diff --git a/03_launch_mgmt_cluster.sh b/03_launch_mgmt_cluster.sh
index 4e44e6918..bad95c168 100755
--- a/03_launch_mgmt_cluster.sh
+++ b/03_launch_mgmt_cluster.sh
@@ -292,20 +292,6 @@ function apply_bm_hosts() {
 # --------------------------
 # CAPM3 deployment functions
 # --------------------------
-
-#
-# Update the imports for the CAPM3 deployment files
-#
-function update_capm3_imports(){
-  pushd "${CAPM3PATH}"
-
-  make kustomize
-  ./hack/tools/bin/kustomize build "${IPAMPATH}/config/default" > config/ipam/metal3-ipam-components.yaml
-
-  sed -i -e "s#https://github.com/metal3-io/ip-address-manager/releases/download/v.*/ipam-components.yaml#metal3-ipam-components.yaml#" "config/ipam/kustomization.yaml"
-  popd
-}
-
 #
 # Update the CAPM3 and BMO manifests to use local images as defined in variables
 #
@@ -334,9 +320,9 @@ function update_component_image(){
       make set-manifest-image
       ;;
     "IPAM")
-      export MANIFEST_IMG_IPAM="${REGISTRY}/localimages/$TMP_IMAGE_NAME"
-      export MANIFEST_TAG_IPAM="$TMP_IMAGE_TAG"
-      make set-manifest-image-ipam
+      export MANIFEST_IMG="${REGISTRY}/localimages/${TMP_IMAGE_NAME}"
+      export MANIFEST_TAG="${TMP_IMAGE_TAG}"
+      make set-manifest-image
       ;;
     "Ironic")
       export MANIFEST_IMG="${REGISTRY}/localimages/${TMP_IMAGE_NAME}"
@@ -370,6 +356,13 @@ function patch_clusterctl(){
   mkdir -p "${CAPI_CONFIG_FOLDER}"
   touch "${CAPI_CONFIG_FOLDER}"/clusterctl.yaml
 
+  cat << EOF > "${CAPI_CONFIG_FOLDER}"/clusterctl.yaml
+providers:
+- name: metal3ipam
+  url: https://github.com/metal3-io/ip-address-manager/releases/${IPAMRELEASE}/ipam-components.yaml
+  type: IPAMProvider
+EOF
+
   # At this point the images variables have been updated with update_images
   # Reflect the change in components files
   if [ -n "${CAPM3_LOCAL_IMAGE:-}" ]; then
@@ -378,18 +371,27 @@ function patch_clusterctl(){
     update_component_image CAPM3 "${CAPM3_IMAGE}"
   fi
 
+  make release-manifests
+
+  rm -rf "${CAPI_CONFIG_FOLDER}"/overrides/infrastructure-metal3/"${CAPM3RELEASE}"
+  mkdir -p "${CAPI_CONFIG_FOLDER}"/overrides/infrastructure-metal3/"${CAPM3RELEASE}"
+  cp out/*.yaml "${CAPI_CONFIG_FOLDER}"/overrides/infrastructure-metal3/"${CAPM3RELEASE}"
+  popd
+}
+
+function patch_ipam(){
+  pushd "${IPAMPATH}"
+
   if [ -n "${IPAM_LOCAL_IMAGE:-}" ]; then
     update_component_image IPAM "${IPAM_LOCAL_IMAGE}"
   else
     update_component_image IPAM "${IPAM_IMAGE}"
   fi
 
-  update_capm3_imports
   make release-manifests
-
-  rm -rf "${CAPI_CONFIG_FOLDER}"/overrides/infrastructure-metal3/"${CAPM3RELEASE}"
-  mkdir -p "${CAPI_CONFIG_FOLDER}"/overrides/infrastructure-metal3/"${CAPM3RELEASE}"
- cp out/*.yaml "${CAPI_CONFIG_FOLDER}"/overrides/infrastructure-metal3/"${CAPM3RELEASE}"
+  rm -rf "${CAPI_CONFIG_FOLDER}"/overrides/ipam-metal3ipam/"${IPAMRELEASE}"
+  mkdir -p "${CAPI_CONFIG_FOLDER}"/overrides/ipam-metal3ipam/"${IPAMRELEASE}"
+  cp out/*.yaml "${CAPI_CONFIG_FOLDER}"/overrides/ipam-metal3ipam/"${IPAMRELEASE}"
   popd
 }
 
@@ -418,7 +420,7 @@ function launch_cluster_api_provider_metal3() {
 
     # shellcheck disable=SC2153
   clusterctl init --core cluster-api:"${CAPIRELEASE}" --bootstrap kubeadm:"${CAPIRELEASE}" \
-    --control-plane kubeadm:"${CAPIRELEASE}" --infrastructure=metal3:"${CAPM3RELEASE}"  -v5
+    --control-plane kubeadm:"${CAPIRELEASE}" --infrastructure=metal3:"${CAPM3RELEASE}"  -v5 --ipam=metal3ipam:"${IPAMRELEASE}"
 
   if [ "${CAPM3_RUN_LOCAL}" == true ]; then
     touch capm3.out.log
@@ -554,6 +556,7 @@ if [ "${EPHEMERAL_CLUSTER}" != "tilt" ]; then
   kubectl create namespace metal3
 
   patch_clusterctl
+  patch_ipam
   launch_cluster_api_provider_metal3
   BMO_NAME_PREFIX="${NAMEPREFIX}"
   launch_baremetal_operator
diff --git a/04_verify.sh b/04_verify.sh
index e0ffebd5e..bf4caf38b 100755
--- a/04_verify.sh
+++ b/04_verify.sh
@@ -200,10 +200,11 @@ EXPTD_DEPLOYMENTS="capm3-system:capm3-controller-manager \
   capi-kubeadm-bootstrap-system:capi-kubeadm-bootstrap-controller-manager \
   capi-kubeadm-control-plane-system:capi-kubeadm-control-plane-controller-manager \
   baremetal-operator-system:baremetal-operator-controller-manager"
-EXPTD_RS="cluster.x-k8s.io/provider:infrastructure-metal3:capm3-system:2 \
+EXPTD_RS="cluster.x-k8s.io/provider:infrastructure-metal3:capm3-system:1 \
   cluster.x-k8s.io/provider:cluster-api:capi-system:1 \
   cluster.x-k8s.io/provider:bootstrap-kubeadm:capi-kubeadm-bootstrap-system:1 \
-  cluster.x-k8s.io/provider:control-plane-kubeadm:capi-kubeadm-control-plane-system:1"
+  cluster.x-k8s.io/provider:control-plane-kubeadm:capi-kubeadm-control-plane-system:1 \
+  cluster.x-k8s.io/provider:ipam-metal3:metal3-ipam-system:1"
 BRIDGES="provisioning external"
 EXPTD_CONTAINERS="httpd-infra registry vbmc sushy-tools"
 
diff --git a/config_example.sh b/config_example.sh
index 7ac98c625..3bda2c7c4 100644
--- a/config_example.sh
+++ b/config_example.sh
@@ -213,3 +213,9 @@
 # To enable FakeIPA and run dev-env on a fake platform
 # export NODES_PLATFORM="fake"
 # export FAKE_IPA_IMAGE=192.168.111.1:5000/localimages/fake-ipa
+
+export CAPM3REPO="https://github.com/Nordix/cluster-api-provider-metal3"
+export CAPM3BRANCH="peppi-lotta/change-IPAM-namespace"
+
+export IPAMREPO="https://github.com/Nordix/metal3-ipam/"
+export IPAMBRANCH="peppi-lotta/make-ipam-a-provider-for-capi"
diff --git a/lib/releases.sh b/lib/releases.sh
index d7e6ad07f..1cedcd911 100644
--- a/lib/releases.sh
+++ b/lib/releases.sh
@@ -72,18 +72,22 @@ CAPIRELEASEPATH="{https://api.github.com/repos/${CAPI_BASE_URL:-kubernetes-sigs/
 if [ "${CAPM3RELEASEBRANCH}" = "release-1.6" ]; then
   # 1.6.99 points to the head of the release-1.6 branch. Local override for CAPM3 is created for this version.
   export CAPM3RELEASE="v1.6.99"
+  export IPAMRELEASE="v1.6.99"
   export CAPIRELEASE="${CAPIRELEASE:-$(get_latest_release "${CAPIRELEASEPATH}" "v1.6.")}"
 elif [ "${CAPM3RELEASEBRANCH}" = "release-1.7" ]; then
   # 1.7.99 points to the head of the release-1.7 branch. Local override for CAPM3 is created for this version.
   export CAPM3RELEASE="v1.7.99"
+  export IPAMRELEASE="v1.7.99"
   export CAPIRELEASE="${CAPIRELEASE:-$(get_latest_release "${CAPIRELEASEPATH}" "v1.7.")}"
 elif [ "${CAPM3RELEASEBRANCH}" = "release-1.8" ]; then
   # 1.8.99 points to the head of the release-1.8 branch. Local override for CAPM3 is created for this version.
   export CAPM3RELEASE="v1.8.99"
+  export IPAMRELEASE="v1.8.99"
   export CAPIRELEASE="${CAPIRELEASE:-$(get_latest_release "${CAPIRELEASEPATH}" "v1.8.")}"
 else
   # 1.9.99 points to the head of the main branch of CAPM3. Local override for CAPM3 is created for this version.
   export CAPM3RELEASE="v1.9.99"
+  export IPAMRELEASE="v1.9.99"
   export CAPIRELEASE="${CAPIRELEASE:-$(get_latest_release "${CAPIRELEASEPATH}" "v1.8.")}"
 fi
 
diff --git a/tests/roles/run_tests/tasks/move.yml b/tests/roles/run_tests/tasks/move.yml
index ad3d78dca..4ff5dbd79 100644
--- a/tests/roles/run_tests/tasks/move.yml
+++ b/tests/roles/run_tests/tasks/move.yml
@@ -96,7 +96,7 @@
       kubeconfig: "/tmp/kubeconfig-{{ CLUSTER_NAME }}.yaml"
 
   - name: Initialize Provider component in target cluster
-    shell: "clusterctl init --kubeconfig /tmp/kubeconfig-{{ CLUSTER_NAME }}.yaml --core cluster-api:{{ CAPIRELEASE }} --bootstrap kubeadm:{{ CAPIRELEASE }} --control-plane kubeadm:{{ CAPIRELEASE }} --infrastructure metal3:{{ CAPM3RELEASE }} -v 5"
+    shell: "clusterctl init --kubeconfig /tmp/kubeconfig-{{ CLUSTER_NAME }}.yaml --core cluster-api:{{ CAPIRELEASE }} --bootstrap kubeadm:{{ CAPIRELEASE }} --control-plane kubeadm:{{ CAPIRELEASE }} --infrastructure metal3:{{ CAPM3RELEASE }} -v 5 --ipam metal3ipam:{{ IPAMRELEASE }}"
 
   # Check for cert-manager pods on the target cluster
   - name: Check if cert-manager  pods in running state
diff --git a/tests/roles/run_tests/vars/main.yml b/tests/roles/run_tests/vars/main.yml
index 617d61b18..a7bd9e581 100644
--- a/tests/roles/run_tests/vars/main.yml
+++ b/tests/roles/run_tests/vars/main.yml
@@ -51,6 +51,7 @@ POD_CIDR: "{{ lookup('env', 'POD_CIDR') }}"
 SERVICE_CIDR: "10.96.0.0/12"
 CAPM3RELEASE: "{{ lookup('env', 'CAPM3RELEASE') | default('v1.1.2', true) }}"
 CAPIRELEASE: "{{ lookup('env', 'CAPIRELEASE') | default('v1.1.4', true) }}"
+IPAMRELEASE: "{{ lookup('env', 'IPAMRELEASE') | default('v1.1.2', true) }}"
 SSH_PRIVATE_KEY: "{{ lookup('env', 'SSH_KEY') }}"
 SSH_PUB_KEY_CONTENT: "{{ lookup('file', '{{ HOME }}/.ssh/id_rsa.pub') }}"
 IMAGE_USERNAME: "{{ lookup('env', 'IMAGE_USERNAME') | default('metal3', true) }}"