diff --git a/Makefile b/Makefile
index 83a3058c..b9c23bf2 100644
--- a/Makefile
+++ b/Makefile
@@ -1,6 +1,6 @@
 NAME=koji
 SPECFILE = $(firstword $(wildcard *.spec))
-SUBDIRS = hub builder koji cli docs util www plugins
+SUBDIRS = hub builder koji cli docs util www plugins vm
 
 ifdef DIST
 DIST_DEFINES := --define "dist $(DIST)"
diff --git a/koji.spec b/koji.spec
index c47bf054..a46e8050 100644
--- a/koji.spec
+++ b/koji.spec
@@ -81,6 +81,24 @@ Requires: createrepo >= 0.9.2
 koji-builder is the daemon that runs on build machines and executes
 tasks that come through the Koji system.
 
+%package vm
+Summary: Koji virtual machine management daemon
+Group: Applications/System
+License: LGPLv2
+Requires: %{name} = %{version}-%{release}
+Requires(post): /sbin/chkconfig
+Requires(post): /sbin/service
+Requires(preun): /sbin/chkconfig
+Requires(preun): /sbin/service
+Requires: libvirt-python
+Requires: libxml2-python
+Requires: python-virtinst
+Requires: qemu-img
+
+%description vm
+koji-vm contains a supplemental build daemon that executes certain tasks in a
+virtual machine. This package is not required for most installations.
+
 %package utils
 Summary: Koji Utilities
 Group: Applications/Internet
@@ -185,6 +203,26 @@ if [ $1 = 0 ]; then
   /sbin/chkconfig --del kojid
 fi
 
+%files vm
+%defattr(-,root,root)
+%{_sbindir}/kojivmd
+#dir %{_datadir}/kojivmd
+%{_datadir}/kojivmd/kojikamid
+%{_initrddir}/kojivmd
+%config(noreplace) %{_sysconfdir}/sysconfig/kojivmd
+%dir %{_sysconfdir}/kojivmd
+%config(noreplace) %{_sysconfdir}/kojivmd/kojivmd.conf
+
+%post vm
+/sbin/chkconfig --add kojivmd
+/sbin/service kojivmd condrestart &> /dev/null || :
+
+%preun vm
+if [ $1 = 0 ]; then
+  /sbin/service kojivmd stop &> /dev/null
+  /sbin/chkconfig --del kojivmd
+fi
+
 %post utils
 /sbin/chkconfig --add kojira
 /sbin/service kojira condrestart &> /dev/null || :
diff --git a/vm/Makefile b/vm/Makefile
new file mode 100644
index 00000000..6e959562
--- /dev/null
+++ b/vm/Makefile
@@ -0,0 +1,34 @@
+
+BINFILES = kojivmd
+SHAREFILES = kojikamid
+
+_default:
+	@echo "nothing to make.  try make install"
+
+clean:
+	rm -f *.o *.so *.pyc *~
+
+
+install:
+	@if [ "$(DESTDIR)" = "" ]; then \
+		echo " "; \
+		echo "ERROR: A destdir is required"; \
+		exit 1; \
+	fi
+
+	mkdir -p $(DESTDIR)/usr/sbin
+	install -p -m 755 $(BINFILES) $(DESTDIR)/usr/sbin
+
+	mkdir -p $(DESTDIR)/usr/share/kojivmd
+	install -p -m 644 $(SHAREFILES) $(DESTDIR)/usr/share/kojivmd
+
+	mkdir -p $(DESTDIR)/etc/rc.d/init.d
+	install -p -m 755 kojivmd.init $(DESTDIR)/etc/rc.d/init.d/kojivmd
+
+	mkdir -p $(DESTDIR)/etc/sysconfig
+	install -p -m 644 kojivmd.sysconfig $(DESTDIR)/etc/sysconfig/kojivmd
+
+	mkdir -p $(DESTDIR)/etc/kojivmd
+	install -p -m 644 kojivmd.conf $(DESTDIR)/etc/kojivmd/kojivmd.conf
+
+
diff --git a/vm/kojivmd.sysconfig b/vm/kojivmd.sysconfig
new file mode 100644
index 00000000..1d7af4d3
--- /dev/null
+++ b/vm/kojivmd.sysconfig
@@ -0,0 +1,3 @@
+FORCE_LOCK=Y
+KOJIVMD_DEBUG=N
+KOJIVMD_VERBOSE=Y