diff --git a/infra/azure-peerpods/main.tf b/infra/azure-peerpods/main.tf
index 2a477a254..25fbee57d 100644
--- a/infra/azure-peerpods/main.tf
+++ b/infra/azure-peerpods/main.tf
@@ -42,6 +42,30 @@ resource "azurerm_virtual_network" "main" {
   }
 }
 
+resource "azurerm_public_ip" "nat_ip" {
+  name                = "${local.name}_nat_ip"
+  location            = data.azurerm_resource_group.rg.location
+  resource_group_name = data.azurerm_resource_group.rg.name
+  allocation_method   = "Static"
+  sku                 = "Standard"
+}
+
+resource "azurerm_nat_gateway" "nat" {
+  name                = "${local.name}_nat"
+  location            = data.azurerm_resource_group.rg.location
+  resource_group_name = data.azurerm_resource_group.rg.name
+}
+
+resource "azurerm_nat_gateway_public_ip_association" "ip_to_nat" {
+  nat_gateway_id       = azurerm_nat_gateway.nat.id
+  public_ip_address_id = azurerm_public_ip.nat_ip.id
+}
+
+resource "azurerm_subnet_nat_gateway_association" "subnet_to_nat" {
+  subnet_id      = one(azurerm_virtual_network.main.subnet.*.id)
+  nat_gateway_id = azurerm_nat_gateway.nat.id
+}
+
 resource "azurerm_kubernetes_cluster" "cluster" {
   name                      = "${local.name}_aks"
   resource_group_name       = data.azurerm_resource_group.rg.name
@@ -88,7 +112,7 @@ bases:
 images:
 - name: cloud-api-adaptor
   newName: quay.io/confidential-containers/cloud-api-adaptor
-  newTag: v0.9.0-amd64
+  newTag: v0.10.0-amd64
 generatorOptions:
   disableNameSuffixHash: true
 configMapGenerator:
diff --git a/packages/by-name/cloud-api-adaptor/0001-netops-replace-routes-instead-of-adding-them.patch b/packages/by-name/cloud-api-adaptor/0001-netops-replace-routes-instead-of-adding-them.patch
new file mode 100644
index 000000000..159fc5694
--- /dev/null
+++ b/packages/by-name/cloud-api-adaptor/0001-netops-replace-routes-instead-of-adding-them.patch
@@ -0,0 +1,30 @@
+From 0000000000000000000000000000000000000000 Mon Sep 17 00:00:00 2001
+From: Markus Rudy <mr@edgeless.systems>
+Date: Tue, 19 Nov 2024 18:00:47 +0100
+Subject: [PATCH] netops: replace routes instead of adding them
+
+Some systems create a route if an IP address with prefix mask is added
+to an interface. If this route is then also copied from the worker node,
+a conflict may occur.
+
+A simple fix is to replace the route instead of adding it. The behaviour
+is the same when the route does not exist. When it exists, we are either
+setting the same route again, or overriding a route that's not desirable
+in the first place.
+---
+ src/cloud-api-adaptor/pkg/util/netops/netops.go | 2 +-
+ 1 file changed, 1 insertion(+), 1 deletion(-)
+
+diff --git a/src/cloud-api-adaptor/pkg/util/netops/netops.go b/src/cloud-api-adaptor/pkg/util/netops/netops.go
+index 6a761dfef10fcf127ab914ebf0b759e76add3435..f0eaea5713c4a92479eed6a4ca46ff7b4abfe3c5 100644
+--- a/src/cloud-api-adaptor/pkg/util/netops/netops.go
++++ b/src/cloud-api-adaptor/pkg/util/netops/netops.go
+@@ -623,7 +623,7 @@ func (ns *namespace) RouteAdd(route *Route) error {
+ 	if !route.Gateway.IsValid() {
+ 		nlRoute.Scope = netlink.SCOPE_LINK
+ 	}
+-	if err := ns.handle.RouteAdd(nlRoute); err != nil {
++	if err := ns.handle.RouteReplace(nlRoute); err != nil {
+ 		return fmt.Errorf("failed to create a route (table: %d, dest: %s, gw: %s) with flags %d: %w", nlRoute.Table, nlRoute.Dst.String(), nlRoute.Gw.String(), nlRoute.Flags, err)
+ 	}
+ 	return nil
diff --git a/packages/by-name/cloud-api-adaptor/package.nix b/packages/by-name/cloud-api-adaptor/package.nix
index ab008d7ba..9a74d4a4e 100644
--- a/packages/by-name/cloud-api-adaptor/package.nix
+++ b/packages/by-name/cloud-api-adaptor/package.nix
@@ -3,6 +3,7 @@
 
 {
   lib,
+  pkgs,
   buildGoModule,
   fetchFromGitHub,
   pkg-config,
@@ -10,6 +11,8 @@
   writeShellApplication,
   gnugrep,
   runCommand,
+  applyPatches,
+  makeWrapper,
 
   # List of supported cloud providers
   builtinCloudProviders ? [
@@ -31,23 +34,32 @@ in
 
 buildGoModule rec {
   pname = "cloud-api-adaptor";
-  version = "0.9.0";
+  version = "0.10.0";
+
+  src = applyPatches {
+    src = fetchFromGitHub {
+      owner = "confidential-containers";
+      repo = "cloud-api-adaptor";
+      rev = "v${version}";
+      hash = "sha256-OaSIO26nlkeI2olSx0o8xdwhLMZ8eH753pUbyHypI+E=";
+    };
 
-  src = fetchFromGitHub {
-    owner = "confidential-containers";
-    repo = "cloud-api-adaptor";
-    rev = "v${version}";
-    hash = "sha256-5tDG0sEiRAsb259lPui5ntR6DVHDdcXhb04UESJzHhE=";
+    patches = [
+      # This fixes a route setting problem we see with our NixOS image that
+      # does not seem to occur with the upstream image.
+      # TODO(burgerdev): upstream
+      ./0001-netops-replace-routes-instead-of-adding-them.patch
+    ];
   };
 
   sourceRoot = "${src.name}/src/cloud-api-adaptor";
 
   proxyVendor = true;
-  vendorHash = "sha256-kqzi7jRF3tQ4/yLkJXfZly4EvVKFb400/WXlN0WjYm8=";
+  vendorHash = "sha256-FsckYZAiBfTEp25+dDNqPpB/550NqeEsutWC34s+GmE=";
 
-  nativeBuildInputs = lib.optional withLibvirt pkg-config;
+  nativeBuildInputs = [makeWrapper] ++ lib.optional withLibvirt pkg-config;
 
-  buildInputs = lib.optional withLibvirt libvirt;
+  buildInputs = [pkgs.iptables] ++ lib.optional withLibvirt libvirt;
 
   subPackages = [
     "cmd/cloud-api-adaptor"
@@ -63,6 +75,10 @@ buildGoModule rec {
     "-X 'github.com/confidential-containers/cloud-api-adaptor/src/cloud-api-adaptor/cmd.VERSION=${version}'"
   ];
 
+  postInstall = ''
+    wrapProgram $out/bin/agent-protocol-forwarder --prefix PATH : ${lib.makeBinPath [ pkgs.iptables ]}
+  '';
+
   passthru = {
     kata-agent-clean = writeShellApplication {
       name = "kata-agent-clean";