Openstack: hostname is appended by "novalocal"

I have made a heat template that starts up some servers and installs puppet. In the heat template I have put for the servers their hostname by doing:

properties:
    name: dir

Some servers actually gets their hostname, but there are a few that gets their hostname appended by ".novalocal".

An example for a server I have

properties:
    name: server1

actual hostname: server1.novalocal

Any idea what cause this? I am at a total loss.

Solution

Reference: Neutron Network DNS Suffix via DHCP

Nova appends the default domain name .novalocal to the hostname. This can be resolved by setting dhcp_domain to an empty string in nova.conf on the Control node.

# This option allows you to specify the domain for the DHCP server.
#
# Possible values:
#
# * Any string that is a valid domain name.
#
#dhcp_domain = novalocal
dhcp_domain =

FYI, As @Дмитрий Работягов mentioned, this option has been moved to [api] section, here is the change 480616 on Openstack Code-Review system.