diff --git a/bin/client b/bin/client
index b385452..129d1f5 100755
--- a/bin/client
+++ b/bin/client
@@ -11,12 +11,11 @@ var argv = require('optimist')
         describe: 'request this subdomain'
     })
     .options('local-host', {
-        describe: 'tunnel traffic to this host instead of localhost'
+        describe: 'tunnel traffic to this host instead of localhost, override Host header to this host'
     })
     .options('version', {
         describe: 'print version and exit'
     })
-    .default('local-host', 'localhost')
     .describe('port', 'internal http server port')
     .argv;
 
diff --git a/client.js b/client.js
index 173f278..c6e6164 100644
--- a/client.js
+++ b/client.js
@@ -60,7 +60,7 @@ TunnelCluster.prototype.open = function() {
     var remote_host = opt.remote_host;
     var remote_port = opt.remote_port;
 
-    var local_host = opt.local_host;
+    var local_host = opt.local_host || 'localhost';
     var local_port = opt.local_port;
 
     debug('establishing tunnel %s:%s <> %s:%s', local_host, local_port, remote_host, remote_port);
@@ -133,10 +133,11 @@ TunnelCluster.prototype.open = function() {
 
             var stream = remote;
 
-            // if user requested something other than localhost
+            // if user requested specific local host
             // then we use host header transform to replace the host header
-            if (local_host !== 'localhost') {
-                stream = remote.pipe(HeaderHostTransformer({ host: local_host }));
+            if (opt.local_host) {
+                debug('transform Host header to %s', opt.local_host);
+                stream = remote.pipe(HeaderHostTransformer({ host: opt.local_host }));
             }
 
             stream.pipe(local).pipe(remote);
@@ -224,7 +225,7 @@ Tunnel.prototype._establish = function(info) {
     var self = this;
     var opt = self._opt;
 
-    info.local_host = opt.local_host || 'localhost';
+    info.local_host = opt.local_host;
     info.local_port = opt.port;
 
     var tunnels = self.tunnel_cluster = TunnelCluster(info);
diff --git a/test/index.js b/test/index.js
index 9b429f7..6f0ae6c 100644
--- a/test/index.js
+++ b/test/index.js
@@ -68,7 +68,51 @@ test('request specific domain', function(done) {
     });
 });
 
-suite('local-host');
+suite('--local-host localhost');
+
+test('setup localtunnel client', function(done) {
+    var opt = {
+        local_host: 'localhost'
+    };
+    localtunnel(test._fake_port, opt, function(err, tunnel) {
+        assert.ifError(err);
+        assert.ok(new RegExp('^https:\/\/.*localtunnel.me' + '$').test(tunnel.url));
+        test._fake_url = tunnel.url;
+        done();
+    });
+});
+
+test('override Host header with local-host', function(done) {
+    var uri = test._fake_url;
+    var parsed = url.parse(uri);
+
+    var opt = {
+        host: parsed.host,
+        port: 443,
+        headers: {
+            host: parsed.hostname
+        },
+        path: '/'
+    };
+
+    var req = https.request(opt, function(res) {
+        res.setEncoding('utf8');
+        var body = '';
+
+        res.on('data', function(chunk) {
+            body += chunk;
+        });
+
+        res.on('end', function() {
+            assert.equal(body, 'localhost');
+            done();
+        });
+    });
+
+    req.end();
+});
+
+suite('--local-host 127.0.0.1');
 
 test('setup localtunnel client', function(done) {
     var opt = {
@@ -111,3 +155,4 @@ test('override Host header with local-host', function(done) {
 
     req.end();
 });
+