diff --git a/containers/app/Dockerfile b/containers/app/Dockerfile
index 5d52a0aa6f..7559af5908 100644
--- a/containers/app/Dockerfile
+++ b/containers/app/Dockerfile
@@ -37,7 +37,7 @@ ARG OPENHANDS_BUILD_VERSION #re-declare for this section
 ENV RUN_AS_OPENHANDS=true
 # A random number--we need this to be different from the user's UID on the host machine
 ENV OPENHANDS_USER_ID=42420
-ENV SANDBOX_API_HOSTNAME=host.docker.internal
+ENV SANDBOX_LOCAL_RUNTIME_URL=http://host.docker.internal
 ENV USE_HOST_NETWORK=false
 ENV WORKSPACE_BASE=/opt/workspace_base
 ENV OPENHANDS_BUILD_VERSION=$OPENHANDS_BUILD_VERSION
diff --git a/openhands/core/config/sandbox_config.py b/openhands/core/config/sandbox_config.py
index 23a263684f..e6dc72d2cb 100644
--- a/openhands/core/config/sandbox_config.py
+++ b/openhands/core/config/sandbox_config.py
@@ -9,7 +9,8 @@ class SandboxConfig:
     """Configuration for the sandbox.
 
     Attributes:
-        api_hostname: The hostname for the EventStream Runtime API.
+        remote_runtime_api_url: The hostname for the Remote Runtime API.
+        local_runtime_url: The default hostname for the local runtime. You may want to change to http://host.docker.internal for DIND environments
         base_container_image: The base container image from which to build the runtime image.
         runtime_container_image: The runtime container image to use.
         user_id: The user ID for the sandbox.
@@ -30,7 +31,8 @@ class SandboxConfig:
             Default is None for general purpose browsing. Check evaluation/miniwob and evaluation/webarena for examples.
     """
 
-    api_hostname: str = 'localhost'
+    remote_runtime_api_url: str = 'http://localhost:8000'
+    local_runtime_url: str = 'http://localhost'
     api_key: str | None = None
     base_container_image: str = 'nikolaik/python-nodejs:python3.11-nodejs22'  # default to nikolaik/python-nodejs:python3.11-nodejs22 for eventstream runtime
     runtime_container_image: str | None = None
diff --git a/openhands/runtime/client/runtime.py b/openhands/runtime/client/runtime.py
index 21124e3fce..dde4df680b 100644
--- a/openhands/runtime/client/runtime.py
+++ b/openhands/runtime/client/runtime.py
@@ -126,9 +126,7 @@ def __init__(
         self.config = config
         self._host_port = 30000  # initial dummy value
         self._container_port = 30001  # initial dummy value
-        self.api_url = (
-            f'http://{self.config.sandbox.api_hostname}:{self._container_port}'
-        )
+        self.api_url = f'{self.config.sandbox.local_runtime_url}:{self._container_port}'
         self.session = requests.Session()
         self.instance_id = (
             sid + '_' + str(uuid.uuid4()) if sid is not None else str(uuid.uuid4())
@@ -226,7 +224,7 @@ def _init_container(
                 self._host_port
             )  # in future this might differ from host port
             self.api_url = (
-                f'http://{self.config.sandbox.api_hostname}:{self._container_port}'
+                f'{self.config.sandbox.local_runtime_url}:{self._container_port}'
             )
 
             use_host_network = self.config.sandbox.use_host_network
diff --git a/openhands/runtime/remote/runtime.py b/openhands/runtime/remote/runtime.py
index 3e9a80ad20..cfda73476a 100644
--- a/openhands/runtime/remote/runtime.py
+++ b/openhands/runtime/remote/runtime.py
@@ -59,13 +59,6 @@ def __init__(
         status_message_callback: Optional[Callable] = None,
     ):
         self.config = config
-        if self.config.sandbox.api_hostname == 'localhost':
-            self.config.sandbox.api_hostname = 'api.all-hands.dev/v0/runtime'
-            logger.info(
-                'Using localhost as the API hostname is not supported in the RemoteRuntime. Please set a proper hostname.\n'
-                'Setting it to default value: api.all-hands.dev/v0/runtime'
-            )
-        self.api_url = f'https://{self.config.sandbox.api_hostname.rstrip("/")}'
 
         if self.config.sandbox.api_key is None:
             raise ValueError(
@@ -82,7 +75,7 @@ def __init__(
             )
 
         self.runtime_builder = RemoteRuntimeBuilder(
-            self.api_url, self.config.sandbox.api_key
+            self.config.sandbox.remote_runtime_api_url, self.config.sandbox.api_key
         )
         self.runtime_id: str | None = None
         self.runtime_url: str | None = None
@@ -97,7 +90,11 @@ def __init__(
         self.container_image: str = self.config.sandbox.base_container_image
         self.container_name = 'oh-remote-runtime-' + self.instance_id
         logger.debug(f'RemoteRuntime `{sid}` config:\n{self.config}')
-        response = send_request(self.session, 'GET', f'{self.api_url}/registry_prefix')
+        response = send_request(
+            self.session,
+            'GET',
+            f'{self.config.sandbox.remote_runtime_api_url}/registry_prefix',
+        )
         response_json = response.json()
         registry_prefix = response_json['registry_prefix']
         os.environ['OH_RUNTIME_RUNTIME_IMAGE_REPO'] = (
@@ -123,7 +120,7 @@ def __init__(
         response = send_request(
             self.session,
             'GET',
-            f'{self.api_url}/image_exists',
+            f'{self.config.sandbox.remote_runtime_api_url}/image_exists',
             params={'image': self.container_image},
         )
         if response.status_code != 200 or not response.json()['exists']:
@@ -157,7 +154,10 @@ def __init__(
 
         # Start the sandbox using the /start endpoint
         response = send_request(
-            self.session, 'POST', f'{self.api_url}/start', json=start_request
+            self.session,
+            'POST',
+            f'{self.config.sandbox.remote_runtime_api_url}/start',
+            json=start_request,
         )
         if response.status_code != 201:
             raise RuntimeError(f'Failed to start sandbox: {response.text}')
@@ -215,7 +215,7 @@ def close(self):
                 response = send_request(
                     self.session,
                     'POST',
-                    f'{self.api_url}/stop',
+                    f'{self.config.sandbox.remote_runtime_api_url}/stop',
                     json={'runtime_id': self.runtime_id},
                 )
                 if response.status_code != 200: