diff --git a/application/src/components/services/ServiceForm.tsx b/application/src/components/services/ServiceForm.tsx
index 18bc34d..f9342f2 100644
--- a/application/src/components/services/ServiceForm.tsx
+++ b/application/src/components/services/ServiceForm.tsx
@@ -74,8 +74,9 @@ export function ServiceForm({
         urlValue = initialData.url || "";
       }
 
-      // Handle regional monitoring data - ensure proper assignment display
-      const regionalAgent = initialData.region_name && initialData.agent_id 
+      // Handle regional monitoring data - check regional_status field
+      const isRegionalEnabled = initialData.regional_status === "enabled";
+      const regionalAgent = isRegionalEnabled && initialData.region_name && initialData.agent_id 
         ? `${initialData.region_name}|${initialData.agent_id}` 
         : "";
 
@@ -89,7 +90,7 @@ export function ServiceForm({
         retries: String(initialData.retries || 3),
         notificationChannel: initialData.notificationChannel === "none" ? "" : initialData.notificationChannel || "",
         alertTemplate: initialData.alertTemplate === "default" ? "" : initialData.alertTemplate || "",
-        regionalMonitoringEnabled: Boolean(initialData.regional_monitoring_enabled),
+        regionalMonitoringEnabled: isRegionalEnabled,
         regionalAgent: regionalAgent,
       });
 
@@ -99,7 +100,8 @@ export function ServiceForm({
         url: urlValue, 
         port: portValue, 
         regionalAgent,
-        regionalMonitoringEnabled: Boolean(initialData.regional_monitoring_enabled),
+        regionalMonitoringEnabled: isRegionalEnabled,
+        regional_status: initialData.regional_status,
         region_name: initialData.region_name,
         agent_id: initialData.agent_id
       });
@@ -118,12 +120,16 @@ export function ServiceForm({
       // Parse regional agent selection
       let regionName = "";
       let agentId = "";
+      let regionalStatus: "enabled" | "disabled" = "disabled";
       
-      // Only set region and agent if regional monitoring is enabled AND an agent is selected (not unassign)
-      if (data.regionalMonitoringEnabled && data.regionalAgent && data.regionalAgent !== "") {
-        const [parsedRegionName, parsedAgentId] = data.regionalAgent.split("|");
-        regionName = parsedRegionName || "";
-        agentId = parsedAgentId || "";
+      // Set regional status and agent data based on form values
+      if (data.regionalMonitoringEnabled) {
+        regionalStatus = "enabled";
+        if (data.regionalAgent && data.regionalAgent !== "") {
+          const [parsedRegionName, parsedAgentId] = data.regionalAgent.split("|");
+          regionName = parsedRegionName || "";
+          agentId = parsedAgentId || "";
+        }
       }
       
       // Prepare service data with proper field mapping
@@ -134,8 +140,8 @@ export function ServiceForm({
         retries: parseInt(data.retries),
         notificationChannel: data.notificationChannel === "none" ? "" : data.notificationChannel,
         alertTemplate: data.alertTemplate === "default" ? "" : data.alertTemplate,
-        regionalMonitoringEnabled: data.regionalMonitoringEnabled || false,
-        // Always set region_name and agent_id - empty strings when unassigned
+        // Use regional_status field instead of regionalMonitoringEnabled
+        regionalStatus: regionalStatus,
         regionName: regionName,
         agentId: agentId,
         // Map the URL field to appropriate database field based on service type
diff --git a/application/src/components/services/add-service/ServiceRegionalFields.tsx b/application/src/components/services/add-service/ServiceRegionalFields.tsx
index 1ed7045..39b9e3f 100644
--- a/application/src/components/services/add-service/ServiceRegionalFields.tsx
+++ b/application/src/components/services/add-service/ServiceRegionalFields.tsx
@@ -22,8 +22,10 @@ export function ServiceRegionalFields({ form }: ServiceRegionalFieldsProps) {
     enabled: regionalMonitoringEnabled,
   });
 
-  // Filter only online agents
-  const onlineAgents = regionalAgents.filter(agent => agent.connection === 'online');
+  // Filter only online agents and exclude the default localhost agent (ID 1)
+  const onlineAgents = regionalAgents.filter(agent => 
+    agent.connection === 'online' && agent.agent_id !== "1"
+  );
 
   // Find the current agent name for display
   const getCurrentAgentDisplay = () => {
@@ -31,7 +33,7 @@ export function ServiceRegionalFields({ form }: ServiceRegionalFieldsProps) {
       return "Select a regional agent or unassign";
     }
     
-    const [regionName] = currentRegionalAgent.split("|");
+    const [regionName, agentId] = currentRegionalAgent.split("|");
     const agent = onlineAgents.find(agent => 
       `${agent.region_name}|${agent.agent_id}` === currentRegionalAgent
     );
@@ -41,7 +43,25 @@ export function ServiceRegionalFields({ form }: ServiceRegionalFieldsProps) {
     }
     
     // If agent is not found in online agents, it might be offline but still assigned
-    return regionName || "Select a regional agent or unassign";
+    // Show the region name from the stored value
+    if (regionName && agentId) {
+      return `${regionName} (Agent ${agentId}) - Offline`;
+    }
+    
+    return "Select a regional agent or unassign";
+  };
+
+  // Get the proper select value - handle both assigned and unassigned cases
+  const getSelectValue = () => {
+    if (!regionalMonitoringEnabled) {
+      return "unassign";
+    }
+    
+    if (!currentRegionalAgent || currentRegionalAgent === "") {
+      return "unassign";
+    }
+    
+    return currentRegionalAgent;
   };
 
   return (
@@ -82,7 +102,7 @@ export function ServiceRegionalFields({ form }: ServiceRegionalFieldsProps) {
                   // Handle the unassign case by setting to empty string
                   field.onChange(value === "unassign" ? "" : value);
                 }} 
-                value={field.value || "unassign"}
+                value={getSelectValue()}
                 disabled={isLoading}
               >
                 <FormControl>
@@ -135,12 +155,12 @@ export function ServiceRegionalFields({ form }: ServiceRegionalFieldsProps) {
                   No online regional agents found. Services will use default monitoring.
                 </p>
               )}
-              {currentRegionalAgent && currentRegionalAgent !== "" && currentRegionalAgent !== "unassign" && (
+              {currentRegionalAgent && currentRegionalAgent !== "" && (
                 <p className="text-sm text-green-600">
                   Currently assigned to: {getCurrentAgentDisplay()}
                 </p>
               )}
-              {(!currentRegionalAgent || currentRegionalAgent === "" || currentRegionalAgent === "unassign") && (
+              {(!currentRegionalAgent || currentRegionalAgent === "") && regionalMonitoringEnabled && (
                 <p className="text-sm text-orange-600">
                   Service is unassigned and will use default monitoring.
                 </p>
diff --git a/application/src/services/serviceService.ts b/application/src/services/serviceService.ts
index fd6c89e..4a00345 100644
--- a/application/src/services/serviceService.ts
+++ b/application/src/services/serviceService.ts
@@ -32,10 +32,11 @@ export const serviceService = {
         muteAlerts: item.alerts === "muted",  // Convert string to boolean for compatibility
         alerts: item.alerts || "unmuted",     // Store actual database field
         muteChangedAt: item.mute_changed_at,
-        // Regional monitoring fields
+        // Regional monitoring fields - use regional_status
         region_name: item.region_name || "",
         agent_id: item.agent_id || "",
-        regional_monitoring_enabled: item.regional_monitoring_enabled || false,
+        regional_status: item.regional_status || "disabled",
+        regional_monitoring_enabled: item.regional_status === "enabled", // Backward compatibility
       }));
     } catch (error) {
       console.error("Error fetching services:", error);
@@ -62,8 +63,8 @@ export const serviceService = {
         max_retries: params.retries,
         notification_id: params.notificationChannel,
         template_id: params.alertTemplate,
-        // Regional monitoring fields
-        regional_monitoring_enabled: params.regionalMonitoringEnabled || false,
+        // Regional monitoring fields - use regional_status
+        regional_status: params.regionalStatus || "disabled",
         region_name: params.regionName || "",
         agent_id: params.agentId || "",
         // Conditionally add fields based on service type
@@ -98,7 +99,8 @@ export const serviceService = {
         retries: record.max_retries || 3,
         notificationChannel: record.notification_id,
         alertTemplate: record.template_id,
-        regional_monitoring_enabled: record.regional_monitoring_enabled || false,
+        regional_status: record.regional_status || "disabled",
+        regional_monitoring_enabled: record.regional_status === "enabled",
         region_name: record.region_name || "",
         agent_id: record.agent_id || "",
       } as Service;
@@ -128,8 +130,8 @@ export const serviceService = {
         max_retries: params.retries,
         notification_id: params.notificationChannel || null,
         template_id: params.alertTemplate || null,
-        // Regional monitoring fields
-        regional_monitoring_enabled: params.regionalMonitoringEnabled || false,
+        // Regional monitoring fields - use regional_status
+        regional_status: params.regionalStatus || "disabled",
         region_name: params.regionName || "",
         agent_id: params.agentId || "",
         // Conditionally update fields based on service type
@@ -171,7 +173,8 @@ export const serviceService = {
         retries: record.max_retries || 3,
         notificationChannel: record.notification_id,
         alertTemplate: record.template_id,
-        regional_monitoring_enabled: record.regional_monitoring_enabled || false,
+        regional_status: record.regional_status || "disabled",
+        regional_monitoring_enabled: record.regional_status === "enabled",
         region_name: record.region_name || "",
         agent_id: record.agent_id || "",
       } as Service;
diff --git a/application/src/types/service.types.ts b/application/src/types/service.types.ts
index e2dbc9a..2653ea4 100644
--- a/application/src/types/service.types.ts
+++ b/application/src/types/service.types.ts
@@ -34,6 +34,7 @@ export interface Service {
   // Regional monitoring fields
   region_name?: string;
   agent_id?: string;
+  regional_status?: "enabled" | "disabled"; // Add regional_status field
   regional_monitoring_enabled?: boolean;
 }
 
@@ -50,6 +51,7 @@ export interface CreateServiceParams {
   alertTemplate?: string;
   // Regional monitoring params
   regionalMonitoringEnabled?: boolean;
+  regionalStatus?: "enabled" | "disabled"; // Add regionalStatus field
   regionName?: string;
   agentId?: string;
 }