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Description of problem:

Setting your /etc/hosts entry with cloud init should allow you to specify your private and public IP addresses

Additional info:

https://bugs.launchpad.net/cloud-init/+bug/1020695

This is probably an RFE that should be submitted upstream.

That said, if you don't like the current behavior, you can disable `manage_etc_hosts` in your cloud-init configuration and pass in a `user-data` script to perform the necessary changes.