Some embodiments provide a method for managing traffic in a virtualized environment. The method, in some embodiments, configures multiple edge service gateways (ESGs) executing on multiple host machines (e.g., on a hypervisor) to use a same anycast inner internet protocol (IP) address and a same anycast inner media access control (MAC) address. In some embodiments, ESGs of a logical network facilitate communication between machines connected to the logical network and machines on external networks. In some embodiments, the method configures a set of virtual extensible local area network tunnel endpoints (VTEPs) connected to an ESG to use a same anycast VTEP IP address. The method, in some embodiments, configures a distributed logical router (DLR or DR) to send data packets with destinations outside the logical network from sources belonging to the logical network to the anycast VTEP IP address.