diff --git a/docs/reference/operator_parameters.md b/docs/reference/operator_parameters.md
index 9fa622de8..a1ec0fab3 100644
--- a/docs/reference/operator_parameters.md
+++ b/docs/reference/operator_parameters.md
@@ -460,6 +460,9 @@ In the CRD-based configuration they are grouped under the `load_balancer` key.
   replaced with the hosted zone (the value of the `db_hosted_zone` parameter).
   No other placeholders are allowed.
 
+* **external_traffic_policy** define external traffic policy for the load
+balancer, it will default to `Cluster` if undefined.
+
 ## AWS or GCP interaction
 
 The options in this group configure operator interactions with non-Kubernetes
diff --git a/pkg/apis/acid.zalan.do/v1/crds.go b/pkg/apis/acid.zalan.do/v1/crds.go
index 43c313c16..d49399f6e 100644
--- a/pkg/apis/acid.zalan.do/v1/crds.go
+++ b/pkg/apis/acid.zalan.do/v1/crds.go
@@ -1129,6 +1129,17 @@ var OperatorConfigCRDResourceValidation = apiextv1beta1.CustomResourceValidation
 							"replica_dns_name_format": {
 								Type: "string",
 							},
+							"external_traffic_policy": {
+								Type: "string",
+								Enum: []apiextv1beta1.JSON{
+									{
+										Raw: []byte(`"Cluster"`),
+									},
+									{
+										Raw: []byte(`"Local"`),
+									},
+								},
+							},
 						},
 					},
 					"aws_or_gcp": {
diff --git a/pkg/apis/acid.zalan.do/v1/operator_configuration_type.go b/pkg/apis/acid.zalan.do/v1/operator_configuration_type.go
index 157596123..2351b16aa 100644
--- a/pkg/apis/acid.zalan.do/v1/operator_configuration_type.go
+++ b/pkg/apis/acid.zalan.do/v1/operator_configuration_type.go
@@ -109,6 +109,7 @@ type LoadBalancerConfiguration struct {
 	CustomServiceAnnotations  map[string]string     `json:"custom_service_annotations,omitempty"`
 	MasterDNSNameFormat       config.StringTemplate `json:"master_dns_name_format,omitempty"`
 	ReplicaDNSNameFormat      config.StringTemplate `json:"replica_dns_name_format,omitempty"`
+	ExternalTrafficPolicy     string                `json:"external_traffic_policy" default:"Cluster"`
 }
 
 // AWSGCPConfiguration defines the configuration for AWS
diff --git a/pkg/cluster/k8sres.go b/pkg/cluster/k8sres.go
index d7878942c..c7824e5ad 100644
--- a/pkg/cluster/k8sres.go
+++ b/pkg/cluster/k8sres.go
@@ -1619,6 +1619,7 @@ func (c *Cluster) generateService(role PostgresRole, spec *acidv1.PostgresSpec)
 		}
 
 		c.logger.Debugf("final load balancer source ranges as seen in a service spec (not necessarily applied): %q", serviceSpec.LoadBalancerSourceRanges)
+		serviceSpec.ExternalTrafficPolicy = v1.ServiceExternalTrafficPolicyType(c.OpConfig.ExternalTrafficPolicy)
 		serviceSpec.Type = v1.ServiceTypeLoadBalancer
 	} else if role == Replica {
 		// before PR #258, the replica service was only created if allocated a LB
diff --git a/pkg/cluster/k8sres_test.go b/pkg/cluster/k8sres_test.go
index 1e474fbf5..5c92a788f 100644
--- a/pkg/cluster/k8sres_test.go
+++ b/pkg/cluster/k8sres_test.go
@@ -1742,3 +1742,83 @@ func TestSidecars(t *testing.T) {
 	})
 
 }
+
+func TestGenerateService(t *testing.T) {
+	var spec acidv1.PostgresSpec
+	var cluster *Cluster
+	var enableLB bool = true
+	spec = acidv1.PostgresSpec{
+		TeamID: "myapp", NumberOfInstances: 1,
+		Resources: acidv1.Resources{
+			ResourceRequests: acidv1.ResourceDescription{CPU: "1", Memory: "10"},
+			ResourceLimits:   acidv1.ResourceDescription{CPU: "1", Memory: "10"},
+		},
+		Volume: acidv1.Volume{
+			Size: "1G",
+		},
+		Sidecars: []acidv1.Sidecar{
+			acidv1.Sidecar{
+				Name: "cluster-specific-sidecar",
+			},
+			acidv1.Sidecar{
+				Name: "cluster-specific-sidecar-with-resources",
+				Resources: acidv1.Resources{
+					ResourceRequests: acidv1.ResourceDescription{CPU: "210m", Memory: "0.8Gi"},
+					ResourceLimits:   acidv1.ResourceDescription{CPU: "510m", Memory: "1.4Gi"},
+				},
+			},
+			acidv1.Sidecar{
+				Name:        "replace-sidecar",
+				DockerImage: "overwrite-image",
+			},
+		},
+		EnableMasterLoadBalancer: &enableLB,
+	}
+
+	cluster = New(
+		Config{
+			OpConfig: config.Config{
+				PodManagementPolicy: "ordered_ready",
+				ProtectedRoles:      []string{"admin"},
+				Auth: config.Auth{
+					SuperUsername:       superUserName,
+					ReplicationUsername: replicationUserName,
+				},
+				Resources: config.Resources{
+					DefaultCPURequest:    "200m",
+					DefaultCPULimit:      "500m",
+					DefaultMemoryRequest: "0.7Gi",
+					DefaultMemoryLimit:   "1.3Gi",
+				},
+				SidecarImages: map[string]string{
+					"deprecated-global-sidecar": "image:123",
+				},
+				SidecarContainers: []v1.Container{
+					v1.Container{
+						Name: "global-sidecar",
+					},
+					// will be replaced by a cluster specific sidecar with the same name
+					v1.Container{
+						Name:  "replace-sidecar",
+						Image: "replaced-image",
+					},
+				},
+				Scalyr: config.Scalyr{
+					ScalyrAPIKey:        "abc",
+					ScalyrImage:         "scalyr-image",
+					ScalyrCPURequest:    "220m",
+					ScalyrCPULimit:      "520m",
+					ScalyrMemoryRequest: "0.9Gi",
+					// ise default memory limit
+				},
+				ExternalTrafficPolicy: "Cluster",
+			},
+		}, k8sutil.KubernetesClient{}, acidv1.Postgresql{}, logger, eventRecorder)
+
+	service := cluster.generateService(Master, &spec)
+	assert.Equal(t, v1.ServiceExternalTrafficPolicyTypeCluster, service.Spec.ExternalTrafficPolicy)
+	cluster.OpConfig.ExternalTrafficPolicy = "Local"
+	service = cluster.generateService(Master, &spec)
+	assert.Equal(t, v1.ServiceExternalTrafficPolicyTypeLocal, service.Spec.ExternalTrafficPolicy)
+
+}
diff --git a/pkg/controller/operator_config.go b/pkg/controller/operator_config.go
index aad9069b1..51cd9737f 100644
--- a/pkg/controller/operator_config.go
+++ b/pkg/controller/operator_config.go
@@ -124,6 +124,7 @@ func (c *Controller) importConfigurationFromCRD(fromCRD *acidv1.OperatorConfigur
 	result.CustomServiceAnnotations = fromCRD.LoadBalancer.CustomServiceAnnotations
 	result.MasterDNSNameFormat = fromCRD.LoadBalancer.MasterDNSNameFormat
 	result.ReplicaDNSNameFormat = fromCRD.LoadBalancer.ReplicaDNSNameFormat
+	result.ExternalTrafficPolicy = util.Coalesce(fromCRD.LoadBalancer.ExternalTrafficPolicy, "Cluster")
 
 	// AWS or GCP config
 	result.WALES3Bucket = fromCRD.AWSGCP.WALES3Bucket
diff --git a/pkg/util/config/config.go b/pkg/util/config/config.go
index 5f7559929..3255e61bf 100644
--- a/pkg/util/config/config.go
+++ b/pkg/util/config/config.go
@@ -175,6 +175,8 @@ type Config struct {
 	EnablePodAntiAffinity                  bool              `name:"enable_pod_antiaffinity" default:"false"`
 	PodAntiAffinityTopologyKey             string            `name:"pod_antiaffinity_topology_key" default:"kubernetes.io/hostname"`
 	StorageResizeMode                      string            `name:"storage_resize_mode" default:"ebs"`
+	// ExternalTrafficPolicy for load balancer
+	ExternalTrafficPolicy string `name:"external_traffic_policy" default:"Cluster"`
 	// deprecated and kept for backward compatibility
 	EnableLoadBalancer        *bool             `name:"enable_load_balancer"`
 	MasterDNSNameFormat       StringTemplate    `name:"master_dns_name_format" default:"{cluster}.{team}.{hostedzone}"`