diff --git a/setup/so-setup b/setup/so-setup
index 39b7efe9c..f771d7d57 100755
--- a/setup/so-setup
+++ b/setup/so-setup
@@ -462,6 +462,11 @@ fi
 	# Set initial percentage to 0
 	export percentage=0
 
+    if [[ $is_manager && $is_airgap ]]; then
+	    info "Creating airgap repo"
+	    create_repo >> $setup_log 2>&1
+    fi
+
 	if [[ $is_minion ]]; then
 		set_progress_str 1 'Configuring firewall'
 		set_initial_firewall_policy >> $setup_log 2>&1