diff --git a/docker/firstboot/setup_docker_host.sh b/docker/firstboot/setup_docker_host.sh
index b2287e911f..8b4c6a03dc 100755
--- a/docker/firstboot/setup_docker_host.sh
+++ b/docker/firstboot/setup_docker_host.sh
@@ -1,26 +1,8 @@
 #!/bin/bash
 set -eux
-# TODO This would be better in puppet
+# This file contains setup steps that can't be or have not yet been moved to
+# puppet
 
-# TODO remove this when built image includes docker
-if [ ! -f "/usr/bin/docker" ]; then
-    yum -y install docker
-fi
-
-# NOTE(mandre) $docker_namespace_is_registry is not a bash variable but is
-# a place holder for text replacement done via heat
-if [ "$docker_namespace_is_registry" = "True" ]; then
-    /usr/bin/systemctl stop docker.service
-    # if namespace is used with local registry, trim all namespacing
-    trim_var=$docker_registry
-    registry_host="${trim_var%%/*}"
-    /bin/sed -i -r "s/^[# ]*INSECURE_REGISTRY *=.+$/INSECURE_REGISTRY='--insecure-registry $registry_host'/" /etc/sysconfig/docker
-fi
-
-# enable and start docker
-/usr/bin/systemctl enable docker.service
-/usr/bin/systemctl start docker.service
-
-# Disable libvirtd
+# Disable libvirtd since it conflicts with nova_libvirt container
 /usr/bin/systemctl disable libvirtd.service
 /usr/bin/systemctl stop libvirtd.service
diff --git a/environments/docker.yaml b/environments/docker.yaml
index 3696f908a9..8a977f26d9 100644
--- a/environments/docker.yaml
+++ b/environments/docker.yaml
@@ -3,6 +3,8 @@ resource_registry:
   # e.g atomic, but it has been replaced with OS::TripleO::Services::Docker
   # OS::TripleO::NodeUserData: ../docker/firstboot/setup_docker_host.yaml
   OS::TripleO::Services::Docker: ../puppet/services/docker.yaml
+  # The compute node still needs extra initialization steps
+  OS::TripleO::Compute::NodeUserData: ../docker/firstboot/setup_docker_host.yaml
 
   #NOTE (dprince) add roles to be docker enabled as we support them
   OS::TripleO::Services::NovaLibvirt: ../docker/services/nova-libvirt.yaml
@@ -55,3 +57,4 @@ parameter_defaults:
     - OS::TripleO::Services::NovaCompute
     - OS::TripleO::Services::NovaLibvirt
     - OS::TripleO::Services::ComputeNeutronOvsAgent
+    - OS::TripleO::Services::Docker