diff --git a/defaults/main.yml b/defaults/main.yml
index b091fa8..3152806 100644
--- a/defaults/main.yml
+++ b/defaults/main.yml
@@ -13,6 +13,9 @@
 # See the License for the specific language governing permissions and
 # limitations under the License.
 
+## Verbosity Options
+debug: False
+
 ## Cap the maximum number of threads / workers when a user value is unspecified.
 repo_nginx_threads_max: 16
 repo_nginx_threads: "{{ [[ansible_processor_vcpus|default(2) // 2, 1] | max, repo_nginx_threads_max] | min }}"
@@ -20,9 +23,10 @@ repo_nginx_threads: "{{ [[ansible_processor_vcpus|default(2) // 2, 1] | max, rep
 ## APT Cache Options
 cache_timeout: 600
 
-# Set the package install state for distribution packages
+# Set the package install state for distribution and pip packages
 # Options are 'present' and 'latest'
 repo_server_package_state: "latest"
+repo_server_pip_package_state: "latest"
 
 repo_worker_connections: 1024
 repo_server_name: openstack-slushee
@@ -61,3 +65,42 @@ repo_pkg_cache_group: apt-cacher-ng
 
 # Set the log directory
 repo_service_log_dir: /var/log/apt-cacher-ng
+
+# Required packages to install on the host
+repo_requires_pip_packages:
+  - virtualenv
+  - virtualenv-tools
+
+# Set the list of packages for the pypiserver
+repo_pypiserver_pip_packages:
+ - "pypiserver==1.2.0"
+
+# Set the path to place all built python wheels
+# This is used by pypiserver to serve them
+repo_pypiserver_package_path: "{{ repo_service_home_folder }}/repo/python_packages"
+
+# Path to the pypiserver python virtualenv binaries
+repo_pypiserver_bin: "/openstack/venvs/pypiserver-1.2.0/bin"
+
+# Path to the pypiserver working directory
+repo_pypiserver_working_dir: "{{ repo_service_home_folder }}/pypiserver"
+
+# pypiserver service start options
+repo_pypiserver_start_options: >-
+  -i localhost
+  -p 8080
+  --log-file /var/log/pypiserver/pypiserver.log
+  --disable-fallback
+  {{ (debug | bool) | ternary('-vv', '-v') }}
+  {{ repo_pypiserver_package_path }}
+
+# config override var for systemd init file
+repo_pypiserver_init_overrides: {}
+
+# Set the options for the nginx proxy_cache_path directive.
+# The proxy cache is used for data downloaded from pypi.
+# The default is set to cache up to 1G worth of packages
+# for up to 1 month
+repo_nginx_proxy_cache_path: >-
+  /var/lib/nginx/pypi levels=1:2 keys_zone=pypi:16m inactive=1M max_size=1G
+
diff --git a/handlers/main.yml b/handlers/main.yml
index 850cfd7..37a8ee1 100644
--- a/handlers/main.yml
+++ b/handlers/main.yml
@@ -79,3 +79,14 @@
   retries: 5
   delay: 2
 
+- name: reload pypiserver
+  service:
+    name: "pypiserver"
+    enabled: yes
+    state: restarted
+    daemon_reload: "{{ (ansible_service_mgr == 'systemd') | ternary('yes', omit) }}"
+  register: _restart
+  until: _restart | success
+  retries: 5
+  delay: 2
+
diff --git a/meta/main.yml b/meta/main.yml
index 4ac4f49..c135c74 100644
--- a/meta/main.yml
+++ b/meta/main.yml
@@ -38,3 +38,4 @@ dependencies:
   - role: apt_package_pinning
     when:
       - ansible_pkg_mgr == 'apt'
+  - role: pip_install
diff --git a/releasenotes/notes/pypiserver-pypi-cache-216e9e087f6d3f24.yaml b/releasenotes/notes/pypiserver-pypi-cache-216e9e087f6d3f24.yaml
new file mode 100644
index 0000000..f95a59b
--- /dev/null
+++ b/releasenotes/notes/pypiserver-pypi-cache-216e9e087f6d3f24.yaml
@@ -0,0 +1,8 @@
+---
+features:
+  - |
+    The repo server now implements nginx as a reverse proxy for python
+    packages sourced from pypi. The initial query will be to a local
+    deployment of pypiserver in order to serve any locally built packages,
+    but if the package is not available locally it will retry
+    the query against pypi and cache the response.
diff --git a/tasks/repo_install.yml b/tasks/repo_install.yml
index 0f05f13..3467f60 100644
--- a/tasks/repo_install.yml
+++ b/tasks/repo_install.yml
@@ -13,15 +13,42 @@
 # See the License for the specific language governing permissions and
 # limitations under the License.
 
-- name: Install repo server packages
+- name: Install distro packages
   package:
     name: "{{ repo_server_distro_packages }}"
     state: "{{ repo_server_package_state }}"
     update_cache: "{{ (ansible_pkg_mgr == 'apt') | ternary('yes', omit) }}"
     cache_valid_time: "{{ (ansible_pkg_mgr == 'apt') | ternary(cache_timeout, omit) }}"
   register: install_packages
-  until: install_packages|success
+  until: install_packages | success
   retries: 5
   delay: 5
-  tags:
-    - repo-packages
+
+- name: Install required pip packages
+  pip:
+    name: "{{ repo_requires_pip_packages }}"
+    state: "{{ repo_server_pip_package_state }}"
+    extra_args: >-
+      {{ (pip_install_upper_constraints is defined) | ternary('--constraint ' + pip_install_upper_constraints | default(''),'') }}
+      {{ pip_install_options | default('') }}
+  register: install_packages
+  until: install_packages | success
+  retries: 5
+  delay: 2
+
+- name: Install pip packages
+  pip:
+    name: "{{ repo_pypiserver_pip_packages }}"
+    state: "{{ repo_server_pip_package_state }}"
+    virtualenv: "{{ repo_pypiserver_bin | dirname }}"
+    virtualenv_site_packages: "no"
+    extra_args: >-
+      {{ (pip_install_upper_constraints is defined) | ternary('--constraint ' + pip_install_upper_constraints | default(''),'') }}
+      {{ pip_install_options | default('') }}
+  register: install_packages
+  until: install_packages | success
+  retries: 5
+  delay: 2
+  notify:
+    - reload pypiserver
+
diff --git a/tasks/repo_post_install.yml b/tasks/repo_post_install.yml
index f7feca5..99c655b 100644
--- a/tasks/repo_post_install.yml
+++ b/tasks/repo_post_install.yml
@@ -39,6 +39,8 @@
       dest: "/etc/rsyncd.conf"
     - src: "openstack-slushee.vhost.j2"
       dest: "/etc/nginx/sites-available/openstack-slushee.vhost"
+    - src: "nginx-pypi.conf.j2"
+      dest: "/etc/nginx/conf.d/pypi.conf"
   notify:
     - reload nginx
 
@@ -64,3 +66,16 @@
       dest: "{{ systemd_utils_prefix }}/system/git.socket"
   notify:
     - reload git socket
+
+- name: Place the pypiserver systemd init script
+  config_template:
+    src: "pypiserver-systemd-init.j2"
+    dest: "/etc/systemd/system/pypiserver.service"
+    mode: "0644"
+    owner: "root"
+    group: "root"
+    config_overrides: "{{ repo_pypiserver_init_overrides }}"
+    config_type: "ini"
+  notify:
+    - reload pypiserver
+
diff --git a/tasks/repo_pre_install.yml b/tasks/repo_pre_install.yml
index ceac285..8f2611e 100644
--- a/tasks/repo_pre_install.yml
+++ b/tasks/repo_pre_install.yml
@@ -62,6 +62,10 @@
     - path: "{{ repo_service_home_folder }}/repo/venvs"
     - path: "/var/log/nginx"
       mode: "0775"
+    - path: "/var/log/pypiserver"
+      mode: "0775"
+    - path: "{{ repo_pypiserver_working_dir }}"
+      mode: "0775"
 
 - name: Drop repo pre/post command script
   template:
@@ -96,6 +100,8 @@
     - path: "/var/log/lsyncd"
     - path: "/etc/nginx/sites-enabled/default"
       state: "absent"
+    - path: "/etc/nginx/conf.d"
     - path: "/etc/nginx/sites-available"
     - path: "/etc/nginx/sites-enabled"
+    - path: "{{ repo_pypiserver_package_path }}"
 
diff --git a/templates/nginx-pypi.conf.j2 b/templates/nginx-pypi.conf.j2
new file mode 100644
index 0000000..019e33d
--- /dev/null
+++ b/templates/nginx-pypi.conf.j2
@@ -0,0 +1,12 @@
+# {{ ansible_managed }}
+
+proxy_cache_path {{ repo_nginx_proxy_cache_path }};
+
+upstream pypiserver {
+    server localhost:8080;
+}
+
+upstream pypi {
+    server pypi.python.org:443;
+    keepalive 16;
+}
diff --git a/templates/openstack-slushee.vhost.j2 b/templates/openstack-slushee.vhost.j2
index 714582e..d9639eb 100644
--- a/templates/openstack-slushee.vhost.j2
+++ b/templates/openstack-slushee.vhost.j2
@@ -6,6 +6,40 @@ server {
     access_log /var/log/nginx/{{ repo_server_name }}.access.log gzip buffer=32k;
     error_log /var/log/nginx/{{ repo_server_name }}.error.log notice;
 
+    # Allow cached content to be used even when the upstream source is not available.
+    proxy_cache pypi;
+    proxy_cache_key $uri;
+    proxy_cache_lock on;
+    proxy_cache_revalidate on;
+    proxy_cache_use_stale error timeout updating http_500 http_502 http_503 http_504;
+
+    proxy_http_version 1.1;
+    proxy_set_header Host $host:$server_port;
+    proxy_set_header Connection "";
+    proxy_set_header Accept-Encoding "";
+
+    # Rewrite any http redirects to use relative to proxy
+    proxy_redirect ~https?://pypi.python.org(.*) $1;
+
+    # Fallback mechanism from:
+    # http://linuxplayer.org/2013/06/nginx-try-files-on-multiple-named-location-or-server
+    location @pypi {
+        proxy_set_header Host pypi.python.org;
+        proxy_pass https://pypi;
+    }
+
+    location /simple {
+        proxy_intercept_errors on;
+        proxy_pass http://pypiserver;
+        error_page 404 = @pypi;
+    }
+
+    location /packages {
+        proxy_intercept_errors on;
+        proxy_pass http://pypiserver;
+        error_page 404 = @pypi;
+    }
+
     location / {
         root {{ repo_service_home_folder }}/repo/;
         autoindex on;
diff --git a/templates/pypiserver-systemd-init.j2 b/templates/pypiserver-systemd-init.j2
new file mode 100644
index 0000000..18754b5
--- /dev/null
+++ b/templates/pypiserver-systemd-init.j2
@@ -0,0 +1,32 @@
+# {{ ansible_managed }}
+
+[Unit]
+Description=pypiserver
+After=network.target
+
+[Service]
+Type=simple
+User={{ repo_service_user_name }}
+Group={{ repo_service_group_name }}
+
+ExecStart={{ repo_pypiserver_bin }}/pypi-server {{ repo_pypiserver_start_options }}
+ExecStop=/bin/kill -TERM $MAINPID
+WorkingDirectory={{ repo_pypiserver_working_dir }}
+
+# Give a reasonable amount of time for the server to start up/shut down
+TimeoutSec=120
+TimeoutStartSec=3
+Restart=on-failure
+RestartSec=2
+
+# This creates a specific slice which all services will operate from
+#  The accounting options give us the ability to see resource usage through
+#  the `systemd-cgtop` command.
+Slice=pypiserver.slice
+CPUAccounting=true
+BlockIOAccounting=true
+MemoryAccounting=false
+TasksAccounting=true
+
+[Install]
+WantedBy=multi-user.target