diff --git a/neat/locals/manager.py b/neat/locals/manager.py
index 07aa781..ef00f56 100644
--- a/neat/locals/manager.py
+++ b/neat/locals/manager.py
@@ -158,7 +158,9 @@ def init_state(config):
         log.critical(message)
         raise OSError(message)
 
-    physical_cpu_mhz_total = int(common.physical_cpu_mhz_total(vir_connection))
+    physical_cpu_mhz_total = int(
+        common.physical_cpu_mhz_total(vir_connection) * 
+        float(config['host_cpu_usable_by_vms']))
     return {'previous_time': 0.,
             'vir_connection': vir_connection,
             'db': init_db(config['sql_connection']),
diff --git a/tests/locals/test_manager.py b/tests/locals/test_manager.py
index 833f672..7fe508b 100644
--- a/tests/locals/test_manager.py
+++ b/tests/locals/test_manager.py
@@ -66,12 +66,13 @@ class LocalManager(TestCase):
             expect(vir_connection).getHostname().and_return('host').once()
             config = {'sql_connection': 'db',
                       'os_admin_user': 'user',
-                      'os_admin_password': 'password'}
+                      'os_admin_password': 'password',
+                      'host_cpu_usable_by_vms': 0.75}
             state = manager.init_state(config)
             assert state['previous_time'] == 0
             assert state['vir_connection'] == vir_connection
             assert state['db'] == db
-            assert state['physical_cpu_mhz_total'] == mhz
+            assert state['physical_cpu_mhz_total'] == mhz * 0.75
             assert state['hostname'] == 'host'
             assert state['hashed_username'] == sha1('user').hexdigest()
             assert state['hashed_password'] == sha1('password').hexdigest()