Method for providing distributed gateway service at host computer

A non-transitory machine readable medium storing a program for providing a distributed load balancing edge service at a first host computer in a plurality of host computers that together implement the distributed load balancing edge service for a virtual private cloud (VPC) comprising a plurality of data compute nodes (DCNs) at least one of which executes on the first host computer, the VPC spanning the plurality of host computers in a datacenter, the program comprising sets of instructions for:

• receiving a first data message from a gateway device of the datacenter that (i) receives the first data message from an external network, the first data message addressed to a virtual internet protocol (VIP) address associated with a set of DCNs in the VPC that includes the first DCN executing on the first host computer, and a second DCN executing on a second host computer, and (ii) forwards the first data message to the first host computer;
• performing, for the first data message, the distributed load balancing edge service to select the first DCN as the destination DCN for first data message;
• providing the serviced first data message to the first DCN executing on the first host computer;
• receiving a second data message from the gateway device that (i) receives the second data message from the external network addressed to the set of DCNs and (ii) forwards the second data message to the first host computer;
• performing, for the second data message, the distributed load balancing edge service to select the second DCN as a destination for the second data message;
• and
• providing the serviced second data message to the second DCN through a tunnel between the first and second host computers.