diff --git a/sahana-demo/etc/init.d/sahana-demo b/sahana-demo/etc/init.d/sahana-demo
deleted file mode 100755
index d22bc8f..0000000
--- a/sahana-demo/etc/init.d/sahana-demo
+++ /dev/null
@@ -1,32 +0,0 @@
-#!/sbin/openrc-run
-
-description="Sahana Eden Demo docker container"
-
-depend() {
-	need docker postfix postgres
-}
-
-start() {
-	/usr/bin/docker run -d --rm \
-	--name sahana-demo \
-	-h sahana-demo \
-	--link postfix \
-	--link postgres \
-	-v /srv/sahana-demo/conf:/srv/web2py/applications/eden/models \
-	-v /srv/sahana-demo/data/${TEMPLATE}:/srv/web2py/applications/eden/modules/templates/${TEMPLATE} \
-	-v /srv/sahana-demo/data/databases:/srv/web2py/applications/eden/databases \
-	-v /srv/sahana-demo/data/uploads:/srv/web2py/applications/eden/uploads \
-	sahana
-}
-
-start_post() {
-	/usr/bin/vmmgr register-proxy sahana-demo
-}
-
-stop_pre() {
-	/usr/bin/vmmgr unregister-proxy sahana-demo
-}
-
-stop() {
-	/usr/bin/docker stop sahana-demo
-}
diff --git a/sahana-demo/lxcfile b/sahana-demo/lxcfile
new file mode 100644
index 0000000..a87b945
--- /dev/null
+++ b/sahana-demo/lxcfile
@@ -0,0 +1,12 @@
+IMAGE sahana-demo
+LAYER shared/alpine
+LAYER shared/libxml
+LAYER shared/python2
+LAYER sahana/sahana
+
+MOUNT /srv/sahana/conf srv/web2py/applications/eden/models
+MOUNT /srv/sahana/data/default srv/web2py/applications/eden/modules/templates/default
+MOUNT /srv/sahana/data/databases srv/web2py/applications/eden/databases
+MOUNT /srv/sahana/data/uploads srv/web2py/applications/eden/uploads
+
+CMD s6-svscan /etc/services.d
diff --git a/sahana-demo/build.sh b/sahana-demo/setup.sh
similarity index 59%
rename from sahana-demo/build.sh
rename to sahana-demo/setup.sh
index 64d31ae..77dd09c 100755
--- a/sahana-demo/build.sh
+++ b/sahana-demo/setup.sh
@@ -1,40 +1,41 @@
 #!/bin/sh
 set -e
 
-SOURCE_DIR=$(realpath $(dirname "${0}"))/sahana-demo
+SOURCE_DIR=$(realpath $(dirname "${0}"))/setup
 export TEMPLATE=${TEMPLATE:-"default"}
 
 # Check prerequisites
-lxc-ls | grep -q postfix || $(realpath $(dirname "${0}"))/postfix.sh
-lxc-ls | grep -q postgres || $(realpath $(dirname "${0}"))/postgres.sh
-service postgres start
-
-# Build Docker container
-docker build -t sahana $(realpath $(dirname "${0}"))/sahana
-envsubst <${SOURCE_DIR}/etc/init.d/sahana-demo >/etc/init.d/sahana-demo
-chmod +x /etc/init.d/sahana-demo
+[ ! -e /run/openrc/started/postgres ] && service postgres start && STOP_POSTGRES=1
 
 # Create PostgreSQL user and database
 export SAHANADEMO_PWD=$(head -c 18 /dev/urandom | base64)
-envsubst <${SOURCE_DIR}/createdb.sql | docker exec -i postgres psql
+envsubst <${SOURCE_DIR}/createdb.sql | lxc-attach -u 5432 -g 5432 postgres -- psql
 
 # Prepare persistent directory structure
 mkdir -p /srv/sahana-demo/conf /srv/sahana-demo/data/databases /srv/sahana-demo/data/uploads /srv/sahana-demo/data/${TEMPLATE}
 chown -R 8001:8001 /srv/sahana-demo/conf /srv/sahana-demo/data
-docker run --rm -v /srv/sahana-demo/conf:/mnt/conf sahana cp -rp /srv/web2py/applications/eden/models/. /mnt/conf
-docker run --rm -v /srv/sahana-demo/data/${TEMPLATE}:/mnt/data sahana cp -rp /srv/web2py/applications/eden/modules/templates/${TEMPLATE}/. /mnt/data
+cp -rp /var/lib/lxc/sahana/sahana/srv/web2py/applications/eden/models/. /srv/sahana-demo/conf
+cp -rp /srv/web2py/applications/eden/modules/templates/${TEMPLATE}/. /srv/sahana-demo/data/${TEMPLATE}
 
 # Configure Sahana
 export SAHANADEMO_HMAC=$(head -c 18 /dev/urandom | base64)
 export SAHANADEMO_ADMIN_USER=admin@example.com
 export SAHANADEMO_ADMIN_PWD=$(head -c 12 /dev/urandom | base64)
 envsubst <${SOURCE_DIR}/srv/sahana-demo/conf/000_config.py >/srv/sahana-demo/conf/000_config.py
-envsubst <${SOURCE_DIR}/masterUsers.csv >/tmp/masterUsers.csv
+envsubst <${SOURCE_DIR}/masterUsers.csv >/var/lib/lxc/sahana/sahana/tmp/masterUsers.csv
 vmmgr update-login sahana-demo "${SAHANADEMO_ADMIN_USER}" "${SAHANADEMO_ADMIN_PWD}"
 
+# Replace template in LXC container definition
+sed -i "s/default/${TEMPLATE}/g" /var/lib/lxc/sahana-demo/config
+
 # Populate database
+lxc-execute -u 8001 -g 8001 sahana -- sh -c 'cd /srv/web2py; cp /tmp/masterUsers.csv applications/eden/modules/templates/default/users/masterUsers.csv; ./web2py.py -S eden -M -R applications/eden/static/scripts/tools/noop.py'
 docker run --rm -h sahana-demo --link postgres -v /srv/sahana-demo/conf:/srv/web2py/applications/eden/models -v /srv/sahana-demo/data/${TEMPLATE}:/srv/web2py/applications/eden/modules/templates/${TEMPLATE} -v /srv/sahana-demo/data/databases:/srv/web2py/applications/eden/databases -v /tmp/masterUsers.csv:/srv/web2py/applications/eden/modules/templates/default/users/masterUsers.csv sahana su - sahana -c "./web2py.py -S eden -M -R applications/eden/static/scripts/tools/noop.py"
-rm /tmp/masterUsers.csv
+rm /var/lib/lxc/sahana/sahana/tmp/masterUsers.csv
+
+# Install service
+envsubst <${SOURCE_DIR}/etc/init.d/sahana-demo >/etc/init.d/sahana-demo
+chmod +x /etc/init.d/sahana-demo
 
 # Stop services required for build
-service postgres stop
+[ ! -z ${STOP_POSTGRES} ] && service postgres stop
diff --git a/sahana-demo/createdb.sql b/sahana-demo/setup/createdb.sql
similarity index 100%
rename from sahana-demo/createdb.sql
rename to sahana-demo/setup/createdb.sql
diff --git a/sahana-demo/setup/etc/init.d/sahana-demo b/sahana-demo/setup/etc/init.d/sahana-demo
new file mode 100755
index 0000000..b4ef4e6
--- /dev/null
+++ b/sahana-demo/setup/etc/init.d/sahana-demo
@@ -0,0 +1,23 @@
+#!/sbin/openrc-run
+
+description="Sahana Eden Demo container"
+
+depend() {
+	need cgroups postgres
+}
+
+start() {
+	lxc-start sahana-demo
+}
+
+start_post() {
+	/usr/bin/vmmgr register-proxy sahana-demo
+}
+
+stop_pre() {
+	/usr/bin/vmmgr unregister-proxy sahana-demo
+}
+
+stop() {
+	lxc-stop sahana-demo
+}
diff --git a/sahana-demo/masterUsers.csv b/sahana-demo/setup/masterUsers.csv
similarity index 100%
rename from sahana-demo/masterUsers.csv
rename to sahana-demo/setup/masterUsers.csv
diff --git a/sahana-demo/srv/sahana-demo/conf/000_config.py b/sahana-demo/setup/srv/sahana-demo/conf/000_config.py
similarity index 100%
rename from sahana-demo/srv/sahana-demo/conf/000_config.py
rename to sahana-demo/setup/srv/sahana-demo/conf/000_config.py
diff --git a/sahana/setup.sh b/sahana/setup.sh
index e648d2e..de14d3e 100755
--- a/sahana/setup.sh
+++ b/sahana/setup.sh
@@ -13,7 +13,7 @@ envsubst <${SOURCE_DIR}/createdb.sql | lxc-attach -u 5432 -g 5432 postgres -- ps
 # Prepare persistent directory structure
 mkdir -p /srv/sahana/conf /srv/sahana/data/databases /srv/sahana/data/uploads
 chown -R 8001:8001 /srv/sahana/conf
-docker run --rm -v /srv/sahana/conf:/mnt/conf sahana cp -rp /srv/web2py/applications/eden/models/. /mnt/conf
+cp -rp /var/lib/lxc/sahana/sahana/srv/web2py/applications/eden/models/. /srv/sahana/conf
 
 # Copy Spotter template
 cp -r ${SOURCE_DIR}/srv/sahana/data/Spotter /srv/sahana/data/