diff --git a/apps/wakunode2/app.nim b/apps/wakunode2/app.nim
index ec3e8cc658..2e264973e8 100644
--- a/apps/wakunode2/app.nim
+++ b/apps/wakunode2/app.nim
@@ -303,6 +303,7 @@ proc initNode(conf: WakuNodeConf,
       sendSignedPeerRecord = conf.relayPeerExchange, # We send our own signed peer record when peer exchange enabled
       agentString = some(conf.agentString)
   )
+  builder.withColocationLimit(conf.colocationLimit)
   builder.withPeerManagerConfig(maxRelayPeers = conf.maxRelayPeers)
 
   node = ? builder.build().mapErr(proc (err: string): string = "failed to create waku node instance: " & err)
diff --git a/apps/wakunode2/external_config.nim b/apps/wakunode2/external_config.nim
index efc2058a66..20008677f0 100644
--- a/apps/wakunode2/external_config.nim
+++ b/apps/wakunode2/external_config.nim
@@ -17,7 +17,8 @@ import
   ../../waku/common/confutils/envvar/defs as confEnvvarDefs,
   ../../waku/common/confutils/envvar/std/net as confEnvvarNet,
   ../../waku/common/logging,
-  ../../waku/waku_enr
+  ../../waku/waku_enr,
+  ../../waku/node/peer_manager
 
 export
   confTomlDefs,
@@ -143,6 +144,11 @@ type
         defaultValue: 50
         name: "max-connections" }: uint16
 
+      colocationLimit* {.
+        desc: "Max num allowed peers from the same IP. Set it to 0 to remove the limitation."
+        defaultValue: defaultColocationLimit()
+        name: "ip-colocation-limit" }: int
+
       maxRelayPeers* {.
         desc: "Maximum allowed number of relay peers."
         name: "max-relay-peers" }: Option[int]
@@ -524,6 +530,9 @@ proc defaultListenAddress*(): IpAddress =
   # Maybe there should be a config option for this.
   (static parseIpAddress("0.0.0.0"))
 
+proc defaultColocationLimit*(): int =
+  return DefaultColocationLimit
+
 proc parseCmdArg*(T: type Port, p: string): T =
   try:
     Port(parseInt(p))
diff --git a/waku/node/builder.nim b/waku/node/builder.nim
index b1aa19f000..471c274cfe 100644
--- a/waku/node/builder.nim
+++ b/waku/node/builder.nim
@@ -35,6 +35,7 @@ type
 
     # Peer manager config
     maxRelayPeers: Option[int]
+    colocationLimit: int
 
     # Libp2p switch
     switchMaxConnections: Option[int]
@@ -107,7 +108,9 @@ proc withPeerManagerConfig*(builder: var WakuNodeBuilder,
                             maxRelayPeers = none(int)) =
   builder.maxRelayPeers = maxRelayPeers
 
-
+proc withColocationLimit*(builder: var WakuNodeBuilder,
+                          colocationLimit: int) =
+  builder.colocationLimit = colocationLimit
 
 ## Waku switch
 
@@ -170,6 +173,7 @@ proc build*(builder: WakuNodeBuilder): Result[WakuNode, string] =
     switch = switch,
     storage = builder.peerStorage.get(nil),
     maxRelayPeers = builder.maxRelayPeers,
+    colocationLimit = builder.colocationLimit,
   )
 
   var node: WakuNode
diff --git a/waku/node/peer_manager/peer_manager.nim b/waku/node/peer_manager/peer_manager.nim
index 72ac4efd4b..ab15e137ae 100644
--- a/waku/node/peer_manager/peer_manager.nim
+++ b/waku/node/peer_manager/peer_manager.nim
@@ -62,7 +62,7 @@ const
   LogAndMetricsInterval = chronos.minutes(3)
 
   # Max peers that we allow from the same IP
-  ColocationLimit = 5
+  DefaultColocationLimit* = 5
 
 type
   PeerManager* = ref object of RootObj
@@ -375,7 +375,9 @@ proc onPeerEvent(pm: PeerManager, peerId: PeerId, event: PeerEvent) {.async.} =
       pm.ipTable.mgetOrPut(ip.get, newSeq[PeerId]()).add(peerId)
 
       let peersBehindIp = pm.ipTable[ip.get]
-      if peersBehindIp.len > pm.colocationLimit:
+      # pm.colocationLimit == 0 disables the ip colocation limit
+      if pm.colocationLimit != 0 and
+         peersBehindIp.len > pm.colocationLimit:
         # in theory this should always be one, but just in case
         for peerId in peersBehindIp[0..<(peersBehindIp.len - pm.colocationLimit)]:
           debug "Pruning connection due to ip colocation", peerId = peerId, ip = ip
@@ -411,7 +413,7 @@ proc new*(T: type PeerManager,
           initialBackoffInSec = InitialBackoffInSec,
           backoffFactor = BackoffFactor,
           maxFailedAttempts = MaxFailedAttempts,
-          colocationLimit = ColocationLimit,): PeerManager =
+          colocationLimit = DefaultColocationLimit,): PeerManager =
 
   let capacity = switch.peerStore.capacity
   let maxConnections = switch.connManager.inSema.size