diff --git a/builtin/providers/google/provider.go b/builtin/providers/google/provider.go
index c7d345b87..ebb4a5dfd 100644
--- a/builtin/providers/google/provider.go
+++ b/builtin/providers/google/provider.go
@@ -145,3 +145,11 @@ func validateCredentials(v interface{}, k string) (warnings []string, errors []e
 
 	return
 }
+
+func getRegionFromZone(zone string) string {
+	if zone != "" && len(zone) > 2 {
+		region := zone[:len(zone)-2]
+		return region
+	}
+	return ""
+}
diff --git a/builtin/providers/google/resource_compute_instance.go b/builtin/providers/google/resource_compute_instance.go
index 8e6a3f937..28578736d 100644
--- a/builtin/providers/google/resource_compute_instance.go
+++ b/builtin/providers/google/resource_compute_instance.go
@@ -111,7 +111,13 @@ func resourceComputeInstance() *schema.Resource {
 					Schema: map[string]*schema.Schema{
 						"network": &schema.Schema{
 							Type:     schema.TypeString,
-							Required: true,
+							Optional: true,
+							ForceNew: true,
+						},
+
+						"subnetwork": &schema.Schema{
+							Type:     schema.TypeString,
+							Optional: true,
 							ForceNew: true,
 						},
 
@@ -445,17 +451,36 @@ func resourceComputeInstanceCreate(d *schema.ResourceData, meta interface{}) err
 			prefix := fmt.Sprintf("network_interface.%d", i)
 			// Load up the name of this network_interfac
 			networkName := d.Get(prefix + ".network").(string)
-			network, err := config.clientCompute.Networks.Get(
-				config.Project, networkName).Do()
-			if err != nil {
-				return fmt.Errorf(
-					"Error referencing network '%s': %s",
-					networkName, err)
+			subnetworkName := d.Get(prefix + ".subnetwork").(string)
+			var networkLink, subnetworkLink string
+
+			if networkName != "" && subnetworkName != "" {
+				return fmt.Errorf("Cannot specify both network and subnetwork values.")
+			} else if networkName != "" {
+				network, err := config.clientCompute.Networks.Get(
+					config.Project, networkName).Do()
+				if err != nil {
+					return fmt.Errorf(
+						"Error referencing network '%s': %s",
+						networkName, err)
+				}
+				networkLink = network.SelfLink
+			} else {
+				region := getRegionFromZone(d.Get("zone").(string))
+				subnetwork, err := config.clientCompute.Subnetworks.Get(
+					config.Project, region, subnetworkName).Do()
+				if err != nil {
+					return fmt.Errorf(
+						"Error referencing subnetwork '%s' in region '%s': %s",
+						subnetworkName, region, err)
+				}
+				subnetworkLink = subnetwork.SelfLink
 			}
 
 			// Build the networkInterface
 			var iface compute.NetworkInterface
-			iface.Network = network.SelfLink
+			iface.Network = networkLink
+			iface.Subnetwork = subnetworkLink
 
 			// Handle access_config structs
 			accessConfigsCount := d.Get(prefix + ".access_config.#").(int)
diff --git a/builtin/providers/google/resource_compute_instance_template.go b/builtin/providers/google/resource_compute_instance_template.go
index c9eabdece..f7a0ce8bf 100644
--- a/builtin/providers/google/resource_compute_instance_template.go
+++ b/builtin/providers/google/resource_compute_instance_template.go
@@ -141,6 +141,12 @@ func resourceComputeInstanceTemplate() *schema.Resource {
 							ForceNew: true,
 						},
 
+						"subnetwork": &schema.Schema{
+							Type:     schema.TypeString,
+							Optional: true,
+							ForceNew: true,
+						},
+
 						"access_config": &schema.Schema{
 							Type:     schema.TypeList,
 							Optional: true,
@@ -337,9 +343,12 @@ func buildNetworks(d *schema.ResourceData, meta interface{}) (error, []*compute.
 			source += v.(string)
 		}
 
+		subnetworkLink := d.Get("subnetwork").(string)
+
 		// Build the networkInterface
 		var iface compute.NetworkInterface
 		iface.Network = source
+		iface.Subnetwork = subnetworkLink
 
 		accessConfigsCount := d.Get(prefix + ".access_config.#").(int)
 		iface.AccessConfigs = make([]*compute.AccessConfig, accessConfigsCount)
diff --git a/builtin/providers/google/resource_compute_network.go b/builtin/providers/google/resource_compute_network.go
index 3f8536361..36c242942 100644
--- a/builtin/providers/google/resource_compute_network.go
+++ b/builtin/providers/google/resource_compute_network.go
@@ -24,9 +24,10 @@ func resourceComputeNetwork() *schema.Resource {
 			},
 
 			"ipv4_range": &schema.Schema{
-				Type:     schema.TypeString,
-				Optional: true,
-				ForceNew: true,
+				Type:       schema.TypeString,
+				Optional:   true,
+				ForceNew:   true,
+				Deprecated: "Please use custom subnetworks instead",
 			},
 
 			"gateway_ipv4": &schema.Schema{
diff --git a/builtin/providers/google/resource_compute_subnetwork.go b/builtin/providers/google/resource_compute_subnetwork.go
index 23905cd5d..daf97b910 100644
--- a/builtin/providers/google/resource_compute_subnetwork.go
+++ b/builtin/providers/google/resource_compute_subnetwork.go
@@ -34,7 +34,7 @@ func resourceComputeSubnetwork() *schema.Resource {
 				ForceNew: true,
 			},
 
-			"ipCidrRange": &schema.Schema{
+			"ip_cidr_range": &schema.Schema{
 				Type:     schema.TypeString,
 				Required: true,
 				ForceNew: true,
@@ -70,7 +70,7 @@ func resourceComputeSubnetworkCreate(d *schema.ResourceData, meta interface{}) e
 	subnetwork := &compute.Subnetwork{
 		Name:        d.Get("name").(string),
 		Description: d.Get("description").(string),
-		IpCidrRange: d.Get("ipCidrRange").(string),
+		IpCidrRange: d.Get("ip_cidr_range").(string),
 		Network:     d.Get("network").(string),
 	}
 	region := d.Get("region").(string)
diff --git a/builtin/providers/google/resource_compute_vpn_tunnel.go b/builtin/providers/google/resource_compute_vpn_tunnel.go
index b9ce28529..d797c6d01 100644
--- a/builtin/providers/google/resource_compute_vpn_tunnel.go
+++ b/builtin/providers/google/resource_compute_vpn_tunnel.go
@@ -55,6 +55,13 @@ func resourceComputeVpnTunnel() *schema.Resource {
 				Default:  2,
 				ForceNew: true,
 			},
+			"local_traffic_selector": &schema.Schema{
+				Type:     schema.TypeSet,
+				Optional: true,
+				ForceNew: true,
+				Elem:     &schema.Schema{Type: schema.TypeString},
+				Set:      schema.HashString,
+			},
 			"detailed_status": &schema.Schema{
 				Type:     schema.TypeString,
 				Computed: true,
@@ -82,14 +89,24 @@ func resourceComputeVpnTunnelCreate(d *schema.ResourceData, meta interface{}) er
 		return fmt.Errorf("Only IKE version 1 or 2 supported, not %d", ikeVersion)
 	}
 
+	// Build up the list of sources
+	var localTrafficSelectors []string
+	if v := d.Get("local_traffic_selector").(*schema.Set); v.Len() > 0 {
+		localTrafficSelectors = make([]string, v.Len())
+		for i, v := range v.List() {
+			localTrafficSelectors[i] = v.(string)
+		}
+	}
+
 	vpnTunnelsService := compute.NewVpnTunnelsService(config.clientCompute)
 
 	vpnTunnel := &compute.VpnTunnel{
-		Name:             name,
-		PeerIp:           peerIp,
-		SharedSecret:     sharedSecret,
-		TargetVpnGateway: targetVpnGateway,
-		IkeVersion:       int64(ikeVersion),
+		Name:                 name,
+		PeerIp:               peerIp,
+		SharedSecret:         sharedSecret,
+		TargetVpnGateway:     targetVpnGateway,
+		IkeVersion:           int64(ikeVersion),
+		LocalTrafficSelector: localTrafficSelectors,
 	}
 
 	if v, ok := d.GetOk("description"); ok {
diff --git a/website/source/docs/providers/google/r/compute_instance.html.markdown b/website/source/docs/providers/google/r/compute_instance.html.markdown
index 1074d0117..109f2af9b 100644
--- a/website/source/docs/providers/google/r/compute_instance.html.markdown
+++ b/website/source/docs/providers/google/r/compute_instance.html.markdown
@@ -120,7 +120,12 @@ the type is "local-ssd", in which case scratch must be true).
 
 The `network_interface` block supports:
 
-* `network` - (Required) The name of the network to attach this interface to.
+* `network` - (Optional) The name of the network to attach this interface to. Either
+    `network` or `subnetwork` must be provided.
+    
+*  `subnetwork` - (Optional) the name of the subnetwork to attach this interface to. The subnetwork
+     must exist in the same region this instance is to be created in. Either `network`
+     or `subnetwork` must be provided.
 
 * `access_config` - (Optional) Access configurations, i.e. IPs via which this instance can be
   accessed via the Internet.  Omit to ensure that the instance is not accessible from the Internet
diff --git a/website/source/docs/providers/google/r/compute_network.html.markdown b/website/source/docs/providers/google/r/compute_network.html.markdown
index 1306a0928..bd9820551 100644
--- a/website/source/docs/providers/google/r/compute_network.html.markdown
+++ b/website/source/docs/providers/google/r/compute_network.html.markdown
@@ -26,8 +26,17 @@ The following arguments are supported:
 * `name` - (Required) A unique name for the resource, required by GCE.
     Changing this forces a new resource to be created.
 
-* `ipv4_range` - (Required) The IPv4 address range that machines in this
-     network are assigned to, represented as a CIDR block.
+* `ipv4_range` - (Optional) The IPv4 address range that machines in this
+     network are assigned to, represented as a CIDR block. If not
+     set, an auto or custom subnetted network will be created, depending
+     on the value of `auto_create_subnetworks` attribute.
+     
+* `auto_create_subnetworks` - (Optional) If set to true, this network 
+     will be created in auto subnet mode, and Google will create a
+     subnet for each region automatically.
+     If set to false, and `ipv4_range` is not set, a custom subnetted
+     network will be created that can support `google_compute_subnetwork`
+     resources.
 
 ## Attributes Reference
 
diff --git a/website/source/docs/providers/google/r/compute_subnetwork.html.markdown b/website/source/docs/providers/google/r/compute_subnetwork.html.markdown
new file mode 100644
index 000000000..4bc373ec1
--- /dev/null
+++ b/website/source/docs/providers/google/r/compute_subnetwork.html.markdown
@@ -0,0 +1,47 @@
+---
+layout: "google"
+page_title: "Google: google_compute_subnetwork"
+sidebar_current: "docs-google-compute-subnetwork"
+description: |-
+  Manages a subnetwork within GCE.
+---
+
+# google\_compute\_subnetwork
+
+Manages a subnetwork within GCE.
+
+## Example Usage
+
+```
+resource "google_compute_subnetwork" "default-us-east1" {
+	name = "default-us-east1"
+	ip_cidr_range = "10.0.0.0/16"
+	network = "${google_compute_network.default.self_link}"
+	region = "us-east1"
+}
+```
+
+## Argument Reference
+
+The following arguments are supported:
+
+* `name` - (Required) A unique name for the resource, required by GCE.
+    Changing this forces a new resource to be created.
+
+* `network` - (Required) A link to the parent network of this subnetwork.
+     The parent network must have been created in custom subnet mode.
+
+* `ip_cidr_range` - (Required) The IP address range that machines in this
+     network are assigned to, represented as a CIDR block.
+     
+* `region` - (Required) The region this subnetwork will be created in. 
+
+* `description` - (Optional) Description of this subnetwork.
+
+## Attributes Reference
+
+The following attributes are exported:
+
+* `name` - The name of the resource.
+* `ip_cidr_range` - The CIDR block of this network.
+* `gateway_address` - The IP address of the gateway.