diff --git a/packer/.gitignore b/packer/.gitignore
new file mode 100644
index 0000000..d0c86f7
--- /dev/null
+++ b/packer/.gitignore
@@ -0,0 +1,2 @@
+packer_cache/
+output*/
diff --git a/packer/README.md b/packer/README.md
index 80165b3..3d3f60d 100644
--- a/packer/README.md
+++ b/packer/README.md
@@ -20,12 +20,20 @@ build the AMI's
 From this directory, simply run:
 
 ```
-/path/to/packer build -var-file <YOUR REGION>.json -var kubernetes_version=<YOUR K8S VERSION> -var kubernetes_cni_version=<YOUR K8S CNI VERSION> -var build_version=`git rev-parse HEAD` packer.json
+$ /path/to/packer build -var-file <YOUR REGION>.json -var kubernetes_version=<YOUR K8S VERSION> -var kubernetes_cni_version=<YOUR K8S CNI VERSION> -var build_version=`git rev-parse HEAD` packer.json
 ```
 This will build AMI images in the us-east AWS region (additional region support to follow).
 
 You may limit which images build by adding the `-only=` flag to Packer.
 
+build raw images
+----------------
+From this directory, run:
+```
+$ cloud-localds cloud.img cloud.cfg
+$ /path/to/packer -var kubernetes_version=<YOUR K8S VERSION> -var kubernetes_cni_version=<YOUR K8S CNI VERSION> -var build_version=`git rev-parse HEAD` packer.json
+```
+
 deployment
 ----------
 There is a helper script to aid in seeding built AMI's to all other AWS regions.
diff --git a/packer/cloud.cfg b/packer/cloud.cfg
new file mode 100644
index 0000000..278c303
--- /dev/null
+++ b/packer/cloud.cfg
@@ -0,0 +1,5 @@
+#cloud-config
+password: ubuntu
+ssh_pwauth: true
+chpasswd:
+  expire: false
diff --git a/packer/packer.json b/packer/packer.json
index 93c4852..495eabe 100644
--- a/packer/packer.json
+++ b/packer/packer.json
@@ -47,6 +47,31 @@
         "kubernetes_version": "{{user `kubernetes_version`}}",
         "kubernetes_cni_version": "{{user `kubernetes_cni_version`}}"
       }
+    },
+    {
+        "name": "raw-ubuntu-16.04",
+        "type": "qemu",
+        "iso_url": "http://mirrors.servercentral.com/ubuntu-cloud-images/xenial/current/xenial-server-cloudimg-amd64-disk1.img",
+        "iso_checksum": "bdfcdcba8c31dba48b5d5482ae922d153a4d46b2",
+        "iso_checksum_type": "sha1",
+        "disk_image": true,
+        "disk_size": 2500,
+        "format": "raw",
+        "headless": true,
+        "disk_compression": true,
+        "ssh_username": "ubuntu",
+        "ssh_password": "ubuntu",
+        "disk_interface": "virtio",
+        "accelerator": "none",
+        "qemuargs": [
+            "-no-kvm",
+            [ "-machine", "pc" ],
+            [ "-m", "2048M" ],
+            ["-smp", "2"],
+            ["-fda", "cloud.img"],
+            ["-serial", "mon:stdio"]
+        ],
+        "vnc_bind_address": "0.0.0.0"
     }
   ],
   "provisioners": [