diff --git a/.gitignore b/.gitignore
index 0b4512b15222d80c33a3428562c7119127340b2e..aac33b9075ce9126ab36fbd3f34a4edcf29dab3c 100644
--- a/.gitignore
+++ b/.gitignore
@@ -32,11 +32,10 @@
 
 # doc
 /doc/api
-/doc/*.html
+/doc/build
+/doc/html
 /doc/*.in
-/doc/*.pdf
 /doc/*.png
-/doc/rapi-resources.gen
 
 # doc/examples
 /doc/examples/bash_completion
diff --git a/DEVNOTES b/DEVNOTES
index b4146c47b6995bbc52e2a291d91074bdd882c705..35b93ddaf8fe3bc9c228dac6559213a30cf53ece 100644
--- a/DEVNOTES
+++ b/DEVNOTES
@@ -7,8 +7,8 @@ Build dependencies
 Most dependencies from INSTALL, plus:
  - docbook2html, docbook2man from Docbook tools
    http://sources.redhat.com/docbook-tools/
- - rst2html from Docutils
-   http://docutils.sourceforge.net/
+ - python-sphinx (tested with version 0.6.1) from
+   http://sphinx.pocoo.org/
  - graphviz
    http://www.graphviz.org/
 
@@ -16,6 +16,9 @@ Most dependencies from INSTALL, plus:
 Configuring for development
 ---------------------------
 
-sh autogen.sh && \
-./configure PYTHON=python2.4 --enable-maintainer-mode \
-  --prefix=/usr/local --sysconfdir=/etc --localstatedir=/var
+Run the following command (only use ``PYTHON=...`` if you need to use a
+different python version)::
+
+  sh autogen.sh && \
+  ./configure PYTHON=python2.4 \
+    --prefix=/usr/local --sysconfdir=/etc --localstatedir=/var
diff --git a/INSTALL b/INSTALL
index 5f5dda3d9b0f34d566e8b873a0805088fc47b2b9..857ff1a2786bb5721a3b69d089a636585eb107fe 100644
--- a/INSTALL
+++ b/INSTALL
@@ -56,6 +56,7 @@ Before initialising the cluster, on each node you need to create the following
 directories:
 
   - /etc/ganeti
+  - /var/lib/ganeti, /var/log/ganeti
   - /srv/ganeti, /srv/ganeti/os, /srv/ganeti/export
 
 After this, use ``gnt-cluster init``.
diff --git a/Makefile.am b/Makefile.am
index d441fae76145d92bc54a7a4aed3b2618b606a170..043ca8e5cad686deee00af0d14e91c1e9070e738 100644
--- a/Makefile.am
+++ b/Makefile.am
@@ -37,10 +37,12 @@ DIRS = \
 	tools
 
 MAINTAINERCLEANFILES = \
-	$(dochtml) \
-	$(patsubst %.dot,%.png,$(docdot)) \
+	$(docpng) \
 	$(maninput)
 
+maintainer-clean-local:
+	-rm -rf doc/api doc/build doc/html
+
 CLEANFILES = \
 	autotools/replace_vars.sed \
 	devel/upload \
@@ -111,18 +113,28 @@ docrst = \
 	doc/design-2.0.rst \
 	doc/hooks.rst \
 	doc/iallocator.rst \
+	doc/index.rst \
 	doc/install.rst \
 	doc/rapi.rst \
 	doc/security.rst
 
-dochtml = $(patsubst %.rst,%.html,$(docrst))
+doc/html: $(docrst) $(docpng) doc/conf.py configure.ac
+	@test -n "$(SPHINX)" || \
+	    { echo 'sphinx-build' not found during configure; exit 1; }
+	mkdir -p doc/build/doctrees
+	PYTHONPATH=.:$(top_builddir) sphinx-build -q -b html \
+	    -d doc/build/doctrees \
+	    -D version="$(VERSION_MAJOR).$(VERSION_MINOR)" \
+	    -D release="$(PACKAGE_VERSION)" \
+	    $(top_srcdir)/doc doc/html
+	touch "$@"
 
 docdot = \
 	doc/arch-2.0.dot
 
-doc_DATA = $(dochtml)
+docpng = $(patsubst %.dot,%.png,$(docdot))
 
-noinst_DATA = $(manhtml)
+noinst_DATA = $(manhtml) doc/html
 
 dist_sbin_SCRIPTS = \
 	daemons/ganeti-noded \
@@ -149,8 +161,10 @@ EXTRA_DIST = \
 	DEVNOTES \
 	autotools/docbook-wrapper \
 	devel/upload.in \
-	$(docrst) \
 	$(docdot) \
+	$(docrst) \
+	doc/conf.py \
+	doc/html \
 	doc/examples/bash_completion.in \
 	doc/examples/ganeti.initd.in \
 	doc/examples/ganeti.cron.in \
@@ -234,16 +248,10 @@ doc/examples/%: doc/examples/%.in stamp-directories \
 		$(REPLACE_VARS_SED)
 	sed -f $(REPLACE_VARS_SED) < $< > $@
 
-doc/%.html: doc/%.rst
-	@test -n "$(RST2HTML)" || { echo 'rst2html' not found during configure; exit 1; }
-	$(RST2HTML) $< $@
-
 doc/%.png: doc/%.dot
 	@test -n "$(DOT)" || { echo 'dot' not found during configure; exit 1; }
 	$(DOT) -Tpng -o $@ $<
 
-doc/design-2.0.html: doc/design-2.0.rst doc/arch-2.0.png
-
 man/%.7.in man/%.8.in: man/%.sgml man/footer.sgml $(DOCBOOK_WRAPPER)
 	@test -n "$(DOCBOOK2MAN)" || { echo 'docbook2html' not found during configure; exit 1; }
 	TMPDIR=`mktemp -d` && { \
diff --git a/configure.ac b/configure.ac
index 75e3531b4fbfa576aaf3de9f285d4537281125f6..905402ecdaf2d3adcf129da54a327d7d122ea46c 100644
--- a/configure.ac
+++ b/configure.ac
@@ -138,12 +138,12 @@ then
   AC_MSG_WARN([docbook2html not found, man pages rebuild will not be possible])
 fi
 
-# Check for rst programs
-AC_ARG_VAR(RST2HTML, [rst2html path])
-AC_PATH_PROG(RST2HTML, [rst2html], [])
-if test -z "$RST2HTML"
+# Check for python-sphinx
+AC_ARG_VAR(SPHINX, [sphinx-build path])
+AC_PATH_PROG(SPHINX, [sphinx-build], [])
+if test -z "$SPHINX"
 then
-  AC_MSG_WARN([rst2html not found, documentation rebuild will not be possible])
+  AC_MSG_WARN([sphinx-build not found, documentation rebuild will not be possible])
 fi
 
 # Check for graphviz (dot)
diff --git a/doc/conf.py b/doc/conf.py
new file mode 100644
index 0000000000000000000000000000000000000000..8b525392f2e1dfb6d4867905f240fcb32cbc60f4
--- /dev/null
+++ b/doc/conf.py
@@ -0,0 +1,195 @@
+# -*- coding: utf-8 -*-
+#
+# Ganeti documentation build configuration file, created by
+# sphinx-quickstart on Tue Apr 14 13:23:20 2009.
+#
+# This file is execfile()d with the current directory set to its containing dir.
+#
+# Note that not all possible configuration values are present in this
+# autogenerated file.
+#
+# All configuration values have a default; values that are commented out
+# serve to show the default.
+
+import sys, os
+
+# If extensions (or modules to document with autodoc) are in another directory,
+# add these directories to sys.path here. If the directory is relative to the
+# documentation root, use os.path.abspath to make it absolute, like shown here.
+#sys.path.append(os.path.abspath('.'))
+
+# -- General configuration -----------------------------------------------------
+
+# Add any Sphinx extension module names here, as strings. They can be extensions
+# coming with Sphinx (named 'sphinx.ext.*') or your custom ones.
+extensions = ['sphinx.ext.todo']
+
+# Add any paths that contain templates here, relative to this directory.
+templates_path = ['_templates']
+
+# The suffix of source filenames.
+source_suffix = '.rst'
+
+# The encoding of source files.
+source_encoding = 'utf-8'
+
+# The master toctree document.
+master_doc = 'index'
+
+# General information about the project.
+project = u'Ganeti'
+copyright = u'2006, 2007, 2008, 2009, Google Inc.'
+
+# The version info for the project you're documenting, acts as replacement for
+# |version| and |release|, also used in various other places throughout the
+# built documents.
+#
+# These next two will be passed via the command line, see the makefile
+# The short X.Y version
+#version = VERSION_MAJOR + "." + VERSION_MINOR
+# The full version, including alpha/beta/rc tags.
+#release = PACKAGE_VERSION
+
+# The language for content autogenerated by Sphinx. Refer to documentation
+# for a list of supported languages.
+language = 'en'
+
+# There are two options for replacing |today|: either, you set today to some
+# non-false value, then it is used:
+#today = ''
+# Else, today_fmt is used as the format for a strftime call.
+#today_fmt = '%B %d, %Y'
+
+# List of documents that shouldn't be included in the build.
+#unused_docs = []
+
+# List of directories, relative to source directory, that shouldn't be searched
+# for source files.
+exclude_trees = ['_build', 'examples', 'api']
+
+# The reST default role (used for this markup: `text`) to use for all documents.
+#default_role = None
+
+# If true, '()' will be appended to :func: etc. cross-reference text.
+#add_function_parentheses = True
+
+# If true, the current module name will be prepended to all description
+# unit titles (such as .. function::).
+#add_module_names = True
+
+# If true, sectionauthor and moduleauthor directives will be shown in the
+# output. They are ignored by default.
+#show_authors = False
+
+# The name of the Pygments (syntax highlighting) style to use.
+pygments_style = 'sphinx'
+
+# A list of ignored prefixes for module index sorting.
+#modindex_common_prefix = []
+
+
+# -- Options for HTML output ---------------------------------------------------
+
+# The theme to use for HTML and HTML Help pages.  Major themes that come with
+# Sphinx are currently 'default' and 'sphinxdoc'.
+html_theme = 'default'
+
+# Theme options are theme-specific and customize the look and feel of a theme
+# further.  For a list of options available for each theme, see the
+# documentation.
+#html_theme_options = {}
+
+# Add any paths that contain custom themes here, relative to this directory.
+#html_theme_path = []
+
+# The name for this set of Sphinx documents.  If None, it defaults to
+# "<project> v<release> documentation".
+#html_title = None
+
+# A shorter title for the navigation bar.  Default is the same as html_title.
+#html_short_title = None
+
+# The name of an image file (relative to this directory) to place at the top
+# of the sidebar.
+#html_logo = None
+
+# The name of an image file (within the static path) to use as favicon of the
+# docs.  This file should be a Windows icon file (.ico) being 16x16 or 32x32
+# pixels large.
+#html_favicon = None
+
+# Add any paths that contain custom static files (such as style sheets) here,
+# relative to this directory. They are copied after the builtin static files,
+# so a file named "default.css" will overwrite the builtin "default.css".
+html_static_path = []
+
+# If not '', a 'Last updated on:' timestamp is inserted at every page bottom,
+# using the given strftime format.
+#html_last_updated_fmt = '%b %d, %Y'
+
+# If true, SmartyPants will be used to convert quotes and dashes to
+# typographically correct entities.
+#html_use_smartypants = True
+
+# Custom sidebar templates, maps document names to template names.
+#html_sidebars = {}
+
+# Additional templates that should be rendered to pages, maps page names to
+# template names.
+#html_additional_pages = {}
+
+# If false, no module index is generated.
+html_use_modindex = False
+
+# If false, no index is generated.
+html_use_index = False
+
+# If true, the index is split into individual pages for each letter.
+#html_split_index = False
+
+# If true, links to the reST sources are added to the pages.
+#html_show_sourcelink = True
+
+# If true, an OpenSearch description file will be output, and all pages will
+# contain a <link> tag referring to it.  The value of this option must be the
+# base URL from which the finished HTML is served.
+#html_use_opensearch = ''
+
+# If nonempty, this is the file name suffix for HTML files (e.g. ".xhtml").
+#html_file_suffix = ''
+
+# Output file base name for HTML help builder.
+htmlhelp_basename = 'Ganetidoc'
+
+
+# -- Options for LaTeX output --------------------------------------------------
+
+# The paper size ('letter' or 'a4').
+#latex_paper_size = 'letter'
+
+# The font size ('10pt', '11pt' or '12pt').
+#latex_font_size = '10pt'
+
+# Grouping the document tree into LaTeX files. List of tuples
+# (source start file, target name, title, author, documentclass [howto/manual]).
+latex_documents = [
+  ('index', 'Ganeti.tex', u'Ganeti Documentation',
+   u'Google Inc.', 'manual'),
+]
+
+# The name of an image file (relative to this directory) to place at the top of
+# the title page.
+#latex_logo = None
+
+# For "manual" documents, if this is true, then toplevel headings are parts,
+# not chapters.
+#latex_use_parts = False
+
+# Additional stuff for the LaTeX preamble.
+#latex_preamble = ''
+
+# Documents to append as an appendix to all manuals.
+#latex_appendices = []
+
+# If false, no module index is generated.
+latex_use_modindex = False
diff --git a/doc/index.rst b/doc/index.rst
new file mode 100644
index 0000000000000000000000000000000000000000..f9e698a234b00fba16dd297976ae12c01d8b007c
--- /dev/null
+++ b/doc/index.rst
@@ -0,0 +1,20 @@
+.. Ganeti documentation master file,
+   created by sphinx-quickstart
+
+Welcome to Ganeti's documentation!
+==================================
+
+Contents:
+
+.. toctree::
+   :maxdepth: 2
+
+   install.rst
+   admin.rst
+   security.rst
+   design-2.0.rst
+   hooks.rst
+   iallocator.rst
+   rapi.rst
+
+Also see the :ref:`search`.