diff --git a/hack/compare-mock b/hack/compare-mock
index 268920d4ab9..69aa18db924 100755
--- a/hack/compare-mock
+++ b/hack/compare-mock
@@ -16,6 +16,6 @@ E2E_GCP_TARGET=mock \
 GOLDEN_REQUEST_CHECKS=1 \
 GOLDEN_OBJECT_CHECKS=1 \
 WRITE_GOLDEN_OUTPUT=1 \
-KCC_USE_DIRECT_RECONCILERS="SQLInstance" \
+KCC_USE_DIRECT_RECONCILERS="SQLInstance,ComputeForwardingRule" \
 RUN_E2E=1 \
  go test ./tests/e2e -timeout 3600s -v -run $RUN_TESTS
\ No newline at end of file
diff --git a/pkg/controller/direct/compute/client.go b/pkg/controller/direct/compute/client.go
new file mode 100644
index 00000000000..51eae5e28b9
--- /dev/null
+++ b/pkg/controller/direct/compute/client.go
@@ -0,0 +1,101 @@
+// Copyright 2024 Google LLC
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//      http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+package compute
+
+import (
+	"context"
+	"fmt"
+	"net/http"
+
+	api "cloud.google.com/go/compute/apiv1"
+	"github.com/GoogleCloudPlatform/k8s-config-connector/pkg/config"
+	"google.golang.org/api/option"
+)
+
+type gcpClient struct {
+	config config.ControllerConfig
+}
+
+func newGCPClient(ctx context.Context, config *config.ControllerConfig) (*gcpClient, error) {
+	gcpClient := &gcpClient{
+		config: *config,
+	}
+	return gcpClient, nil
+}
+
+func (m *gcpClient) options() ([]option.ClientOption, error) {
+	var opts []option.ClientOption
+	if m.config.UserAgent != "" {
+		opts = append(opts, option.WithUserAgent(m.config.UserAgent))
+	}
+	if m.config.HTTPClient != nil {
+		// TODO: Set UserAgent in this scenario (error is: WithHTTPClient is incompatible with gRPC dial options)
+
+		httpClient := &http.Client{}
+		*httpClient = *m.config.HTTPClient
+		httpClient.Transport = &optionsRoundTripper{
+			config: m.config,
+			inner:  m.config.HTTPClient.Transport,
+		}
+		opts = append(opts, option.WithHTTPClient(httpClient))
+	}
+	if m.config.UserProjectOverride && m.config.BillingProject != "" {
+		opts = append(opts, option.WithQuotaProject(m.config.BillingProject))
+	}
+
+	// TODO: support endpoints?
+	// if m.config.Endpoint != "" {
+	// 	opts = append(opts, option.WithEndpoint(m.config.Endpoint))
+	// }
+
+	return opts, nil
+}
+
+type optionsRoundTripper struct {
+	config config.ControllerConfig
+	inner  http.RoundTripper
+}
+
+func (m *optionsRoundTripper) RoundTrip(req *http.Request) (*http.Response, error) {
+	if m.config.UserAgent != "" {
+		req.Header.Set("User-Agent", m.config.UserAgent)
+		req.Header.Del("x-goog-request-params")
+	}
+	return m.inner.RoundTrip(req)
+}
+
+func (m *gcpClient) globalForwardingRuleClient(ctx context.Context) (*api.GlobalForwardingRulesClient, error) {
+	opts, err := m.options()
+	if err != nil {
+		return nil, err
+	}
+	client, err := api.NewGlobalForwardingRulesRESTClient(ctx, opts...)
+	if err != nil {
+		return nil, fmt.Errorf("building global ComputeForwardingRule client: %w", err)
+	}
+	return client, err
+}
+
+func (m *gcpClient) forwardingRuleClient(ctx context.Context) (*api.ForwardingRulesClient, error) {
+	opts, err := m.options()
+	if err != nil {
+		return nil, err
+	}
+	client, err := api.NewForwardingRulesRESTClient(ctx, opts...)
+	if err != nil {
+		return nil, fmt.Errorf("building ComputeForwardingRule client: %w", err)
+	}
+	return client, err
+}
diff --git a/pkg/controller/direct/compute/forwardingrule_controller.go b/pkg/controller/direct/compute/forwardingrule_controller.go
new file mode 100644
index 00000000000..6e3215b5018
--- /dev/null
+++ b/pkg/controller/direct/compute/forwardingrule_controller.go
@@ -0,0 +1,471 @@
+// Copyright 2024 Google LLC
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//      http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+package compute
+
+import (
+	"context"
+	"fmt"
+	"k8s.io/klog/v2"
+	"reflect"
+
+	refs "github.com/GoogleCloudPlatform/k8s-config-connector/apis/refs/v1beta1"
+
+	gcp "cloud.google.com/go/compute/apiv1"
+	computepb "cloud.google.com/go/compute/apiv1/computepb"
+	krm "github.com/GoogleCloudPlatform/k8s-config-connector/apis/compute/v1beta1"
+	"github.com/GoogleCloudPlatform/k8s-config-connector/pkg/config"
+	"github.com/GoogleCloudPlatform/k8s-config-connector/pkg/controller/direct"
+	"github.com/GoogleCloudPlatform/k8s-config-connector/pkg/controller/direct/directbase"
+	"github.com/GoogleCloudPlatform/k8s-config-connector/pkg/controller/direct/registry"
+	"k8s.io/apimachinery/pkg/apis/meta/v1/unstructured"
+	"k8s.io/apimachinery/pkg/runtime"
+	"sigs.k8s.io/controller-runtime/pkg/client"
+)
+
+const ctrlName = "forwardingrule-controller"
+
+func init() {
+	registry.RegisterModel(krm.ComputeForwardingRuleGVK, NewForwardingRuleModel)
+}
+
+func NewForwardingRuleModel(ctx context.Context, config *config.ControllerConfig) (directbase.Model, error) {
+	return &forwardingRuleModel{config: config}, nil
+}
+
+type forwardingRuleModel struct {
+	config *config.ControllerConfig
+}
+
+// model implements the Model interface.
+var _ directbase.Model = &forwardingRuleModel{}
+
+type forwardingRuleAdapter struct {
+	resourceID                  string
+	projectID                   string
+	Location                    string
+	forwardingRulesClient       *gcp.ForwardingRulesClient
+	globalForwardingRulesClient *gcp.GlobalForwardingRulesClient
+	desired                     *krm.ComputeForwardingRule
+	actual                      *computepb.ForwardingRule
+}
+
+var _ directbase.Adapter = &forwardingRuleAdapter{}
+
+func (m *forwardingRuleModel) AdapterForObject(ctx context.Context, reader client.Reader, u *unstructured.Unstructured) (directbase.Adapter, error) {
+	obj := &krm.ComputeForwardingRule{}
+	if err := runtime.DefaultUnstructuredConverter.FromUnstructured(u.Object, &obj); err != nil {
+		return nil, fmt.Errorf("error converting to %T: %w", obj, err)
+	}
+
+	// Get ResourceID
+	resourceID, err := refs.GetResourceID(u)
+	if err != nil {
+		return nil, err
+	}
+
+	// Get projectID
+	projectID, err := refs.ResolveProjectID(ctx, reader, u)
+	if err != nil {
+		return nil, err
+	}
+
+	// Get network
+	if obj.Spec.NetworkRef != nil {
+		networkRef, err := ResolveComputeNetwork(ctx, reader, obj, obj.Spec.NetworkRef)
+		if err != nil {
+			return nil, err
+
+		}
+		obj.Spec.NetworkRef.External = networkRef.External
+	}
+
+	// Get compute address
+	if obj.Spec.IpAddress.AddressRef != nil {
+		computeAddressRef, err := ResolveComputeAddress(ctx, reader, obj, obj.Spec.IpAddress.AddressRef)
+		if err != nil {
+			return nil, err
+
+		}
+		obj.Spec.IpAddress.AddressRef.External = computeAddressRef.External
+	}
+
+	// Get target ComputeTargetHTTPProxy
+	if obj.Spec.Target.TargetHTTPProxyRef != nil {
+		targetHTTPProxyRef, err := ResolveComputeTargetHTTPProxy(ctx, reader, obj, obj.Spec.Target.TargetHTTPProxyRef)
+		if err != nil {
+			return nil, err
+
+		}
+		obj.Spec.Target.TargetHTTPProxyRef.External = targetHTTPProxyRef.External
+	}
+
+	// Get target TargetVPNGateway
+	if obj.Spec.Target.TargetVPNGatewayRef != nil {
+		targetVPNGatewayRef, err := ResolveComputeTargetVPNGateway(ctx, reader, obj, obj.Spec.Target.TargetVPNGatewayRef)
+		if err != nil {
+			return nil, err
+
+		}
+		obj.Spec.Target.TargetVPNGatewayRef.External = targetVPNGatewayRef.External
+	}
+
+	// Get location
+	location := obj.Spec.Location
+
+	// Set label managed-by-cnrm: true
+	obj.ObjectMeta.Labels["managed-by-cnrm"] = "true"
+
+	// Handle TF default values
+	if obj.Spec.LoadBalancingScheme == nil {
+		obj.Spec.LoadBalancingScheme = direct.LazyPtr("EXTERNAL")
+	}
+
+	forwardingRuleAdapter := &forwardingRuleAdapter{
+		resourceID: resourceID,
+		projectID:  projectID,
+		Location:   location,
+		desired:    obj,
+	}
+
+	// Get GCP client
+	gcpClient, err := newGCPClient(ctx, m.config)
+	if err != nil {
+		return nil, fmt.Errorf("building gcp client: %w", err)
+	}
+	if location == "global" {
+		globalForwardingRulesClient, err := gcpClient.globalForwardingRuleClient(ctx)
+		if err != nil {
+			return nil, err
+		}
+		forwardingRuleAdapter.globalForwardingRulesClient = globalForwardingRulesClient
+	} else {
+		forwardingRulesClient, err := gcpClient.forwardingRuleClient(ctx)
+		if err != nil {
+			return nil, err
+		}
+		forwardingRuleAdapter.forwardingRulesClient = forwardingRulesClient
+	}
+	return forwardingRuleAdapter, nil
+}
+
+func (m *forwardingRuleModel) AdapterForURL(ctx context.Context, url string) (directbase.Adapter, error) {
+	// TODO: Support URLs
+	return nil, nil
+}
+
+func (a *forwardingRuleAdapter) Find(ctx context.Context) (bool, error) {
+	if a.resourceID == "" {
+		return false, nil
+	}
+
+	log := klog.FromContext(ctx).WithName(ctrlName)
+	log.V(2).Info("getting ComputeForwardingRule", "name", a.resourceID)
+
+	var err error
+	forwardingRule := &computepb.ForwardingRule{}
+	if a.Location == "global" {
+		req := &computepb.GetGlobalForwardingRuleRequest{
+			ForwardingRule: a.resourceID,
+			Project:        a.projectID,
+		}
+		forwardingRule, err = a.globalForwardingRulesClient.Get(ctx, req)
+		if err != nil {
+			if direct.IsNotFound(err) {
+				return false, nil
+			}
+			return false, fmt.Errorf("getting ComputeForwardingRule %q failed: %w", a.fullyQualifiedName(), err)
+		}
+	} else {
+		req := &computepb.GetForwardingRuleRequest{
+			ForwardingRule: a.resourceID,
+			Region:         a.Location,
+			Project:        a.projectID,
+		}
+		forwardingRule, err = a.forwardingRulesClient.Get(ctx, req)
+		if err != nil {
+			if direct.IsNotFound(err) {
+				return false, nil
+			}
+			return false, fmt.Errorf("getting ComputeForwardingRule %q failed: %w", a.fullyQualifiedName(), err)
+		}
+	}
+	a.actual = forwardingRule
+	return true, nil
+}
+
+func (a *forwardingRuleAdapter) Create(ctx context.Context, u *unstructured.Unstructured) error {
+	if a.projectID == "" {
+		return fmt.Errorf("project is empty")
+	}
+	if a.resourceID == "" {
+		return fmt.Errorf("resourceID is empty")
+	}
+
+	log := klog.FromContext(ctx).WithName(ctrlName)
+	log.V(2).Info("creating ComputeForwardingRule", "name", a.resourceID)
+	mapCtx := &direct.MapContext{}
+
+	a.desired.Labels["managed-by-cnrm"] = "true"
+	desired := a.desired.DeepCopy()
+
+	forwardingRule := ComputeForwardingRuleSpec_ToProto(mapCtx, &desired.Spec)
+	if mapCtx.Err() != nil {
+		return mapCtx.Err()
+	}
+	forwardingRule.Name = direct.LazyPtr(a.resourceID)
+	forwardingRule.Labels = desired.Labels
+
+	var err error
+	op := &gcp.Operation{}
+	if a.Location == "global" {
+		req := &computepb.InsertGlobalForwardingRuleRequest{
+			ForwardingRuleResource: forwardingRule,
+			Project:                a.projectID,
+		}
+		op, err = a.globalForwardingRulesClient.Insert(ctx, req)
+	} else {
+		req := &computepb.InsertForwardingRuleRequest{
+			ForwardingRuleResource: forwardingRule,
+			Region:                 a.Location,
+			Project:                a.projectID,
+		}
+		op, err = a.forwardingRulesClient.Insert(ctx, req)
+	}
+	if err != nil {
+		return fmt.Errorf("creating ComputeForwardingRule %s failed: %w", a.fullyQualifiedName(), err)
+	}
+	log.V(2).Info("successfully created ComputeForwardingRule", "name", a.fullyQualifiedName())
+	// Get the created resource
+	created := &computepb.ForwardingRule{}
+	if a.Location == "global" {
+		getReq := &computepb.GetGlobalForwardingRuleRequest{
+			ForwardingRule: a.resourceID,
+			Project:        a.projectID,
+		}
+		created, err = a.globalForwardingRulesClient.Get(ctx, getReq)
+	} else {
+		getReq := &computepb.GetForwardingRuleRequest{
+			ForwardingRule: a.resourceID,
+			Region:         a.Location,
+			Project:        a.projectID,
+		}
+		created, err = a.forwardingRulesClient.Get(ctx, getReq)
+	}
+	if err != nil {
+		return fmt.Errorf("getting ComputeForwardingRule %q failed: %w", a.fullyQualifiedName(), err)
+	}
+
+	status := &krm.ComputeForwardingRuleStatus{
+		LabelFingerprint:  created.LabelFingerprint,
+		CreationTimestamp: op.Proto().InsertTime,
+		SelfLink:          created.SelfLink,
+	}
+	return setStatus(u, status)
+}
+
+func (a *forwardingRuleAdapter) Update(ctx context.Context, u *unstructured.Unstructured) error {
+	if a.resourceID == "" {
+		return fmt.Errorf("resourceID is empty")
+	}
+
+	log := klog.FromContext(ctx).WithName(ctrlName)
+	log.V(2).Info("updating ComputeForwardingRule", "name", a.resourceID)
+	mapCtx := &direct.MapContext{}
+
+	desired := a.desired.DeepCopy()
+	forwardingRule := ComputeForwardingRuleSpec_ToProto(mapCtx, &desired.Spec)
+	if mapCtx.Err() != nil {
+		return mapCtx.Err()
+	}
+	forwardingRule.Name = direct.LazyPtr(a.resourceID)
+	forwardingRule.Labels = desired.Labels
+
+	// Patch only support update on networkTier field, which KCC does not support yet.
+	// Use setTarget and setLabels to update target and labels fields.
+	var err error
+	op := &gcp.Operation{}
+	updated := &computepb.ForwardingRule{}
+	// TODO(yuhou): Checked the realGCP logs, setLabels request is being sent even when there are no updates to labels.
+	// That might because of the generated labelsFingerPrint?
+	if a.Location == "global" {
+		setLabelsReq := &computepb.SetLabelsGlobalForwardingRuleRequest{
+			Resource:                       a.resourceID,
+			GlobalSetLabelsRequestResource: &computepb.GlobalSetLabelsRequest{LabelFingerprint: a.actual.LabelFingerprint, Labels: forwardingRule.Labels},
+			Project:                        a.projectID,
+		}
+		op, err = a.globalForwardingRulesClient.SetLabels(ctx, setLabelsReq)
+	} else {
+		setLabelsReq := &computepb.SetLabelsForwardingRuleRequest{
+			Resource:                       a.resourceID,
+			RegionSetLabelsRequestResource: &computepb.RegionSetLabelsRequest{LabelFingerprint: a.actual.LabelFingerprint, Labels: forwardingRule.Labels},
+			Project:                        a.projectID,
+			Region:                         a.Location,
+		}
+		op, err = a.forwardingRulesClient.SetLabels(ctx, setLabelsReq)
+	}
+	if err != nil {
+		return fmt.Errorf("updating ComputeForwardingRule labels %s failed: %w", a.fullyQualifiedName(), err)
+	}
+	err = op.Wait(ctx)
+	if err != nil {
+		return fmt.Errorf("waiting ComputeForwardingRule %s update labels failed: %w", a.fullyQualifiedName(), err)
+	}
+	log.V(2).Info("successfully updated ComputeForwardingRule labels", "name", a.fullyQualifiedName())
+	// Get the updated resource
+	if a.Location == "global" {
+		getReq := &computepb.GetGlobalForwardingRuleRequest{
+			ForwardingRule: a.resourceID,
+			Project:        a.projectID,
+		}
+		updated, err = a.globalForwardingRulesClient.Get(ctx, getReq)
+	} else {
+		getReq := &computepb.GetForwardingRuleRequest{
+			ForwardingRule: a.resourceID,
+			Region:         a.Location,
+			Project:        a.projectID,
+		}
+		updated, err = a.forwardingRulesClient.Get(ctx, getReq)
+	}
+	if err != nil {
+		return fmt.Errorf("getting ComputeForwardingRule %q failed: %w", a.resourceID, err)
+	}
+
+	// setTarget request is sent when there are updates to target.
+	if !reflect.DeepEqual(forwardingRule.Target, a.actual.Target) {
+		if a.Location == "global" {
+			setTargetReq := &computepb.SetTargetGlobalForwardingRuleRequest{
+				ForwardingRule:          a.resourceID,
+				TargetReferenceResource: &computepb.TargetReference{Target: forwardingRule.Target},
+				Project:                 a.projectID,
+			}
+			op, err = a.globalForwardingRulesClient.SetTarget(ctx, setTargetReq)
+		} else {
+			setTargetReq := &computepb.SetTargetForwardingRuleRequest{
+				ForwardingRule:          a.resourceID,
+				TargetReferenceResource: &computepb.TargetReference{Target: forwardingRule.Target},
+				Project:                 a.projectID,
+				Region:                  a.Location,
+			}
+			op, err = a.forwardingRulesClient.SetTarget(ctx, setTargetReq)
+		}
+		if err != nil {
+			return fmt.Errorf("updating ComputeForwardingRule target %s failed: %w", a.fullyQualifiedName(), err)
+		}
+		err = op.Wait(ctx)
+		if err != nil {
+			return fmt.Errorf("waiting ComputeForwardingRule %s update target failed: %w", a.fullyQualifiedName(), err)
+		}
+		log.V(2).Info("successfully updated ComputeForwardingRule target", "name", a.fullyQualifiedName())
+	}
+
+	// Get the updated resource
+	if a.Location == "global" {
+		getReq := &computepb.GetGlobalForwardingRuleRequest{
+			ForwardingRule: a.resourceID,
+			Project:        a.projectID,
+		}
+		updated, err = a.globalForwardingRulesClient.Get(ctx, getReq)
+	} else {
+		getReq := &computepb.GetForwardingRuleRequest{
+			ForwardingRule: a.resourceID,
+			Region:         a.Location,
+			Project:        a.projectID,
+		}
+		updated, err = a.forwardingRulesClient.Get(ctx, getReq)
+	}
+	if err != nil {
+		return fmt.Errorf("getting ComputeForwardingRule %q failed: %w", a.resourceID, err)
+	}
+
+	status := &krm.ComputeForwardingRuleStatus{
+		LabelFingerprint:  updated.LabelFingerprint,
+		CreationTimestamp: op.Proto().InsertTime,
+		SelfLink:          updated.SelfLink,
+	}
+	return setStatus(u, status)
+}
+
+func (a *forwardingRuleAdapter) Export(ctx context.Context) (*unstructured.Unstructured, error) {
+	// TODO(kcc)
+	return nil, nil
+}
+
+// Delete implements the Adapter interface.
+func (a *forwardingRuleAdapter) Delete(ctx context.Context) (bool, error) {
+	if a.resourceID == "" {
+		return false, fmt.Errorf("resourceID is empty")
+	}
+
+	log := klog.FromContext(ctx).WithName(ctrlName)
+	log.V(2).Info("deleting ComputeForwardingRule", "name", a.resourceID)
+
+	exist, err := a.Find(ctx)
+	if err != nil {
+		return false, err
+	}
+	if !exist {
+		// return (false, nil) if the object was not found but should be presumed deleted.
+		return false, nil
+	}
+
+	op := &gcp.Operation{}
+	if a.Location == "global" {
+		req := &computepb.DeleteGlobalForwardingRuleRequest{
+			ForwardingRule: a.resourceID,
+			Project:        a.projectID,
+		}
+		op, err = a.globalForwardingRulesClient.Delete(ctx, req)
+	} else {
+		req := &computepb.DeleteForwardingRuleRequest{
+			ForwardingRule: a.resourceID,
+			Region:         a.Location,
+			Project:        a.projectID,
+		}
+		op, err = a.forwardingRulesClient.Delete(ctx, req)
+	}
+	if err != nil {
+		return false, fmt.Errorf("deleting ComputeForwardingRule %s failed: %w", a.resourceID, err)
+	}
+	err = op.Wait(ctx)
+	if err != nil {
+		return false, fmt.Errorf("waiting ComputeForwardingRule %s delete failed: %w", a.resourceID, err)
+	}
+	log.V(2).Info("successfully deleted ComputeForwardingRule", "name", a.resourceID)
+	return true, nil
+}
+
+func (a *forwardingRuleAdapter) fullyQualifiedName() string {
+	if a.Location == "global" {
+		return fmt.Sprintf("projects/%s/global/forwardingRules/%s", a.projectID, a.resourceID)
+	}
+	return fmt.Sprintf("projects/%s/regions/%s/forwardingRules/%s", a.projectID, a.Location, a.resourceID)
+}
+
+func setStatus(u *unstructured.Unstructured, typedStatus any) error {
+	status, err := runtime.DefaultUnstructuredConverter.ToUnstructured(typedStatus)
+	if err != nil {
+		return fmt.Errorf("error converting status to unstructured: %w", err)
+	}
+
+	old, _, _ := unstructured.NestedMap(u.Object, "status")
+	if old != nil {
+		status["conditions"] = old["conditions"]
+		status["observedGeneration"] = old["observedGeneration"]
+	}
+
+	u.Object["status"] = status
+
+	return nil
+}
diff --git a/pkg/controller/direct/compute/refs.go b/pkg/controller/direct/compute/refs.go
index 62e9faf8b94..6022875ae63 100644
--- a/pkg/controller/direct/compute/refs.go
+++ b/pkg/controller/direct/compute/refs.go
@@ -61,10 +61,20 @@ func ResolveComputeNetwork(ctx context.Context, reader client.Reader, src client
 		return nil, err
 	}
 
+	resourceID, err := refs.GetResourceID(computeNetwork)
+	if err != nil {
+		return nil, err
+	}
+
+	projectID, err := refs.ResolveProjectID(ctx, reader, computeNetwork)
+	if err != nil {
+		return nil, err
+	}
+
 	// targetField: self_link
 	// See compute servicemappings for details
 	return &refs.ComputeNetworkRef{
-		External: computeNetwork.GetSelfLink()}, nil
+		External: fmt.Sprintf("projects/%s/global/networks/%s", projectID, resourceID)}, nil
 }
 
 func ResolveComputeSubnetwork(ctx context.Context, reader client.Reader, src client.Object, ref *refs.ComputeSubnetworkRef) (*refs.ComputeSubnetworkRef, error) {
@@ -101,9 +111,12 @@ func ResolveComputeSubnetwork(ctx context.Context, reader client.Reader, src cli
 	}
 	// targetField: self_link
 	// See compute servicemappings for details
+	selfLink, _, err := unstructured.NestedString(computeSubnetwork.Object, "status", "selfLink")
+	if err != nil || selfLink == "" {
+		return nil, fmt.Errorf("cannot get selfLink for referenced %s %v (status.selfLink is empty)", computeSubnetwork.GetKind(), computeSubnetwork.GetNamespace())
+	}
 	return &refs.ComputeSubnetworkRef{
-		External: computeSubnetwork.GetSelfLink(),
-	}, nil
+		External: selfLink}, nil
 }
 
 func ResolveComputeAddress(ctx context.Context, reader client.Reader, src client.Object, ref *refs.ComputeAddressRef) (*refs.ComputeAddressRef, error) {
@@ -141,8 +154,8 @@ func ResolveComputeAddress(ctx context.Context, reader client.Reader, src client
 
 	// targetField: address
 	// See compute servicemappings for details
-	address, _, _ := unstructured.NestedString(computeAddress.Object, "spec", "address")
-	if address == "" {
+	address, _, err := unstructured.NestedString(computeAddress.Object, "spec", "address")
+	if err != nil || address == "" {
 		return nil, fmt.Errorf("cannot get address for referenced %s %v (spec.address is empty)", computeAddress.GetKind(), computeAddress.GetNamespace())
 	}
 	return &refs.ComputeAddressRef{
@@ -184,8 +197,12 @@ func ResolveComputeBackendService(ctx context.Context, reader client.Reader, src
 
 	// targetField: self_link
 	// See compute servicemappings for details
+	selfLink, _, err := unstructured.NestedString(computeBackendService.Object, "status", "selfLink")
+	if err != nil || selfLink == "" {
+		return nil, fmt.Errorf("cannot get selfLink for referenced %s %v (status.selfLink is empty)", computeBackendService.GetKind(), computeBackendService.GetNamespace())
+	}
 	return &refs.ComputeBackendServiceRef{
-		External: computeBackendService.GetSelfLink()}, nil
+		External: selfLink}, nil
 }
 
 func ResolveComputeServiceAttachment(ctx context.Context, reader client.Reader, src client.Object, ref *refs.ComputeServiceAttachmentRef) (*refs.ComputeServiceAttachmentRef, error) {
@@ -223,8 +240,12 @@ func ResolveComputeServiceAttachment(ctx context.Context, reader client.Reader,
 
 	// targetField: self_link
 	// See compute servicemappings for details
+	selfLink, _, err := unstructured.NestedString(computeServiceAttachment.Object, "status", "selfLink")
+	if err != nil || selfLink == "" {
+		return nil, fmt.Errorf("cannot get selfLink for referenced %s %v (status.selfLink is empty)", computeServiceAttachment.GetKind(), computeServiceAttachment.GetNamespace())
+	}
 	return &refs.ComputeServiceAttachmentRef{
-		External: computeServiceAttachment.GetSelfLink()}, nil
+		External: selfLink}, nil
 }
 
 func ResolveComputeTargetGrpcProxy(ctx context.Context, reader client.Reader, src client.Object, ref *refs.ComputeTargetGrpcProxyRef) (*refs.ComputeTargetGrpcProxyRef, error) {
@@ -262,8 +283,12 @@ func ResolveComputeTargetGrpcProxy(ctx context.Context, reader client.Reader, sr
 
 	// targetField: self_link
 	// See compute servicemappings for details
+	selfLink, _, err := unstructured.NestedString(computeTargetGrpcProxy.Object, "status", "selfLink")
+	if err != nil || selfLink == "" {
+		return nil, fmt.Errorf("cannot get selfLink for referenced %s %v (status.selfLink is empty)", computeTargetGrpcProxy.GetKind(), computeTargetGrpcProxy.GetNamespace())
+	}
 	return &refs.ComputeTargetGrpcProxyRef{
-		External: computeTargetGrpcProxy.GetSelfLink()}, nil
+		External: selfLink}, nil
 }
 
 func ResolveComputeTargetHTTPProxy(ctx context.Context, reader client.Reader, src client.Object, ref *refs.ComputeTargetHTTPProxyRef) (*refs.ComputeTargetHTTPProxyRef, error) {
@@ -301,8 +326,12 @@ func ResolveComputeTargetHTTPProxy(ctx context.Context, reader client.Reader, sr
 
 	// targetField: self_link
 	// See compute servicemappings for details
+	selfLink, _, err := unstructured.NestedString(computeTargetHTTPProxy.Object, "status", "selfLink")
+	if err != nil || selfLink == "" {
+		return nil, fmt.Errorf("cannot get selfLink for referenced %s %v (status.selfLink is empty)", computeTargetHTTPProxy.GetKind(), computeTargetHTTPProxy.GetNamespace())
+	}
 	return &refs.ComputeTargetHTTPProxyRef{
-		External: computeTargetHTTPProxy.GetSelfLink()}, nil
+		External: selfLink}, nil
 }
 
 func ResolveComputeTargetHTTPSProxy(ctx context.Context, reader client.Reader, src client.Object, ref *refs.ComputeTargetHTTPSProxyRef) (*refs.ComputeTargetHTTPSProxyRef, error) {
@@ -340,8 +369,12 @@ func ResolveComputeTargetHTTPSProxy(ctx context.Context, reader client.Reader, s
 
 	// targetField: self_link
 	// See compute servicemappings for details
+	selfLink, _, err := unstructured.NestedString(computeTargetHTTPSProxy.Object, "status", "selfLink")
+	if err != nil || selfLink == "" {
+		return nil, fmt.Errorf("cannot get selfLink for referenced %s %v (status.selfLink is empty)", computeTargetHTTPSProxy.GetKind(), computeTargetHTTPSProxy.GetNamespace())
+	}
 	return &refs.ComputeTargetHTTPSProxyRef{
-		External: computeTargetHTTPSProxy.GetSelfLink()}, nil
+		External: selfLink}, nil
 }
 
 func ResolveComputeTargetSSLProxy(ctx context.Context, reader client.Reader, src client.Object, ref *refs.ComputeTargetSSLProxyRef) (*refs.ComputeTargetSSLProxyRef, error) {
@@ -379,8 +412,12 @@ func ResolveComputeTargetSSLProxy(ctx context.Context, reader client.Reader, src
 
 	// targetField: self_link
 	// See compute servicemappings for details
+	selfLink, _, err := unstructured.NestedString(computeTargetSSLProxy.Object, "status", "selfLink")
+	if err != nil || selfLink == "" {
+		return nil, fmt.Errorf("cannot get selfLink for referenced %s %v (status.selfLink is empty)", computeTargetSSLProxy.GetKind(), computeTargetSSLProxy.GetNamespace())
+	}
 	return &refs.ComputeTargetSSLProxyRef{
-		External: computeTargetSSLProxy.GetSelfLink()}, nil
+		External: selfLink}, nil
 }
 
 func ResolveComputeTargetTCPProxy(ctx context.Context, reader client.Reader, src client.Object, ref *refs.ComputeTargetTCPProxyRef) (*refs.ComputeTargetTCPProxyRef, error) {
@@ -418,8 +455,12 @@ func ResolveComputeTargetTCPProxy(ctx context.Context, reader client.Reader, src
 
 	// targetField: self_link
 	// See compute servicemappings for details
+	selfLink, _, err := unstructured.NestedString(computeTargetTCPProxy.Object, "status", "selfLink")
+	if err != nil || selfLink == "" {
+		return nil, fmt.Errorf("cannot get selfLink for referenced %s %v (status.selfLink is empty)", computeTargetTCPProxy.GetKind(), computeTargetTCPProxy.GetNamespace())
+	}
 	return &refs.ComputeTargetTCPProxyRef{
-		External: computeTargetTCPProxy.GetSelfLink()}, nil
+		External: selfLink}, nil
 }
 
 func ResolveComputeTargetVPNGateway(ctx context.Context, reader client.Reader, src client.Object, ref *refs.ComputeTargetVPNGatewayRef) (*refs.ComputeTargetVPNGatewayRef, error) {
@@ -457,8 +498,12 @@ func ResolveComputeTargetVPNGateway(ctx context.Context, reader client.Reader, s
 
 	// targetField: self_link
 	// See compute servicemappings for details
+	selfLink, _, err := unstructured.NestedString(computeTargetVPNGateway.Object, "status", "selfLink")
+	if err != nil || selfLink == "" {
+		return nil, fmt.Errorf("cannot get selfLink for referenced %s %v (status.selfLink is empty)", computeTargetVPNGateway.GetKind(), computeTargetVPNGateway.GetNamespace())
+	}
 	return &refs.ComputeTargetVPNGatewayRef{
-		External: computeTargetVPNGateway.GetSelfLink()}, nil
+		External: selfLink}, nil
 }
 
 func resolveResourceName(ctx context.Context, reader client.Reader, key client.ObjectKey, gvk schema.GroupVersionKind) (*unstructured.Unstructured, error) {
diff --git a/pkg/controller/direct/register/register.go b/pkg/controller/direct/register/register.go
index 7da93089268..b1296ed8ba3 100644
--- a/pkg/controller/direct/register/register.go
+++ b/pkg/controller/direct/register/register.go
@@ -18,6 +18,7 @@ import (
 	_ "github.com/GoogleCloudPlatform/k8s-config-connector/pkg/controller/direct/alloydb"
 	_ "github.com/GoogleCloudPlatform/k8s-config-connector/pkg/controller/direct/apikeys"
 	_ "github.com/GoogleCloudPlatform/k8s-config-connector/pkg/controller/direct/cloudbuild"
+	_ "github.com/GoogleCloudPlatform/k8s-config-connector/pkg/controller/direct/compute"
 	_ "github.com/GoogleCloudPlatform/k8s-config-connector/pkg/controller/direct/dataform"
 	_ "github.com/GoogleCloudPlatform/k8s-config-connector/pkg/controller/direct/gkehub"
 	_ "github.com/GoogleCloudPlatform/k8s-config-connector/pkg/controller/direct/logging"
diff --git a/pkg/test/resourcefixture/testdata/basic/compute/v1beta1/computeforwardingrule/globalcomputeforwardingrule/_generated_object_globalcomputeforwardingrule.golden.yaml b/pkg/test/resourcefixture/testdata/basic/compute/v1beta1/computeforwardingrule/globalcomputeforwardingrule/_generated_object_globalcomputeforwardingrule.golden.yaml
index ef5044232e2..3595b207f5e 100644
--- a/pkg/test/resourcefixture/testdata/basic/compute/v1beta1/computeforwardingrule/globalcomputeforwardingrule/_generated_object_globalcomputeforwardingrule.golden.yaml
+++ b/pkg/test/resourcefixture/testdata/basic/compute/v1beta1/computeforwardingrule/globalcomputeforwardingrule/_generated_object_globalcomputeforwardingrule.golden.yaml
@@ -18,11 +18,10 @@ metadata:
   annotations:
     cnrm.cloud.google.com/management-conflict-prevention-policy: none
     cnrm.cloud.google.com/project-id: ${projectId}
-    cnrm.cloud.google.com/state-into-spec: merge
   finalizers:
   - cnrm.cloud.google.com/finalizer
   - cnrm.cloud.google.com/deletion-defender
-  generation: 3
+  generation: 2
   labels:
     cnrm-test: "true"
     label-one: value-one
@@ -32,13 +31,11 @@ spec:
   description: A global forwarding rule
   ipAddress:
     ip: 0.0.0.0
-  ipProtocol: TCP
   loadBalancingScheme: INTERNAL_SELF_MANAGED
   location: global
   networkRef:
     name: default
   portRange: "80"
-  resourceID: computeglobalforwardingrule-${uniqueId}
   target:
     targetHTTPProxyRef:
       name: computetargethttpproxy-2-${uniqueId}
@@ -49,6 +46,7 @@ status:
     reason: UpToDate
     status: "True"
     type: Ready
+  creationTimestamp: "1970-01-01T00:00:00Z"
   labelFingerprint: abcdef0123A=
-  observedGeneration: 3
+  observedGeneration: 2
   selfLink: https://www.googleapis.com/compute/v1/projects/${projectId}/global/forwardingRules/computeglobalforwardingrule-${uniqueId}
diff --git a/pkg/test/resourcefixture/testdata/basic/compute/v1beta1/computeforwardingrule/globalcomputeforwardingrule/_http.log b/pkg/test/resourcefixture/testdata/basic/compute/v1beta1/computeforwardingrule/globalcomputeforwardingrule/_http.log
index 58c62ac0c8d..cc47a8cf096 100644
--- a/pkg/test/resourcefixture/testdata/basic/compute/v1beta1/computeforwardingrule/globalcomputeforwardingrule/_http.log
+++ b/pkg/test/resourcefixture/testdata/basic/compute/v1beta1/computeforwardingrule/globalcomputeforwardingrule/_http.log
@@ -709,9 +709,10 @@ X-Xss-Protection: 0
 
 ---
 
-GET https://compute.googleapis.com/compute/v1/projects/${projectId}/global/forwardingRules/${forwardingRuleID}?alt=json
+GET https://compute.googleapis.com/compute/v1/projects/${projectId}/global/forwardingRules/${forwardingRuleID}
 Content-Type: application/json
-User-Agent: Terraform/ (+https://www.terraform.io) Terraform-Plugin-SDK/2.10.1 terraform-provider-google-beta/kcc/controller-manager
+User-Agent: kcc/controller-manager
+x-goog-request-params: project=${projectId}&forwarding_rule=computeglobalforwardingrule-${uniqueId}
 
 404 Not Found
 Cache-Control: private
@@ -740,9 +741,10 @@ X-Xss-Protection: 0
 
 ---
 
-POST https://compute.googleapis.com/compute/v1/projects/${projectId}/global/forwardingRules?alt=json
+POST https://compute.googleapis.com/compute/v1/projects/${projectId}/global/forwardingRules
 Content-Type: application/json
-User-Agent: Terraform/ (+https://www.terraform.io) Terraform-Plugin-SDK/2.10.1 terraform-provider-google-beta/kcc/controller-manager
+User-Agent: kcc/controller-manager
+x-goog-request-params: project=${projectId}
 
 {
   "IPAddress": "0.0.0.0",
@@ -787,41 +789,10 @@ X-Xss-Protection: 0
 
 ---
 
-GET https://compute.googleapis.com/compute/v1/projects/${projectId}/global/operations/${operationID}?alt=json&prettyPrint=false
-User-Agent: google-api-go-client/0.5 Terraform/ (+https://www.terraform.io) Terraform-Plugin-SDK/2.10.1 terraform-provider-google-beta/kcc/controller-manager
-
-200 OK
-Cache-Control: private
-Content-Type: application/json; charset=UTF-8
-Server: ESF
-Vary: Origin
-Vary: X-Origin
-Vary: Referer
-X-Content-Type-Options: nosniff
-X-Frame-Options: SAMEORIGIN
-X-Xss-Protection: 0
-
-{
-  "endTime": "2024-04-01T12:34:56.123456Z",
-  "id": "000000000000000000000",
-  "insertTime": "2024-04-01T12:34:56.123456Z",
-  "kind": "compute#operation",
-  "name": "${operationID}",
-  "operationType": "insert",
-  "progress": 100,
-  "selfLink": "https://www.googleapis.com/compute/v1/projects/${projectId}/global/operations/${operationID}",
-  "startTime": "2024-04-01T12:34:56.123456Z",
-  "status": "DONE",
-  "targetId": "${forwardingRulesId}",
-  "targetLink": "https://www.googleapis.com/compute/v1/projects/${projectId}/global/forwardingRules/computeglobalforwardingrule-${uniqueId}",
-  "user": "user@example.com"
-}
-
----
-
-GET https://compute.googleapis.com/compute/v1/projects/${projectId}/global/forwardingRules/${forwardingRuleID}?alt=json
+GET https://compute.googleapis.com/compute/v1/projects/${projectId}/global/forwardingRules/${forwardingRuleID}
 Content-Type: application/json
-User-Agent: Terraform/ (+https://www.terraform.io) Terraform-Plugin-SDK/2.10.1 terraform-provider-google-beta/kcc/controller-manager
+User-Agent: kcc/controller-manager
+x-goog-request-params: project=${projectId}&forwarding_rule=computeglobalforwardingrule-${uniqueId}
 
 200 OK
 Cache-Control: private
@@ -859,9 +830,10 @@ X-Xss-Protection: 0
 
 ---
 
-POST https://compute.googleapis.com/compute/v1/projects/${projectId}/global/forwardingRules/${forwardingRuleID}/setLabels?alt=json
+POST https://compute.googleapis.com/compute/v1/projects/${projectId}/global/forwardingRules/${forwardingRuleID}/setLabels
 Content-Type: application/json
-User-Agent: Terraform/ (+https://www.terraform.io) Terraform-Plugin-SDK/2.10.1 terraform-provider-google-beta/kcc/controller-manager
+User-Agent: kcc/controller-manager
+x-goog-request-params: project=${projectId}&resource=computeglobalforwardingrule-${uniqueId}
 
 {
   "labelFingerprint": "abcdef0123A=",
@@ -901,8 +873,10 @@ X-Xss-Protection: 0
 
 ---
 
-GET https://compute.googleapis.com/compute/v1/projects/${projectId}/global/operations/${operationID}?alt=json&prettyPrint=false
-User-Agent: google-api-go-client/0.5 Terraform/ (+https://www.terraform.io) Terraform-Plugin-SDK/2.10.1 terraform-provider-google-beta/kcc/controller-manager
+GET https://compute.googleapis.com/compute/v1/projects/${projectId}/global/operations/${operationID}
+Content-Type: application/json
+User-Agent: kcc/controller-manager
+x-goog-request-params: project=${projectId}&operation=${operationID}
 
 200 OK
 Cache-Control: private
@@ -933,9 +907,10 @@ X-Xss-Protection: 0
 
 ---
 
-GET https://compute.googleapis.com/compute/v1/projects/${projectId}/global/forwardingRules/${forwardingRuleID}?alt=json
+GET https://compute.googleapis.com/compute/v1/projects/${projectId}/global/forwardingRules/${forwardingRuleID}
 Content-Type: application/json
-User-Agent: Terraform/ (+https://www.terraform.io) Terraform-Plugin-SDK/2.10.1 terraform-provider-google-beta/kcc/controller-manager
+User-Agent: kcc/controller-manager
+x-goog-request-params: project=${projectId}&forwarding_rule=computeglobalforwardingrule-${uniqueId}
 
 200 OK
 Cache-Control: private
@@ -973,9 +948,10 @@ X-Xss-Protection: 0
 
 ---
 
-POST https://compute.googleapis.com/compute/v1/projects/${projectId}/global/forwardingRules/${forwardingRuleID}/setTarget?alt=json
+POST https://compute.googleapis.com/compute/v1/projects/${projectId}/global/forwardingRules/${forwardingRuleID}/setTarget
 Content-Type: application/json
-User-Agent: Terraform/ (+https://www.terraform.io) Terraform-Plugin-SDK/2.10.1 terraform-provider-google-beta/kcc/controller-manager
+User-Agent: kcc/controller-manager
+x-goog-request-params: project=${projectId}&forwarding_rule=computeglobalforwardingrule-${uniqueId}
 
 {
   "target": "https://www.googleapis.com/compute/v1/projects/${projectId}/global/targetHttpProxies/computetargethttpproxy-2-${uniqueId}"
@@ -1009,8 +985,10 @@ X-Xss-Protection: 0
 
 ---
 
-GET https://compute.googleapis.com/compute/v1/projects/${projectId}/global/operations/${operationID}?alt=json&prettyPrint=false
-User-Agent: google-api-go-client/0.5 Terraform/ (+https://www.terraform.io) Terraform-Plugin-SDK/2.10.1 terraform-provider-google-beta/kcc/controller-manager
+GET https://compute.googleapis.com/compute/v1/projects/${projectId}/global/operations/${operationID}
+Content-Type: application/json
+User-Agent: kcc/controller-manager
+x-goog-request-params: project=${projectId}&operation=${operationID}
 
 200 OK
 Cache-Control: private
@@ -1041,9 +1019,10 @@ X-Xss-Protection: 0
 
 ---
 
-GET https://compute.googleapis.com/compute/v1/projects/${projectId}/global/forwardingRules/${forwardingRuleID}?alt=json
+GET https://compute.googleapis.com/compute/v1/projects/${projectId}/global/forwardingRules/${forwardingRuleID}
 Content-Type: application/json
-User-Agent: Terraform/ (+https://www.terraform.io) Terraform-Plugin-SDK/2.10.1 terraform-provider-google-beta/kcc/controller-manager
+User-Agent: kcc/controller-manager
+x-goog-request-params: project=${projectId}&forwarding_rule=computeglobalforwardingrule-${uniqueId}
 
 200 OK
 Cache-Control: private
@@ -1081,9 +1060,10 @@ X-Xss-Protection: 0
 
 ---
 
-DELETE https://compute.googleapis.com/compute/v1/projects/${projectId}/global/forwardingRules/${forwardingRuleID}?alt=json
+DELETE https://compute.googleapis.com/compute/v1/projects/${projectId}/global/forwardingRules/${forwardingRuleID}
 Content-Type: application/json
-User-Agent: Terraform/ (+https://www.terraform.io) Terraform-Plugin-SDK/2.10.1 terraform-provider-google-beta/kcc/controller-manager
+User-Agent: kcc/controller-manager
+x-goog-request-params: project=${projectId}&forwarding_rule=computeglobalforwardingrule-${uniqueId}
 
 200 OK
 Cache-Control: private
@@ -1113,8 +1093,10 @@ X-Xss-Protection: 0
 
 ---
 
-GET https://compute.googleapis.com/compute/v1/projects/${projectId}/global/operations/${operationID}?alt=json&prettyPrint=false
-User-Agent: google-api-go-client/0.5 Terraform/ (+https://www.terraform.io) Terraform-Plugin-SDK/2.10.1 terraform-provider-google-beta/kcc/controller-manager
+GET https://compute.googleapis.com/compute/v1/projects/${projectId}/global/operations/${operationID}
+Content-Type: application/json
+User-Agent: kcc/controller-manager
+x-goog-request-params: project=${projectId}&operation=${operationID}
 
 200 OK
 Cache-Control: private
diff --git a/pkg/test/resourcefixture/testdata/basic/compute/v1beta1/computeforwardingrule/regionalcomputeforwardingrule/_generated_object_regionalcomputeforwardingrule.golden.yaml b/pkg/test/resourcefixture/testdata/basic/compute/v1beta1/computeforwardingrule/regionalcomputeforwardingrule/_generated_object_regionalcomputeforwardingrule.golden.yaml
index 496880bf440..b5c35225ee1 100644
--- a/pkg/test/resourcefixture/testdata/basic/compute/v1beta1/computeforwardingrule/regionalcomputeforwardingrule/_generated_object_regionalcomputeforwardingrule.golden.yaml
+++ b/pkg/test/resourcefixture/testdata/basic/compute/v1beta1/computeforwardingrule/regionalcomputeforwardingrule/_generated_object_regionalcomputeforwardingrule.golden.yaml
@@ -1,28 +1,13 @@
-# Copyright 2024 Google LLC
-#
-# Licensed under the Apache License, Version 2.0 (the "License");
-# you may not use this file except in compliance with the License.
-# You may obtain a copy of the License at
-#
-#      http://www.apache.org/licenses/LICENSE-2.0
-#
-# Unless required by applicable law or agreed to in writing, software
-# distributed under the License is distributed on an "AS IS" BASIS,
-# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
-# See the License for the specific language governing permissions and
-# limitations under the License.
-
 apiVersion: compute.cnrm.cloud.google.com/v1beta1
 kind: ComputeForwardingRule
 metadata:
   annotations:
     cnrm.cloud.google.com/management-conflict-prevention-policy: none
     cnrm.cloud.google.com/project-id: ${projectId}
-    cnrm.cloud.google.com/state-into-spec: merge
   finalizers:
   - cnrm.cloud.google.com/finalizer
   - cnrm.cloud.google.com/deletion-defender
-  generation: 2
+  generation: 1
   labels:
     cnrm-test: "true"
     label-one: value-two
@@ -34,10 +19,7 @@ spec:
     addressRef:
       name: computeraddress-${uniqueId}
   ipProtocol: ESP
-  loadBalancingScheme: EXTERNAL
   location: us-central1
-  networkTier: PREMIUM
-  resourceID: computeregionalforwardingrule-${uniqueId}
   target:
     targetVPNGatewayRef:
       name: computetargetvpngateway-${uniqueId}
@@ -50,5 +32,5 @@ status:
     type: Ready
   creationTimestamp: "1970-01-01T00:00:00Z"
   labelFingerprint: abcdef0123A=
-  observedGeneration: 2
+  observedGeneration: 1
   selfLink: https://www.googleapis.com/compute/v1/projects/${projectId}/regions/us-central1/forwardingRules/computeregionalforwardingrule-${uniqueId}
diff --git a/pkg/test/resourcefixture/testdata/basic/compute/v1beta1/computeforwardingrule/regionalcomputeforwardingrule/_http.log b/pkg/test/resourcefixture/testdata/basic/compute/v1beta1/computeforwardingrule/regionalcomputeforwardingrule/_http.log
index e5ab8b9dc27..0ba822593e9 100644
--- a/pkg/test/resourcefixture/testdata/basic/compute/v1beta1/computeforwardingrule/regionalcomputeforwardingrule/_http.log
+++ b/pkg/test/resourcefixture/testdata/basic/compute/v1beta1/computeforwardingrule/regionalcomputeforwardingrule/_http.log
@@ -482,9 +482,10 @@ X-Xss-Protection: 0
 
 ---
 
-GET https://compute.googleapis.com/compute/v1/projects/${projectId}/regions/us-central1/forwardingRules/${forwardingRuleID}?alt=json
+GET https://compute.googleapis.com/compute/v1/projects/${projectId}/regions/us-central1/forwardingRules/${forwardingRuleID}
 Content-Type: application/json
-User-Agent: Terraform/ (+https://www.terraform.io) Terraform-Plugin-SDK/2.10.1 terraform-provider-google-beta/kcc/controller-manager
+User-Agent: kcc/controller-manager
+x-goog-request-params: project=${projectId}&region=us-central1&forwarding_rule=computeregionalforwardingrule-${uniqueId}
 
 404 Not Found
 Cache-Control: private
@@ -513,9 +514,10 @@ X-Xss-Protection: 0
 
 ---
 
-POST https://compute.googleapis.com/compute/v1/projects/${projectId}/regions/us-central1/forwardingRules?alt=json
+POST https://compute.googleapis.com/compute/v1/projects/${projectId}/regions/us-central1/forwardingRules
 Content-Type: application/json
-User-Agent: Terraform/ (+https://www.terraform.io) Terraform-Plugin-SDK/2.10.1 terraform-provider-google-beta/kcc/controller-manager
+User-Agent: kcc/controller-manager
+x-goog-request-params: project=${projectId}&region=us-central1
 
 {
   "IPAddress": "8.8.8.8",
@@ -528,7 +530,6 @@ User-Agent: Terraform/ (+https://www.terraform.io) Terraform-Plugin-SDK/2.10.1 t
   },
   "loadBalancingScheme": "EXTERNAL",
   "name": "computeregionalforwardingrule-${uniqueId}",
-  "region": "projects/${projectId}/global/regions/us-central1",
   "target": "https://www.googleapis.com/compute/v1/projects/${projectId}/regions/us-central1/targetVpnGateways/computetargetvpngateway-${uniqueId}"
 }
 
@@ -560,41 +561,10 @@ X-Xss-Protection: 0
 
 ---
 
-GET https://compute.googleapis.com/compute/v1/projects/${projectId}/global/operations/${operationID}?alt=json&prettyPrint=false
-User-Agent: google-api-go-client/0.5 Terraform/ (+https://www.terraform.io) Terraform-Plugin-SDK/2.10.1 terraform-provider-google-beta/kcc/controller-manager
-
-200 OK
-Cache-Control: private
-Content-Type: application/json; charset=UTF-8
-Server: ESF
-Vary: Origin
-Vary: X-Origin
-Vary: Referer
-X-Content-Type-Options: nosniff
-X-Frame-Options: SAMEORIGIN
-X-Xss-Protection: 0
-
-{
-  "endTime": "2024-04-01T12:34:56.123456Z",
-  "id": "000000000000000000000",
-  "insertTime": "2024-04-01T12:34:56.123456Z",
-  "kind": "compute#operation",
-  "name": "${operationID}",
-  "operationType": "insert",
-  "progress": 100,
-  "selfLink": "https://www.googleapis.com/compute/v1/projects/${projectId}/global/operations/${operationID}",
-  "startTime": "2024-04-01T12:34:56.123456Z",
-  "status": "DONE",
-  "targetId": "${forwardingRulesId}",
-  "targetLink": "https://www.googleapis.com/compute/v1/projects/${projectId}/regions/us-central1/forwardingRules/computeregionalforwardingrule-${uniqueId}",
-  "user": "user@example.com"
-}
-
----
-
-GET https://compute.googleapis.com/compute/v1/projects/${projectId}/regions/us-central1/forwardingRules/${forwardingRuleID}?alt=json
+GET https://compute.googleapis.com/compute/v1/projects/${projectId}/regions/us-central1/forwardingRules/${forwardingRuleID}
 Content-Type: application/json
-User-Agent: Terraform/ (+https://www.terraform.io) Terraform-Plugin-SDK/2.10.1 terraform-provider-google-beta/kcc/controller-manager
+User-Agent: kcc/controller-manager
+x-goog-request-params: project=${projectId}&region=us-central1&forwarding_rule=computeregionalforwardingrule-${uniqueId}
 
 200 OK
 Cache-Control: private
@@ -624,22 +594,22 @@ X-Xss-Protection: 0
   "loadBalancingScheme": "EXTERNAL",
   "name": "computeregionalforwardingrule-${uniqueId}",
   "networkTier": "PREMIUM",
-  "region": "projects/${projectId}/global/regions/us-central1",
   "selfLink": "https://www.googleapis.com/compute/v1/projects/${projectId}/regions/us-central1/forwardingRules/computeregionalforwardingrule-${uniqueId}",
   "target": "https://www.googleapis.com/compute/v1/projects/${projectId}/regions/us-central1/targetVpnGateways/computetargetvpngateway-${uniqueId}"
 }
 
 ---
 
-POST https://compute.googleapis.com/compute/v1/projects/${projectId}/regions/us-central1/forwardingRules/${forwardingRuleID}/setLabels?alt=json
+POST https://compute.googleapis.com/compute/v1/projects/${projectId}/regions/us-central1/forwardingRules/${forwardingRuleID}/setLabels
 Content-Type: application/json
-User-Agent: Terraform/ (+https://www.terraform.io) Terraform-Plugin-SDK/2.10.1 terraform-provider-google-beta/kcc/controller-manager
+User-Agent: kcc/controller-manager
+x-goog-request-params: project=${projectId}&region=us-central1&resource=computeregionalforwardingrule-${uniqueId}
 
 {
   "labelFingerprint": "abcdef0123A=",
   "labels": {
     "cnrm-test": "true",
-    "label-one": "value-one",
+    "label-one": "value-two",
     "managed-by-cnrm": "true"
   }
 }
@@ -673,41 +643,10 @@ X-Xss-Protection: 0
 
 ---
 
-GET https://compute.googleapis.com/compute/v1/projects/${projectId}/global/operations/${operationID}?alt=json&prettyPrint=false
-User-Agent: google-api-go-client/0.5 Terraform/ (+https://www.terraform.io) Terraform-Plugin-SDK/2.10.1 terraform-provider-google-beta/kcc/controller-manager
-
-200 OK
-Cache-Control: private
-Content-Type: application/json; charset=UTF-8
-Server: ESF
-Vary: Origin
-Vary: X-Origin
-Vary: Referer
-X-Content-Type-Options: nosniff
-X-Frame-Options: SAMEORIGIN
-X-Xss-Protection: 0
-
-{
-  "endTime": "2024-04-01T12:34:56.123456Z",
-  "id": "000000000000000000000",
-  "insertTime": "2024-04-01T12:34:56.123456Z",
-  "kind": "compute#operation",
-  "name": "${operationID}",
-  "operationType": "SetLabels",
-  "progress": 100,
-  "selfLink": "https://www.googleapis.com/compute/v1/projects/${projectId}/global/operations/${operationID}",
-  "startTime": "2024-04-01T12:34:56.123456Z",
-  "status": "DONE",
-  "targetId": "${forwardingRulesId}",
-  "targetLink": "https://www.googleapis.com/compute/v1/projects/${projectId}/regions/us-central1/forwardingRules/computeregionalforwardingrule-${uniqueId}",
-  "user": "user@example.com"
-}
-
----
-
-GET https://compute.googleapis.com/compute/v1/projects/${projectId}/regions/us-central1/forwardingRules/${forwardingRuleID}?alt=json
+GET https://compute.googleapis.com/compute/v1/projects/${projectId}/regions/us-central1/forwardingRules/${forwardingRuleID}
 Content-Type: application/json
-User-Agent: Terraform/ (+https://www.terraform.io) Terraform-Plugin-SDK/2.10.1 terraform-provider-google-beta/kcc/controller-manager
+User-Agent: kcc/controller-manager
+x-goog-request-params: project=${projectId}&region=us-central1&forwarding_rule=computeregionalforwardingrule-${uniqueId}
 
 200 OK
 Cache-Control: private
@@ -731,22 +670,22 @@ X-Xss-Protection: 0
   "labelFingerprint": "abcdef0123A=",
   "labels": {
     "cnrm-test": "true",
-    "label-one": "value-one",
+    "label-one": "value-two",
     "managed-by-cnrm": "true"
   },
   "loadBalancingScheme": "EXTERNAL",
   "name": "computeregionalforwardingrule-${uniqueId}",
   "networkTier": "PREMIUM",
-  "region": "projects/${projectId}/global/regions/us-central1",
   "selfLink": "https://www.googleapis.com/compute/v1/projects/${projectId}/regions/us-central1/forwardingRules/computeregionalforwardingrule-${uniqueId}",
   "target": "https://www.googleapis.com/compute/v1/projects/${projectId}/regions/us-central1/targetVpnGateways/computetargetvpngateway-${uniqueId}"
 }
 
 ---
 
-DELETE https://compute.googleapis.com/compute/v1/projects/${projectId}/regions/us-central1/forwardingRules/${forwardingRuleID}?alt=json
+DELETE https://compute.googleapis.com/compute/v1/projects/${projectId}/regions/us-central1/forwardingRules/${forwardingRuleID}
 Content-Type: application/json
-User-Agent: Terraform/ (+https://www.terraform.io) Terraform-Plugin-SDK/2.10.1 terraform-provider-google-beta/kcc/controller-manager
+User-Agent: kcc/controller-manager
+x-goog-request-params: project=${projectId}&region=us-central1&forwarding_rule=computeregionalforwardingrule-${uniqueId}
 
 200 OK
 Cache-Control: private
@@ -776,10 +715,12 @@ X-Xss-Protection: 0
 
 ---
 
-GET https://compute.googleapis.com/compute/v1/projects/${projectId}/global/operations/${operationID}?alt=json&prettyPrint=false
-User-Agent: google-api-go-client/0.5 Terraform/ (+https://www.terraform.io) Terraform-Plugin-SDK/2.10.1 terraform-provider-google-beta/kcc/controller-manager
+GET https://compute.googleapis.com/compute/v1/projects/${projectId}/regions/us-central1/forwardingRules/${forwardingRuleID}
+Content-Type: application/json
+User-Agent: kcc/controller-manager
+x-goog-request-params: project=${projectId}&region=us-central1&forwarding_rule=computeregionalforwardingrule-${uniqueId}
 
-200 OK
+404 Not Found
 Cache-Control: private
 Content-Type: application/json; charset=UTF-8
 Server: ESF
@@ -791,19 +732,17 @@ X-Frame-Options: SAMEORIGIN
 X-Xss-Protection: 0
 
 {
-  "endTime": "2024-04-01T12:34:56.123456Z",
-  "id": "000000000000000000000",
-  "insertTime": "2024-04-01T12:34:56.123456Z",
-  "kind": "compute#operation",
-  "name": "${operationID}",
-  "operationType": "delete",
-  "progress": 100,
-  "selfLink": "https://www.googleapis.com/compute/v1/projects/${projectId}/global/operations/${operationID}",
-  "startTime": "2024-04-01T12:34:56.123456Z",
-  "status": "DONE",
-  "targetId": "${forwardingRulesId}",
-  "targetLink": "https://www.googleapis.com/compute/v1/projects/${projectId}/regions/us-central1/forwardingRules/computeregionalforwardingrule-${uniqueId}",
-  "user": "user@example.com"
+  "error": {
+    "code": 404,
+    "errors": [
+      {
+        "domain": "global",
+        "message": "forwardingRule \"projects/${projectId}/regions/us-central1/forwardingRules/computeregionalforwardingrule-${uniqueId}\" not found",
+        "reason": "notFound"
+      }
+    ],
+    "message": "forwardingRule \"projects/${projectId}/regions/us-central1/forwardingRules/computeregionalforwardingrule-${uniqueId}\" not found"
+  }
 }
 
 ---
diff --git a/scripts/github-actions/tests-e2e-fixtures b/scripts/github-actions/tests-e2e-fixtures
index 30c33324f35..8704155827d 100755
--- a/scripts/github-actions/tests-e2e-fixtures
+++ b/scripts/github-actions/tests-e2e-fixtures
@@ -27,6 +27,9 @@ export KUBEBUILDER_ASSETS=$(go run sigs.k8s.io/controller-runtime/tools/setup-en
 # so as we are moving resources to direct actuation, we add them here.
 # e.g. export KCC_USE_DIRECT_RECONCILERS=MonitoringDashboard
 
+echo "Using direct controllers: SQLInstance,ComputeForwardingRule"
+export KCC_USE_DIRECT_RECONCILERS=SQLInstance,ComputeForwardingRule
+
 echo "Running fixtures in tests/e2e..."
 
 RUN_E2E=1 \
@@ -34,5 +37,4 @@ GOLDEN_OBJECT_CHECKS=1 \
 GOLDEN_REQUEST_CHECKS=1 \
 E2E_KUBE_TARGET=envtest \
 E2E_GCP_TARGET=mock \
-KCC_USE_DIRECT_RECONCILERS="SQLInstance" \
   go test -test.count=1 -timeout 1h30m -v ./tests/e2e -run TestAllInSeries/fixtures
\ No newline at end of file