diff --git a/pkg/acsengine/transform/transform.go b/pkg/acsengine/transform/transform.go
index 6563813e3c..9217baef98 100644
--- a/pkg/acsengine/transform/transform.go
+++ b/pkg/acsengine/transform/transform.go
@@ -36,10 +36,12 @@ const (
 	vmssResourceType = "Microsoft.Compute/virtualMachineScaleSets"
 	vmExtensionType  = "Microsoft.Compute/virtualMachines/extensions"
 	nicResourceType  = "Microsoft.Network/networkInterfaces"
+	vnetResourceType = "Microsoft.Network/virtualNetworks"
 
 	// resource ids
-	nsgID = "nsgID"
-	rtID  = "routeTableID"
+	nsgID  = "nsgID"
+	rtID   = "routeTableID"
+	vnetID = "vnetID"
 )
 
 // Translator defines all required interfaces for i18n.Translator.
@@ -104,6 +106,7 @@ func (t *Transformer) NormalizeForK8sVMASScalingUp(logger *logrus.Entry, templat
 	}
 	rtIndex := -1
 	nsgIndex := -1
+	vnetIndex := -1
 	resources := templateMap[resourcesFieldName].([]interface{})
 	for index, resource := range resources {
 		resourceMap, ok := resource.(map[string]interface{})
@@ -129,6 +132,14 @@ func (t *Transformer) NormalizeForK8sVMASScalingUp(logger *logrus.Entry, templat
 			}
 			rtIndex = index
 		}
+		if ok && resourceType == vnetResourceType {
+			if vnetIndex != -1 {
+				err := t.Translator.Errorf("Found 2 resources with type %s in the template. There should only be 1", vnetResourceType)
+				logger.Warnf(err.Error())
+				return err
+			}
+			vnetIndex = index
+		}
 
 		dependencies, ok := resourceMap[dependsOnFieldName].([]interface{})
 		if !ok {
@@ -138,7 +149,8 @@ func (t *Transformer) NormalizeForK8sVMASScalingUp(logger *logrus.Entry, templat
 		for dIndex := len(dependencies) - 1; dIndex >= 0; dIndex-- {
 			dependency := dependencies[dIndex].(string)
 			if strings.Contains(dependency, nsgResourceType) || strings.Contains(dependency, nsgID) ||
-				strings.Contains(dependency, rtResourceType) || strings.Contains(dependency, rtID) {
+				strings.Contains(dependency, rtResourceType) || strings.Contains(dependency, rtID) ||
+				strings.Contains(dependency, vnetResourceType) || strings.Contains(dependency, vnetID) {
 				dependencies = append(dependencies[:dIndex], dependencies[dIndex+1:]...)
 			}
 		}
@@ -161,6 +173,11 @@ func (t *Transformer) NormalizeForK8sVMASScalingUp(logger *logrus.Entry, templat
 	} else {
 		indexesToRemove = append(indexesToRemove, rtIndex)
 	}
+	if vnetIndex == -1 {
+		logger.Infof("Found no resources with type %s in the template.", vnetResourceType)
+	} else {
+		indexesToRemove = append(indexesToRemove, vnetIndex)
+	}
 	indexesToRemove = append(indexesToRemove, nsgIndex)
 	templateMap[resourcesFieldName] = removeIndexesFromArray(resources, indexesToRemove)
 
@@ -283,7 +300,25 @@ func (t *Transformer) NormalizeResourcesForK8sMasterUpgrade(logger *logrus.Entry
 			continue
 		}
 
-		if !(resourceType == vmResourceType || resourceType == vmExtensionType || resourceType == nicResourceType) {
+		dependencies, ok := resourceMap[dependsOnFieldName].([]interface{})
+		if !ok {
+			continue
+		}
+
+		for dIndex := len(dependencies) - 1; dIndex >= 0; dIndex-- {
+			dependency := dependencies[dIndex].(string)
+			if strings.Contains(dependency, vnetResourceType) || strings.Contains(dependency, vnetID) {
+				dependencies = append(dependencies[:dIndex], dependencies[dIndex+1:]...)
+			}
+		}
+
+		if len(dependencies) > 0 {
+			resourceMap[dependsOnFieldName] = dependencies
+		} else {
+			delete(resourceMap, dependsOnFieldName)
+		}
+
+		if !(resourceType == vmResourceType || resourceType == vmExtensionType || resourceType == nicResourceType || resourceType == vnetResourceType) {
 			continue
 		}
 
@@ -293,6 +328,11 @@ func (t *Transformer) NormalizeResourcesForK8sMasterUpgrade(logger *logrus.Entry
 			continue
 		}
 
+		if resourceType == vnetResourceType {
+			filteredResources = filteredResources[:len(filteredResources)-1]
+			continue
+		}
+
 		if resourceType == nicResourceType {
 			if strings.Contains(resourceName, "variables('masterVMNamePrefix')") {
 				continue
diff --git a/pkg/acsengine/transform/transformtestfiles/k8s_agent_upgrade_template.json b/pkg/acsengine/transform/transformtestfiles/k8s_agent_upgrade_template.json
index 6cdd0ffb67..39c09e0c24 100644
--- a/pkg/acsengine/transform/transformtestfiles/k8s_agent_upgrade_template.json
+++ b/pkg/acsengine/transform/transformtestfiles/k8s_agent_upgrade_template.json
@@ -1659,9 +1659,6 @@
         "count": "[sub(variables('agentppol1Count'), variables('agentppol1Offset'))]",
         "name": "loop"
       },
-      "dependsOn": [
-        "[variables('vnetID')]"
-      ],
       "location": "[variables('location')]",
       "name": "[concat(variables('agentppol1VMNamePrefix'), 'nic-', copyIndex(variables('agentppol1Offset')))]",
       "properties": {
@@ -1710,9 +1707,6 @@
         "count": "[sub(variables('agentpool2Count'), variables('agentpool2Offset'))]",
         "name": "loop"
       },
-      "dependsOn": [
-        "[variables('vnetID')]"
-      ],
       "location": "[variables('location')]",
       "name": "[concat(variables('agentpool2VMNamePrefix'), 'nic-', copyIndex(variables('agentpool2Offset')))]",
       "properties": {
@@ -1766,33 +1760,6 @@
       },
       "type": "Microsoft.Compute/availabilitySets"
     },
-    {
-      "apiVersion": "[variables('apiVersionDefault')]",
-      "location": "[variables('location')]",
-      "name": "[variables('virtualNetworkName')]",
-      "properties": {
-        "addressSpace": {
-          "addressPrefixes": [
-            "[variables('vnetCidr')]"
-          ]
-        },
-        "subnets": [
-          {
-            "name": "[variables('subnetName')]",
-            "properties": {
-              "addressPrefix": "[variables('subnet')]",
-              "networkSecurityGroup": {
-                "id": "[variables('nsgID')]"
-              },
-              "routeTable": {
-                "id": "[variables('routeTableID')]"
-              }
-            }
-          }
-        ]
-      },
-      "type": "Microsoft.Network/virtualNetworks"
-    },
     {
       "apiVersion": "[variables('apiVersionDefault')]",
       "dependsOn": [
@@ -1854,9 +1821,6 @@
     },
     {
       "apiVersion": "[variables('apiVersionDefault')]",
-      "dependsOn": [
-        "[variables('vnetID')]"
-      ],
       "location": "[variables('location')]",
       "name": "[variables('masterInternalLbName')]",
       "properties": {
@@ -1950,7 +1914,6 @@
         "name": "nicLoopNode"
       },
       "dependsOn": [
-        "[variables('vnetID')]",
         "[concat(variables('masterLbID'),'/inboundNatRules/SSH-',variables('masterVMNamePrefix'),copyIndex(variables('masterOffset')))]",
         "[variables('masterInternalLbName')]"
       ],
diff --git a/pkg/acsengine/transform/transformtestfiles/k8s_master_upgrade_template.json b/pkg/acsengine/transform/transformtestfiles/k8s_master_upgrade_template.json
index 4ade5fb5a7..9b7580877a 100644
--- a/pkg/acsengine/transform/transformtestfiles/k8s_master_upgrade_template.json
+++ b/pkg/acsengine/transform/transformtestfiles/k8s_master_upgrade_template.json
@@ -1659,9 +1659,6 @@
         "count": "[sub(variables('agentppol1Count'), variables('agentppol1Offset'))]",
         "name": "loop"
       },
-      "dependsOn": [
-        "[variables('vnetID')]"
-      ],
       "location": "[variables('location')]",
       "name": "[concat(variables('agentppol1VMNamePrefix'), 'nic-', copyIndex(variables('agentppol1Offset')))]",
       "properties": {
@@ -1710,9 +1707,6 @@
         "count": "[sub(variables('agentpool2Count'), variables('agentpool2Offset'))]",
         "name": "loop"
       },
-      "dependsOn": [
-        "[variables('vnetID')]"
-      ],
       "location": "[variables('location')]",
       "name": "[concat(variables('agentpool2VMNamePrefix'), 'nic-', copyIndex(variables('agentpool2Offset')))]",
       "properties": {
@@ -1857,37 +1851,6 @@
       },
       "type": "Microsoft.Compute/availabilitySets"
     },
-    {
-      "apiVersion": "[variables('apiVersionDefault')]",
-      "dependsOn": [
-        "[concat('Microsoft.Network/networkSecurityGroups/', variables('nsgName'))]",
-        "[concat('Microsoft.Network/routeTables/', variables('routeTableName'))]"
-      ],
-      "location": "[variables('location')]",
-      "name": "[variables('virtualNetworkName')]",
-      "properties": {
-        "addressSpace": {
-          "addressPrefixes": [
-            "[variables('vnetCidr')]"
-          ]
-        },
-        "subnets": [
-          {
-            "name": "[variables('subnetName')]",
-            "properties": {
-              "addressPrefix": "[variables('subnet')]",
-              "networkSecurityGroup": {
-                "id": "[variables('nsgID')]"
-              },
-              "routeTable": {
-                "id": "[variables('routeTableID')]"
-              }
-            }
-          }
-        ]
-      },
-      "type": "Microsoft.Network/virtualNetworks"
-    },
     {
       "apiVersion": "[variables('apiVersionDefault')]",
       "location": "[variables('location')]",
@@ -1993,9 +1956,6 @@
     },
     {
       "apiVersion": "[variables('apiVersionDefault')]",
-      "dependsOn": [
-        "[variables('vnetID')]"
-      ],
       "location": "[variables('location')]",
       "name": "[variables('masterInternalLbName')]",
       "properties": {
@@ -2089,7 +2049,6 @@
         "name": "nicLoopNode"
       },
       "dependsOn": [
-        "[variables('vnetID')]",
         "[concat(variables('masterLbID'),'/inboundNatRules/SSH-',variables('masterVMNamePrefix'),copyIndex(variables('masterOffset')))]",
         "[variables('masterInternalLbName')]"
       ],
diff --git a/pkg/acsengine/transform/transformtestfiles/k8s_scale_template.json b/pkg/acsengine/transform/transformtestfiles/k8s_scale_template.json
index 64ba134f89..d0e5a446b9 100644
--- a/pkg/acsengine/transform/transformtestfiles/k8s_scale_template.json
+++ b/pkg/acsengine/transform/transformtestfiles/k8s_scale_template.json
@@ -1659,9 +1659,6 @@
         "count": "[sub(variables('agentppol1Count'), variables('agentppol1Offset'))]",
         "name": "loop"
       },
-      "dependsOn": [
-        "[variables('vnetID')]"
-      ],
       "location": "[variables('location')]",
       "name": "[concat(variables('agentppol1VMNamePrefix'), 'nic-', copyIndex(variables('agentppol1Offset')))]",
       "properties": {
@@ -1801,9 +1798,6 @@
         "count": "[sub(variables('agentpool2Count'), variables('agentpool2Offset'))]",
         "name": "loop"
       },
-      "dependsOn": [
-        "[variables('vnetID')]"
-      ],
       "location": "[variables('location')]",
       "name": "[concat(variables('agentpool2VMNamePrefix'), 'nic-', copyIndex(variables('agentpool2Offset')))]",
       "properties": {
@@ -1948,33 +1942,6 @@
       },
       "type": "Microsoft.Compute/availabilitySets"
     },
-    {
-      "apiVersion": "[variables('apiVersionDefault')]",
-      "location": "[variables('location')]",
-      "name": "[variables('virtualNetworkName')]",
-      "properties": {
-        "addressSpace": {
-          "addressPrefixes": [
-            "[variables('vnetCidr')]"
-          ]
-        },
-        "subnets": [
-          {
-            "name": "[variables('subnetName')]",
-            "properties": {
-              "addressPrefix": "[variables('subnet')]",
-              "networkSecurityGroup": {
-                "id": "[variables('nsgID')]"
-              },
-              "routeTable": {
-                "id": "[variables('routeTableID')]"
-              }
-            }
-          }
-        ]
-      },
-      "type": "Microsoft.Network/virtualNetworks"
-    },
     {
       "apiVersion": "[variables('apiVersionDefault')]",
       "dependsOn": [
@@ -2036,9 +2003,6 @@
     },
     {
       "apiVersion": "[variables('apiVersionDefault')]",
-      "dependsOn": [
-        "[variables('vnetID')]"
-      ],
       "location": "[variables('location')]",
       "name": "[variables('masterInternalLbName')]",
       "properties": {
@@ -2132,7 +2096,6 @@
         "name": "nicLoopNode"
       },
       "dependsOn": [
-        "[variables('vnetID')]",
         "[concat(variables('masterLbID'),'/inboundNatRules/SSH-',variables('masterVMNamePrefix'),copyIndex(variables('masterOffset')))]",
         "[variables('masterInternalLbName')]"
       ],