diff --git a/libcloud/loadbalancer/drivers/rackspace.py b/libcloud/loadbalancer/drivers/rackspace.py
index 5071767..05c2d8f 100644
--- a/libcloud/loadbalancer/drivers/rackspace.py
+++ b/libcloud/loadbalancer/drivers/rackspace.py
@@ -349,21 +349,42 @@ def list_balancers(self, ex_member_address=None):
 
     def create_balancer(self, name, members, protocol='http',
                         port=80, algorithm=DEFAULT_ALGORITHM):
+        return self.ex_create_balancer(name, members, protocol, port, algorithm)
+
+    def ex_create_balancer(self, name, members, protocol='http',
+                           port=80, algorithm=DEFAULT_ALGORITHM, vip='PUBLIC'):
+        """
+        Creates a new load balancer instance
+
+        @keyword name: Name of the new load balancer (required)
+        @type name: C{str}
+        @keyword members: C{list} ofL{Member}s to attach to balancer
+        @type: C{list} of L{Member}s
+        @keyword protocol: Loadbalancer protocol, defaults to http.
+        @type: C{str}
+        @keyword port: Port the load balancer should listen on, defaults to 80
+        @type port: C{str}
+        @keyword algorithm: Load balancing algorithm, defaults to
+                            LBAlgorithm.ROUND_ROBIN
+        @type algorithm: C{LBAlgorithm}
+        @keyword vip: Virtual ip type of PUBLIC, SERVICENET, or ID of a virtual
+                      ip
+        """
         balancer_attrs = self._kwargs_to_mutable_attrs(
-                                name=name,
-                                protocol=protocol,
-                                port=port,
-                                algorithm=algorithm)
+            name=name,
+            protocol=protocol,
+            port=port,
+            algorithm=algorithm,
+            vip=vip)
 
         balancer_attrs.update({
-            'virtualIps': [{'type': 'PUBLIC'}],
             'nodes': [self._member_attributes(member) for member in members],
             })
         balancer_object = {"loadBalancer": balancer_attrs}
 
         resp = self.connection.request('/loadbalancers',
-                method='POST',
-                data=json.dumps(balancer_object))
+                                       method='POST',
+                                       data=json.dumps(balancer_object))
         return self._to_balancer(resp.object['loadBalancer'])
 
     def _member_attributes(self, member):
@@ -1285,6 +1306,12 @@ def _kwargs_to_mutable_attrs(self, **attrs):
         if "port" in attrs:
             update_attrs['port'] = int(attrs['port'])
 
+        if "vip" in attrs:
+            if attrs['vip'] == 'PUBLIC' or attrs['vip'] == 'SERVICENET':
+                update_attrs['virtualIps'] = [{'type': attrs['vip']}]
+            else:
+                update_attrs['virtualIps'] = [{'id': attrs['vip']}]
+
         return update_attrs
 
     def _kwargs_to_mutable_member_attrs(self, **attrs):
diff --git a/test/loadbalancer/test_rackspace.py b/test/loadbalancer/test_rackspace.py
index 6a38b4c..e267ece 100644
--- a/test/loadbalancer/test_rackspace.py
+++ b/test/loadbalancer/test_rackspace.py
@@ -23,7 +23,6 @@
     import json
 
 from libcloud.utils.py3 import httplib
-from libcloud.utils.py3 import urllib
 from libcloud.utils.py3 import urlencode
 
 from libcloud.loadbalancer.base import LoadBalancer, Member, Algorithm
@@ -113,6 +112,21 @@ def test_create_balancer(self):
         self.assertEquals(balancer.name, 'test2')
         self.assertEquals(balancer.id, '8290')
 
+    def test_ex_create_balancer(self):
+        RackspaceLBDriver.connectionCls.conn_classes = (None,
+                                                        RackspaceLBWithVIPMockHttp)
+        RackspaceLBMockHttp.type = None
+        driver = RackspaceLBDriver('user', 'key')
+        balancer = driver.ex_create_balancer(name='test2',
+                port=80,
+                algorithm=Algorithm.ROUND_ROBIN,
+                members=(Member(None, '10.1.0.11', 80),),
+                vip='12af'
+        )
+
+        self.assertEquals(balancer.name, 'test2')
+        self.assertEquals(balancer.id, '8290')
+
     def test_destroy_balancer(self):
         balancer = self.driver.list_balancers()[0]
 
@@ -832,6 +846,8 @@ def _v1_0_slug_loadbalancers(self, method, url, body, headers):
 
             self.assertEqual(loadbalancer_json['protocol'], 'HTTP')
             self.assertEqual(loadbalancer_json['algorithm'], 'ROUND_ROBIN')
+            self.assertEqual(loadbalancer_json['virtualIps'][0]['type'],
+                             'PUBLIC')
             self.assertEqual(member_1_json['condition'], 'DISABLED')
             self.assertEqual(member_1_json['weight'], 10)
             self.assertEqual(member_2_json['condition'], 'ENABLED')
@@ -1283,5 +1299,40 @@ def _v1_1_auth(self, method, url, body, headers):
         body = self.auth_fixtures.load('_v1_1__auth.json')
         return (httplib.OK, body, headers, httplib.responses[httplib.OK])
 
+
+class RackspaceLBWithVIPMockHttp(MockHttpTestCase):
+    fixtures = LoadBalancerFileFixtures('rackspace')
+    auth_fixtures = OpenStackFixtures()
+
+    def _v1_0(self, method, url, body, headers):
+        headers = {'x-server-management-url': 'https://servers.api.rackspacecloud.com/v1.0/slug',
+                   'x-auth-token': 'FE011C19-CF86-4F87-BE5D-9229145D7A06',
+                   'x-cdn-management-url': 'https://cdn.clouddrive.com/v1/MossoCloudFS_FE011C19-CF86-4F87-BE5D-9229145D7A06',
+                   'x-storage-token': 'FE011C19-CF86-4F87-BE5D-9229145D7A06',
+                   'x-storage-url': 'https://storage4.clouddrive.com/v1/MossoCloudFS_FE011C19-CF86-4F87-BE5D-9229145D7A06'}
+        return (httplib.NO_CONTENT, "", headers, httplib.responses[httplib.NO_CONTENT])
+
+    def _v1_0_slug_loadbalancers(self, method, url, body, headers):
+        if method == "GET":
+            body = self.fixtures.load('v1_slug_loadbalancers.json')
+            return (httplib.OK, body, {}, httplib.responses[httplib.OK])
+        elif method == "POST":
+            body_json = json.loads(body)
+            loadbalancer_json = body_json['loadBalancer']
+
+            self.assertEqual(loadbalancer_json['virtualIps'][0]['id'], '12af')
+
+            body = self.fixtures.load('v1_slug_loadbalancers_post.json')
+            return (httplib.ACCEPTED, body, {},
+                    httplib.responses[httplib.ACCEPTED])
+
+        raise NotImplementedError
+
+    def _v1_1_auth(self, method, url, body, headers):
+        headers = {'content-type': 'application/json; charset=UTF-8'}
+        body = self.auth_fixtures.load('_v1_1__auth.json')
+        return (httplib.OK, body, headers, httplib.responses[httplib.OK])
+
+
 if __name__ == "__main__":
     sys.exit(unittest.main())