diff --git a/CHANGELOG.md b/CHANGELOG.md
index bf5265518..e2568ccd3 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -8,6 +8,8 @@
   - Make SSH commands which use sudo compatible with sudo < 1.7.0. [GH-278]
   - Fix broken puppet server provisioner which called a nonexistent
     method.
+  - Default SSH host changed from `localhost` to `127.0.0.1` since
+    `localhost` is not always loopback.
 
 ## 0.7.0 (January 19, 2011)
 
diff --git a/config/default.rb b/config/default.rb
index fe41e3398..6ed5e63e7 100644
--- a/config/default.rb
+++ b/config/default.rb
@@ -4,7 +4,7 @@ Vagrant::Config.run do |config|
   config.vagrant.host = :detect
 
   config.ssh.username = "vagrant"
-  config.ssh.host = "localhost"
+  config.ssh.host = "127.0.0.1"
   config.ssh.forwarded_port_key = "ssh"
   config.ssh.max_tries = 10
   config.ssh.timeout = 30