@@ -137,8 +137,9 @@ type KlientConfig struct {
 	TunnelName    string
 	TunnelKiteURL string
 
-	NoTunnel bool
-	NoProxy  bool
+	NoTunnel   bool
+	NoProxy    bool
+	Autoupdate bool
 
 	LogBucketRegion   string
 	LogBucketName     string
@@ -571,10 +572,10 @@ func (k *Klient) Run() {
 	k.log.Info("Using version: '%s' querystring: '%s'", k.config.Version, k.kite.Id)
 
 	// TODO(rjeczalik): Enable after TMS-848.
-	if isManaged {
-		k.log.Warning("autoupdate is currently disabled for managed environment")
-	} else {
+	if !isManaged || k.config.Autoupdate {
 		go k.updater.Run()
+	} else {
+		k.log.Warning("autoupdate is currently disabled for managed environment")
 	}
 
 	k.kite.Run()
@@ -632,6 +633,18 @@ func newKite(kconf *KlientConfig) *kite.Kite {
 		k.Config.KontrolURL = kconf.KontrolURL
 	}
 
+	// Currently kite.key generated by kontrol injects
+	// default value of the kontrolUrl (http://127.0.0.1:3000/kite) and
+	// assumes it would get overwritten to a proper one during klient
+	// installation or start up.
+	//
+	// Ensure that any default value is overwritten with default kontrol.
+	//
+	// TODO(rjeczalik): ensure kontrolUrl is set to a proper value.
+	if k.Config.KontrolURL == "http://127.0.0.1:3000/kite" {
+		k.Config.KontrolURL = "https://koding.com/kontrol/kite"
+	}
+
 	return k
 }
 
 
@@ -12,7 +12,7 @@
 # Klient - Koding Service Connector
 # Copyright (C) 2012-2016 Koding Inc., all rights reserved.
 
-export DEFAULT_START_COMMAND="/opt/kite/klient/klient -kontrol-url https://koding.com/kontrol/kite"
+export DEFAULT_START_COMMAND="/opt/kite/klient/klient -kontrol-url https://koding.com/kontrol/kite -autoupdate"
 export START_COMMAND="%START_COMMAND%"
 export USERNAME="%USERNAME%"
 export KITE_HOME=/etc/kite
 
@@ -237,7 +237,7 @@ export KITE_KONTROL_URL=\${KITE_KONTROL_URL:-https://koding.com/kontrol/kite}
 export PATH=\$PATH:/usr/local/bin
 
 ulimit -n 5000
-sudo -E -u "\$USERNAME" /opt/kite/klient/klient"
+sudo -E -u "\$USERNAME" /opt/kite/klient/klient" -autoupdate
 EOF
 		cat <<EOF | sudo tee /opt/kite/klient/klient.init &>/dev/null
 <!--
@@ -293,10 +293,10 @@ EOF
 
 	if [[ ${is_macosx} -eq 1 ]]; then
 		sudo sed -i "" -e "s|\%USERNAME\%|$(whoami)|g" "${init_file}"
-		sudo sed -i "" -e "s|\%START_COMMAND\%|/opt/kite/klient/klient -kontrol-url ${kontrolurl}|g" "${init_file}"
+		sudo sed -i "" -e "s|\%START_COMMAND\%|/opt/kite/klient/klient -kontrol-url ${kontrolurl} -autoupdate|g" "${init_file}"
 	else
 		sudo sed -i -e "s|\%USERNAME\%|$(whoami)|g" "${init_file}"
-		sudo sed -i -e "s|\%START_COMMAND\%|/opt/kite/klient/klient -kontrol-url ${kontrolurl}|g" "${init_file}"
+		sudo sed -i -e "s|\%START_COMMAND\%|/opt/kite/klient/klient -kontrol-url ${kontrolurl} -autoupdate|g" "${init_file}"
 	fi
 
 	if ! install_service; then
 
@@ -58,6 +58,8 @@ var (
 	flagNoTunnel      = flag.Bool("no-tunnel", defaultNoTunnel(), "Force tunnel connection off")
 	flagNoProxy       = flag.Bool("no-proxy", false, "Force TLS proxy for tunneled connection off")
 
+	flagAutoupdate = flag.Bool("autoupdate", false, "Force autoupdate on")
+
 	// Upload log flags
 	flagLogBucketRegion   = flag.String("log-bucket-region", "us-west-1", "Change bucket region to upload logs")
 	flagLogBucketName     = flag.String("log-bucket-name", "koding-klient-logs", "Change bucket name to upload logs")
@@ -129,6 +131,7 @@ func realMain() int {
 		TunnelKiteURL:     *flagTunnelKiteURL,
 		NoTunnel:          *flagNoTunnel,
 		NoProxy:           *flagNoProxy,
+		Autoupdate:        *flagAutoupdate,
 		LogBucketRegion:   *flagLogBucketRegion,
 		LogBucketName:     *flagLogBucketName,
 		LogUploadLimit:    *flagLogUploadLimit,