diff --git a/salt/_runners/setup_hypervisor.py b/salt/_runners/setup_hypervisor.py
index 0a2845813..c5588689f 100644
--- a/salt/_runners/setup_hypervisor.py
+++ b/salt/_runners/setup_hypervisor.py
@@ -370,18 +370,7 @@ def setup_environment(vm_name: str = 'sool9', disk_size: str = '220G', minion_id
         log.info("MAIN: No changes detected, using existing VM %s", vm_name)
         vm_result = {
             'success': True,
-            'vm_dir': f'/opt/so/saltstack/local/salt/libvirt/images/{vm_name}',
-            'commands': [
-                f"virsh pool-create-as --name {vm_name} --type dir --target /opt/so/saltstack/local/salt/libvirt/images/{vm_name}",
-                f"""virt-install --name {vm_name} \\
-    --memory 4096 --vcpus 4 --cpu host \\
-    --disk /opt/so/saltstack/local/salt/libvirt/images/{vm_name}/{vm_name}.qcow2,format=qcow2,bus=virtio \\
-    --disk /opt/so/saltstack/local/salt/libvirt/images/{vm_name}/{vm_name}-cidata.iso,device=cdrom \\
-    --network bridge=br0,model=virtio \\
-    --os-variant=ol9.5 \\
-    --import \\
-    --noautoconsole"""
-            ]
+            'vm_dir': f'/opt/so/saltstack/local/salt/libvirt/images/{vm_name}'
         }
     
     success = vm_result.get('success', False)
@@ -614,23 +603,9 @@ runcmd:
                        user_data_path, meta_data_path],
                       check=True, capture_output=True)
 
-        # Generate commands for hypervisor
-        commands = [
-            f"virsh pool-create-as --name {vm_name} --type dir --target {vm_dir}",
-            f"""virt-install --name {vm_name} \\
-    --memory 4096 --vcpus 4 --cpu host \\
-    --disk {vm_image},format=qcow2,bus=virtio \\
-    --disk {cidata_iso},device=cdrom \\
-    --network bridge=br0,model=virtio \\
-    --os-variant=ol9.5 \\
-    --import \\
-    --noautoconsole"""
-        ]
-
         return {
             'success': True,
-            'vm_dir': vm_dir,
-            'commands': commands
+            'vm_dir': vm_dir
         }
 
     except Exception as e:
diff --git a/salt/libvirt/images/init.sls b/salt/libvirt/images/init.sls
index 864a2e2eb..e36fd628c 100644
--- a/salt/libvirt/images/init.sls
+++ b/salt/libvirt/images/init.sls
@@ -1,6 +1,79 @@
-# the source location will be /opt/so/saltstack/local/salt/libvirt/images/sool9
-# this will need to change to save the images to /nsm 
-baseimagefiles:
+# Copyright Security Onion Solutions LLC and/or licensed to Security Onion Solutions LLC under one
+# or more contributor license agreements. Licensed under the Elastic License 2.0 as shown at
+# https://securityonion.net/license; you may not use this file except in compliance with the
+# Elastic License 2.0.
+#
+# Note: Per the Elastic License 2.0, the second limitation states:
+#
+#   "You may not move, change, disable, or circumvent the license key functionality
+#    in the software, and you may not remove or obscure any functionality in the
+#    software that is protected by the license key."
+
+{% from 'allowed_states.map.jinja' import allowed_states %}
+{% if sls.split('.')[0] in allowed_states or sls in allowed_states %}
+{%   if 'hvn' in salt['pillar.get']('features', []) %}
+
+include:
+  - libvirt.packages
+
+# Copy base image files
+baseimagefiles_sool9:
   file.recurse:
-    - name: /var/lib/libvirt/images/sool9/
+    - name: /nsm/libvirt/images/sool9/
     - source: salt://libvirt/images/sool9/
+    - makedirs: True
+
+# Define the storage pool
+define_storage_pool_sool9:
+  virt.pool_defined:
+    - name: sool9
+    - ptype: dir
+    - target: /nsm/libvirt/images/sool9
+    - require:
+      - file: baseimagefiles_sool9
+      - cmd: libvirt_python_module
+
+# Start the storage pool
+start_storage_pool_sool9:
+  virt.pool_running:
+    - name: sool9
+    - ptype: dir
+    - target: /nsm/libvirt/images/sool9
+    - require:
+      - virt: define_storage_pool_sool9
+      - cmd: libvirt_python_module
+
+# Create and start the VM using virt-install
+create_vm_sool9:
+  cmd.run:
+    - name: |
+        virt-install --name sool9 \
+          --memory 4096 --vcpus 4 --cpu host \
+          --disk /nsm/libvirt/images/sool9/sool9.qcow2,format=qcow2,bus=virtio \
+          --disk /nsm/libvirt/images/sool9/sool9-cidata.iso,device=cdrom \
+          --network bridge=br0,model=virtio \
+          --os-variant=ol9.5 \
+          --import \
+          --noautoconsole
+    - unless: virsh list --all | grep -q sool9
+    - require:
+      - virt: start_storage_pool_sool9
+      - pkg: install_virt-install
+
+{%   else %}
+{{sls}}_no_license_detected:
+  test.fail_without_changes:
+    - name: {{sls}}_no_license_detected
+    - comment:
+      - "Hypervisor nodes are a feature supported only for customers with a valid license.
+      Contact Security Onion Solutions, LLC via our website at https://securityonionsolutions.com
+      for more information about purchasing a license to enable this feature."
+{%   endif %}
+
+{% else %}
+
+{{sls}}_state_not_allowed:
+  test.fail_without_changes:
+    - name: {{sls}}_state_not_allowed
+
+{% endif %}
diff --git a/salt/libvirt/init.sls b/salt/libvirt/init.sls
index de67f2971..4321fdfb1 100644
--- a/salt/libvirt/init.sls
+++ b/salt/libvirt/init.sls
@@ -74,24 +74,21 @@ create_host_bridge:
     - forward: bridge
     - autostart: True
 
-# set the default storage pool to point to the location we want
-set_default_pool:
-  virt.pool_running:
-    - name: default
-    - ptype: dir
-    - target: /var/lib/libvirt/images/sool9
-    - permissions:
-        - mode: 0711
-        - owner: qemu
-        - group: qemu
-        - label: "system_u:object_r:virt_image_t:s0" # this doesnt seem to set the selinux context
-    - autostart: True
+# Disable the default storage pool to avoid conflicts
+disable_default_pool:
+  cmd.run:
+    - name: virsh pool-destroy default && virsh pool-autostart default --disable
+    - onlyif: virsh pool-list | grep default
+    - require:
+      - pkg: install_libvirt-client
+      - service: libvirt_service
 
 disable_default_bridge:
   cmd.run:
     - name: virsh net-destroy default && virsh net-autostart default --disable
     - require:
       - pkg: install_libvirt-client
+      - service: libvirt_service
     - onlyif:
       - virsh net-list | grep default