diff --git a/salt/_runners/setup_hypervisor.py b/salt/_runners/setup_hypervisor.py
new file mode 100644
index 000000000..e444b739a
--- /dev/null
+++ b/salt/_runners/setup_hypervisor.py
@@ -0,0 +1,585 @@
+"""
+This runner performs the initial setup required for hypervisor hosts in the environment.
+It handles downloading the Oracle Linux KVM image, setting up SSH keys for secure
+communication, and creating the initial VM.
+
+Functions:
+    setup_environment: Downloads image, sets up SSH keys, and creates initial VM
+    regenerate_ssh_keys: Regenerates SSH keys for remote access
+    create_vm: Creates a new VM with cloud-init configuration
+
+The runner is typically triggered automatically when a new hypervisor minion connects,
+but can also be run manually if needed.
+
+CLI Examples:
+
+    # Perform complete environment setup (creates VM named 'so-ol9' with 220G disk by default)
+    salt-run setup_hypervisor.setup_environment
+
+    # Setup with custom VM name (uses default 220G disk)
+    salt-run setup_hypervisor.setup_environment myvm
+
+    # Setup with custom VM name and disk size
+    salt-run setup_hypervisor.setup_environment myvm 300G
+
+    # Regenerate SSH keys only
+    salt-run setup_hypervisor.regenerate_ssh_keys
+
+    # Create additional VM with default disk size (220G)
+    salt-run setup_hypervisor.create_vm myvm2
+
+    # Create additional VM with custom disk size
+    salt-run setup_hypervisor.create_vm myvm3 300G
+"""
+
+import hashlib
+import logging
+import os
+import pwd
+import requests
+import salt.utils.files
+import sys
+import time
+from cryptography.hazmat.primitives import serialization
+from cryptography.hazmat.primitives.asymmetric import ed25519
+
+# Configure logging
+log = logging.getLogger(__name__)
+log.setLevel(logging.DEBUG)
+
+# Ensure we have a stream handler
+stream_handler = logging.StreamHandler(sys.stdout)
+stream_handler.setLevel(logging.DEBUG)
+formatter = logging.Formatter('%(asctime)s - %(name)s - %(levelname)s - %(message)s')
+stream_handler.setFormatter(formatter)
+log.addHandler(stream_handler)
+
+def _check_file_exists(path):
+    """Check if a file exists and create its directory if needed."""
+    if os.path.exists(path):
+        return True
+    os.makedirs(os.path.dirname(path), exist_ok=True)
+    return False
+
+def _validate_image_checksum(path, expected_sha256):
+    """
+    Validate the checksum of an existing image file.
+    Returns:
+        bool: True if checksum matches, False otherwise
+    """
+    sha256_hash = hashlib.sha256()
+    with salt.utils.files.fopen(path, 'rb') as f:
+        for chunk in iter(lambda: f.read(4096), b''):
+            sha256_hash.update(chunk)
+    
+    downloaded_sha256 = sha256_hash.hexdigest()
+    if downloaded_sha256 != expected_sha256:
+        log.error("VALIDATE: Checksum validation failed for %s - expected: %s, got: %s",
+                 path, expected_sha256, downloaded_sha256)
+        return False
+    
+    log.info("VALIDATE: Checksum validation successful for %s", path)
+    return True
+
+# Constants
+IMAGE_URL = "https://yum.oracle.com/templates/OracleLinux/OL9/u5/x86_64/OL9U5_x86_64-kvm-b253.qcow2"
+IMAGE_SHA256 = "3b00bbbefc8e78dd28d9f538834fb9e2a03d5ccdc2cadf2ffd0036c0a8f02021"
+IMAGE_PATH = "/nsm/libvirt/boot/OL9U5_x86_64-kvm-b253.qcow2"
+
+def _download_image():
+    """
+    Download and validate the Oracle Linux KVM image.
+    Returns:
+        bool: True if successful or file exists with valid checksum, False on error
+    """
+    # Check if file already exists and validate checksum
+    if _check_file_exists(IMAGE_PATH):
+        if _validate_image_checksum(IMAGE_PATH, IMAGE_SHA256):
+            return True
+        else:
+            log.warning("DOWNLOAD: Existing image has invalid checksum, will re-download")
+            os.unlink(IMAGE_PATH)
+    
+    log.info("DOWNLOAD: Starting image download process")
+
+    try:
+        # Download file
+        log.info("DOWNLOAD: Downloading Oracle Linux KVM image from %s to %s", IMAGE_URL, IMAGE_PATH)
+        response = requests.get(IMAGE_URL, stream=True)
+        response.raise_for_status()
+
+        # Get total file size for progress tracking
+        total_size = int(response.headers.get('content-length', 0))
+        downloaded_size = 0
+        last_log_time = 0
+
+        # Save file with progress logging
+        with salt.utils.files.fopen(IMAGE_PATH, 'wb') as f:
+            for chunk in response.iter_content(chunk_size=8192):
+                f.write(chunk)
+                downloaded_size += len(chunk)
+                
+                # Log progress every second
+                current_time = time.time()
+                if current_time - last_log_time >= 1:
+                    progress = (downloaded_size / total_size) * 100 if total_size > 0 else 0
+                    log.info("DOWNLOAD: Progress - %.1f%% (%d/%d bytes)", 
+                            progress, downloaded_size, total_size)
+                    last_log_time = current_time
+
+        # Validate downloaded file
+        if not _validate_image_checksum(IMAGE_PATH, IMAGE_SHA256):
+            os.unlink(IMAGE_PATH)
+            return False
+
+        log.info("DOWNLOAD: Successfully downloaded and validated Oracle Linux KVM image")
+        return True
+
+    except Exception as e:
+        log.error("DOWNLOAD: Error downloading hypervisor image: %s", str(e))
+        if os.path.exists(IMAGE_PATH):
+            os.unlink(IMAGE_PATH)
+        return False
+
+def _check_ssh_keys_exist():
+    """
+    Check if SSH keys already exist.
+    Returns:
+        bool: True if both private and public keys exist, False otherwise
+    """
+    key_dir = '/etc/ssh/auth_keys/soqemussh'
+    key_path = f'{key_dir}/id_ed25519'
+    pub_key_path = f'{key_path}.pub'
+    dest_dir = '/opt/so/saltstack/local/salt/libvirt/ssh/keys'
+    dest_path = os.path.join(dest_dir, os.path.basename(pub_key_path))
+
+    if os.path.exists(key_path) and os.path.exists(pub_key_path) and os.path.exists(dest_path):
+        log.info("SETUP_KEYS: SSH keys already exist")
+        return True
+    return False
+
+def _setup_ssh_keys():
+    """
+    Generate and set up SSH keys.
+    Returns:
+        bool: True if successful, False on error
+    """
+    try:
+        key_dir = '/etc/ssh/auth_keys/soqemussh'
+        key_path = f'{key_dir}/id_ed25519'
+        pub_key_path = f'{key_path}.pub'
+
+        # Check if keys already exist
+        if _check_ssh_keys_exist():
+            return True
+
+        # Create key directories if they don't exist and set permissions
+        log.info("SETUP_KEYS: Setting up SSH directory and keys")
+        parent_dir = os.path.dirname(key_dir)  # /etc/ssh/auth_keys
+        os.makedirs(parent_dir, exist_ok=True)
+        os.chmod(parent_dir, 0o700)
+        
+        os.makedirs(key_dir, exist_ok=True)
+        os.chmod(key_dir, 0o700)
+
+        # Generate new ed25519 key pair
+        log.info("SETUP_KEYS: Generating new SSH keys")
+        private_key = ed25519.Ed25519PrivateKey.generate()
+        public_key = private_key.public_key()
+
+        # Serialize private key
+        private_bytes = private_key.private_bytes(
+            encoding=serialization.Encoding.PEM,
+            format=serialization.PrivateFormat.OpenSSH,
+            encryption_algorithm=serialization.NoEncryption()
+        )
+
+        # Serialize public key and format it as an OpenSSH public key
+        public_bytes = public_key.public_bytes(
+            encoding=serialization.Encoding.OpenSSH,
+            format=serialization.PublicFormat.OpenSSH
+        )
+        public_bytes = public_bytes + b' soqemussh@salt-master\n'
+
+        # Write the keys to files
+        with salt.utils.files.fopen(key_path, 'wb') as f:
+            f.write(private_bytes)
+
+        with salt.utils.files.fopen(pub_key_path, 'wb') as f:
+            f.write(public_bytes)
+
+        # Set proper permissions
+        os.chmod(key_path, 0o600)
+        os.chmod(pub_key_path, 0o644)
+
+        log.info("SETUP_KEYS: SSH keys generated successfully")
+
+        # Copy public key to saltstack directory
+        dest_dir = '/opt/so/saltstack/local/salt/libvirt/ssh/keys'
+        os.makedirs(dest_dir, exist_ok=True)
+        dest_path = os.path.join(dest_dir, os.path.basename(pub_key_path))
+        
+        with salt.utils.files.fopen(pub_key_path, 'rb') as src:
+            with salt.utils.files.fopen(dest_path, 'wb') as dst:
+                dst.write(src.read())
+        
+        log.info("SETUP_KEYS: Public key copied to %s", dest_dir)
+        return True
+
+    except Exception as e:
+        log.error("SETUP_KEYS: Error setting up SSH keys: %s", str(e))
+        return False
+
+def _check_vm_exists(vm_name: str) -> bool:
+    """
+    Check if VM files already exist.
+    Returns:
+        bool: True if VM files exist, False otherwise
+    """
+    base_dir = '/opt/so/saltstack/local/salt/libvirt/images'
+    vm_dir = f'{base_dir}/{vm_name}'
+    vm_image = os.path.join(vm_dir, f'{vm_name}.qcow2')
+    cidata_iso = os.path.join(vm_dir, f'{vm_name}-cidata.iso')
+    
+    required_files = [
+        vm_image,
+        cidata_iso,
+        os.path.join(vm_dir, 'meta-data'),
+        os.path.join(vm_dir, 'user-data')
+    ]
+    
+    exists = all(os.path.exists(f) for f in required_files)
+    if exists:
+        log.info("MAIN: VM %s already exists", vm_name)
+    return exists
+
+def setup_environment(vm_name: str = 'so-ol9', disk_size: str = '220G'):
+    """
+    Main entry point to set up the hypervisor environment.
+    This includes downloading the base image, generating SSH keys for remote access,
+    and creating the initial VM.
+
+    Args:
+        vm_name (str, optional): Name of the VM to create as part of environment setup.
+                               Defaults to 'so-ol9'.
+        disk_size (str, optional): Size of the VM disk with unit.
+                                 Defaults to '220G'.
+
+    Returns:
+        dict: Dictionary containing setup status and VM creation results
+    """
+    log.info("MAIN: Starting setup_environment in setup_hypervisor runner")
+    
+    # Check if environment is already set up
+    image_exists = _check_file_exists(IMAGE_PATH)
+    image_valid = image_exists and _validate_image_checksum(IMAGE_PATH, IMAGE_SHA256)
+    keys_exist = _check_ssh_keys_exist()
+    vm_exists = _check_vm_exists(vm_name)
+
+    # Track if we need to create/recreate VM
+    create_vm_needed = False
+    
+    # Handle image setup if needed
+    if not image_valid:
+        log.info("MAIN: Starting image download/validation process")
+        if not _download_image():
+            log.error("MAIN: Image download failed")
+            return {
+                'success': False,
+                'error': 'Image download failed',
+                'vm_result': None
+            }
+        create_vm_needed = True
+    
+    # Handle SSH key setup if needed
+    if not keys_exist:
+        log.info("MAIN: Setting up SSH keys")
+        if not _setup_ssh_keys():
+            log.error("MAIN: SSH key setup failed")
+            return {
+                'success': False,
+                'error': 'SSH key setup failed',
+                'vm_result': None
+            }
+        create_vm_needed = True
+
+    # Create/recreate VM if needed
+    if create_vm_needed or not vm_exists:
+        if vm_exists:
+            log.info("MAIN: Environment changes detected, recreating VM %s", vm_name)
+        else:
+            log.info("MAIN: Creating new VM %s", vm_name)
+        vm_result = create_vm(vm_name, disk_size)
+    else:
+        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"""
+            ]
+        }
+    
+    success = vm_result.get('success', False)
+    log.info("MAIN: Setup environment completed with status: %s", "SUCCESS" if success else "FAILED")
+    
+    return {
+        'success': success,
+        'error': vm_result.get('error') if not success else None,
+        'vm_result': vm_result
+    }
+
+def create_vm(vm_name: str, disk_size: str = '220G'):
+    """
+    Create a new VM with cloud-init configuration.
+    
+    Args:
+        vm_name (str): Name of the VM
+        disk_size (str): Size of the disk with unit (default: '220G')
+    
+    Returns:
+        dict: Dictionary containing success status and commands to run on hypervisor
+    """
+    try:
+        # Input validation
+        if not isinstance(vm_name, str) or not vm_name:
+            log.error("CREATEVM: Invalid VM name")
+            return {'success': False, 'error': 'Invalid VM name'}
+        
+        if not vm_name.isalnum() and not all(c in '-_' for c in vm_name if not c.isalnum()):
+            log.error("CREATEVM: VM name must contain only alphanumeric characters, hyphens, or underscores")
+            return {'success': False, 'error': 'Invalid VM name format'}
+
+        # Validate disk size format
+        if not isinstance(disk_size, str) or not disk_size.endswith(('G', 'M')):
+            log.error("CREATEVM: Invalid disk size format. Must end with G or M")
+            return {'success': False, 'error': 'Invalid disk size format'}
+            
+        try:
+            size_num = int(disk_size[:-1])
+            if size_num <= 0:
+                raise ValueError
+        except ValueError:
+            log.error("CREATEVM: Invalid disk size number")
+            return {'success': False, 'error': 'Invalid disk size number'}
+
+        # Ensure base image exists
+        if not os.path.exists(IMAGE_PATH):
+            log.error("CREATEVM: Base image not found at %s", IMAGE_PATH)
+            return {'success': False, 'error': 'Base image not found'}
+
+        # Set up directory structure
+        base_dir = '/opt/so/saltstack/local/salt/libvirt/images'
+        vm_dir = f'{base_dir}/{vm_name}'
+        os.makedirs(vm_dir, exist_ok=True)
+
+        # Read the SSH public key
+        pub_key_path = '/opt/so/saltstack/local/salt/libvirt/ssh/keys/id_ed25519.pub'
+        try:
+            with salt.utils.files.fopen(pub_key_path, 'r') as f:
+                ssh_pub_key = f.read().strip()
+        except Exception as e:
+            log.error("CREATEVM: Failed to read SSH public key: %s", str(e))
+            return {'success': False, 'error': 'Failed to read SSH public key'}
+
+        # Create meta-data
+        meta_data = f"""instance-id: {vm_name}
+local-hostname: {vm_name}
+"""
+        meta_data_path = os.path.join(vm_dir, 'meta-data')
+        with salt.utils.files.fopen(meta_data_path, 'w') as f:
+            f.write(meta_data)
+
+        # Create user-data
+        user_data = f"""#cloud-config
+preserve_hostname: False
+hostname: {vm_name}
+fqdn: {vm_name}.local
+
+users:
+    - default
+    - name: soqemussh
+      groups: ['wheel']
+      shell: /bin/bash
+      sudo: ALL=(ALL) NOPASSWD:ALL
+      lock_passwd: false
+      passwd: $6$THWuTZMZhIVMGaaw$w9kozn7z7i0Y9LRVGZwN6mcZag4vMpE3hW6eCtKNHlFpL1XLcOdiIr29JyDxx3MLBXNedIqnqcj4psqCjv58d.
+      ssh-authorized-keys:
+        - {ssh_pub_key}
+
+# Configure where output will go
+output:
+  all: ">> /var/log/cloud-init.log"
+
+# configure interaction with ssh server
+ssh_genkeytypes: ['ed25519', 'rsa']
+
+# set timezone for VM
+timezone: UTC
+
+# Install QEMU guest agent. Enable and start the service
+packages:
+  - qemu-guest-agent
+
+runcmd:
+  - systemctl enable --now qemu-guest-agent
+  - systemctl enable --now serial-getty@ttyS0.service
+  - systemctl enable --now NetworkManager
+  - growpart /dev/vda 2
+  - pvresize /dev/vda2
+  - lvextend -l +100%FREE /dev/vg_main/lv_root
+  - xfs_growfs /dev/vg_main/lv_root
+  - touch /etc/cloud/cloud-init.disabled
+  - shutdown -P now
+"""
+        user_data_path = os.path.join(vm_dir, 'user-data')
+        with salt.utils.files.fopen(user_data_path, 'w') as f:
+            f.write(user_data)
+
+        # Copy and resize base image
+        base_image = IMAGE_PATH
+        vm_image = os.path.join(vm_dir, f'{vm_name}.qcow2')
+        
+        # Copy base image with progress logging
+        import shutil
+        log.info("CREATEVM: Copying base image to %s", vm_image)
+        shutil.copy2(base_image, vm_image)
+        log.info("CREATEVM: Base image copy complete")
+        
+        # Get current image size
+        import subprocess
+        try:
+            result = subprocess.run(['qemu-img', 'info', '--output=json', vm_image], 
+                                  check=True, capture_output=True, text=True)
+            import json
+            info = json.loads(result.stdout)
+            current_size = info.get('virtual-size', 0)
+            requested_size = int(disk_size[:-1]) * (1024**3 if disk_size.endswith('G') else 1024**2)
+            
+            # Only resize if requested size is larger
+            if requested_size > current_size:
+                log.info("CREATEVM: Resizing image to %s", disk_size)
+                try:
+                    result = subprocess.run(['qemu-img', 'resize', '-f', 'qcow2', vm_image, disk_size], 
+                                          check=True, capture_output=True, text=True)
+                    log.info("CREATEVM: Image resize complete")
+                except subprocess.CalledProcessError as e:
+                    log.error("CREATEVM: Failed to resize image: %s", e.stderr)
+                    raise
+            else:
+                log.info("CREATEVM: Image already at or larger than requested size")
+        except subprocess.CalledProcessError as e:
+            log.error("CREATEVM: Failed to get image info: %s", e.stderr)
+            raise
+        except json.JSONDecodeError as e:
+            log.error("CREATEVM: Failed to parse image info: %s", str(e))
+            raise
+        
+        # Compress image
+        temp_image = f"{vm_image}.temp"
+        log.info("CREATEVM: Compressing image")
+        
+        # Start compression in a subprocess
+        process = subprocess.Popen(['qemu-img', 'convert', '-O', 'qcow2', '-c', vm_image, temp_image],
+                                 stdout=subprocess.PIPE, stderr=subprocess.PIPE)
+        
+        # Monitor progress by checking output file size
+        source_size = os.path.getsize(vm_image)
+        last_log_time = 0
+        
+        while process.poll() is None:  # While compression is running
+            current_time = time.time()
+            if current_time - last_log_time >= 1:  # Log every second
+                if os.path.exists(temp_image):
+                    compressed_size = os.path.getsize(temp_image)
+                    progress = (compressed_size / source_size) * 100
+                    log.info("CREATEVM: Compression progress - %.1f%% (%d/%d bytes)",
+                            progress, compressed_size, source_size)
+                last_log_time = current_time
+        
+        # Check if compression completed successfully
+        if process.returncode == 0:
+            os.replace(temp_image, vm_image)
+            log.info("CREATEVM: Image compression complete")
+        else:
+            error = process.stderr.read().decode('utf-8')
+            log.error("CREATEVM: Failed to compress image: %s", error)
+            if os.path.exists(temp_image):
+                os.unlink(temp_image)
+            raise subprocess.CalledProcessError(process.returncode, 'qemu-img convert', stderr=error)
+
+        # Create cloud-init ISO
+        cidata_iso = os.path.join(vm_dir, f'{vm_name}-cidata.iso')
+        subprocess.run(['mkisofs', '-output', cidata_iso, '-volid', 'CIDATA', '-rock',
+                       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
+        }
+
+    except Exception as e:
+        log.error("CREATEVM: Error creating VM: %s", str(e))
+        return {'success': False, 'error': str(e)}
+
+def regenerate_ssh_keys():
+    """
+    Regenerate SSH keys.
+    Returns:
+        bool: True if successful, False on error
+    """
+    log.info("MAIN: Starting SSH key regeneration")
+    try:
+        # Verify current state
+        if not _check_ssh_keys_exist():
+            log.warning("MAIN: No existing SSH keys found to regenerate")
+            return _setup_ssh_keys()
+
+        # Remove existing keys
+        key_dir = '/etc/ssh/auth_keys/soqemussh'
+        key_path = f'{key_dir}/id_ed25519'
+        pub_key_path = f'{key_path}.pub'
+        dest_dir = '/opt/so/saltstack/local/salt/libvirt/ssh/keys'
+        dest_path = os.path.join(dest_dir, os.path.basename(pub_key_path))
+
+        for path in [key_path, pub_key_path, dest_path]:
+            try:
+                os.unlink(path)
+                log.info("MAIN: Removed existing key: %s", path)
+            except FileNotFoundError:
+                log.warning("MAIN: Key file not found: %s", path)
+
+        # Generate new keys
+        if _setup_ssh_keys():
+            log.info("MAIN: SSH keys regenerated successfully")
+            return True
+        
+        log.error("MAIN: Failed to regenerate SSH keys")
+        return False
+
+    except Exception as e:
+        log.error("MAIN: Error regenerating SSH keys: %s", str(e))
+        return False
diff --git a/salt/manager/hypervisor/directories.sls b/salt/manager/hypervisor/directories.sls
deleted file mode 100644
index 3f60492f6..000000000
--- a/salt/manager/hypervisor/directories.sls
+++ /dev/null
@@ -1,11 +0,0 @@
-{% set dirs = [
-  '/nsm/libvirt/createvm'
-] %}
-
-create_libvirt_dirs:
-  file.directory:
-    - names: {{ dirs }}
-    - makedirs: True
-    - mode: 755
-    - user: root
-    - group: root
diff --git a/salt/orch/setup_hypervisor.sls b/salt/orch/setup_hypervisor.sls
deleted file mode 100644
index a79e07ee5..000000000
--- a/salt/orch/setup_hypervisor.sls
+++ /dev/null
@@ -1,66 +0,0 @@
-{% set qcow2_url = 'https://yum.oracle.com/templates/OracleLinux/OL9/u5/x86_64/OL9U5_x86_64-kvm-b253.qcow2' %}
-{% set expected_sha256 = '3b00bbbefc8e78dd28d9f538834fb9e2a03d5ccdc2cadf2ffd0036c0a8f02021' %}
-{% set target_path = '/nsm/libvirt/createvm/OL9U5_x86_64-kvm-b253.qcow2' %}
-{% set master_id = salt.local.opts.get('id') %}
-
-createvm_directories:
-  salt.state:
-    - tgt: {{ master_id }}
-    - sls:
-      - manager.hypervisor.directories
-
-check_qcow2_exists:
-  salt.function:
-    - name: file.file_exists
-    - tgt: {{ master_id }}
-    - arg:
-      - {{ target_path }}
-    - require:
-      - salt: createvm_directories
-
-download_qcow2:
-  salt.function:
-    - name: cmd.run
-    - tgt: {{ master_id }}
-    - arg:
-      - curl -L {{ qcow2_url }} -o {{ target_path }}
-    - onlyif: 
-      - fun: file.file_exists
-        tgt: {{ master_id }}
-        arg:
-          - {{ target_path }}
-        expected: False
-
-verify_checksum:
-  salt.function:
-    - name: cmd.run_all
-    - tgt: {{ master_id }}
-    - arg:
-      - echo "{{ expected_sha256 }}  {{ target_path }}" | sha256sum -c
-    - require:
-      - salt: download_qcow2
-    - onlyif:
-      - fun: file.file_exists
-        tgt: {{ master_id }}
-        arg:
-          - {{ target_path }}
-
-handle_failed_verification:
-  salt.function:
-    - name: log.error
-    - tgt: {{ master_id }}
-    - arg:
-      - "Checksum verification failed for {{ target_path }}"
-    - onfail:
-      - salt: verify_checksum
-
-cleanup_failed_download:
-  salt.function:
-    - name: file.remove
-    - tgt: {{ master_id }}
-    - arg:
-      - {{ target_path }}
-    - onfail:
-      - salt: verify_checksum
-    - require:
-      - salt: verify_checksum
diff --git a/salt/reactor/check_hypervisor.sls b/salt/reactor/check_hypervisor.sls
index b26b6d0dd..fdf75453d 100644
--- a/salt/reactor/check_hypervisor.sls
+++ b/salt/reactor/check_hypervisor.sls
@@ -1,6 +1,4 @@
 {% if data['id'].endswith(('_hypervisor', '_managerhyper')) %}
 check_and_trigger:
-  runner.state.orchestrate:
-    - args:
-        - mods: orch.setup_hypervisor
+  runner.setup_hypervisor.setup_environment: []
 {% endif %}