diff --git a/README.md b/README.md
index 64a60d7..91572e3 100644
--- a/README.md
+++ b/README.md
@@ -36,6 +36,18 @@
 
     - Reference: <https://udhayakumarc.medium.com/error-ansible-requires-the-locale-encoding-to-be-utf-8-detected-iso8859-1-6da808387f7d>
 
+- Install `sshpass` used for automating SSH password authentication
+
+  ```bash
+  sudo apt-get install sshpass
+  ```
+
+- Install `passlib` used for handling encrypted passwords
+
+  ```bash
+  pip install passlib
+  ```
+
 ## Playbooks
 
 - [stack-orchestrator-setup](./stack-orchestrator-setup/README.md)
diff --git a/user-setup/.gitignore b/user-setup/.gitignore
new file mode 100644
index 0000000..ab0c719
--- /dev/null
+++ b/user-setup/.gitignore
@@ -0,0 +1 @@
+user-vars.yml
diff --git a/user-setup/README.md b/user-setup/README.md
new file mode 100644
index 0000000..36cb980
--- /dev/null
+++ b/user-setup/README.md
@@ -0,0 +1,65 @@
+# user-setup
+
+## Setup Ansible
+
+To get started, follow the [installation](../README.md#installation) guide to setup ansible on your machine.
+
+## Setup a user
+
+- Create a new `hosts.ini` file:
+
+   ```bash
+   cp ../hosts.example.ini hosts.ini
+   ```
+
+- Edit the [`hosts.ini`](./hosts.ini) file to run the playbook on a remote machine:
+
+  ```ini
+  [deployment_host]
+  <host_name> ansible_host=<target_ip> ansible_user=<ssh_user> ansible_ssh_common_args='-o ForwardAgent=yes'
+  ```
+
+  - Replace `<host_name>` with the desired `hostname` of the remote machine
+  - Replace `<target_ip>` with the IP address or hostname of the target machine
+  - Replace `<ssh_user>` with `root`
+
+- Verify that you are able to connect to the host using the following command:
+
+  ```bash
+  ansible all -m ping -i hosts.ini
+
+  # Expected output:
+
+  # <host_name> | SUCCESS => {
+  #  "ansible_facts": {
+  #      "discovered_interpreter_python": "/usr/bin/python3.10"
+  #  },
+  #  "changed": false,
+  #  "ping": "pong"
+  # }
+  ```
+
+- Setup `user-vars.yml`  using the example file
+
+  ```bash
+  cp user-vars.example.yml user-vars.yml
+  ```
+
+- Edit the `user-vars.yml` file:
+
+  ```bash
+  # name of the user you want to setup on the target host
+  username: ""
+
+  # password of the user you want to setup on the target host
+  password: ""
+
+  # path to the ssh key on your machine, eg: "/home/user/.ssh/id_rsa.pub"
+  path_to_ssh_key: ""
+  ```
+
+- Execute the `setup-user.yml` Ansible playbook to create a user with passwordless sudo permissions:
+
+  ```bash
+  LANG=en_US.utf8 ansible-playbook setup-user.yml -i hosts.ini
+  ```
diff --git a/service-provider-setup/setup-user.yml b/user-setup/setup-user.yml
similarity index 96%
rename from service-provider-setup/setup-user.yml
rename to user-setup/setup-user.yml
index 35fca4c..d74d84f 100644
--- a/service-provider-setup/setup-user.yml
+++ b/user-setup/setup-user.yml
@@ -1,9 +1,9 @@
 - name: Configure system
-  hosts: root_host
+  hosts: deployment_host
   become: yes
 
   vars_files:
-    - vars/user-vars.yml
+    - user-vars.yml
 
   tasks:
     - name: Create a user
diff --git a/service-provider-setup/vars/user-vars.example.yml b/user-setup/user-vars.example.yml
similarity index 100%
rename from service-provider-setup/vars/user-vars.example.yml
rename to user-setup/user-vars.example.yml