diff --git a/playbooks/repo-setup.yml b/playbooks/repo-setup.yml
new file mode 100644
index 000000000..a71080b72
--- /dev/null
+++ b/playbooks/repo-setup.yml
@@ -0,0 +1,6 @@
+---
+- name:  Setup repositories
+  hosts: undercloud
+  gather_facts: yes
+  roles:
+    - repo-setup
diff --git a/roles/repo-setup/README.md b/roles/repo-setup/README.md
new file mode 100644
index 000000000..021306c91
--- /dev/null
+++ b/roles/repo-setup/README.md
@@ -0,0 +1,159 @@
+tripleo-repo-setup
+=========
+
+Set up yum repositories on host or in image
+This Ansible role allows setting up repositories on a live host or within an image.
+
+Requirements
+------------
+`libguestfs-tools-c` package is required in case of injecting repositories into an image.
+
+Role Variables
+--------------
+
+* `repo_setup_script` - path to repositories setup script template
+* `repo_setup_log` - path to repositories setup script log
+* `repo_run_live`: false/true - where to run repo setup script on host (live host that playbook runs on it) (default: true)
+* `repo_inject_image_path` - path to image, in case of injecting repositories into the image (default: not defined)
+* `repo_cmd_before`: false/true  - whether to run `yum update` after repositories are set up (default: true)
+* `repo_cmd_after`: false/true - whether to include Ceph repositories (default: true)
+* `libvirt_uri` - URI of libvirt in case of using virt-customize to inject repos into the image
+* `repos` - dictionary or repositories to set, the keys are explained below:
+* `repos.type` - file / generic / package / rpm_url
+* `repos.releases` - for which releases to set up this repo, if not defined - for all releases.
+                     It support shortcut for all stable releases - '{{ stable }}'
+
+  *File*
+  ------
+  Just download the repo file from URL and change some of its parameters if required.
+    * `repos.filename` - filename for saving the downloaded file
+    * `repos.down_url` - URL to download repo file from
+    * `repos.priority` - change priority of this repo (default: not defined)
+
+  *Generic*
+  ------
+  Construct repository file from various parameters and use parameters from downloaded file
+  if required (for example delorean hash).
+    * `repos.filename` - filename for saving the resulting repo (mandatory)
+    * `repos.reponame` - name of repository (mandatory)
+    * `repos.baseurl` - base URL of the repository (mandatory)
+    * `repos.hash_url` - URL of repo file in network, used for extracting trunk hash (optional)
+    * `repos.priority` - priority of resulting repo (optional)
+    * `repos.includepkgs` - includepkgs parameter of resulting repo (use this repo only for these packages) (optional)
+    * `repos.enabled` - 0/1 whether the repo is enabled or not (default: 1 - enabled)
+    * `repos.gpgcheck` - whether to check GPG keys for repo (default: 0 - don't check)
+
+  *Package*
+  ------
+  Install repository from package
+    * `repos.pkg_name` - package name (should be available in the installed repositories)
+    * `repos.custom_cmd` - custom command to install this package (default: 'yum install -y')
+    * `repos.pkg_url` - direct URL of the package to install
+
+Dependencies
+------------
+
+No dependencies
+
+Example Playbook
+----------------
+
+Including an example of how to use your role (for instance, with variables passed in as parameters) is always nice for users too:
+
+    ---
+    - name:  Run repo setup
+      hosts: undercloud
+      gather_facts: no
+      roles:
+        - repo-setup
+
+Settings example for repositories:
+
+      repos:
+          # Just download file
+          - type: file
+            filename: delorean.repo
+            down_url: https://trunk.rdoproject.org/centos7-{{ release }}/current/delorean.repo
+
+          # In case of stable release
+          - type: generic
+            reponame: delorean
+            filename: delorean.repo
+            baseurl: https://trunk.rdoproject.org/centos7-{{ release }}/current/
+            hash_url: https://trunk.rdoproject.org/centos7-{{ release }}/current/delorean.repo
+            priority: 20
+            releases: "{{ stable }}"
+
+          # In case of master
+          - type: generic
+            reponame: delorean
+            filename: delorean.repo
+            baseurl: http://buildlogs.centos.org/centos/7/cloud/x86_64/rdo-trunk-master-tripleo/
+            hash_url: http://buildlogs.centos.org/centos/7/cloud/x86_64/rdo-trunk-master-tripleo/delorean.repo
+            priority: 20
+            releases:
+              - master
+
+          # In case of master
+          - type: generic
+            reponame: delorean-current
+            filename: delorean-current.repo
+            baseurl: http://trunk.rdoproject.org/centos7/current
+            hash_url: http://trunk.rdoproject.org/centos7/current/delorean.repo
+            priority: 10
+            includepkgs:
+              - diskimage-builder
+              - instack
+              - instack-undercloud
+              - os-apply-config
+              - os-cloud-config
+              - os-collect-config
+              - os-net-config
+              - os-refresh-config
+              - python-tripleoclient
+              - openstack-tripleo-common
+              - openstack-tripleo-heat-templates
+              - openstack-tripleo-image-elements
+              - openstack-tripleo
+              - openstack-tripleo-puppet-elements
+              - openstack-puppet-modules
+              - openstack-tripleo-ui
+              - puppet-*
+            releases:
+              - master
+
+          # In case of all releases
+          - type: file
+            filename: delorean-deps.repo
+            down_url: http://trunk.rdoproject.org/centos7-{{ release }}/delorean-deps.repo
+            priority: 30
+
+          - type: package
+            pkg_name: centos-release-ceph-hammer
+            custom_cmd: 'yum install -y --enablerepo=extras'
+            releases:
+              - liberty
+              - mitaka
+
+          - type: package
+            pkg_name: centos-release-ceph-jewel
+            custom_cmd: 'yum install -y --enablerepo=extras'
+            releases:
+              - newton
+              - master
+
+          - type: package
+            pkg_url: https://rdoproject.org/repos/openstack-{{ release }}/rdo-release-{{ release }}.rpm
+            releases:
+              - newton
+
+
+License
+-------
+
+Apache 2.0
+
+Author Information
+------------------
+
+RDO-CI Team
diff --git a/roles/repo-setup/defaults/main.yml b/roles/repo-setup/defaults/main.yml
new file mode 100644
index 000000000..993089fb1
--- /dev/null
+++ b/roles/repo-setup/defaults/main.yml
@@ -0,0 +1,29 @@
+working_dir: /home/stack
+repo_setup_script: repo_setup.sh.j2
+repo_setup_log: "{{ working_dir }}/repo_setup.log"
+repo_run_live: true
+libvirt_uri: qemu:///session
+# Releases shortcuts
+stable:
+  - newton
+  - mitaka
+  - liberty
+repo_cmd_before: |
+  yum install -y yum-plugin-priorities;
+  yum clean all;
+  rm -rf /etc/yum.repos.d/delorean*;
+  rm -rf /etc/yum.repos.d/*.rpmsave;
+repo_cmd_after: |
+  yum repolist;
+  yum update -y
+
+# Repositories definitions
+repos:
+
+  - type: file
+    filename: delorean.repo
+    down_url: https://trunk.rdoproject.org/centos7-{{ release }}/current/delorean.repo
+
+  - type: file
+    filename: delorean-deps.repo
+    down_url: http://trunk.rdoproject.org/centos7-{{ release }}/delorean-deps.repo
diff --git a/roles/repo-setup/tasks/inject_repos_into_image.yml b/roles/repo-setup/tasks/inject_repos_into_image.yml
new file mode 100644
index 000000000..d1895b589
--- /dev/null
+++ b/roles/repo-setup/tasks/inject_repos_into_image.yml
@@ -0,0 +1,18 @@
+- environment:
+    LIBGUESTFS_BACKEND: direct
+    LIBVIRT_DEFAULT_URI: "{{ libvirt_uri }}"
+  block:
+  - name: Check if the image exists
+    stat:
+      path: '{{ repo_inject_image_path }}'
+    register: image_stat
+    failed_when: not image_stat.stat.exists
+
+  - name: Install libguestfs-tools-c for virt-customize
+    yum: name=libguestfs-tools-c state=latest
+
+  - name: Inject the repositories into the image
+    command: >
+      virt-customize -a {{ repo_inject_image_path }}
+      --run '{{ working_dir }}/repo_setup.sh'
+    when: image_stat.stat.exists
diff --git a/roles/repo-setup/tasks/main.yml b/roles/repo-setup/tasks/main.yml
new file mode 100644
index 000000000..1b9183283
--- /dev/null
+++ b/roles/repo-setup/tasks/main.yml
@@ -0,0 +1,11 @@
+- name: Create repo setup script
+  template:
+    src: "{{ repo_setup_script }}"
+    dest: "{{ working_dir }}/repo_setup.sh"
+    mode: 0755
+
+- include: setup_repos.yml
+  when: repo_run_live|bool
+
+- include: inject_repos_into_image.yml
+  when: repo_inject_image_path is defined
diff --git a/roles/repo-setup/tasks/setup_repos.yml b/roles/repo-setup/tasks/setup_repos.yml
new file mode 100644
index 000000000..c71b525e1
--- /dev/null
+++ b/roles/repo-setup/tasks/setup_repos.yml
@@ -0,0 +1,5 @@
+- name: Setup repos on live host
+  shell: >
+    {{ working_dir }}/repo_setup.sh >
+    {{ repo_setup_log }} 2>&1
+  become: true
diff --git a/roles/repo-setup/templates/repo_setup.sh.j2 b/roles/repo-setup/templates/repo_setup.sh.j2
new file mode 100644
index 000000000..b31259496
--- /dev/null
+++ b/roles/repo-setup/templates/repo_setup.sh.j2
@@ -0,0 +1,54 @@
+#!/bin/bash
+set -eux
+
+{{ repo_cmd_before|default('') }}
+
+# Make temp dir for files
+rm -rf /tmp/repo_role_tmp && mkdir -p /tmp/repo_role_tmp
+
+{% for repo in repos %}
+{% if repo.releases is not defined or release in repo.releases %}
+
+{% if repo.type == 'file' %}
+curl -Lvo /tmp/repo_role_tmp/{{ repo.filename }} {{ repo.down_url }}
+{% if repo.priority is defined and repo.priority %}
+if ! grep -q "priority" /tmp/repo_role_tmp/{{ repo.filename }}; then
+    sed -i "s/\(baseurl=.*\)/\1\npriority={{ repo.priority }}/g" /tmp/repo_role_tmp/{{ repo.filename }}
+else
+    sed -i "s/priority=.*/priority={{ repo.priority }}/g" /tmp/repo_role_tmp/{{ repo.filename }}
+fi
+{% endif %}
+cp -f /tmp/repo_role_tmp/{{ repo.filename }} /etc/yum.repos.d/
+{% endif %}
+
+{% if repo.type == 'generic' %}
+{% if repo.hash_url is defined %}
+HASH=$(curl {{ repo.hash_url }} 2>/dev/null | grep baseurl | grep -Eo '[^/]*/[^/]*/[^/]*_.*' ||:)
+{% endif %}
+cat<<EOF >/tmp/repo_role_tmp/{{ repo.filename }}
+[{{ repo.reponame }}]
+name={{ repo.reponame }}
+{% if repo.baseurl is defined %}baseurl={{ repo.baseurl }}
+{% endif %}
+{% if repo.mirrorlist is defined %}mirrorlist={{ repo.mirrorlist }}
+{% endif %}
+gpgcheck={{ repo.gpgcheck|default('0') }}
+enabled={{ repo.enabled|default('1') }}
+{% if repo.priority is defined %}priority={{ repo.priority }}
+{% endif %}
+{% if repo.includepkgs is defined %}includepkgs={{ repo.includepkgs|join(",") }}
+{% endif %}
+{% if repo.down_url is defined %}# trunk_hash=${HASH:-}
+{% endif %}
+EOF
+cp -f /tmp/repo_role_tmp/{{ repo.filename }} /etc/yum.repos.d/
+{% endif %}
+
+{% if repo.type == 'package' %}
+{{ repo.custom_cmd|default('yum install -y') }} {{ repo.pkg_name|default(repo.pkg_url) }}
+{% endif %}
+
+{% endif %}
+{% endfor %}
+
+{{ repo_cmd_after|default('') }}
\ No newline at end of file