where the packet will end up
+# after possibly bouncing through one or more localnet ports.  LOUT is the
+# logical output port, which might be a localnet port, as seen by ovn-trace
+# (which doesn't know what localnet ports are connected to and therefore can't
+# figure out the end-to-end answer).
+#
+# DEFHV is the default hypervisor from where the packet is going to be sent
+# if the source port is a localport.
+for i in 1 2; do
+    for j in 0 1; do
+        : > $i$j.expected
+    done
+done
+test_packet() {
+    local inport=$1 dst=$2 src=$3 eth=$4 eout=$5 lout=$6 defhv=$7
+    echo "$@"
+
+    # First try tracing the packet.
+    uflow="inport==\"lp$inport\" && eth.dst==$dst && eth.src==$src && eth.type==0x$eth"
+    if test $lout != drop; then
+        echo "output(\"$lout\");"
+    fi > expout
+    AT_CAPTURE_FILE([trace])
+    AT_CHECK([ovn-trace --all ls1 "$uflow" | tee trace | sed '1,/Minimal trace/d'], [0], [expout])
+
+    # Then actually send a packet, for an end-to-end test.
+    local packet=$(echo $dst$src | sed 's/://g')${eth}
+    hv=`vif_to_hv $inport`
+    # If hypervisor 0 (localport) use the defhv parameter
+    if test $hv == hv0; then
+        hv=$defhv
+    fi
+    vif=vif$inport
+    as $hv ovs-appctl netdev-dummy/receive $vif $packet
+    if test $eout != drop; then
+        echo $packet >> ${eout#lp}.expected
+    fi
+}
+
+
+# lp11 and lp21 are on different hypervisors
+test_packet 11 f0:00:00:00:00:21 f0:00:00:00:00:11 1121 lp21 lp21
+test_packet 21 f0:00:00:00:00:11 f0:00:00:00:00:21 2111 lp11 lp11
+
+# Both VIFs should be able to reach the localport on their own HV
+test_packet 11 f0:00:00:00:00:01 f0:00:00:00:00:11 1101 lp01 lp01
+test_packet 21 f0:00:00:00:00:01 f0:00:00:00:00:21 2101 lp01 lp01
+
+# Packet sent from localport on same hv should reach the vif
+test_packet 01 f0:00:00:00:00:11 f0:00:00:00:00:01 0111 lp11 lp11 hv1
+test_packet 01 f0:00:00:00:00:21 f0:00:00:00:00:01 0121 lp21 lp21 hv2
+
+# Packet sent from localport on different hv should be dropped
+test_packet 01 f0:00:00:00:00:21 f0:00:00:00:00:01 0121 drop lp21 hv1
+test_packet 01 f0:00:00:00:00:11 f0:00:00:00:00:01 0111 drop lp11 hv2
+
+# Now check the packets actually received against the ones expected.
+for i in 1 2; do
+    for j in 0 1; do
+        OVN_CHECK_PACKETS([hv$i/vif$i$j-tx.pcap], [$i$j.expected])
+    done
+done
+
+OVN_CLEANUP([hv1],[hv2])
+
+AT_CLEANUP
