diff --git a/cloud/scope/cluster.go b/cloud/scope/cluster.go
index be52150398..e4f0b20351 100644
--- a/cloud/scope/cluster.go
+++ b/cloud/scope/cluster.go
@@ -221,10 +221,13 @@ func (s *ClusterScope) CreateSubnet() (*vpcv1.Subnet, error) {
 		Zone: &vpcv1.ZoneIdentity{
 			Name: &s.IBMVPCCluster.Spec.Zone,
 		},
+		ResourceGroup: &vpcv1.ResourceGroupIdentity{
+			ID: &s.IBMVPCCluster.Spec.ResourceGroup,
+		},
 	})
 	subnet, _, err := s.IBMVPCClients.VPCService.CreateSubnet(options)
 	if subnet != nil {
-		pgw, err := s.createPublicGateWay(s.IBMVPCCluster.Status.VPC.ID, s.IBMVPCCluster.Spec.Zone)
+		pgw, err := s.createPublicGateWay(s.IBMVPCCluster.Status.VPC.ID, s.IBMVPCCluster.Spec.Zone, s.IBMVPCCluster.Spec.ResourceGroup)
 		if err != nil {
 			return subnet, err
 		}
@@ -295,7 +298,7 @@ func (s *ClusterScope) DeleteSubnet() error {
 	return err
 }
 
-func (s *ClusterScope) createPublicGateWay(vpcID string, zoneName string) (*vpcv1.PublicGateway, error) {
+func (s *ClusterScope) createPublicGateWay(vpcID string, zoneName string, resourceGroupID string) (*vpcv1.PublicGateway, error) {
 	options := &vpcv1.CreatePublicGatewayOptions{}
 	options.SetVPC(&vpcv1.VPCIdentity{
 		ID: &vpcID,
@@ -303,6 +306,9 @@ func (s *ClusterScope) createPublicGateWay(vpcID string, zoneName string) (*vpcv
 	options.SetZone(&vpcv1.ZoneIdentity{
 		Name: &zoneName,
 	})
+	options.SetResourceGroup(&vpcv1.ResourceGroupIdentity{
+		ID: &resourceGroupID,
+	})
 	publicGateway, _, err := s.IBMVPCClients.VPCService.CreatePublicGateway(options)
 	return publicGateway, err
 }
diff --git a/cloud/scope/machine.go b/cloud/scope/machine.go
index b3968ad3b1..ea22aa5f81 100644
--- a/cloud/scope/machine.go
+++ b/cloud/scope/machine.go
@@ -125,6 +125,9 @@ func (m *MachineScope) CreateMachine() (*vpcv1.Instance, error) {
 				ID: &m.IBMVPCMachine.Spec.PrimaryNetworkInterface.Subnet,
 			},
 		},
+		ResourceGroup: &vpcv1.ResourceGroupIdentity{
+			ID: &m.IBMVPCCluster.Spec.ResourceGroup,
+		},
 		UserData: &cloudInitData,
 	}
 
diff --git a/controllers/ibmvpccluster_controller.go b/controllers/ibmvpccluster_controller.go
index 0081289213..8dbb666f2f 100644
--- a/controllers/ibmvpccluster_controller.go
+++ b/controllers/ibmvpccluster_controller.go
@@ -18,7 +18,6 @@ package controllers
 
 import (
 	"context"
-	"os"
 
 	"github.com/IBM/vpc-go-sdk/vpcv1"
 	"github.com/go-logr/logr"
@@ -73,9 +72,8 @@ func (r *IBMVPCClusterReconciler) Reconcile(ctx context.Context, req ctrl.Reques
 		return ctrl.Result{}, nil
 	}
 
-	// Create the scope.
-	// TODO: Will be removed once we find a better way of overriding the service endpoint, generate via spec.
-	svcEndpoint := os.Getenv("SERVICE_ENDPOINT")
+	// Create the service endpoint.
+	svcEndpoint := "https://" + ibmCluster.Spec.Region + ".iaas.cloud.ibm.com/v1"
 
 	authenticator, err := authenticator.GetAuthenticator()
 	if err != nil {
diff --git a/controllers/ibmvpcmachine_controller.go b/controllers/ibmvpcmachine_controller.go
index 404f0da5d2..0445aa95bd 100644
--- a/controllers/ibmvpcmachine_controller.go
+++ b/controllers/ibmvpcmachine_controller.go
@@ -19,7 +19,6 @@ package controllers
 import (
 	"context"
 	"fmt"
-	"os"
 
 	"github.com/IBM/vpc-go-sdk/vpcv1"
 	"github.com/go-logr/logr"
@@ -95,8 +94,8 @@ func (r *IBMVPCMachineReconciler) Reconcile(ctx context.Context, req ctrl.Reques
 		return ctrl.Result{}, nil
 	}
 
-	// Create the cluster scope.
-	svcEndpoint := os.Getenv("SERVICE_ENDPOINT")
+	// Create the service endpoint.
+	svcEndpoint := "https://" + ibmCluster.Spec.Region + ".iaas.cloud.ibm.com/v1"
 
 	authenticator, err := authenticator.GetAuthenticator()
 	if err != nil {
diff --git a/docs/book/src/getting-started.md b/docs/book/src/getting-started.md
index 72052469d3..caf2d962c2 100644
--- a/docs/book/src/getting-started.md
+++ b/docs/book/src/getting-started.md
@@ -43,11 +43,10 @@ it into a management cluster using `clusterctl`.
     ```
     - Additional varibles required for VPC
     
-    The sample `IAM_ENDPOINT` below points to Production and the `SERVICE_ENDPOINT` points to the `us-east` VPC region.
+    The sample `IAM_ENDPOINT` below points to Production.
 
     ```console
     export IAM_ENDPOINT=https://iam.cloud.ibm.com/identity/token
-    export SERVICE_ENDPOINT=https://us-south.iaas.cloud.ibm.com/v1
     ```
 
     > Note: Refer [Regions-Zones Mapping](/reference/regions-zones-mapping.html) for more information.