diff --git a/README.md b/README.md
index 71bd3bef..eac09bf8 100644
--- a/README.md
+++ b/README.md
@@ -176,14 +176,13 @@ Then push the generated image to Docker Hub:
 
 #### Build a new version of the `awx-operator.yaml` file
 
-Update the awx-operator version in two places:
+Update the awx-operator version:
 
-  1. `deploy/awx-operator.yaml`: in the `ansible` and `operator` container definitions in the `awx-operator` Deployment.
-  2. `build/chain-operator-files.yml`: the `operator_image` variable.
+  - `ansible/group_vars/all`
 
-Once the versions are updated, run the playbook in the `build/` directory:
+Once the version has been updated, run from the root of the repo:
 
-    ansible-playbook chain-operator-files.yml
+    ansible-playbook ansible/chain-operator-files.yml
 
 After it is built, test it on a local cluster:
 
diff --git a/ansible/chain-operator-files.yml b/ansible/chain-operator-files.yml
new file mode 100644
index 00000000..11b83226
--- /dev/null
+++ b/ansible/chain-operator-files.yml
@@ -0,0 +1,24 @@
+---
+# To run: `ansible-playbook chain-operator-files.yml`
+- name: Chain operator files together for easy deployment.
+  hosts: localhost
+  connection: local
+  gather_facts: false
+
+  tasks:
+    - name: Template CRD
+      template:
+        src: crd.yml.j2
+        dest: "{{ playbook_dir }}/../deploy/crds/awx_v1beta1_crd.yaml"
+
+    - name: Template awx-operator.yaml
+      copy:
+        content: |
+          # This file is generated by Ansible. Changes will be lost.
+          # Update templates under ansible/templates/
+          {{ lookup('template', 'role.yml.j2') }}
+          {{ lookup('template', 'role_binding.yml.j2') }}
+          {{ lookup('template', 'service_account.yml.j2') }}
+          {{ lookup('template', 'operator.yml.j2') }}
+          {{ lookup('template', 'crd.yml.j2') }}
+        dest: ../deploy/awx-operator.yaml
diff --git a/ansible/group_vars/all b/ansible/group_vars/all
new file mode 100644
index 00000000..13e4ac87
--- /dev/null
+++ b/ansible/group_vars/all
@@ -0,0 +1,5 @@
+operator_image: ansible/awx-operator
+operator_version: 0.5.0
+pull_policy: Always
+operator_file_path: "../deploy/awx-operator.yaml"
+operator_template: "../deploy/operator.yaml"
diff --git a/ansible/templates/crd.yml.j2 b/ansible/templates/crd.yml.j2
new file mode 100644
index 00000000..d6fa6c70
--- /dev/null
+++ b/ansible/templates/crd.yml.j2
@@ -0,0 +1,55 @@
+---
+apiVersion: apiextensions.k8s.io/v1beta1
+kind: CustomResourceDefinition
+metadata:
+  name: awxs.awx.ansible.com
+spec:
+  group: awx.ansible.com
+  names:
+    kind: AWX
+    listKind: AWXList
+    plural: awxs
+    singular: awx
+  scope: Namespaced
+  subresources:
+    status: {}
+  version: v1beta1
+  versions:
+    - name: v1beta1
+      served: true
+      storage: true
+  validation:
+    openAPIV3Schema:
+      description: Schema validation for the AWX CRD
+      type: object
+      properties:
+        spec:
+          type: object
+          properties:
+            deployment_type:
+              type: string
+              pattern: "^(tower|awx)(-)?.*$"
+            external_database:
+              type: boolean
+              description: |
+                If true you must supply a secret containing the location and credentials for
+                connecting to the external database by a user who has permission to create
+                and apply a schema.
+
+                The secret should have the name: <custom resource name>-postgres-configuration and
+                should look like:
+
+                apiVersion: v1
+                kind: Secret
+                metadata:
+                  name: <crname>-postgres-configuration
+                  namespace: <target namespace>
+                stringData:
+                  host: <external ip or url resolvable by the cluster>
+                  port: <external port, this usually defaults to 5432>
+                  database: <desired database name>
+                  username: <username to connect as>
+                  password: <password to connect with>
+                type: Opaque
+          required:
+            - deployment_type
diff --git a/deploy/operator.yaml b/ansible/templates/operator.yml.j2
similarity index 90%
rename from deploy/operator.yaml
rename to ansible/templates/operator.yml.j2
index 43f73ea5..d6105102 100644
--- a/deploy/operator.yaml
+++ b/ansible/templates/operator.yml.j2
@@ -20,14 +20,14 @@ spec:
             - /usr/local/bin/ao-logs
             - /tmp/ansible-operator/runner
             - stdout
-          image: "{{ operator_image }}"
+          image: "{{ operator_image }}:{{ operator_version }}"
           imagePullPolicy: "{{ pull_policy|default('Always') }}"
           volumeMounts:
             - mountPath: /tmp/ansible-operator/runner
               name: runner
               readOnly: true
         - name: operator
-          image: "{{ operator_image }}"
+          image: "{{ operator_image }}:{{ operator_version }}"
           imagePullPolicy: "{{ pull_policy|default('Always') }}"
           volumeMounts:
             - mountPath: /tmp/ansible-operator/runner
diff --git a/deploy/role.yaml b/ansible/templates/role.yml.j2
similarity index 100%
rename from deploy/role.yaml
rename to ansible/templates/role.yml.j2
diff --git a/deploy/role_binding.yaml b/ansible/templates/role_binding.yml.j2
similarity index 100%
rename from deploy/role_binding.yaml
rename to ansible/templates/role_binding.yml.j2
diff --git a/deploy/service_account.yaml b/ansible/templates/service_account.yml.j2
similarity index 100%
rename from deploy/service_account.yaml
rename to ansible/templates/service_account.yml.j2
diff --git a/build/chain-operator-files.yml b/build/chain-operator-files.yml
deleted file mode 100644
index 039f3276..00000000
--- a/build/chain-operator-files.yml
+++ /dev/null
@@ -1,44 +0,0 @@
----
-# To run: `ansible-playbook chain-operator-files.yml`
-- name: Chain operator files together for easy deployment.
-  hosts: localhost
-  connection: local
-  gather_facts: false
-
-  vars:
-    operator_image: ansible/awx-operator:0.5.0
-    pull_policy: Always
-    operator_file_path: "../deploy/awx-operator.yaml"
-    operator_template: "../deploy/operator.yaml"
-
-  tasks:
-    - name: Clear out current contents of awx-operator.yml
-      copy:
-        dest: "{{ operator_file_path }}"
-        content: ''
-        force: true
-
-    - name: Concatenate operator files into awx-operator.yml
-      blockinfile:
-        path: "{{ operator_file_path }}"
-        block: "{{ item }}"
-        marker: ""
-        marker_begin: ""
-        marker_end: ""
-        insertafter: "EOF"
-      with_file:
-        - "../deploy/role.yaml"
-        - "../deploy/role_binding.yaml"
-        - "../deploy/service_account.yaml"
-        - "../deploy/operator.yaml"
-        - "../deploy/crds/awx_v1beta1_crd.yaml"
-
-    - name: Remove space at beginning of awx-operator.yml
-      shell: >
-        echo "$(tail -n +2 {{ operator_file_path }})" > {{ operator_file_path }}
-      changed_when: true
-
-    - name: Template the awx-operator.yaml file into awx-operator.yml
-      template:
-        src: "{{ operator_file_path }}"
-        dest: "{{ operator_file_path }}"
diff --git a/deploy/awx-operator.yaml b/deploy/awx-operator.yaml
index b3300fac..e0ffd229 100644
--- a/deploy/awx-operator.yaml
+++ b/deploy/awx-operator.yaml
@@ -1,3 +1,5 @@
+# This file is generated by Ansible. Changes will be lost.
+# Update templates under ansible/templates/
 ---
 apiVersion: rbac.authorization.k8s.io/v1
 kind: ClusterRole