diff --git a/sahana/lxcfile b/sahana/lxcfile
index 41ddfed..422b40d 100644
--- a/sahana/lxcfile
+++ b/sahana/lxcfile
@@ -49,7 +49,7 @@ COPY lxc
 RUN EOF
     # Create OS user
     addgroup -S -g 8001 sahana
-    adduser -S -u 8001 -h /srv/web2py -s /bin/sh -g sahana -G sahana sahana
+    adduser -S -u 8001 -h /srv/web2py -s /bin/false -g sahana -G sahana sahana
     chown -R sahana:sahana /srv/web2py
     
     # Cleanup
diff --git a/sahana/setup.sh b/sahana/setup.sh
index 938ac10..e648d2e 100755
--- a/sahana/setup.sh
+++ b/sahana/setup.sh
@@ -1,21 +1,14 @@
 #!/bin/sh
 set -e
 
-SOURCE_DIR=$(realpath $(dirname "${0}"))/sahana
+SOURCE_DIR=$(realpath $(dirname "${0}"))/setup
 
 # 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 ${SOURCE_DIR}
-cp ${SOURCE_DIR}/etc/init.d/sahana /etc/init.d/sahana
-rc-update -u
+[ ! -e /run/openrc/started/postgres ] && service postgres start && STOP_POSTGRES=1
 
 # Create PostgreSQL user and database
 export SAHANA_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/conf /srv/sahana/data/databases /srv/sahana/data/uploads
@@ -36,7 +29,7 @@ cp ${SOURCE_DIR}/srv/sahana/conf/00_settings.py /srv/sahana/conf/00_settings.py
 vmmgr update-login sahana "${SAHANA_ADMIN_USER}" "${SAHANA_ADMIN_PWD}"
 
 # Populate database
-docker run --rm -h sahana --link postgres -v /srv/sahana/conf:/srv/web2py/applications/eden/models -v /srv/sahana/data/Spotter:/srv/web2py/applications/eden/modules/templates/Spotter -v /srv/sahana/data/databases:/srv/web2py/applications/eden/databases sahana su - sahana -c "./web2py.py -S eden -M -R applications/eden/static/scripts/tools/noop.py"
+lxc-execute -u 8001 -g 8001 sahana -- sh -c 'cd /srv/web2py; ./web2py.py -S eden -M -R applications/eden/static/scripts/tools/noop.py'
 
 # Set "production values" (increases performance) only if the DEBUG environment variable is not set
 if [ ${DEBUG:-0} -eq 0 ]; then
@@ -45,5 +38,9 @@ if [ ${DEBUG:-0} -eq 0 ]; then
     sed -i 's/#settings.base.prepopulate = 0/settings.base.prepopulate = 0/' /srv/sahana/conf/000_config.py
 fi
 
+# Install service
+cp ${SOURCE_DIR}/etc/init.d/sahana /etc/init.d/sahana
+rc-update -u
+
 # Stop services required for build
-service postgres stop
+[ ! -z ${STOP_POSTGRES} ] && service postgres stop
diff --git a/sahana/setup/etc/init.d/sahana b/sahana/setup/etc/init.d/sahana
index 804a7ab..a8f8c7a 100755
--- a/sahana/setup/etc/init.d/sahana
+++ b/sahana/setup/etc/init.d/sahana
@@ -1,22 +1,13 @@
 #!/sbin/openrc-run
 
-description="Sahana Eden docker container"
+description="Sahana Eden container"
 
 depend() {
-	need docker postfix postgres
+	need cgroups postgres
 }
 
 start() {
-	/usr/bin/docker run -d --rm \
-	--name sahana \
-	-h sahana \
-	--link postfix \
-	--link postgres \
-	-v /srv/sahana/conf:/srv/web2py/applications/eden/models \
-	-v /srv/sahana/data/Spotter:/srv/web2py/applications/eden/modules/templates/Spotter \
-	-v /srv/sahana/data/databases:/srv/web2py/applications/eden/databases \
-	-v /srv/sahana/data/uploads:/srv/web2py/applications/eden/uploads \
-	sahana
+	lxc-start sahana
 }
 
 start_post() {
@@ -28,5 +19,5 @@ stop_pre() {
 }
 
 stop() {
-	/usr/bin/docker stop sahana
+	lxc-stop sahana
 }