diff --git a/README.rst b/README.rst
index ef40f2355..81022fa51 100644
--- a/README.rst
+++ b/README.rst
@@ -5,7 +5,7 @@ Deets on the etherpad for now:
 
 Step 1:
 
-1. cd step1
+1. cd setup
 2. bash ./env-setup.sh
 3. source /opt/stack/ansible/hacking/env-setup
 4. ansible-playbook -vvvv -i loca1host ./install.yaml
diff --git a/step1/env-setup.sh b/setup/env-setup.sh
similarity index 100%
rename from step1/env-setup.sh
rename to setup/env-setup.sh
diff --git a/step1/files/xinetd.tftp b/setup/files/xinetd.tftp
similarity index 100%
rename from step1/files/xinetd.tftp
rename to setup/files/xinetd.tftp
diff --git a/step1/install.yaml b/setup/install.yaml
similarity index 100%
rename from step1/install.yaml
rename to setup/install.yaml
diff --git a/step1/localhost b/setup/localhost
similarity index 100%
rename from step1/localhost
rename to setup/localhost
diff --git a/step1/templates/dnsmasq.conf.j2 b/setup/templates/dnsmasq.conf.j2
similarity index 100%
rename from step1/templates/dnsmasq.conf.j2
rename to setup/templates/dnsmasq.conf.j2
diff --git a/step1/templates/init_template.j2 b/setup/templates/init_template.j2
similarity index 100%
rename from step1/templates/init_template.j2
rename to setup/templates/init_template.j2
diff --git a/step1/templates/ironic.conf.j2 b/setup/templates/ironic.conf.j2
similarity index 100%
rename from step1/templates/ironic.conf.j2
rename to setup/templates/ironic.conf.j2
diff --git a/step1/templates/nginx.conf.j2 b/setup/templates/nginx.conf.j2
similarity index 100%
rename from step1/templates/nginx.conf.j2
rename to setup/templates/nginx.conf.j2