diff --git a/app/data/compose/docker-compose-test.yml b/app/data/compose/docker-compose-test.yml
index 19660f89..5fbf46d0 100644
--- a/app/data/compose/docker-compose-test.yml
+++ b/app/data/compose/docker-compose-test.yml
@@ -4,6 +4,7 @@ services:
     restart: always
     environment:
       CERC_SCRIPT_DEBUG: ${CERC_SCRIPT_DEBUG}
+      CERC_TEST_PARAM_1: ${CERC_TEST_PARAM_1:-FAILED}
     volumes:
       - test-data:/data
     ports:
diff --git a/app/data/container-build/cerc-test-container/run.sh b/app/data/container-build/cerc-test-container/run.sh
index 205c231a..da0af7d5 100755
--- a/app/data/container-build/cerc-test-container/run.sh
+++ b/app/data/container-build/cerc-test-container/run.sh
@@ -14,6 +14,8 @@ else
     echo "Filesystem is fresh"
     echo `date` > $EXISTSFILENAME
 fi
-
+if [ -n "$CERC_TEST_PARAM_1" ]; then
+  echo "Test-param-1: ${CERC_TEST_PARAM_1}"
+fi
 # Run nginx which will block here forever
 /usr/sbin/nginx -g "daemon off;"
diff --git a/app/data/stacks/mainnet-laconic/deploy/commands.py b/app/data/stacks/mainnet-laconic/deploy/commands.py
index 16bf015a..3a62b42d 100644
--- a/app/data/stacks/mainnet-laconic/deploy/commands.py
+++ b/app/data/stacks/mainnet-laconic/deploy/commands.py
@@ -27,10 +27,7 @@ import sys
 import tomli
 import re
 
-default_spec_file_content = """config:
-    node_moniker: my-node-name
-    chain_id: my-chain-id
-"""
+default_spec_file_content = ""
 
 
 class SetupPhase(Enum):
diff --git a/app/data/stacks/test/deploy/commands.py b/app/data/stacks/test/deploy/commands.py
index 0a836037..fbb9a8ea 100644
--- a/app/data/stacks/test/deploy/commands.py
+++ b/app/data/stacks/test/deploy/commands.py
@@ -20,7 +20,7 @@ from app.deploy_util import VolumeMapping, run_container_command
 from pathlib import Path
 
 default_spec_file_content = """config:
-    config_variable: test-value
+    test-variable-1: test-value-1
 """
 
 
diff --git a/app/deployment.py b/app/deployment.py
index 8c860e46..aeabf61c 100644
--- a/app/deployment.py
+++ b/app/deployment.py
@@ -25,6 +25,16 @@ from app.deploy import exec_operation, logs_operation, create_deploy_context
 class DeploymentContext:
     dir: Path
 
+    def get_stack_file(self):
+        return self.dir.joinpath("stack.yml")
+
+    def get_env_file(self):
+        return self.dir.joinpath("config.env")
+
+    # TODO: implement me
+    def get_cluster_name(self):
+        return None
+
 
 @click.group()
 @click.option("--dir", required=True, help="path to deployment directory")
@@ -49,10 +59,10 @@ def command(ctx, dir):
 
 
 def make_deploy_context(ctx):
-    # Get the stack config file name
-    stack_file_path = ctx.obj.dir.joinpath("stack.yml")
-    # TODO: add cluster name and env file here
-    return create_deploy_context(ctx.parent.parent.obj, stack_file_path, None, None, None, None)
+    stack_file_path = ctx.obj.get_stack_file()
+    env_file = ctx.obj.get_env_file()
+    cluster_name = ctx.obj.get_cluster_name()
+    return create_deploy_context(ctx.parent.parent.obj, stack_file_path, None, None, cluster_name, env_file)
 
 
 @command.command()
diff --git a/app/deployment_create.py b/app/deployment_create.py
index 837aaa61..76016262 100644
--- a/app/deployment_create.py
+++ b/app/deployment_create.py
@@ -204,22 +204,48 @@ def _get_mapped_ports(stack: str, map_recipe: str):
     return ports
 
 
+def _parse_config_variables(variable_values: str):
+    result = None
+    if variable_values:
+        value_pairs = variable_values.split(",")
+        if len(value_pairs):
+            result_values = {}
+            for value_pair in value_pairs:
+                variable_value_pair = value_pair.split("=")
+                if len(variable_value_pair) != 2:
+                    print(f"ERROR: config argument is not valid: {variable_values}")
+                    sys.exit(1)
+                variable_name = variable_value_pair[0]
+                variable_value = variable_value_pair[1]
+                result_values[variable_name] = variable_value
+            result = {"config": result_values}
+    return result
+
+
 @click.command()
+@click.option("--config", help="Provide config variables for the deployment")
 @click.option("--output", required=True, help="Write yaml spec file here")
 @click.option("--map-ports-to-host", required=False,
               help="Map ports to the host as one of: any-variable-random (default), "
               "localhost-same, any-same, localhost-fixed-random, any-fixed-random")
 @click.pass_context
-def init(ctx, output, map_ports_to_host):
+def init(ctx, config, output, map_ports_to_host):
     yaml = get_yaml()
     stack = global_options(ctx).stack
-    verbose = global_options(ctx).verbose
+    debug = global_options(ctx).debug
     default_spec_file_content = call_stack_deploy_init(ctx.obj)
     spec_file_content = {"stack": stack}
     if default_spec_file_content:
         spec_file_content.update(default_spec_file_content)
-    if verbose:
-        print(f"Creating spec file for stack: {stack}")
+    config_variables = _parse_config_variables(config)
+    if config_variables:
+        # Implement merge, since update() overwrites
+        orig_config = spec_file_content["config"]
+        new_config = config_variables["config"]
+        merged_config = {**new_config, **orig_config}
+        spec_file_content.update({"config": merged_config})
+    if debug:
+        print(f"Creating spec file for stack: {stack} with content: {spec_file_content}")
 
     ports = _get_mapped_ports(stack, map_ports_to_host)
     spec_file_content["ports"] = ports
@@ -235,6 +261,16 @@ def init(ctx, output, map_ports_to_host):
         yaml.dump(spec_file_content, output_file)
 
 
+def _write_config_file(spec_file: Path, config_env_file: Path):
+    spec_content = get_parsed_deployment_spec(spec_file)
+    if spec_content["config"]:
+        config_vars = spec_content["config"]
+        if config_vars:
+            with open(config_env_file, "w") as output_file:
+                for variable_name, variable_value in config_vars.items():
+                    output_file.write(f"{variable_name}={variable_value}\n")
+
+
 @click.command()
 @click.option("--spec-file", required=True, help="Spec file to use to create this deployment")
 @click.option("--deployment-dir", help="Create deployment files in this directory")
@@ -259,6 +295,8 @@ def create(ctx, spec_file, deployment_dir, network_dir, initial_peers):
     # Copy spec file and the stack file into the deployment dir
     copyfile(spec_file, os.path.join(deployment_dir, os.path.basename(spec_file)))
     copyfile(stack_file, os.path.join(deployment_dir, os.path.basename(stack_file)))
+    # Copy any config varibles from the spec file into an env file suitable for compose
+    _write_config_file(spec_file, os.path.join(deployment_dir, "config.env"))
     # Copy the pod files into the deployment dir, fixing up content
     pods = parsed_stack['pods']
     destination_compose_dir = os.path.join(deployment_dir, "compose")
diff --git a/tests/deploy/run-deploy-test.sh b/tests/deploy/run-deploy-test.sh
index 0ebb215f..86f4b689 100755
--- a/tests/deploy/run-deploy-test.sh
+++ b/tests/deploy/run-deploy-test.sh
@@ -77,7 +77,7 @@ $TEST_TARGET_SO --stack test deploy down --delete-volumes
 # Basic test of creating a deployment
 test_deployment_dir=$CERC_REPO_BASE_DIR/test-deployment-dir
 test_deployment_spec=$CERC_REPO_BASE_DIR/test-deployment-spec.yml
-$TEST_TARGET_SO --stack test deploy init --output $test_deployment_spec
+$TEST_TARGET_SO --stack test deploy init --output $test_deployment_spec --config CERC_TEST_PARAM_1=PASSED
 # Check the file now exists
 if [ ! -f "$test_deployment_spec" ]; then
     echo "deploy init test: spec file not present"
@@ -110,13 +110,20 @@ echo "deploy create output file test: passed"
 # Try to start the deployment
 $TEST_TARGET_SO deployment --dir $test_deployment_dir start
 # Check logs command works
-log_output_2=$( $TEST_TARGET_SO deployment --dir $test_deployment_dir logs )
-if [[ "$log_output_2" == *"Filesystem is fresh"* ]]; then
+log_output_3=$( $TEST_TARGET_SO deployment --dir $test_deployment_dir logs )
+if [[ "$log_output_3" == *"Filesystem is fresh"* ]]; then
     echo "deployment logs test: passed"
 else
     echo "deployment logs test: FAILED"
     exit 1
 fi
+# Check the config variable CERC_TEST_PARAM_1 was passed correctly
+if [[ "$log_output_3" == *"Test-param-1: PASSED"* ]]; then
+    echo "deployment config test: passed"
+else
+    echo "deployment config test: FAILED"
+    exit 1
+fi
 # Stop and clean up
 $TEST_TARGET_SO deployment --dir $test_deployment_dir stop --delete-volumes
 echo "Test passed"