diff --git a/README.rst b/README.rst
index ce17a5bde..efa5ac590 100644
--- a/README.rst
+++ b/README.rst
@@ -108,7 +108,7 @@ Bifrost source code should be pulled directly from git first::
   cd bifrost
 
 Edit ``./playbooks/inventory/group_vars/*`` to match your environment. The
-localhost file is intended for steps executed upon the localhost, such as
+target file is intended for steps executed upon the target server, such as
 installation, or image generation.  The baremetal file is geared for steps
 performed on baremetal nodes, such as enrollment, deployment, or any other
 custom playbooks that a user may bolt on to this toolkit.
@@ -180,9 +180,9 @@ restarted.
 Run::
 
   If you have passwordless sudo enabled, run:
-     ansible-playbook -vvvv -i inventory/localhost install.yaml
+     ansible-playbook -vvvv -i inventory/target install.yaml
   Otherwise, add -K option to let Ansible prompting for the sudo  password:
-     ansible-playbook -K -vvvv -i inventory/localhost install.yaml
+     ansible-playbook -K -vvvv -i inventory/target install.yaml
 
 With regard to testing, ironic's node cleaning capability is disabled by
 default as it can be an unexpected surprise for a new user that their test
@@ -191,7 +191,7 @@ node is unusable for however long it takes for the disks to be wiped.
 If you wish to enable cleaning, you can achieve this by passing the option
 ``-e cleaning=true`` to the command line or executing the command below::
 
-  ansible-playbook -K -vvvv -i inventory/localhost install.yaml -e cleaning=true
+  ansible-playbook -K -vvvv -i inventory/target install.yaml -e cleaning=true
 
 After you have performed an installation, you can edit /etc/ironic/ironic.conf
 to enable or disable cleaning as desired, however it is highly encouraged to
@@ -202,7 +202,7 @@ These drivers and information about them can be found `here <http://git.openstac
 If you would like to install the ironic staging drivers, simply pass
 ``-e staging_drivers_include=true`` when executing the install playbook::
 
-  ansible-playbook -K -vvvv -i inventory/localhost install.yaml -e staging_drivers_include=true
+  ansible-playbook -K -vvvv -i inventory/target install.yaml -e staging_drivers_include=true
 
 Manual CLI use
 --------------
@@ -441,11 +441,11 @@ ironic conductor will use this key to connect to the host machine and
 run virsh commands.
 
 #. Set ``testing`` to *true* in the
-   ``playbooks/inventory/group_vars/localhost`` file.
+   ``playbooks/inventory/group_vars/target`` file.
 #. You may need to adjust the value for ``ssh_public_key_path``.
 #. Run the install step, as documented above, however adding ``-e
    testing=true`` to the Ansible command line.
-#. Execute the ``ansible-playbook -vvvv -i inventory/localhost
+#. Execute the ``ansible-playbook -vvvv -i inventory/target
    test-bifrost-create-vm.yaml`` command to create a test virtual
    machine.
 #. Set the environment variable of ``BIFROST_INVENTORY_SOURCE`` to the
@@ -545,6 +545,6 @@ ansible into it, run ``env-setup.sh`` as follows::
 
 Then run the install playbook with the following arguments::
 
-  ansible-playbook -vvvv -i inventory/localhost install.yaml
+  ansible-playbook -vvvv -i inventory/target install.yaml
 
 This will install ironic and its dependencies into the virtual environment.
diff --git a/doc/source/deploy/keystone.rst b/doc/source/deploy/keystone.rst
index 25f09bd6f..802bbe856 100644
--- a/doc/source/deploy/keystone.rst
+++ b/doc/source/deploy/keystone.rst
@@ -18,10 +18,10 @@ Installation with Keystone
 Bifrost can now install and make use of keystone. In order to enable
 this as part of the installation, the ``enable_keystone`` variable
 must be set to ``true``.
-Either in ``playbooks/inventory/group_vars/localhost`` or on the
+Either in ``playbooks/inventory/group_vars/target`` or on the
 command line during installation. Example::
 
-    ansible-playbook -vvvv -i inventory/localhost install.yaml -e enable_keystone=true
+    ansible-playbook -vvvv -i inventory/target install.yaml -e enable_keystone=true
 
 However, prior to installation, overriding credentials should be set
 in order to customize the deployment to meet your needs. See::
@@ -38,7 +38,7 @@ will need to set the appropriate defaults, via
 ``playbooks/roles/bifrost-ironic-install/defaults/main.yml``
 which would be a good source for the role level defaults.
 Ideally, when setting new defaults, they should be set in the
-``playbooks/inventory/group_vars/localhost`` file.
+``playbooks/inventory/group_vars/target`` file.
 
 Creation of clouds.yaml
 -----------------------
@@ -66,8 +66,8 @@ following steps need to take place.
 
        -e noauth_mode=false -e cloud_name=bifrost
 
-#. Set the global defaults for localhost
-   (``master/playbooks/inventory/group_vars/localhost``).
+#. Set the global defaults for tagret
+   (``master/playbooks/inventory/group_vars/target``).
 
 
 OpenStack Client
diff --git a/playbooks/install.yaml b/playbooks/install.yaml
index afccaed33..b4d707ca9 100644
--- a/playbooks/install.yaml
+++ b/playbooks/install.yaml
@@ -1,7 +1,6 @@
 ---
-- hosts: localhost
-  name: "Install Ironic on the local host."
-  connection: local
+- hosts: target
+  name: "Install Ironic on the target host."
   become: yes
   gather_facts: yes
   roles:
diff --git a/playbooks/inventory/group_vars/target b/playbooks/inventory/group_vars/target
new file mode 100644
index 000000000..94a4358b2
--- /dev/null
+++ b/playbooks/inventory/group_vars/target
@@ -0,0 +1,72 @@
+---
+# The ironic API URL for bifrost operations.  Defaults to localhost.
+# ironic_url: "http://localhost:6385/"
+
+# The network interface that bifrost will be operating on.  Defaults
+# to virbr0 in roles, can be overridden here.
+# network_interface: "virbr0"
+
+
+# ironic_db_password ironic user password for rabbit
+ironic_db_password: aSecretPassword473z
+# mysql_username: Default mysql admin username
+mysql_username: root
+# mysql_password: Default mysql admin user password
+mysql_password:
+
+# The path to the SSH key to be utilized for testing and burn-in
+# to configuration drives. When set, it should be set in both baremetal
+# and localhost groups, however this is only an override to the default.
+# ssh_public_key_path: "{{ ansible_env.HOME }}/.ssh/id_rsa.pub"
+
+# If testing is true, then the environment is setup for using libvirt
+# virtual machines for the hardware instead of real hardware.
+# testing: true
+
+# The default port to download files via.  Required for IPA URL generation.
+# Presently the defaults are located in the roles, however if changed both
+# the localhost and baremetal group files must be updated.
+# file_url_port: 8080
+
+# IPA Image parameters.  If these are changed, they must be changed in
+# Both localhost and baremetal groups.  Presently the defaults
+# in each role should be sufficent for proper operation.
+# ipa_kernel: "{{http_boot_folder}}/coreos_production_pxe.vmlinuz"
+# ipa_ramdisk: "{{http_boot_folder}}/coreos_production_pxe_image-oem.cpio.gz"
+# ipa_kernel_url: "http://{{ hostvars[inventory_hostname]['ansible_' + network_interface]['ipv4']['address'] }}:{{file_url_port}}/coreos_production_pxe.vmlinuz"
+# ipa_ramdisk_url: "http://{{ hostvars[inventory_hostname]['ansible_' + network_interface]['ipv4']['address'] }}:{{file_url_port}}/coreos_production_pxe_image-oem.cpio.gz"
+
+# The http_boot_folder defines the root folder for the webserver.
+# If this setting is changed, it must be applied to both the baremetal
+# and localhost groups. Presently the role defaults are set to the value
+# below.
+# http_boot_folder: /httpboot
+
+# The settings for the name of the image to be deployed along with the
+# on disk location are below.  If changed, these settings must be applied
+# to both the baremetal and localhost groups.  If the file is already on
+# disk, then the image generation will not take place, otherwise an image
+# will be generated using diskimage-builder.
+# deploy_image_filename: "deployment_image.qcow2"
+# deploy_image: "{{http_boot_folder}}/{{deploy_image_filename}}"
+
+# Setting to utilize diskimage-builder to create a bootable image.
+create_image_via_dib: true
+
+# Transform boot image is intended for use with the Ubuntu trusty image.
+# It makes the image bootable by installing Grub.
+# Setting to prepend a partition image with a boot sector and partition table.
+transform_boot_image: false
+
+# Create IPA image instead of downloading an pre-made CoreOS IPA image.
+create_ipa_image: false
+
+# Dnsmasq default route for clients. If not defined, dnsmasq will push to
+# clients as default route the same IP of the dnsmasq server.
+# Default: undefined
+# dnsmasq_router: {{ ipv4_gateway }}
+
+# Dnsmasq default nameserver for clients. If not defined, this setting
+# will be ignored.
+# Default: undefined
+# dnsmasq_dns_servers: 8.8.8.8,8.8.4.4
diff --git a/playbooks/inventory/target b/playbooks/inventory/target
new file mode 100644
index 000000000..afa49580b
--- /dev/null
+++ b/playbooks/inventory/target
@@ -0,0 +1,2 @@
+[target]
+127.0.0.1 ansible_connection=local
diff --git a/playbooks/roles/bifrost-ironic-install/defaults/required_defaults_RedHat_family.yml b/playbooks/roles/bifrost-ironic-install/defaults/required_defaults_RedHat_family.yml
index d26d2be1d..15b142b92 100644
--- a/playbooks/roles/bifrost-ironic-install/defaults/required_defaults_RedHat_family.yml
+++ b/playbooks/roles/bifrost-ironic-install/defaults/required_defaults_RedHat_family.yml
@@ -42,4 +42,6 @@ required_packages:
 # NOTE(cinerama): amtterm is not currently packaged for RHEL/CentOS 7.
   - libvirt-daemon
   - debootstrap
+  - gcc
+  - python2-pip
 iscsi_client_package: "iscsi-initiator-utils"
diff --git a/playbooks/roles/bifrost-ironic-install/defaults/required_defaults_Ubuntu_16.04.yml b/playbooks/roles/bifrost-ironic-install/defaults/required_defaults_Ubuntu_16.04.yml
index ff67dda1c..e1dd91989 100644
--- a/playbooks/roles/bifrost-ironic-install/defaults/required_defaults_Ubuntu_16.04.yml
+++ b/playbooks/roles/bifrost-ironic-install/defaults/required_defaults_Ubuntu_16.04.yml
@@ -2,3 +2,37 @@
 init_template: systemd_template.j2
 init_dest_dir: /lib/systemd/system/
 init_ext: .service
+required_packages:
+  - mysql-server
+  - rabbitmq-server
+  - python-dev
+  - python-mysqldb
+  - python-configparser
+  - libffi-dev
+  - libxslt1-dev
+  - libssl-dev
+  - libxml2-dev
+  - ipxe
+  - tftpd-hpa
+  - tftp-hpa
+  - syslinux-common
+  - syslinux
+  - xinetd
+  - parted
+  - ipmitool
+  - psmisc
+  - nginx
+  - wget
+  - genisoimage
+  - kpartx
+  - qemu-utils
+  - python-openwsman
+  - amtterm
+  - sgabios
+  - libvirt-bin
+  - debootstrap
+  - uuid-runtime
+  - curl
+  - dnsmasq
+  - python-pip
+  - python-pymysql
diff --git a/playbooks/roles/bifrost-ironic-install/tasks/bootstrap.yml b/playbooks/roles/bifrost-ironic-install/tasks/bootstrap.yml
index 2d25fe302..becbb0da3 100644
--- a/playbooks/roles/bifrost-ironic-install/tasks/bootstrap.yml
+++ b/playbooks/roles/bifrost-ironic-install/tasks/bootstrap.yml
@@ -123,17 +123,15 @@
   copy:
     src: "{{ ironic_git_folder }}/etc/ironic/rootwrap.conf"
     dest: "/etc/ironic/rootwrap.conf"
+    remote_src: yes
     mode: 0644
     owner: root
     group: root
   when: skip_install is not defined and enable_pxe_drivers | bool == true
+# Note(ashestakov): "copy" module in ansible doesn't support recursive
+# copying on remote host. "cp" command used instead.
 - name: "Copy rootwrap.d contents from ironic source folder"
-  copy:
-    src: "{{ ironic_git_folder }}/etc/ironic/rootwrap.d/"
-    dest: "/etc/ironic/rootwrap.d"
-    mode: 0644
-    owner: root
-    group: root
+  command: cp -r "{{ ironic_git_folder }}/etc/ironic/rootwrap.d/" "/etc/ironic/rootwrap.d"
   when: skip_install is not defined and enable_pxe_drivers | bool == true
 
 - name: "Populate keystone for Bifrost"
@@ -146,6 +144,7 @@
   copy:
     src: "{{ ironic_git_folder }}/etc/ironic/policy.json"
     dest: "/etc/ironic/"
+    remote_src: yes
     owner: "ironic"
     group: "ironic"
     mode: 0644
diff --git a/playbooks/roles/bifrost-ironic-install/tasks/create_tftpboot.yml b/playbooks/roles/bifrost-ironic-install/tasks/create_tftpboot.yml
index 3144d37d4..db761bf05 100644
--- a/playbooks/roles/bifrost-ironic-install/tasks/create_tftpboot.yml
+++ b/playbooks/roles/bifrost-ironic-install/tasks/create_tftpboot.yml
@@ -37,7 +37,7 @@
   register: test_pxelinux
 
 - name: "Place pxelinux.0"
-  copy: src={{ syslinux_tftp_dir }}/pxelinux.0 dest=/tftpboot
+  copy: src={{ syslinux_tftp_dir }}/pxelinux.0 dest=/tftpboot remote_src=true
   when: test_pxelinux.stat.exists == false
 
 - name: "Place boot.ipxe helper script /etc/ironic"
@@ -54,14 +54,14 @@
   when: download_ipxe | bool == true
 
 - name: "Copy iPXE image into place"
-  copy: src={{ ipxe_dir }}/undionly.kpxe dest=/tftpboot/
+  copy: src={{ ipxe_dir }}/undionly.kpxe dest=/tftpboot/ remote_src=true
 
 # NOTE(TheJulia): Copy full iPXE chain loader images in case they are required.
 - name: "Copy full iPXE image into /httpboot"
-  copy: src={{ ipxe_dir }}/{{ ipxe_full_binary }} dest=/httpboot/
+  copy: src={{ ipxe_dir }}/{{ ipxe_full_binary }} dest=/httpboot/ remote_src=true
 
 - name: "Copy full iPXE image into /tftpboot"
-  copy: src={{ ipxe_dir }}/{{ ipxe_full_binary }} dest=/tftpboot/
+  copy: src={{ ipxe_dir }}/{{ ipxe_full_binary }} dest=/tftpboot/ remote_src=true
 
 # Similar logic to below can be utilized to retrieve files
 - name: "Determine if folder exists, else create and populate folder."
diff --git a/playbooks/roles/bifrost-keystone-install/defaults/required_defaults_Ubuntu_16.04.yml b/playbooks/roles/bifrost-keystone-install/defaults/required_defaults_Ubuntu_16.04.yml
index ff67dda1c..7ae226438 100644
--- a/playbooks/roles/bifrost-keystone-install/defaults/required_defaults_Ubuntu_16.04.yml
+++ b/playbooks/roles/bifrost-keystone-install/defaults/required_defaults_Ubuntu_16.04.yml
@@ -2,3 +2,20 @@
 init_template: systemd_template.j2
 init_dest_dir: /lib/systemd/system/
 init_ext: .service
+required_packages:
+  - mysql-server
+  - rabbitmq-server
+  - python-dev
+  - python-mysqldb
+  - python-configparser
+  - libffi-dev
+  - libxslt1-dev
+  - libssl-dev
+  - libxml2-dev
+  - nginx
+  - uwsgi
+  - uwsgi-core
+  # - python-django-uwsgi - This may not be needed
+  - uwsgi-plugin-python
+  - python-pip
+  - python-pymysql
diff --git a/playbooks/roles/bifrost-keystone-install/tasks/bootstrap.yml b/playbooks/roles/bifrost-keystone-install/tasks/bootstrap.yml
index b89f9ee5b..4c735a2d5 100644
--- a/playbooks/roles/bifrost-keystone-install/tasks/bootstrap.yml
+++ b/playbooks/roles/bifrost-keystone-install/tasks/bootstrap.yml
@@ -117,6 +117,7 @@
   copy:
     src: "{{ keystone_git_folder }}/etc/policy.json"
     dest: "/etc/keystone/"
+    remote_src: true
     owner: "keystone"
     group: "keystone"
     mode: 0644
@@ -125,6 +126,7 @@
   copy:
     src: "{{ keystone_git_folder }}/etc/keystone-paste.ini"
     dest: "/etc/keystone/"
+    remote_src: true
     owner: "keystone"
     group: "keystone"
     mode: 0644
@@ -184,18 +186,26 @@
     group: "{{ nginx_user }}" # TODO(TheJulia): Split webserver user/group.
     mode: 0755
 
+# Note(ashestakov): "copy" module in ansible doesn't support recursive
+# copying on remote host. "cp" command used instead.
 - name: "Copy keystone-wsgi-public  to /var/www/keystone/public"
-  copy:
-    src: "{{ keystone_install_prefix.stdout }}/keystone-wsgi-public"
-    dest: /var/www/keystone/public
+  command: cp -r "{{ keystone_install_prefix.stdout }}/keystone-wsgi-public" /var/www/keystone/public
+
+- name: "Ensure owner and mode of keystone-wsgi-public"
+  file:
+    path: /var/www/keystone/public
     owner: "keystone"
     group: "{{nginx_user}}"
     mode: 0754
 
+# Note(ashestakov): "copy" module in ansible doesn't support recursive
+# copying on remote host. "cp" command used instead.
 - name: "Copy keystone-wsgi-admin to /var/www/keystone/admin"
-  copy:
-    src: "{{ keystone_install_prefix.stdout }}/keystone-wsgi-admin"
-    dest: /var/www/keystone/admin
+  command: cp -r "{{ keystone_install_prefix.stdout }}/keystone-wsgi-admin" /var/www/keystone/admin
+
+- name: "Ensure owner and mode of keystone-wsgi-admin"
+  file:
+    path: /var/www/keystone/admin
     owner: "keystone"
     group: "{{nginx_user}}"
     mode: 0754
@@ -267,7 +277,7 @@
         service_name: 'uwsgi',
         username: "{{ nginx_user }}",
         exec_start_pre: "/usr/bin/install -m 755 -o {{ nginx_user }} -g {{ nginx_user }} -d /run/uwsgi",
-        args: '--master --emperor /etc/uwsgi/apps-enabled'}
+        args: '--master --emperor /etc/uwsgi/apps-enabled'} # TODO(TheJulia): Split webserver user/group.
 
 # NOTE(ashestakov) https://github.com/ansible/ansible-modules-core/issues/3764
 - name: "Remove uwsgi sysvinit init script"
diff --git a/releasenotes/notes/allow-install-remote-101eea1ea4009fe1.yaml b/releasenotes/notes/allow-install-remote-101eea1ea4009fe1.yaml
new file mode 100644
index 000000000..57d6d31af
--- /dev/null
+++ b/releasenotes/notes/allow-install-remote-101eea1ea4009fe1.yaml
@@ -0,0 +1,6 @@
+---
+features:
+  - Allow install Ironic on remote server.
+    Added group 'target' to inventory, which is same as localhost by default.
+    For install ironic remotely, address and ssh credentials should be
+    configured in playbooks/inventory/target file.