diff --git a/tests/integration/update_cluster/minimal-dns-none/data/aws_s3_object_minimal.example.com-addons-bootstrap_content b/tests/integration/update_cluster/minimal-dns-none/data/aws_s3_object_minimal.example.com-addons-bootstrap_content
index 8f1b282a48..5d8f3f2929 100644
--- a/tests/integration/update_cluster/minimal-dns-none/data/aws_s3_object_minimal.example.com-addons-bootstrap_content
+++ b/tests/integration/update_cluster/minimal-dns-none/data/aws_s3_object_minimal.example.com-addons-bootstrap_content
@@ -14,7 +14,7 @@ spec:
     version: 9.99.0
   - id: k8s-1.12
     manifest: coredns.addons.k8s.io/k8s-1.12.yaml
-    manifestHash: d2bbb7cbee5835c3891fe80fbacf8963508359ef9159f8480325ce9a7174f14a
+    manifestHash: 881d2ec248edb7ef6466985a51f30b4d50ec3e5f4997ca8fca95b03cb448d663
     name: coredns.addons.k8s.io
     selector:
       k8s-addon: coredns.addons.k8s.io
diff --git a/tests/integration/update_cluster/minimal-dns-none/data/aws_s3_object_minimal.example.com-addons-coredns.addons.k8s.io-k8s-1.12_content b/tests/integration/update_cluster/minimal-dns-none/data/aws_s3_object_minimal.example.com-addons-coredns.addons.k8s.io-k8s-1.12_content
index 477b37ebbe..4b008730cd 100644
--- a/tests/integration/update_cluster/minimal-dns-none/data/aws_s3_object_minimal.example.com-addons-coredns.addons.k8s.io-k8s-1.12_content
+++ b/tests/integration/update_cluster/minimal-dns-none/data/aws_s3_object_minimal.example.com-addons-coredns.addons.k8s.io-k8s-1.12_content
@@ -80,6 +80,10 @@ data:
           fallthrough in-addr.arpa ip6.arpa
           ttl 30
         }
+        hosts /rootfs/etc/hosts minimal.example.com {
+          ttl 30
+          fallthrough
+        }
         prometheus :9153
         forward . /etc/resolv.conf {
           max_concurrent 1000
@@ -180,6 +184,9 @@ spec:
         - mountPath: /etc/coredns
           name: config-volume
           readOnly: true
+        - mountPath: /rootfs/etc/hosts
+          name: etc-hosts
+          readOnly: true
       dnsPolicy: Default
       nodeSelector:
         kubernetes.io/os: linux
@@ -205,6 +212,10 @@ spec:
       - configMap:
           name: coredns
         name: config-volume
+      - hostPath:
+          path: /etc/hosts
+          type: File
+        name: etc-hosts
 
 ---
 
diff --git a/tests/integration/update_cluster/minimal_gce_dns-none/data/aws_s3_object_minimal-gce.example.com-addons-bootstrap_content b/tests/integration/update_cluster/minimal_gce_dns-none/data/aws_s3_object_minimal-gce.example.com-addons-bootstrap_content
index bf95923fd4..7551a7ca53 100644
--- a/tests/integration/update_cluster/minimal_gce_dns-none/data/aws_s3_object_minimal-gce.example.com-addons-bootstrap_content
+++ b/tests/integration/update_cluster/minimal_gce_dns-none/data/aws_s3_object_minimal-gce.example.com-addons-bootstrap_content
@@ -14,7 +14,7 @@ spec:
     version: 9.99.0
   - id: k8s-1.12
     manifest: coredns.addons.k8s.io/k8s-1.12.yaml
-    manifestHash: d2bbb7cbee5835c3891fe80fbacf8963508359ef9159f8480325ce9a7174f14a
+    manifestHash: 9d6912241710a76fda7c973a9b116ca9da6d7827c57a0977e223b777018a5913
     name: coredns.addons.k8s.io
     selector:
       k8s-addon: coredns.addons.k8s.io
diff --git a/tests/integration/update_cluster/minimal_gce_dns-none/data/aws_s3_object_minimal-gce.example.com-addons-coredns.addons.k8s.io-k8s-1.12_content b/tests/integration/update_cluster/minimal_gce_dns-none/data/aws_s3_object_minimal-gce.example.com-addons-coredns.addons.k8s.io-k8s-1.12_content
index 477b37ebbe..3cf3adacd5 100644
--- a/tests/integration/update_cluster/minimal_gce_dns-none/data/aws_s3_object_minimal-gce.example.com-addons-coredns.addons.k8s.io-k8s-1.12_content
+++ b/tests/integration/update_cluster/minimal_gce_dns-none/data/aws_s3_object_minimal-gce.example.com-addons-coredns.addons.k8s.io-k8s-1.12_content
@@ -80,6 +80,10 @@ data:
           fallthrough in-addr.arpa ip6.arpa
           ttl 30
         }
+        hosts /rootfs/etc/hosts minimal-gce.example.com {
+          ttl 30
+          fallthrough
+        }
         prometheus :9153
         forward . /etc/resolv.conf {
           max_concurrent 1000
@@ -180,6 +184,9 @@ spec:
         - mountPath: /etc/coredns
           name: config-volume
           readOnly: true
+        - mountPath: /rootfs/etc/hosts
+          name: etc-hosts
+          readOnly: true
       dnsPolicy: Default
       nodeSelector:
         kubernetes.io/os: linux
@@ -205,6 +212,10 @@ spec:
       - configMap:
           name: coredns
         name: config-volume
+      - hostPath:
+          path: /etc/hosts
+          type: File
+        name: etc-hosts
 
 ---
 
diff --git a/tests/integration/update_cluster/minimal_hetzner/data/aws_s3_object_minimal.example.com-addons-bootstrap_content b/tests/integration/update_cluster/minimal_hetzner/data/aws_s3_object_minimal.example.com-addons-bootstrap_content
index 361adc51c9..55ff5d81bb 100644
--- a/tests/integration/update_cluster/minimal_hetzner/data/aws_s3_object_minimal.example.com-addons-bootstrap_content
+++ b/tests/integration/update_cluster/minimal_hetzner/data/aws_s3_object_minimal.example.com-addons-bootstrap_content
@@ -14,7 +14,7 @@ spec:
     version: 9.99.0
   - id: k8s-1.12
     manifest: coredns.addons.k8s.io/k8s-1.12.yaml
-    manifestHash: d2bbb7cbee5835c3891fe80fbacf8963508359ef9159f8480325ce9a7174f14a
+    manifestHash: 881d2ec248edb7ef6466985a51f30b4d50ec3e5f4997ca8fca95b03cb448d663
     name: coredns.addons.k8s.io
     selector:
       k8s-addon: coredns.addons.k8s.io
diff --git a/tests/integration/update_cluster/minimal_hetzner/data/aws_s3_object_minimal.example.com-addons-coredns.addons.k8s.io-k8s-1.12_content b/tests/integration/update_cluster/minimal_hetzner/data/aws_s3_object_minimal.example.com-addons-coredns.addons.k8s.io-k8s-1.12_content
index 477b37ebbe..4b008730cd 100644
--- a/tests/integration/update_cluster/minimal_hetzner/data/aws_s3_object_minimal.example.com-addons-coredns.addons.k8s.io-k8s-1.12_content
+++ b/tests/integration/update_cluster/minimal_hetzner/data/aws_s3_object_minimal.example.com-addons-coredns.addons.k8s.io-k8s-1.12_content
@@ -80,6 +80,10 @@ data:
           fallthrough in-addr.arpa ip6.arpa
           ttl 30
         }
+        hosts /rootfs/etc/hosts minimal.example.com {
+          ttl 30
+          fallthrough
+        }
         prometheus :9153
         forward . /etc/resolv.conf {
           max_concurrent 1000
@@ -180,6 +184,9 @@ spec:
         - mountPath: /etc/coredns
           name: config-volume
           readOnly: true
+        - mountPath: /rootfs/etc/hosts
+          name: etc-hosts
+          readOnly: true
       dnsPolicy: Default
       nodeSelector:
         kubernetes.io/os: linux
@@ -205,6 +212,10 @@ spec:
       - configMap:
           name: coredns
         name: config-volume
+      - hostPath:
+          path: /etc/hosts
+          type: File
+        name: etc-hosts
 
 ---
 
diff --git a/upup/models/cloudup/resources/addons/coredns.addons.k8s.io/k8s-1.12.yaml.template b/upup/models/cloudup/resources/addons/coredns.addons.k8s.io/k8s-1.12.yaml.template
index 851faf1358..ee44c9367c 100644
--- a/upup/models/cloudup/resources/addons/coredns.addons.k8s.io/k8s-1.12.yaml.template
+++ b/upup/models/cloudup/resources/addons/coredns.addons.k8s.io/k8s-1.12.yaml.template
@@ -76,8 +76,8 @@ data:
           fallthrough in-addr.arpa ip6.arpa
           ttl 30
         }
-    {{- if GossipName }}
-        hosts /rootfs/etc/hosts k8s.local {
+    {{- if not PublishesDNSRecords }}
+        hosts /rootfs/etc/hosts {{ ClusterDNSDomain }} {
           ttl 30
           fallthrough
         }
@@ -173,7 +173,7 @@ spec:
         - name: config-volume
           mountPath: /etc/coredns
           readOnly: true
-{{- if GossipName }}
+{{- if not PublishesDNSRecords }}
         - name: etc-hosts
           mountPath: /rootfs/etc/hosts
           readOnly: true
@@ -220,7 +220,7 @@ spec:
         - name: config-volume
           configMap:
             name: coredns
-{{- if GossipName }}
+{{- if not PublishesDNSRecords }}
         - name: etc-hosts
           hostPath:
             path: /etc/hosts
diff --git a/upup/pkg/fi/cloudup/template_functions.go b/upup/pkg/fi/cloudup/template_functions.go
index 65fdae49ba..1881d23472 100644
--- a/upup/pkg/fi/cloudup/template_functions.go
+++ b/upup/pkg/fi/cloudup/template_functions.go
@@ -51,7 +51,6 @@ import (
 	apiModel "k8s.io/kops/pkg/apis/kops/model"
 	"k8s.io/kops/pkg/apis/kops/util"
 	"k8s.io/kops/pkg/bootstrap/pkibootstrap"
-	"k8s.io/kops/pkg/dns"
 	"k8s.io/kops/pkg/featureflag"
 	"k8s.io/kops/pkg/flagbuilder"
 	"k8s.io/kops/pkg/kubemanifest"
@@ -134,11 +133,14 @@ func (tf *TemplateFunctions) AddTo(dest template.FuncMap, secretStore fi.SecretS
 		}
 		return false
 	}
-	dest["GossipName"] = func() bool {
-		if dns.IsGossipClusterName(cluster.Name) {
-			return true
+	dest["PublishesDNSRecords"] = func() bool {
+		return cluster.PublishesDNSRecords()
+	}
+	dest["ClusterDNSDomain"] = func() string {
+		if cluster.UsesLegacyGossip() {
+			return "k8s.local"
 		}
-		return false
+		return cluster.Name
 	}
 
 	dest["NodeLocalDNSClusterIP"] = func() string {