diff --git a/mockgcp/mocksql/sqlinstance.go b/mockgcp/mocksql/sqlinstance.go
index 0da0075910..a882e45103 100644
--- a/mockgcp/mocksql/sqlinstance.go
+++ b/mockgcp/mocksql/sqlinstance.go
@@ -95,13 +95,9 @@ func (s *sqlInstancesService) Insert(ctx context.Context, req *pb.SqlInstancesIn
 	fqn := name.String()
 	now := time.Now()
 
-	region := "us-central1"
-	zone := "us-central1-a"
-
 	obj := proto.Clone(req.GetBody()).(*pb.DatabaseInstance)
 	obj.Name = name.InstanceName
 	obj.Project = name.Project.ID
-	obj.Region = region
 
 	obj.SelfLink = fmt.Sprintf("https://sqladmin.googleapis.com/sql/v1beta4/projects/%s/instances/%s",
 		name.Project.ID, name.InstanceName)
@@ -112,8 +108,6 @@ func (s *sqlInstancesService) Insert(ctx context.Context, req *pb.SqlInstancesIn
 		return nil, err
 	}
 
-	obj.GceZone = zone
-
 	// By default, allocate a public IP for the instance.
 	shouldAllocatePublicIP := true
 	// By default, do not allocate a private IP for the instance.
@@ -172,7 +166,9 @@ func (s *sqlInstancesService) Insert(ctx context.Context, req *pb.SqlInstancesIn
 
 	obj.ServiceAccountEmailAddress = fmt.Sprintf("p%d-abcdef@gcp-sa-cloud-sql.iam.gserviceaccount.com", name.Project.Number)
 
-	populateDefaults(obj, zone)
+	populateDefaults(obj)
+
+	obj.GceZone = obj.Settings.LocationPreference.Zone
 
 	obj.Settings.SettingsVersion = wrapperspb.Int64(1)
 
@@ -510,7 +506,7 @@ func setDatabaseVersionDefaults(obj *pb.DatabaseInstance) error {
 	return nil
 }
 
-func populateDefaults(obj *pb.DatabaseInstance, zone string) {
+func populateDefaults(obj *pb.DatabaseInstance) {
 	if obj.InstanceType == pb.SqlInstanceType_SQL_INSTANCE_TYPE_UNSPECIFIED {
 		obj.InstanceType = pb.SqlInstanceType_CLOUD_SQL_INSTANCE
 	}
@@ -575,13 +571,12 @@ func populateDefaults(obj *pb.DatabaseInstance, zone string) {
 		}
 	}
 
-	locationPreference := settings.LocationPreference
-	if locationPreference == nil {
-		locationPreference = &pb.LocationPreference{}
-		settings.LocationPreference = locationPreference
+	if settings.LocationPreference == nil {
+		settings.LocationPreference = &pb.LocationPreference{
+			Kind: "sql#locationPreference",
+			Zone: obj.Region + "-a",
+		}
 	}
-	locationPreference.Kind = "sql#locationPreference"
-	locationPreference.Zone = zone
 
 	backupConfiguration := settings.BackupConfiguration
 	if backupConfiguration == nil {
@@ -739,7 +734,7 @@ func (s *sqlInstancesService) Update(ctx context.Context, req *pb.SqlInstancesUp
 	obj.State = existing.State
 	obj.UpgradableDatabaseVersions = existing.UpgradableDatabaseVersions
 
-	populateDefaults(obj, existing.GetSettings().GetLocationPreference().GetZone())
+	populateDefaults(obj)
 
 	obj.Settings.SettingsVersion = wrapperspb.Int64(existing.GetSettings().GetSettingsVersion().GetValue() + 1)
 
diff --git a/pkg/controller/direct/sql/mapping.go b/pkg/controller/direct/sql/mapping.go
index a570cdd5b6..d6c9a11b09 100644
--- a/pkg/controller/direct/sql/mapping.go
+++ b/pkg/controller/direct/sql/mapping.go
@@ -309,20 +309,7 @@ func SQLInstanceKRMToGCP(in *krm.SQLInstance, refs *SQLInstanceInternalRefs) (*a
 	}
 
 	out.Settings.IpConfiguration = InstanceIpConfigurationKRMToGCP(in.Spec.Settings.IpConfiguration, refs)
-
-	if in.Spec.Settings.LocationPreference != nil {
-		out.Settings.LocationPreference = &api.LocationPreference{}
-		if in.Spec.Settings.LocationPreference.FollowGaeApplication != nil {
-			// todo: deprecated
-			out.Settings.LocationPreference.FollowGaeApplication = *in.Spec.Settings.LocationPreference.FollowGaeApplication
-		}
-		if in.Spec.Settings.LocationPreference.SecondaryZone != nil {
-			out.Settings.LocationPreference.SecondaryZone = *in.Spec.Settings.LocationPreference.SecondaryZone
-		}
-		if in.Spec.Settings.LocationPreference.Zone != nil {
-			out.Settings.LocationPreference.Zone = *in.Spec.Settings.LocationPreference.Zone
-		}
-	}
+	out.Settings.LocationPreference = InstanceLocationPreferenceKRMToGCP(in.Spec.Settings.LocationPreference)
 
 	if in.Spec.Settings.MaintenanceWindow != nil {
 		out.Settings.MaintenanceWindow = &api.MaintenanceWindow{}
@@ -479,6 +466,21 @@ func InstancePscConfigKRMToGCP(in []krm.InstancePscConfig) *api.PscConfig {
 	return out
 }
 
+func InstanceLocationPreferenceKRMToGCP(in *krm.InstanceLocationPreference) *api.LocationPreference {
+	if in == nil {
+		return nil
+	}
+
+	out := &api.LocationPreference{
+		Kind:                 "sql#locationPreference",
+		FollowGaeApplication: direct.ValueOf(in.FollowGaeApplication),
+		SecondaryZone:        direct.ValueOf(in.SecondaryZone),
+		Zone:                 direct.ValueOf(in.Zone),
+	}
+
+	return out
+}
+
 func SQLInstanceGCPToKRM(in *api.DatabaseInstance) (*krm.SQLInstance, error) {
 	out := &krm.SQLInstance{}
 
@@ -644,60 +646,8 @@ func SQLInstanceGCPToKRM(in *api.DatabaseInstance) (*krm.SQLInstance, error) {
 		}
 	}
 
-	if in.Settings.IpConfiguration != nil {
-		ic := &krm.InstanceIpConfiguration{}
-
-		if in.Settings.IpConfiguration.AllocatedIpRange != "" {
-			ic.AllocatedIpRange = &in.Settings.IpConfiguration.AllocatedIpRange
-		}
-
-		if in.Settings.IpConfiguration.AuthorizedNetworks != nil {
-			ans := []krm.InstanceAuthorizedNetworks{}
-			for _, an := range in.Settings.IpConfiguration.AuthorizedNetworks {
-				ans = append(ans, krm.InstanceAuthorizedNetworks{
-					ExpirationTime: &an.ExpirationTime,
-					Name:           &an.Name,
-					Value:          an.Value,
-				})
-			}
-			ic.AuthorizedNetworks = ans
-		}
-
-		ic.EnablePrivatePathForGoogleCloudServices = &in.Settings.IpConfiguration.EnablePrivatePathForGoogleCloudServices
-
-		ic.Ipv4Enabled = &in.Settings.IpConfiguration.Ipv4Enabled
-
-		if in.Settings.IpConfiguration.PrivateNetwork != "" {
-			ic.PrivateNetworkRef = &refs.ComputeNetworkRef{
-				External: in.Settings.IpConfiguration.PrivateNetwork,
-			}
-		}
-
-		if in.Settings.IpConfiguration.PscConfig != nil {
-			out.Spec.Settings.IpConfiguration.PscConfig = []krm.InstancePscConfig{
-				{
-					AllowedConsumerProjects: in.Settings.IpConfiguration.PscConfig.AllowedConsumerProjects,
-					PscEnabled:              &in.Settings.IpConfiguration.PscConfig.PscEnabled,
-				},
-			}
-		}
-
-		ic.RequireSsl = &in.Settings.IpConfiguration.RequireSsl
-
-		if in.Settings.IpConfiguration.SslMode != "" {
-			ic.SslMode = &in.Settings.IpConfiguration.SslMode
-		}
-
-		out.Spec.Settings.IpConfiguration = ic
-	}
-
-	if in.Settings.LocationPreference != nil {
-		out.Spec.Settings.LocationPreference = &krm.InstanceLocationPreference{
-			FollowGaeApplication: &in.Settings.LocationPreference.FollowGaeApplication,
-			SecondaryZone:        &in.Settings.LocationPreference.SecondaryZone,
-			Zone:                 &in.Settings.LocationPreference.Zone,
-		}
-	}
+	out.Spec.Settings.IpConfiguration = InstanceIpConfigurationGCPToKRM(in.Settings.IpConfiguration)
+	out.Spec.Settings.LocationPreference = InstanceLocationPreferenceGCPToKRM(in.Settings.LocationPreference)
 
 	if in.Settings.MaintenanceWindow != nil {
 		out.Spec.Settings.MaintenanceWindow = &krm.InstanceMaintenanceWindow{
@@ -749,6 +699,71 @@ func SQLInstanceGCPToKRM(in *api.DatabaseInstance) (*krm.SQLInstance, error) {
 	return out, nil
 }
 
+func InstanceIpConfigurationGCPToKRM(in *api.IpConfiguration) *krm.InstanceIpConfiguration {
+	if in == nil {
+		return nil
+	}
+
+	out := &krm.InstanceIpConfiguration{
+		AllocatedIpRange:                        direct.LazyPtr(in.AllocatedIpRange),
+		AuthorizedNetworks:                      InstanceAuthorizedNetworksGCPToKRM(in.AuthorizedNetworks),
+		EnablePrivatePathForGoogleCloudServices: direct.LazyPtr(in.EnablePrivatePathForGoogleCloudServices),
+		Ipv4Enabled:                             direct.LazyPtr(in.Ipv4Enabled),
+		PscConfig:                               InstancePscConfigGCPToKRM(in.PscConfig),
+		RequireSsl:                              direct.LazyPtr(in.RequireSsl),
+		SslMode:                                 direct.LazyPtr(in.SslMode),
+	}
+
+	if in.PrivateNetwork != "" {
+		out.PrivateNetworkRef = &refs.ComputeNetworkRef{
+			External: in.PrivateNetwork,
+		}
+	}
+
+	return out
+}
+
+func InstanceAuthorizedNetworksGCPToKRM(in []*api.AclEntry) []krm.InstanceAuthorizedNetworks {
+	out := []krm.InstanceAuthorizedNetworks{}
+	for _, net := range in {
+		out = append(out, krm.InstanceAuthorizedNetworks{
+			ExpirationTime: direct.LazyPtr(net.ExpirationTime),
+			Name:           direct.LazyPtr(net.Name),
+			Value:          net.Value,
+		})
+	}
+	return out
+}
+
+func InstancePscConfigGCPToKRM(in *api.PscConfig) []krm.InstancePscConfig {
+	if in == nil {
+		return nil
+	}
+
+	out := []krm.InstancePscConfig{
+		{
+			AllowedConsumerProjects: in.AllowedConsumerProjects,
+			PscEnabled:              direct.LazyPtr(in.PscEnabled),
+		},
+	}
+
+	return out
+}
+
+func InstanceLocationPreferenceGCPToKRM(in *api.LocationPreference) *krm.InstanceLocationPreference {
+	if in == nil {
+		return nil
+	}
+
+	out := &krm.InstanceLocationPreference{
+		FollowGaeApplication: direct.LazyPtr(in.FollowGaeApplication),
+		SecondaryZone:        direct.LazyPtr(in.SecondaryZone),
+		Zone:                 direct.LazyPtr(in.Zone),
+	}
+
+	return out
+}
+
 func Convert_SQLInstance_API_v1_To_KRM_status(in *api.DatabaseInstance, out *krm.SQLInstanceStatus) error {
 	if in == nil {
 		return fmt.Errorf("cannot convert nil DatabaseInstance")
diff --git a/pkg/controller/direct/sql/merge.go b/pkg/controller/direct/sql/merge.go
index b31da911b8..f4fd7a767a 100644
--- a/pkg/controller/direct/sql/merge.go
+++ b/pkg/controller/direct/sql/merge.go
@@ -709,24 +709,9 @@ func MergeDesiredSQLInstanceWithActual(desired *krm.SQLInstance, refs *SQLInstan
 		updateRequired = true
 	}
 
-	if desired.Spec.Settings.LocationPreference != nil {
-		if actual.Settings.LocationPreference == nil {
-			// Add location preference
-			updateRequired = true
-		} else if (direct.ValueOf(desired.Spec.Settings.LocationPreference.FollowGaeApplication) != actual.Settings.LocationPreference.FollowGaeApplication) ||
-			(direct.ValueOf(desired.Spec.Settings.LocationPreference.SecondaryZone) != actual.Settings.LocationPreference.SecondaryZone) ||
-			(direct.ValueOf(desired.Spec.Settings.LocationPreference.Zone) != actual.Settings.LocationPreference.Zone) {
-			// Change location preference
-			updateRequired = true
-		}
-		merged.Settings.LocationPreference = &api.LocationPreference{
-			FollowGaeApplication: direct.ValueOf(desired.Spec.Settings.LocationPreference.FollowGaeApplication),
-			SecondaryZone:        direct.ValueOf(desired.Spec.Settings.LocationPreference.SecondaryZone),
-			Zone:                 direct.ValueOf(desired.Spec.Settings.LocationPreference.Zone),
-		}
-	} else if actual.Settings.LocationPreference != nil {
-		// Keep location preference
-		merged.Settings.LocationPreference = actual.Settings.LocationPreference
+	merged.Settings.LocationPreference = InstanceLocationPreferenceKRMToGCP(desired.Spec.Settings.LocationPreference)
+	if !LocationPreferencesMatch(merged.Settings.LocationPreference, actual.Settings.LocationPreference) {
+		updateRequired = true
 	}
 
 	if desired.Spec.Settings.MaintenanceWindow != nil {
@@ -861,52 +846,39 @@ func MergeDesiredSQLInstanceWithActual(desired *krm.SQLInstance, refs *SQLInstan
 }
 
 func IpConfigurationsMatch(desired *api.IpConfiguration, actual *api.IpConfiguration) bool {
-	if !PointersMatch(desired, actual) {
-		return false
-	}
-
 	if desired == nil && actual == nil {
 		return true
 	}
-
+	if !PointersMatch(desired, actual) {
+		return false
+	}
 	if desired.AllocatedIpRange != actual.AllocatedIpRange {
 		return false
 	}
-
 	if !AclEntryListsMatch(desired.AuthorizedNetworks, actual.AuthorizedNetworks) {
 		return false
 	}
-
 	if desired.EnablePrivatePathForGoogleCloudServices != actual.EnablePrivatePathForGoogleCloudServices {
 		return false
 	}
-
 	if desired.Ipv4Enabled != actual.Ipv4Enabled {
 		return false
 	}
-
 	if desired.PrivateNetwork != actual.PrivateNetwork {
 		return false
 	}
-
 	if !PscConfigsMatch(desired.PscConfig, actual.PscConfig) {
 		return false
 	}
-
 	if desired.RequireSsl != actual.RequireSsl {
 		return false
 	}
-
 	// Ignore ServerCaMode. It is not supported in KRM API.
-
 	if desired.SslMode != actual.SslMode {
 		return false
 	}
-
 	// Ignore ForceSendFields. Assume it is set correctly in desired.
-
 	// Ignore NullFields. Assume it is set correctly in desired.
-
 	return true
 }
 
@@ -914,67 +886,75 @@ func AclEntryListsMatch(desired []*api.AclEntry, actual []*api.AclEntry) bool {
 	if len(desired) != len(actual) {
 		return false
 	}
-
 	for i := 0; i < len(desired); i++ {
 		if !AclEntriesMatch(desired[i], actual[i]) {
 			return false
 		}
 	}
-
 	return true
 }
 
 func AclEntriesMatch(desired *api.AclEntry, actual *api.AclEntry) bool {
-	if !PointersMatch(desired, actual) {
-		return false
-	}
-
 	if desired == nil && actual == nil {
 		return true
 	}
-
+	if !PointersMatch(desired, actual) {
+		return false
+	}
 	if desired.ExpirationTime != actual.ExpirationTime {
 		return false
 	}
-
 	// Ignore Kind. It is sometimes not set in API responses.
-
 	if desired.Name != actual.Name {
 		return false
 	}
-
 	if desired.Value != actual.Value {
 		return false
 	}
-
 	// Ignore ForceSendFields. Assume it is set correctly in desired.
-
 	// Ignore NullFields. Assume it is set correctly in desired.
-
 	return true
 }
 
 func PscConfigsMatch(desired *api.PscConfig, actual *api.PscConfig) bool {
+	if desired == nil && actual == nil {
+		return true
+	}
 	if !PointersMatch(desired, actual) {
 		return false
 	}
+	if !reflect.DeepEqual(desired.AllowedConsumerProjects, actual.AllowedConsumerProjects) {
+		return false
+	}
+	if desired.PscEnabled != actual.PscEnabled {
+		return false
+	}
+	// Ignore ForceSendFields. Assume it is set correctly in desired.
+	// Ignore NullFields. Assume it is set correctly in desired.
+	return true
+}
 
+func LocationPreferencesMatch(desired *api.LocationPreference, actual *api.LocationPreference) bool {
 	if desired == nil && actual == nil {
 		return true
 	}
-
-	if !reflect.DeepEqual(desired.AllowedConsumerProjects, actual.AllowedConsumerProjects) {
+	if !PointersMatch(desired, actual) {
 		return false
 	}
-
-	if desired.PscEnabled != actual.PscEnabled {
+	if desired.FollowGaeApplication != actual.FollowGaeApplication {
+		return false
+	}
+	if desired.Kind != actual.Kind {
+		return false
+	}
+	if desired.SecondaryZone != actual.SecondaryZone {
+		return false
+	}
+	if desired.Zone != actual.Zone {
 		return false
 	}
-
 	// Ignore ForceSendFields. Assume it is set correctly in desired.
-
 	// Ignore NullFields. Assume it is set correctly in desired.
-
 	return true
 }
 
diff --git a/pkg/test/resourcefixture/contexts/sql_context.go b/pkg/test/resourcefixture/contexts/sql_context.go
index 042f9f72fb..5b5d06fd45 100644
--- a/pkg/test/resourcefixture/contexts/sql_context.go
+++ b/pkg/test/resourcefixture/contexts/sql_context.go
@@ -38,6 +38,13 @@ func init() {
 		ResourceKind:  "SQLInstance",
 	}
 
+	resourceContextMap["sqlinstance-locationpreference"] = ResourceContext{
+		// SQL instances appear to need a bit of additional time before attempting to recreate
+		// with the exact same name. Otherwise, the GCP API returns "unknown error".
+		RecreateDelay: time.Second * 60,
+		ResourceKind:  "SQLInstance",
+	}
+
 	resourceContextMap["sqlinstance-mysql"] = ResourceContext{
 		// SQL instances appear to need a bit of additional time before attempting to recreate
 		// with the exact same name. Otherwise, the GCP API returns "unknown error".
diff --git a/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-authorizednetworks/_http.log b/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-authorizednetworks/_http.log
index 2727f4e732..ffabbec094 100644
--- a/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-authorizednetworks/_http.log
+++ b/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-authorizednetworks/_http.log
@@ -52,6 +52,7 @@ User-Agent: kcc/controller-manager
       ]
     },
     "locationPreference": {
+      "kind": "sql#locationPreference",
       "zone": "us-central1-a"
     },
     "pricingPlan": "PER_USE",
@@ -407,6 +408,7 @@ User-Agent: kcc/controller-manager
       ]
     },
     "locationPreference": {
+      "kind": "sql#locationPreference",
       "zone": "us-central1-a"
     },
     "pricingPlan": "PER_USE",
diff --git a/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-clone-minimal/_http.log b/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-clone-minimal/_http.log
index 51bb26f692..e741ba719a 100644
--- a/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-clone-minimal/_http.log
+++ b/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-clone-minimal/_http.log
@@ -46,6 +46,7 @@ User-Agent: kcc/controller-manager
     "dataDiskType": "PD_SSD",
     "edition": "ENTERPRISE",
     "locationPreference": {
+      "kind": "sql#locationPreference",
       "zone": "us-central1-a"
     },
     "pricingPlan": "PER_USE",
diff --git a/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-encryptionkey/_http.log b/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-encryptionkey/_http.log
index 5c4be0aeb0..5a9ac8326e 100644
--- a/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-encryptionkey/_http.log
+++ b/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-encryptionkey/_http.log
@@ -1030,6 +1030,7 @@ User-Agent: kcc/controller-manager
       "requireSsl": true
     },
     "locationPreference": {
+      "kind": "sql#locationPreference",
       "zone": "us-central1-b"
     },
     "maintenanceWindow": {
@@ -1206,7 +1207,7 @@ X-Xss-Protection: 0
     "kind": "sql#settings",
     "locationPreference": {
       "kind": "sql#locationPreference",
-      "zone": "us-central1-a"
+      "zone": "us-central1-b"
     },
     "maintenanceWindow": {
       "day": 6,
@@ -1370,7 +1371,7 @@ X-Xss-Protection: 0
     "kind": "sql#settings",
     "locationPreference": {
       "kind": "sql#locationPreference",
-      "zone": "us-central1-a"
+      "zone": "us-central1-b"
     },
     "maintenanceWindow": {
       "day": 6,
@@ -1453,6 +1454,7 @@ User-Agent: kcc/controller-manager
       "requireSsl": true
     },
     "locationPreference": {
+      "kind": "sql#locationPreference",
       "zone": "us-central1-b"
     },
     "maintenanceWindow": {
@@ -1631,7 +1633,7 @@ X-Xss-Protection: 0
     "kind": "sql#settings",
     "locationPreference": {
       "kind": "sql#locationPreference",
-      "zone": "us-central1-a"
+      "zone": "us-central1-b"
     },
     "maintenanceWindow": {
       "day": 6,
diff --git a/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-locationpreference/_generated_object_sqlinstance-locationpreference.golden.yaml b/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-locationpreference/_generated_object_sqlinstance-locationpreference.golden.yaml
new file mode 100644
index 0000000000..24fbd2c0a6
--- /dev/null
+++ b/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-locationpreference/_generated_object_sqlinstance-locationpreference.golden.yaml
@@ -0,0 +1,46 @@
+apiVersion: sql.cnrm.cloud.google.com/v1beta1
+kind: SQLInstance
+metadata:
+  annotations:
+    cnrm.cloud.google.com/management-conflict-prevention-policy: none
+    cnrm.cloud.google.com/project-id: ${projectId}
+    cnrm.cloud.google.com/state-into-spec: absent
+  finalizers:
+  - cnrm.cloud.google.com/finalizer
+  - cnrm.cloud.google.com/deletion-defender
+  generation: 2
+  labels:
+    cnrm-test: "true"
+  name: sqlinstance-locationpreference-${uniqueId}
+  namespace: ${uniqueId}
+spec:
+  databaseVersion: POSTGRES_16
+  region: us-central1
+  settings:
+    locationPreference:
+      secondaryZone: us-central1-f
+      zone: us-central1-c
+    tier: db-custom-1-3840
+status:
+  conditions:
+  - lastTransitionTime: "1970-01-01T00:00:00Z"
+    message: The resource is up to date
+    reason: UpToDate
+    status: "True"
+    type: Ready
+  connectionName: ${projectId}:us-central1:sqlinstance-locationpreference-${uniqueId}
+  firstIpAddress: 10.1.2.3
+  instanceType: CLOUD_SQL_INSTANCE
+  ipAddress: 10.1.2.3
+  observedGeneration: 2
+  publicIpAddress: 10.1.2.3
+  selfLink: https://sqladmin.googleapis.com/sql/v1beta4/projects/${projectId}/instances/sqlinstance-locationpreference-${uniqueId}
+  serverCaCert:
+    cert: |
+      -----BEGIN CERTIFICATE-----
+      -----END CERTIFICATE-----
+    commonName: common-name
+    createTime: "1970-01-01T00:00:00Z"
+    expirationTime: "1970-01-01T00:00:00Z"
+    sha1Fingerprint: "12345678"
+  serviceAccountEmailAddress: p${projectNumber}-abcdef@gcp-sa-cloud-sql.iam.gserviceaccount.com
diff --git a/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-locationpreference/_http.log b/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-locationpreference/_http.log
new file mode 100644
index 0000000000..9faaf339e9
--- /dev/null
+++ b/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-locationpreference/_http.log
@@ -0,0 +1,593 @@
+GET https://sqladmin.googleapis.com/sql/v1beta4/projects/${projectId}/instances/sqlinstance-locationpreference-${uniqueId}?alt=json&prettyPrint=false
+User-Agent: kcc/controller-manager
+
+404 Not Found
+Cache-Control: private
+Content-Type: application/json; charset=UTF-8
+Server: ESF
+Vary: Origin
+Vary: X-Origin
+Vary: Referer
+X-Content-Type-Options: nosniff
+X-Frame-Options: SAMEORIGIN
+X-Xss-Protection: 0
+
+{
+  "error": {
+    "code": 404,
+    "errors": [
+      {
+        "domain": "global",
+        "message": "The Cloud SQL instance does not exist.",
+        "reason": "instanceDoesNotExist"
+      }
+    ],
+    "message": "The Cloud SQL instance does not exist."
+  }
+}
+
+---
+
+POST https://sqladmin.googleapis.com/sql/v1beta4/projects/${projectId}/instances?alt=json&prettyPrint=false
+Content-Type: application/json
+User-Agent: kcc/controller-manager
+
+{
+  "databaseVersion": "POSTGRES_16",
+  "name": "sqlinstance-locationpreference-${uniqueId}",
+  "region": "us-central1",
+  "settings": {
+    "activationPolicy": "ALWAYS",
+    "availabilityType": "ZONAL",
+    "dataDiskType": "PD_SSD",
+    "edition": "ENTERPRISE",
+    "locationPreference": {
+      "kind": "sql#locationPreference",
+      "secondaryZone": "us-central1-b",
+      "zone": "us-central1-a"
+    },
+    "pricingPlan": "PER_USE",
+    "storageAutoResize": true,
+    "tier": "db-custom-1-3840",
+    "userLabels": {
+      "cnrm-test": "true",
+      "managed-by-cnrm": "true"
+    }
+  }
+}
+
+200 OK
+Cache-Control: private
+Content-Type: application/json; charset=UTF-8
+Server: ESF
+Vary: Origin
+Vary: X-Origin
+Vary: Referer
+X-Content-Type-Options: nosniff
+X-Frame-Options: SAMEORIGIN
+X-Xss-Protection: 0
+
+{
+  "insertTime": "2024-04-01T12:34:56.123456Z",
+  "kind": "sql#operation",
+  "name": "${operationID}",
+  "operationType": "CREATE",
+  "selfLink": "https://sqladmin.googleapis.com/sql/v1beta4/projects/${projectId}/operations/${operationID}",
+  "status": "PENDING",
+  "targetId": "sqlinstance-locationpreference-${uniqueId}",
+  "targetLink": "https://sqladmin.googleapis.com/sql/v1beta4/projects/${projectId}/instances/sqlinstance-locationpreference-${uniqueId}",
+  "targetProject": "${projectId}",
+  "user": "user@example.com"
+}
+
+---
+
+GET https://sqladmin.googleapis.com/sql/v1beta4/projects/${projectId}/operations/${operationID}?alt=json&prettyPrint=false
+User-Agent: 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",
+  "insertTime": "2024-04-01T12:34:56.123456Z",
+  "kind": "sql#operation",
+  "name": "${operationID}",
+  "operationType": "CREATE",
+  "selfLink": "https://sqladmin.googleapis.com/sql/v1beta4/projects/${projectId}/operations/${operationID}",
+  "status": "DONE",
+  "targetId": "sqlinstance-locationpreference-${uniqueId}",
+  "targetLink": "https://sqladmin.googleapis.com/sql/v1beta4/projects/${projectId}/instances/sqlinstance-locationpreference-${uniqueId}",
+  "targetProject": "${projectId}",
+  "user": "user@example.com"
+}
+
+---
+
+GET https://sqladmin.googleapis.com/sql/v1beta4/projects/${projectId}/instances/sqlinstance-locationpreference-${uniqueId}?alt=json&prettyPrint=false
+User-Agent: kcc/controller-manager
+
+200 OK
+Cache-Control: private
+Content-Type: application/json; charset=UTF-8
+Server: ESF
+Vary: Origin
+Vary: X-Origin
+Vary: Referer
+X-Content-Type-Options: nosniff
+X-Frame-Options: SAMEORIGIN
+X-Xss-Protection: 0
+
+{
+  "backendType": "SECOND_GEN",
+  "connectionName": "${projectId}:us-central1:sqlinstance-locationpreference-${uniqueId}",
+  "createTime": "2024-04-01T12:34:56.123456Z",
+  "databaseInstalledVersion": "POSTGRES_16_3",
+  "databaseVersion": "POSTGRES_16",
+  "etag": "abcdef0123A=",
+  "gceZone": "us-central1-a",
+  "geminiConfig": {
+    "activeQueryEnabled": false,
+    "entitled": false,
+    "googleVacuumMgmtEnabled": false,
+    "indexAdvisorEnabled": false,
+    "oomSessionCancelEnabled": false
+  },
+  "instanceType": "CLOUD_SQL_INSTANCE",
+  "ipAddresses": [
+    {
+      "ipAddress": "10.1.2.3",
+      "type": "PRIMARY"
+    },
+    {
+      "ipAddress": "10.1.2.3",
+      "type": "OUTGOING"
+    }
+  ],
+  "kind": "sql#instance",
+  "maintenanceVersion": "POSTGRES_16_3.R20240527.01_10",
+  "name": "sqlinstance-locationpreference-${uniqueId}",
+  "project": "${projectId}",
+  "region": "us-central1",
+  "selfLink": "https://sqladmin.googleapis.com/sql/v1beta4/projects/${projectId}/instances/sqlinstance-locationpreference-${uniqueId}",
+  "serverCaCert": {
+    "cert": "-----BEGIN CERTIFICATE-----\n-----END CERTIFICATE-----\n",
+    "certSerialNumber": "0",
+    "commonName": "common-name",
+    "createTime": "2024-04-01T12:34:56.123456Z",
+    "expirationTime": "2024-04-01T12:34:56.123456Z",
+    "instance": "sqlinstance-locationpreference-${uniqueId}",
+    "kind": "sql#sslCert",
+    "sha1Fingerprint": "12345678"
+  },
+  "serviceAccountEmailAddress": "p${projectNumber}-abcdef@gcp-sa-cloud-sql.iam.gserviceaccount.com",
+  "settings": {
+    "activationPolicy": "ALWAYS",
+    "authorizedGaeApplications": [],
+    "availabilityType": "ZONAL",
+    "backupConfiguration": {
+      "backupRetentionSettings": {
+        "retainedBackups": 7,
+        "retentionUnit": "COUNT"
+      },
+      "enabled": false,
+      "kind": "sql#backupConfiguration",
+      "startTime": "12:00",
+      "transactionLogRetentionDays": 7,
+      "transactionalLogStorageState": "TRANSACTIONAL_LOG_STORAGE_STATE_UNSPECIFIED"
+    },
+    "connectorEnforcement": "NOT_REQUIRED",
+    "dataDiskSizeGb": "10",
+    "dataDiskType": "PD_SSD",
+    "deletionProtectionEnabled": false,
+    "edition": "ENTERPRISE",
+    "ipConfiguration": {
+      "authorizedNetworks": [],
+      "ipv4Enabled": true,
+      "requireSsl": false,
+      "sslMode": "ALLOW_UNENCRYPTED_AND_ENCRYPTED"
+    },
+    "kind": "sql#settings",
+    "locationPreference": {
+      "kind": "sql#locationPreference",
+      "secondaryZone": "us-central1-b",
+      "zone": "us-central1-a"
+    },
+    "pricingPlan": "PER_USE",
+    "replicationType": "SYNCHRONOUS",
+    "settingsVersion": "123",
+    "storageAutoResize": true,
+    "storageAutoResizeLimit": "0",
+    "tier": "db-custom-1-3840",
+    "userLabels": {
+      "cnrm-test": "true",
+      "managed-by-cnrm": "true"
+    }
+  },
+  "sqlNetworkArchitecture": "NEW_NETWORK_ARCHITECTURE",
+  "state": "RUNNABLE"
+}
+
+---
+
+GET https://sqladmin.googleapis.com/sql/v1beta4/projects/${projectId}/instances/sqlinstance-locationpreference-${uniqueId}/users?alt=json&prettyPrint=false
+User-Agent: kcc/controller-manager
+
+200 OK
+Cache-Control: private
+Content-Type: application/json; charset=UTF-8
+Server: ESF
+Vary: Origin
+Vary: X-Origin
+Vary: Referer
+X-Content-Type-Options: nosniff
+X-Frame-Options: SAMEORIGIN
+X-Xss-Protection: 0
+
+{
+  "items": [
+    {
+      "etag": "abcdef0123A=",
+      "host": "",
+      "instance": "sqlinstance-locationpreference-${uniqueId}",
+      "kind": "sql#user",
+      "name": "postgres",
+      "project": "${projectId}"
+    }
+  ],
+  "kind": "sql#usersList"
+}
+
+---
+
+GET https://sqladmin.googleapis.com/sql/v1beta4/projects/${projectId}/instances/sqlinstance-locationpreference-${uniqueId}?alt=json&prettyPrint=false
+User-Agent: kcc/controller-manager
+
+200 OK
+Cache-Control: private
+Content-Type: application/json; charset=UTF-8
+Server: ESF
+Vary: Origin
+Vary: X-Origin
+Vary: Referer
+X-Content-Type-Options: nosniff
+X-Frame-Options: SAMEORIGIN
+X-Xss-Protection: 0
+
+{
+  "backendType": "SECOND_GEN",
+  "connectionName": "${projectId}:us-central1:sqlinstance-locationpreference-${uniqueId}",
+  "createTime": "2024-04-01T12:34:56.123456Z",
+  "databaseInstalledVersion": "POSTGRES_16_3",
+  "databaseVersion": "POSTGRES_16",
+  "etag": "abcdef0123A=",
+  "gceZone": "us-central1-a",
+  "geminiConfig": {
+    "activeQueryEnabled": false,
+    "entitled": false,
+    "googleVacuumMgmtEnabled": false,
+    "indexAdvisorEnabled": false,
+    "oomSessionCancelEnabled": false
+  },
+  "instanceType": "CLOUD_SQL_INSTANCE",
+  "ipAddresses": [
+    {
+      "ipAddress": "10.1.2.3",
+      "type": "PRIMARY"
+    },
+    {
+      "ipAddress": "10.1.2.3",
+      "type": "OUTGOING"
+    }
+  ],
+  "kind": "sql#instance",
+  "maintenanceVersion": "POSTGRES_16_3.R20240527.01_10",
+  "name": "sqlinstance-locationpreference-${uniqueId}",
+  "project": "${projectId}",
+  "region": "us-central1",
+  "selfLink": "https://sqladmin.googleapis.com/sql/v1beta4/projects/${projectId}/instances/sqlinstance-locationpreference-${uniqueId}",
+  "serverCaCert": {
+    "cert": "-----BEGIN CERTIFICATE-----\n-----END CERTIFICATE-----\n",
+    "certSerialNumber": "0",
+    "commonName": "common-name",
+    "createTime": "2024-04-01T12:34:56.123456Z",
+    "expirationTime": "2024-04-01T12:34:56.123456Z",
+    "instance": "sqlinstance-locationpreference-${uniqueId}",
+    "kind": "sql#sslCert",
+    "sha1Fingerprint": "12345678"
+  },
+  "serviceAccountEmailAddress": "p${projectNumber}-abcdef@gcp-sa-cloud-sql.iam.gserviceaccount.com",
+  "settings": {
+    "activationPolicy": "ALWAYS",
+    "authorizedGaeApplications": [],
+    "availabilityType": "ZONAL",
+    "backupConfiguration": {
+      "backupRetentionSettings": {
+        "retainedBackups": 7,
+        "retentionUnit": "COUNT"
+      },
+      "enabled": false,
+      "kind": "sql#backupConfiguration",
+      "startTime": "12:00",
+      "transactionLogRetentionDays": 7,
+      "transactionalLogStorageState": "TRANSACTIONAL_LOG_STORAGE_STATE_UNSPECIFIED"
+    },
+    "connectorEnforcement": "NOT_REQUIRED",
+    "dataDiskSizeGb": "10",
+    "dataDiskType": "PD_SSD",
+    "deletionProtectionEnabled": false,
+    "edition": "ENTERPRISE",
+    "ipConfiguration": {
+      "authorizedNetworks": [],
+      "ipv4Enabled": true,
+      "requireSsl": false,
+      "sslMode": "ALLOW_UNENCRYPTED_AND_ENCRYPTED"
+    },
+    "kind": "sql#settings",
+    "locationPreference": {
+      "kind": "sql#locationPreference",
+      "secondaryZone": "us-central1-b",
+      "zone": "us-central1-a"
+    },
+    "pricingPlan": "PER_USE",
+    "replicationType": "SYNCHRONOUS",
+    "settingsVersion": "123",
+    "storageAutoResize": true,
+    "storageAutoResizeLimit": "0",
+    "tier": "db-custom-1-3840",
+    "userLabels": {
+      "cnrm-test": "true",
+      "managed-by-cnrm": "true"
+    }
+  },
+  "sqlNetworkArchitecture": "NEW_NETWORK_ARCHITECTURE",
+  "state": "RUNNABLE"
+}
+
+---
+
+PUT https://sqladmin.googleapis.com/sql/v1beta4/projects/${projectId}/instances/sqlinstance-locationpreference-${uniqueId}?alt=json&prettyPrint=false
+Content-Type: application/json
+User-Agent: kcc/controller-manager
+
+{
+  "databaseVersion": "POSTGRES_16",
+  "instanceType": "CLOUD_SQL_INSTANCE",
+  "maintenanceVersion": "POSTGRES_16_3.R20240527.01_10",
+  "name": "sqlinstance-locationpreference-${uniqueId}",
+  "region": "us-central1",
+  "settings": {
+    "activationPolicy": "ALWAYS",
+    "availabilityType": "ZONAL",
+    "backupConfiguration": {
+      "backupRetentionSettings": {
+        "retainedBackups": 7,
+        "retentionUnit": "COUNT"
+      },
+      "binaryLogEnabled": false,
+      "enabled": false,
+      "kind": "sql#backupConfiguration",
+      "pointInTimeRecoveryEnabled": false,
+      "startTime": "12:00",
+      "transactionLogRetentionDays": 7,
+      "transactionalLogStorageState": "TRANSACTIONAL_LOG_STORAGE_STATE_UNSPECIFIED"
+    },
+    "connectorEnforcement": "NOT_REQUIRED",
+    "dataDiskSizeGb": "10",
+    "dataDiskType": "PD_SSD",
+    "edition": "ENTERPRISE",
+    "locationPreference": {
+      "kind": "sql#locationPreference",
+      "secondaryZone": "us-central1-f",
+      "zone": "us-central1-c"
+    },
+    "pricingPlan": "PER_USE",
+    "replicationType": "SYNCHRONOUS",
+    "settingsVersion": "123",
+    "storageAutoResize": true,
+    "tier": "db-custom-1-3840",
+    "userLabels": {
+      "cnrm-test": "true",
+      "managed-by-cnrm": "true"
+    }
+  }
+}
+
+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
+
+{
+  "insertTime": "2024-04-01T12:34:56.123456Z",
+  "kind": "sql#operation",
+  "name": "${operationID}",
+  "operationType": "UPDATE",
+  "selfLink": "https://sqladmin.googleapis.com/sql/v1beta4/projects/${projectId}/operations/${operationID}",
+  "status": "PENDING",
+  "targetId": "sqlinstance-locationpreference-${uniqueId}",
+  "targetLink": "https://sqladmin.googleapis.com/sql/v1beta4/projects/${projectId}/instances/sqlinstance-locationpreference-${uniqueId}",
+  "targetProject": "${projectId}",
+  "user": "user@example.com"
+}
+
+---
+
+GET https://sqladmin.googleapis.com/sql/v1beta4/projects/${projectId}/operations/${operationID}?alt=json&prettyPrint=false
+User-Agent: kcc/controller-manager
+
+200 OK
+Cache-Control: private
+Content-Type: application/json; charset=UTF-8
+Server: ESF
+Vary: Origin
+Vary: X-Origin
+Vary: Referer
+X-Content-Type-Options: nosniff
+X-Frame-Options: SAMEORIGIN
+X-Xss-Protection: 0
+
+{
+  "endTime": "2024-04-01T12:34:56.123456Z",
+  "insertTime": "2024-04-01T12:34:56.123456Z",
+  "kind": "sql#operation",
+  "name": "${operationID}",
+  "operationType": "UPDATE",
+  "selfLink": "https://sqladmin.googleapis.com/sql/v1beta4/projects/${projectId}/operations/${operationID}",
+  "status": "DONE",
+  "targetId": "sqlinstance-locationpreference-${uniqueId}",
+  "targetLink": "https://sqladmin.googleapis.com/sql/v1beta4/projects/${projectId}/instances/sqlinstance-locationpreference-${uniqueId}",
+  "targetProject": "${projectId}",
+  "user": "user@example.com"
+}
+
+---
+
+GET https://sqladmin.googleapis.com/sql/v1beta4/projects/${projectId}/instances/sqlinstance-locationpreference-${uniqueId}?alt=json&prettyPrint=false
+User-Agent: 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
+
+{
+  "backendType": "SECOND_GEN",
+  "connectionName": "${projectId}:us-central1:sqlinstance-locationpreference-${uniqueId}",
+  "createTime": "2024-04-01T12:34:56.123456Z",
+  "databaseInstalledVersion": "POSTGRES_16_3",
+  "databaseVersion": "POSTGRES_16",
+  "etag": "abcdef0123A=",
+  "gceZone": "us-central1-a",
+  "geminiConfig": {
+    "activeQueryEnabled": false,
+    "entitled": false,
+    "googleVacuumMgmtEnabled": false,
+    "indexAdvisorEnabled": false,
+    "oomSessionCancelEnabled": false
+  },
+  "instanceType": "CLOUD_SQL_INSTANCE",
+  "ipAddresses": [
+    {
+      "ipAddress": "10.1.2.3",
+      "type": "PRIMARY"
+    },
+    {
+      "ipAddress": "10.1.2.3",
+      "type": "OUTGOING"
+    }
+  ],
+  "kind": "sql#instance",
+  "maintenanceVersion": "POSTGRES_16_3.R20240527.01_10",
+  "name": "sqlinstance-locationpreference-${uniqueId}",
+  "project": "${projectId}",
+  "region": "us-central1",
+  "selfLink": "https://sqladmin.googleapis.com/sql/v1beta4/projects/${projectId}/instances/sqlinstance-locationpreference-${uniqueId}",
+  "serverCaCert": {
+    "cert": "-----BEGIN CERTIFICATE-----\n-----END CERTIFICATE-----\n",
+    "certSerialNumber": "0",
+    "commonName": "common-name",
+    "createTime": "2024-04-01T12:34:56.123456Z",
+    "expirationTime": "2024-04-01T12:34:56.123456Z",
+    "instance": "sqlinstance-locationpreference-${uniqueId}",
+    "kind": "sql#sslCert",
+    "sha1Fingerprint": "12345678"
+  },
+  "serviceAccountEmailAddress": "p${projectNumber}-abcdef@gcp-sa-cloud-sql.iam.gserviceaccount.com",
+  "settings": {
+    "activationPolicy": "ALWAYS",
+    "authorizedGaeApplications": [],
+    "availabilityType": "ZONAL",
+    "backupConfiguration": {
+      "backupRetentionSettings": {
+        "retainedBackups": 7,
+        "retentionUnit": "COUNT"
+      },
+      "enabled": false,
+      "kind": "sql#backupConfiguration",
+      "pointInTimeRecoveryEnabled": false,
+      "replicationLogArchivingEnabled": false,
+      "startTime": "12:00",
+      "transactionLogRetentionDays": 7,
+      "transactionalLogStorageState": "TRANSACTIONAL_LOG_STORAGE_STATE_UNSPECIFIED"
+    },
+    "connectorEnforcement": "NOT_REQUIRED",
+    "dataDiskSizeGb": "10",
+    "dataDiskType": "PD_SSD",
+    "deletionProtectionEnabled": false,
+    "edition": "ENTERPRISE",
+    "ipConfiguration": {
+      "authorizedNetworks": [],
+      "ipv4Enabled": true,
+      "requireSsl": false,
+      "sslMode": "ALLOW_UNENCRYPTED_AND_ENCRYPTED"
+    },
+    "kind": "sql#settings",
+    "locationPreference": {
+      "kind": "sql#locationPreference",
+      "secondaryZone": "us-central1-f",
+      "zone": "us-central1-c"
+    },
+    "pricingPlan": "PER_USE",
+    "replicationType": "SYNCHRONOUS",
+    "settingsVersion": "123",
+    "storageAutoResize": true,
+    "storageAutoResizeLimit": "0",
+    "tier": "db-custom-1-3840",
+    "userLabels": {
+      "cnrm-test": "true",
+      "managed-by-cnrm": "true"
+    }
+  },
+  "sqlNetworkArchitecture": "NEW_NETWORK_ARCHITECTURE",
+  "state": "RUNNABLE"
+}
+
+---
+
+DELETE https://sqladmin.googleapis.com/sql/v1beta4/projects/${projectId}/instances/sqlinstance-locationpreference-${uniqueId}?alt=json&prettyPrint=false
+User-Agent: 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
+
+{
+  "insertTime": "2024-04-01T12:34:56.123456Z",
+  "kind": "sql#operation",
+  "name": "${operationID}",
+  "operationType": "DELETE",
+  "selfLink": "https://sqladmin.googleapis.com/sql/v1beta4/projects/${projectId}/operations/${operationID}",
+  "status": "PENDING",
+  "targetId": "sqlinstance-locationpreference-${uniqueId}",
+  "targetLink": "https://sqladmin.googleapis.com/sql/v1beta4/projects/${projectId}/instances/sqlinstance-locationpreference-${uniqueId}",
+  "targetProject": "${projectId}",
+  "user": "user@example.com"
+}
\ No newline at end of file
diff --git a/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-locationpreference/create.yaml b/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-locationpreference/create.yaml
new file mode 100644
index 0000000000..a06b891e13
--- /dev/null
+++ b/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-locationpreference/create.yaml
@@ -0,0 +1,28 @@
+# Copyright 2024 Google LLC
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#      http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+
+apiVersion: sql.cnrm.cloud.google.com/v1beta1
+kind: SQLInstance
+metadata:
+  name: sqlinstance-locationpreference-${uniqueId}
+  annotations:
+    cnrm.cloud.google.com/state-into-spec: absent
+spec:
+  databaseVersion: POSTGRES_16
+  region: us-central1
+  settings:
+    locationPreference:
+      zone: us-central1-a
+      secondaryZone: us-central1-b
+    tier: db-custom-1-3840
diff --git a/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-locationpreference/update.yaml b/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-locationpreference/update.yaml
new file mode 100644
index 0000000000..f844bcb7fb
--- /dev/null
+++ b/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-locationpreference/update.yaml
@@ -0,0 +1,28 @@
+# 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: sql.cnrm.cloud.google.com/v1beta1
+kind: SQLInstance
+metadata:
+  name: sqlinstance-locationpreference-${uniqueId}
+  annotations:
+    cnrm.cloud.google.com/state-into-spec: absent
+spec:
+  databaseVersion: POSTGRES_16
+  region: us-central1
+  settings:
+    locationPreference:
+      zone: us-central1-c
+      secondaryZone: us-central1-f
+    tier: db-custom-1-3840
diff --git a/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-mysql-minimal/_http.log b/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-mysql-minimal/_http.log
index 19b38b0e41..36bdf3124d 100644
--- a/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-mysql-minimal/_http.log
+++ b/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-mysql-minimal/_http.log
@@ -42,6 +42,7 @@ User-Agent: kcc/controller-manager
     "dataDiskType": "PD_SSD",
     "edition": "ENTERPRISE",
     "locationPreference": {
+      "kind": "sql#locationPreference",
       "zone": "us-central1-a"
     },
     "pricingPlan": "PER_USE",
@@ -797,6 +798,7 @@ User-Agent: kcc/controller-manager
     "dataDiskType": "PD_SSD",
     "edition": "ENTERPRISE",
     "locationPreference": {
+      "kind": "sql#locationPreference",
       "zone": "us-central1-a"
     },
     "pricingPlan": "PER_USE",
diff --git a/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-mysql/_http.log b/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-mysql/_http.log
index 423ecf765f..82902a4fb7 100644
--- a/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-mysql/_http.log
+++ b/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-mysql/_http.log
@@ -573,10 +573,6 @@ User-Agent: kcc/controller-manager
     "dataDiskSizeGb": "20",
     "dataDiskType": "PD_SSD",
     "edition": "ENTERPRISE",
-    "locationPreference": {
-      "kind": "sql#locationPreference",
-      "zone": "us-central1-a"
-    },
     "pricingPlan": "PER_USE",
     "replicationType": "SYNCHRONOUS",
     "settingsVersion": "123",
diff --git a/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-postgres-minimal/_http.log b/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-postgres-minimal/_http.log
index d8221201ea..bdb8993ee6 100644
--- a/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-postgres-minimal/_http.log
+++ b/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-postgres-minimal/_http.log
@@ -42,6 +42,7 @@ User-Agent: kcc/controller-manager
     "dataDiskType": "PD_SSD",
     "edition": "ENTERPRISE",
     "locationPreference": {
+      "kind": "sql#locationPreference",
       "zone": "us-central1-a"
     },
     "pricingPlan": "PER_USE",
@@ -564,6 +565,7 @@ User-Agent: kcc/controller-manager
     "dataDiskType": "PD_SSD",
     "edition": "ENTERPRISE",
     "locationPreference": {
+      "kind": "sql#locationPreference",
       "zone": "us-central1-a"
     },
     "pricingPlan": "PER_USE",
diff --git a/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-postgres/_http.log b/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-postgres/_http.log
index 59340d6c87..df0d29be62 100644
--- a/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-postgres/_http.log
+++ b/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-postgres/_http.log
@@ -954,10 +954,6 @@ User-Agent: kcc/controller-manager
       "requireSsl": false,
       "sslMode": "ENCRYPTED_ONLY"
     },
-    "locationPreference": {
-      "kind": "sql#locationPreference",
-      "zone": "us-central1-a"
-    },
     "pricingPlan": "PER_USE",
     "replicationType": "SYNCHRONOUS",
     "settingsVersion": "123",
diff --git a/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-privatenetwork/_http.log b/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-privatenetwork/_http.log
index 90dbf493d7..67d86c3e11 100644
--- a/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-privatenetwork/_http.log
+++ b/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-privatenetwork/_http.log
@@ -1312,6 +1312,7 @@ User-Agent: kcc/controller-manager
       "privateNetwork": "projects/${projectId}/global/networks/computenetwork-${uniqueId}"
     },
     "locationPreference": {
+      "kind": "sql#locationPreference",
       "zone": "us-central1-a"
     },
     "pricingPlan": "PER_USE",
@@ -1655,6 +1656,7 @@ User-Agent: kcc/controller-manager
       "privateNetwork": "projects/${projectId}/global/networks/computenetwork2-${uniqueId}"
     },
     "locationPreference": {
+      "kind": "sql#locationPreference",
       "zone": "us-central1-a"
     },
     "pricingPlan": "PER_USE",
diff --git a/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-sqlserver-minimal/_http.log b/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-sqlserver-minimal/_http.log
index 12bba441e7..f7296e9628 100644
--- a/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-sqlserver-minimal/_http.log
+++ b/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-sqlserver-minimal/_http.log
@@ -43,6 +43,7 @@ User-Agent: kcc/controller-manager
     "dataDiskType": "PD_SSD",
     "edition": "ENTERPRISE",
     "locationPreference": {
+      "kind": "sql#locationPreference",
       "zone": "us-central1-a"
     },
     "pricingPlan": "PER_USE",
@@ -637,6 +638,7 @@ User-Agent: kcc/controller-manager
     "dataDiskType": "PD_SSD",
     "edition": "ENTERPRISE",
     "locationPreference": {
+      "kind": "sql#locationPreference",
       "zone": "us-central1-a"
     },
     "pricingPlan": "PER_USE",
diff --git a/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-sqlserver/_http.log b/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-sqlserver/_http.log
index 6922aa843f..33e57cde45 100644
--- a/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-sqlserver/_http.log
+++ b/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-sqlserver/_http.log
@@ -539,10 +539,6 @@ User-Agent: kcc/controller-manager
     "dataDiskSizeGb": "20",
     "dataDiskType": "PD_SSD",
     "edition": "ENTERPRISE",
-    "locationPreference": {
-      "kind": "sql#locationPreference",
-      "zone": "us-central1-a"
-    },
     "pricingPlan": "PER_USE",
     "replicationType": "SYNCHRONOUS",
     "settingsVersion": "123",
diff --git a/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-ssl/_http.log b/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-ssl/_http.log
index c7ba89bb9c..347a86ff87 100644
--- a/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-ssl/_http.log
+++ b/pkg/test/resourcefixture/testdata/basic/sql/v1beta1/sqlinstance/sqlinstance-ssl/_http.log
@@ -45,6 +45,7 @@ User-Agent: kcc/controller-manager
       "requireSsl": true
     },
     "locationPreference": {
+      "kind": "sql#locationPreference",
       "zone": "us-central1-a"
     },
     "pricingPlan": "PER_USE",
@@ -388,6 +389,7 @@ User-Agent: kcc/controller-manager
       "sslMode": "ENCRYPTED_ONLY"
     },
     "locationPreference": {
+      "kind": "sql#locationPreference",
       "zone": "us-central1-a"
     },
     "pricingPlan": "PER_USE",