diff --git a/libnetwork/controller.go b/libnetwork/controller.go
index ed05d23ad7..f834b7b370 100644
--- a/libnetwork/controller.go
+++ b/libnetwork/controller.go
@@ -256,7 +256,7 @@ func (c *controller) NewNetwork(networkType, name string, options ...NetworkOpti
 		return nil, err
 	}
 
-	if err := c.updateNetworkToStore(network); err != nil {
+	if err := c.updateToStore(network); err != nil {
 		log.Warnf("couldnt create network %s: %v", network.name, err)
 		if e := network.Delete(); e != nil {
 			log.Warnf("couldnt cleanup network %s: %v", network.name, err)
@@ -293,8 +293,10 @@ func (c *controller) addNetwork(n *network) error {
 	if err := d.CreateNetwork(n.id, n.generic); err != nil {
 		return err
 	}
-	if err := n.watchEndpoints(); err != nil {
-		return err
+	if n.isGlobalScoped() {
+		if err := n.watchEndpoints(); err != nil {
+			return err
+		}
 	}
 	c.Lock()
 	c.networks[n.id] = n
diff --git a/libnetwork/drivers.go b/libnetwork/drivers.go
index 4bce703832..898bcc4ebe 100644
--- a/libnetwork/drivers.go
+++ b/libnetwork/drivers.go
@@ -29,9 +29,9 @@ func makeDriverConfig(c *controller, ntype string) map[string]interface{} {
 
 	config := make(map[string]interface{})
 
-	if c.validateDatastoreConfig() {
-		config[netlabel.KVProvider] = c.cfg.Datastore.Client.Provider
-		config[netlabel.KVProviderURL] = c.cfg.Datastore.Client.Address
+	if c.validateGlobalStoreConfig() {
+		config[netlabel.KVProvider] = c.cfg.GlobalStore.Client.Provider
+		config[netlabel.KVProviderURL] = c.cfg.GlobalStore.Client.Address
 	}
 
 	for _, label := range c.cfg.Daemon.Labels {
diff --git a/libnetwork/drivers/remote/driver_test.go b/libnetwork/drivers/remote/driver_test.go
index 98d9bee074..627106e9e8 100644
--- a/libnetwork/drivers/remote/driver_test.go
+++ b/libnetwork/drivers/remote/driver_test.go
@@ -9,6 +9,7 @@ import (
 	"testing"
 
 	"github.com/docker/docker/pkg/plugins"
+	"github.com/docker/libnetwork/datastore"
 	"github.com/docker/libnetwork/driverapi"
 	_ "github.com/docker/libnetwork/testutils"
 	"github.com/docker/libnetwork/types"
@@ -205,8 +206,8 @@ func TestGetExtraCapabilities(t *testing.T) {
 	c, err := d.(*driver).getCapabilities()
 	if err != nil {
 		t.Fatal(err)
-	} else if c.Scope != driverapi.LocalScope {
-		t.Fatalf("get capability '%s', expecting 'local'", c.Scope)
+	} else if c.DataScope != datastore.LocalScope {
+		t.Fatalf("get capability '%s', expecting 'local'", c.DataScope)
 	}
 }
 
@@ -343,8 +344,8 @@ func TestRemoteDriver(t *testing.T) {
 	c, err := d.(*driver).getCapabilities()
 	if err != nil {
 		t.Fatal(err)
-	} else if c.Scope != driverapi.GlobalScope {
-		t.Fatalf("get capability '%s', expecting 'global'", c.Scope)
+	} else if c.DataScope != datastore.GlobalScope {
+		t.Fatalf("get capability '%s', expecting 'global'", c.DataScope)
 	}
 
 	netID := "dummy-network"
diff --git a/libnetwork/endpoint.go b/libnetwork/endpoint.go
index ab8645c5e7..6faa71dbbc 100644
--- a/libnetwork/endpoint.go
+++ b/libnetwork/endpoint.go
@@ -282,8 +282,10 @@ func (ep *endpoint) Join(sbox Sandbox, options ...EndpointOption) error {
 		return err
 	}
 
-	if err = network.ctrlr.updateEndpointToStore(ep); err != nil {
-		return err
+	if !ep.isLocalScoped() {
+		if err = network.ctrlr.updateToStore(ep); err != nil {
+			return err
+		}
 	}
 
 	sb.Lock()
@@ -355,11 +357,13 @@ func (ep *endpoint) Leave(sbox Sandbox, options ...EndpointOption) error {
 	d := n.driver
 	n.Unlock()
 
-	if err := c.updateEndpointToStore(ep); err != nil {
-		ep.Lock()
-		ep.sandboxID = sid
-		ep.Unlock()
-		return err
+	if !ep.isLocalScoped() {
+		if err := c.updateToStore(ep); err != nil {
+			ep.Lock()
+			ep.sandboxID = sid
+			ep.Unlock()
+			return err
+		}
 	}
 
 	if err := d.Leave(n.id, ep.id); err != nil {
@@ -395,27 +399,31 @@ func (ep *endpoint) Delete() error {
 	n.Unlock()
 	ep.Unlock()
 
-	if err = ctrlr.deleteEndpointFromStore(ep); err != nil {
-		return err
+	if !ep.isLocalScoped() {
+		if err = ctrlr.deleteFromStore(ep); err != nil {
+			return err
+		}
 	}
 	defer func() {
 		if err != nil {
-			ep.SetIndex(0)
-			if e := ctrlr.updateEndpointToStore(ep); e != nil {
-				log.Warnf("failed to recreate endpoint in store %s : %v", name, err)
+			ep.dbExists = false
+			if !ep.isLocalScoped() {
+				if e := ctrlr.updateToStore(ep); e != nil {
+					log.Warnf("failed to recreate endpoint in store %s : %v", name, e)
+				}
 			}
 		}
 	}()
 
 	// Update the endpoint count in network and update it in the datastore
 	n.DecEndpointCnt()
-	if err = ctrlr.updateNetworkToStore(n); err != nil {
+	if err = ctrlr.updateToStore(n); err != nil {
 		return err
 	}
 	defer func() {
 		if err != nil {
 			n.IncEndpointCnt()
-			if e := ctrlr.updateNetworkToStore(n); e != nil {
+			if e := ctrlr.updateToStore(n); e != nil {
 				log.Warnf("failed to update network %s : %v", n.name, e)
 			}
 		}
@@ -547,3 +555,7 @@ func (ep *endpoint) DataScope() datastore.DataScope {
 	defer ep.Unlock()
 	return ep.network.dataScope
 }
+
+func (ep *endpoint) isLocalScoped() bool {
+	return ep.DataScope() == datastore.LocalScope
+}
diff --git a/libnetwork/libnetwork_test.go b/libnetwork/libnetwork_test.go
index b1245c29ac..82e3dd642a 100644
--- a/libnetwork/libnetwork_test.go
+++ b/libnetwork/libnetwork_test.go
@@ -47,6 +47,7 @@ func TestMain(m *testing.M) {
 	}
 
 	if err := createController(); err != nil {
+		log.Errorf("Error creating controller: %v", err)
 		os.Exit(1)
 	}
 
@@ -65,7 +66,11 @@ func createController() error {
 	genericOption := make(map[string]interface{})
 	genericOption[netlabel.GenericData] = option
 
-	controller, err = libnetwork.New(config.OptionDriverConfig(bridgeNetType, genericOption))
+	cfgOptions, err := libnetwork.OptionBoltdbWithRandomDBFile()
+	if err != nil {
+		return err
+	}
+	controller, err = libnetwork.New(append(cfgOptions, config.OptionDriverConfig(bridgeNetType, genericOption))...)
 	if err != nil {
 		return err
 	}
diff --git a/libnetwork/network.go b/libnetwork/network.go
index a677566f33..855a365e1f 100644
--- a/libnetwork/network.go
+++ b/libnetwork/network.go
@@ -240,13 +240,22 @@ func (n *network) Delete() error {
 
 	// deleteNetworkFromStore performs an atomic delete operation and the network.endpointCnt field will help
 	// prevent any possible race between endpoint join and network delete
-	if err = ctrlr.deleteNetworkFromStore(n); err != nil {
+	if err = ctrlr.deleteFromStore(n); err != nil {
 		if err == datastore.ErrKeyModified {
 			return types.InternalErrorf("operation in progress. delete failed for network %s. Please try again.")
 		}
 		return err
 	}
 
+	defer func() {
+		if err != nil {
+			n.dbExists = false
+			if e := ctrlr.updateToStore(n); e != nil {
+				log.Warnf("failed to recreate network in store %s : %v", n.name, e)
+			}
+		}
+	}()
+
 	if err = n.deleteNetwork(); err != nil {
 		return err
 	}
@@ -322,13 +331,13 @@ func (n *network) CreateEndpoint(name string, options ...EndpointOption) (Endpoi
 	n.Unlock()
 
 	n.IncEndpointCnt()
-	if err = ctrlr.updateNetworkToStore(n); err != nil {
+	if err = ctrlr.updateToStore(n); err != nil {
 		return nil, err
 	}
 	defer func() {
 		if err != nil {
 			n.DecEndpointCnt()
-			if err = ctrlr.updateNetworkToStore(n); err != nil {
+			if err = ctrlr.updateToStore(n); err != nil {
 				log.Warnf("endpoint count cleanup failed when updating network for %s : %v", name, err)
 			}
 		}
@@ -344,8 +353,10 @@ func (n *network) CreateEndpoint(name string, options ...EndpointOption) (Endpoi
 		}
 	}()
 
-	if err = ctrlr.updateEndpointToStore(ep); err != nil {
-		return nil, err
+	if !ep.isLocalScoped() {
+		if err = ctrlr.updateToStore(ep); err != nil {
+			return nil, err
+		}
 	}
 
 	return ep, nil
diff --git a/libnetwork/sandbox_test.go b/libnetwork/sandbox_test.go
index e573f3511f..60fbf174e7 100644
--- a/libnetwork/sandbox_test.go
+++ b/libnetwork/sandbox_test.go
@@ -23,7 +23,11 @@ func getTestEnv(t *testing.T) (NetworkController, Network, Network) {
 	genericOption := make(map[string]interface{})
 	genericOption[netlabel.GenericData] = option
 
-	c, err := New(config.OptionDriverConfig(netType, genericOption))
+	cfgOptions, err := OptionBoltdbWithRandomDBFile()
+	if err != nil {
+		t.Fatal(err)
+	}
+	c, err := New(append(cfgOptions, config.OptionDriverConfig(netType, genericOption))...)
 	if err != nil {
 		t.Fatal(err)
 	}
diff --git a/libnetwork/store.go b/libnetwork/store.go
index b8c7d55f90..4c2bcd58b7 100644
--- a/libnetwork/store.go
+++ b/libnetwork/store.go
@@ -43,7 +43,7 @@ func (c *controller) initGlobalStore() error {
 	c.globalStore = store
 	c.Unlock()
 
-	nws, err := c.getNetworksFromGlobalStore()
+	nws, err := c.getNetworksFromStore(true)
 	if err == nil {
 		c.processNetworkUpdate(nws, nil)
 	} else if err != datastore.ErrKeyNotFound {
@@ -64,24 +64,23 @@ func (c *controller) initLocalStore() error {
 	c.localStore = localStore
 	c.Unlock()
 
-	nws, err := c.getNetworksFromLocalStore()
+	nws, err := c.getNetworksFromStore(false)
 	if err == nil {
 		c.processNetworkUpdate(nws, nil)
 	} else if err != datastore.ErrKeyNotFound {
 		log.Warnf("failed to read networks from localstore during init : %v", err)
 	}
-	eps, err := c.getEndpointsFromLocalStore()
-	if err == nil {
-		c.processEndpointsUpdate(eps, nil)
-	} else if err != datastore.ErrKeyNotFound {
-		log.Warnf("failed to read endpoints from localstore during init : %v", err)
-	}
 	return nil
 }
 
-func (c *controller) getNetworksFromGlobalStore() ([]*store.KVPair, error) {
+func (c *controller) getNetworksFromStore(global bool) ([]*store.KVPair, error) {
+	var cs datastore.DataStore
 	c.Lock()
-	cs := c.globalStore
+	if global {
+		cs = c.globalStore
+	} else {
+		cs = c.localStore
+	}
 	c.Unlock()
 	return cs.KVStore().List(datastore.Key(datastore.NetworkKeyPrefix))
 }
@@ -95,30 +94,6 @@ func (c *controller) newNetworkFromStore(n *network) error {
 	return c.addNetwork(n)
 }
 
-func (c *controller) updateNetworkToStore(n *network) error {
-	cs := c.getDataStore(n.DataScope())
-	if cs == nil {
-		log.Debugf("datastore not initialized. Network %s is not added to the store", n.Name())
-		return nil
-	}
-
-	return cs.PutObjectAtomic(n)
-}
-
-func (c *controller) deleteNetworkFromStore(n *network) error {
-	cs := c.getDataStore(n.DataScope())
-	if cs == nil {
-		log.Debugf("datastore not initialized. Network %s is not deleted from datastore", n.Name())
-		return nil
-	}
-
-	if err := cs.DeleteObjectAtomic(n); err != nil {
-		return err
-	}
-
-	return nil
-}
-
 func (c *controller) newEndpointFromStore(key string, ep *endpoint) error {
 	ep.Lock()
 	n := ep.network
@@ -134,27 +109,24 @@ func (c *controller) newEndpointFromStore(key string, ep *endpoint) error {
 	return err
 }
 
-func (c *controller) updateEndpointToStore(ep *endpoint) error {
-	ep.Lock()
-	name := ep.name
-	ep.Unlock()
-	cs := c.getDataStore(ep.DataScope())
+func (c *controller) updateToStore(kvObject datastore.KV) error {
+	cs := c.getDataStore(kvObject.DataScope())
 	if cs == nil {
-		log.Debugf("datastore not initialized. endpoint %s is not added to the store", name)
+		log.Debugf("datastore not initialized. kv object %s is not added to the store", datastore.Key(kvObject.Key()...))
 		return nil
 	}
 
-	return cs.PutObjectAtomic(ep)
+	return cs.PutObjectAtomic(kvObject)
 }
 
-func (c *controller) deleteEndpointFromStore(ep *endpoint) error {
-	cs := c.getDataStore(ep.DataScope())
+func (c *controller) deleteFromStore(kvObject datastore.KV) error {
+	cs := c.getDataStore(kvObject.DataScope())
 	if cs == nil {
-		log.Debugf("datastore not initialized. endpoint %s is not deleted from datastore", ep.Name())
+		log.Debugf("datastore not initialized. kv object %s is not deleted from datastore", datastore.Key(kvObject.Key()...))
 		return nil
 	}
 
-	if err := cs.DeleteObjectAtomic(ep); err != nil {
+	if err := cs.DeleteObjectAtomic(kvObject); err != nil {
 		return err
 	}
 
@@ -367,13 +339,6 @@ func (c *controller) getLocalStoreConfig(cfg *config.Config) *config.DatastoreCf
 	return &defaultLocalStoreConfig
 }
 
-func (c *controller) getNetworksFromLocalStore() ([]*store.KVPair, error) {
-	c.Lock()
-	cs := c.localStore
-	c.Unlock()
-	return cs.KVStore().List(datastore.Key(datastore.NetworkKeyPrefix))
-}
-
 func (c *controller) getDataStore(dataScope datastore.DataScope) (dataStore datastore.DataStore) {
 	c.Lock()
 	if dataScope == datastore.GlobalScope {
@@ -385,13 +350,6 @@ func (c *controller) getDataStore(dataScope datastore.DataScope) (dataStore data
 	return
 }
 
-func (c *controller) getEndpointsFromLocalStore() ([]*store.KVPair, error) {
-	c.Lock()
-	cs := c.localStore
-	c.Unlock()
-	return cs.KVStore().List(datastore.Key(datastore.EndpointKeyPrefix))
-}
-
 func (c *controller) processEndpointsUpdate(eps []*store.KVPair, prune *endpointTable) {
 	for _, epe := range eps {
 		var ep endpoint
diff --git a/libnetwork/store_test.go b/libnetwork/store_test.go
index d97601ba4e..0c9ad943cd 100644
--- a/libnetwork/store_test.go
+++ b/libnetwork/store_test.go
@@ -1,20 +1,96 @@
 package libnetwork
 
 import (
+	"fmt"
+	"io/ioutil"
+	"os"
 	"testing"
 
+	"github.com/docker/libkv/store"
 	"github.com/docker/libnetwork/config"
+	"github.com/docker/libnetwork/datastore"
+	"github.com/docker/libnetwork/netlabel"
+	"github.com/docker/libnetwork/options"
 )
 
 func TestZooKeeperBackend(t *testing.T) {
-	testNewController(t, "zk", "127.0.0.1:2181")
+	if err := testNewController(t, "zk", "127.0.0.1:2181"); err != nil {
+		t.Fatal(err)
+	}
 }
 
 func testNewController(t *testing.T, provider, url string) error {
-	netOptions := []config.Option{}
-	netOptions = append(netOptions, config.OptionKVProvider(provider))
-	netOptions = append(netOptions, config.OptionKVProviderURL(url))
-
-	_, err := New(netOptions...)
+	cfgOptions, err := OptionBoltdbWithRandomDBFile()
+	if err != nil {
+		return err
+	}
+	cfgOptions = append(cfgOptions, config.OptionKVProvider(provider))
+	cfgOptions = append(cfgOptions, config.OptionKVProviderURL(url))
+	_, err = New(cfgOptions...)
 	return err
 }
+
+func TestBoltdbBackend(t *testing.T) {
+	defer os.Remove(defaultLocalStoreConfig.Client.Address)
+	testLocalBackend(t, "", "", nil)
+	defer os.Remove("/tmp/boltdb.db")
+	testLocalBackend(t, "boltdb", "/tmp/boltdb.db", &store.Config{Bucket: "testBackend"})
+}
+
+func testLocalBackend(t *testing.T, provider, url string, storeConfig *store.Config) {
+	cfgOptions := []config.Option{}
+	cfgOptions = append(cfgOptions, config.OptionLocalKVProvider(provider))
+	cfgOptions = append(cfgOptions, config.OptionLocalKVProviderURL(url))
+	cfgOptions = append(cfgOptions, config.OptionLocalKVProviderConfig(storeConfig))
+
+	driverOptions := options.Generic{}
+	genericOption := make(map[string]interface{})
+	genericOption[netlabel.GenericData] = driverOptions
+	cfgOptions = append(cfgOptions, config.OptionDriverConfig("host", genericOption))
+
+	ctrl, err := New(cfgOptions...)
+	if err != nil {
+		t.Fatalf("Error new controller: %v", err)
+	}
+	nw, err := ctrl.NewNetwork("host", "host")
+	if err != nil {
+		t.Fatalf("Error creating default \"host\" network: %v", err)
+	}
+	ep, err := nw.CreateEndpoint("newendpoint", []EndpointOption{}...)
+	if err != nil {
+		t.Fatalf("Error creating endpoint: %v", err)
+	}
+	store := ctrl.(*controller).localStore.KVStore()
+	if exists, err := store.Exists(datastore.Key(datastore.NetworkKeyPrefix, string(nw.ID()))); !exists || err != nil {
+		t.Fatalf("Network key should have been created.")
+	}
+	if exists, err := store.Exists(datastore.Key([]string{datastore.EndpointKeyPrefix, string(nw.ID()), string(ep.ID())}...)); exists || err != nil {
+		t.Fatalf("Endpoint key shouldn't have been created.")
+	}
+	store.Close()
+
+	// test restore of local store
+	ctrl, err = New(cfgOptions...)
+	if err != nil {
+		t.Fatalf("Error creating controller: %v", err)
+	}
+	if _, err = ctrl.NetworkByID(nw.ID()); err != nil {
+		t.Fatalf("Error getting network %v", err)
+	}
+}
+
+// OptionBoltdbWithRandomDBFile function returns a random dir for local store backend
+func OptionBoltdbWithRandomDBFile() ([]config.Option, error) {
+	tmp, err := ioutil.TempFile("", "libnetwork-")
+	if err != nil {
+		return nil, fmt.Errorf("Error creating temp file: %v", err)
+	}
+	if err := tmp.Close(); err != nil {
+		return nil, fmt.Errorf("Error closing temp file: %v", err)
+	}
+	cfgOptions := []config.Option{}
+	cfgOptions = append(cfgOptions, config.OptionLocalKVProvider("boltdb"))
+	cfgOptions = append(cfgOptions, config.OptionLocalKVProviderURL(tmp.Name()))
+	cfgOptions = append(cfgOptions, config.OptionLocalKVProviderConfig(&store.Config{Bucket: "testBackend"}))
+	return cfgOptions, nil
+}
diff --git a/libnetwork/test/integration/dnet/helpers.bash b/libnetwork/test/integration/dnet/helpers.bash
index 7f6cfba05d..7b89ddc78a 100644
--- a/libnetwork/test/integration/dnet/helpers.bash
+++ b/libnetwork/test/integration/dnet/helpers.bash
@@ -50,9 +50,9 @@ title = "LibNetwork Configuration file"
 [daemon]
   debug = false
   labels = ["com.docker.network.driver.overlay.bind_interface=eth0"]
-[datastore]
+[globalstore]
   embedded = false
-[datastore.client]
+[globalstore.client]
   provider = "consul"
   Address = "${bridge_ip}:8500"
 EOF