LOGICAL PROCESSING FOR CONTAINERS

Some embodiments provide a local network controller that manages a first managed forwarding element (MFE) operating to forward traffic on a host machine for several logical networks and configures the first MFE to forward traffic for a set of containers operating within a container virtual machine (VM) that connects to the first MFE. The local network controller receives, from a centralized network controller, logical network configuration information for a logical network to which the set of containers logically connect. The local network controller receives, from the container VM, a mapping of a tag value used by a second MFE operating on the container VM to a logical forwarding element of the logical network to which the set of containers connect. The local network controller configures the first MFE to apply the logical network configuration information to data messages received from the container VM that are tagged with the tag value.