A novel method for logically routing a packet between a source machine that is in a first logical domain and a destination machine that is in a second logical domain is described. The method configures a managed switching element as a second-level managed switching element. The method configures a router in a host that includes the second-level managed switching element. The method communicatively couples the second-level managed switching element with the router. The method causes the router to route a packet when the router receives a packet from the first logical domain that is addressed to the second logical domain.