diff --git a/03_launch_mgmt_cluster.sh b/03_launch_mgmt_cluster.sh
index eee2852e4..b17cf0110 100755
--- a/03_launch_mgmt_cluster.sh
+++ b/03_launch_mgmt_cluster.sh
@@ -10,9 +10,6 @@ source lib/releases.sh
 # shellcheck disable=SC1091
 source lib/network.sh
 
-# Default CAPI_CONFIG_DIR to $HOME/.config directory if XDG_CONFIG_HOME not set
-CONFIG_DIR="${XDG_CONFIG_HOME:-$HOME/.config}"
-export CAPI_CONFIG_DIR="${CONFIG_DIR}/cluster-api"
 export IRONIC_HOST="${CLUSTER_BARE_METAL_PROVISIONER_HOST}"
 export IRONIC_HOST_IP="${CLUSTER_BARE_METAL_PROVISIONER_IP}"
 export REPO_IMAGE_PREFIX="quay.io"
@@ -394,19 +391,6 @@ 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
-}
-
 function get_component_image(){
   local ORIG_IMAGE=$1
   # Split the image IMAGE_NAME AND IMAGE_TAG, if any tag exist
@@ -431,13 +415,8 @@ function update_component_image(){
   local ORIG_IMAGE=$2
   local TMP_IMAGE
   TMP_IMAGE="$(get_component_image "$ORIG_IMAGE")"
-  if [[ "${IMPORT}" == "IPAM" ]]; then
-    export MANIFEST_IMG_IPAM="${TMP_IMAGE%:*}"
-    export MANIFEST_TAG_IPAM="${TMP_IMAGE##*:}"
-  else
-    export MANIFEST_IMG="${TMP_IMAGE%:*}"
-    export MANIFEST_TAG="${TMP_IMAGE##*:}"
-  fi
+  export MANIFEST_IMG="${TMP_IMAGE%:*}"
+  export MANIFEST_TAG="${TMP_IMAGE##*:}"
 
   # NOTE: It is assumed that we are already in the correct directory to run make
   case "${IMPORT}" in
@@ -448,7 +427,7 @@ function update_component_image(){
       make set-manifest-image
       ;;
     "IPAM")
-      make set-manifest-image-ipam
+      make set-manifest-image
       ;;
     "Ironic")
       make set-manifest-image-ironic
@@ -474,6 +453,13 @@ function patch_clusterctl(){
   mkdir -p "${CAPI_CONFIG_DIR}"
   touch "${CAPI_CONFIG_DIR}"/clusterctl.yaml
 
+  cat << EOF > "${CAPI_CONFIG_DIR}"/clusterctl.yaml
+providers:
+- name: metal3ipam
+  url: https://github.com/metal3-io/ip-address-manager/releases/${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 "${CAPM3_LOCAL_IMAGE:-}" ]; then
@@ -482,18 +468,27 @@ function patch_clusterctl(){
     update_component_image CAPM3 "${CAPM3_IMAGE}"
   fi
 
+  make release-manifests
+
+  rm -rf "${CAPI_CONFIG_DIR}"/overrides/infrastructure-metal3/"${CAPM3RELEASE}"
+  mkdir -p "${CAPI_CONFIG_DIR}"/overrides/infrastructure-metal3/"${CAPM3RELEASE}"
+  cp out/*.yaml "${CAPI_CONFIG_DIR}"/overrides/infrastructure-metal3/"${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 "${CAPI_CONFIG_DIR}"/overrides/infrastructure-metal3/"${CAPM3RELEASE}"
-  mkdir -p "${CAPI_CONFIG_DIR}"/overrides/infrastructure-metal3/"${CAPM3RELEASE}"
- cp out/*.yaml "${CAPI_CONFIG_DIR}"/overrides/infrastructure-metal3/"${CAPM3RELEASE}"
+  rm -rf "${CAPI_CONFIG_DIR}"/overrides/ipam-metal3ipam/"${IPAMRELEASE}"
+  mkdir -p "${CAPI_CONFIG_DIR}"/overrides/ipam-metal3ipam/"${IPAMRELEASE}"
+  cp out/*.yaml "${CAPI_CONFIG_DIR}"/overrides/ipam-metal3ipam/"${IPAMRELEASE}"
   popd
 }
 
@@ -522,7 +517,7 @@ 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 [ "${CAPM3_RUN_LOCAL}" == true ]; then
     touch capm3.out.log
@@ -658,6 +653,7 @@ if [ "${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 35b7cc904..448452647 100644
--- a/config_example.sh
+++ b/config_example.sh
@@ -216,3 +216,9 @@
 
 # Whether to use ironic-standalone-operator to deploy Ironic.
 # export USE_IRSO="true"
+
+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/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 27e84296c..9e7a75312 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) }}"