diff --git a/.gitignore b/.gitignore
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--- /dev/null
+++ b/.gitignore
@@ -0,0 +1 @@
+*.pyc
diff --git a/LICENSE b/LICENSE
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--- /dev/null
+++ b/LICENSE
@@ -0,0 +1,14 @@
+   Copyright (c) 2014 Salt Stack Formulas
+
+   Licensed under the Apache License, Version 2.0 (the "License");
+   you may not use this file except in compliance with the License.
+   You may obtain a copy of the License at
+
+       http://www.apache.org/licenses/LICENSE-2.0
+
+   Unless required by applicable law or agreed to in writing, software
+   distributed under the License is distributed on an "AS IS" BASIS,
+   WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+   See the License for the specific language governing permissions and
+   limitations under the License.
+
diff --git a/README.md b/README.md
deleted file mode 100644
index 8bed6f5..0000000
--- a/README.md
+++ /dev/null
@@ -1,2 +0,0 @@
-reverse-grains-formula
-======================
diff --git a/README.rst b/README.rst
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index 0000000..b187735
--- /dev/null
+++ b/README.rst
@@ -0,0 +1,23 @@
+======================
+reverse-grains-formula
+======================
+
+Formula to configure grains via pillar in a grain/hosts rather than host/grains manner.
+
+
+.. note::
+
+    See the full `Salt Formulas installation and usage instructions
+    <http://docs.saltstack.com/topics/development/conventions/formulas.html>`_.
+
+Available states
+================
+
+.. contents::
+    :local:
+
+``grains``
+---------
+
+Configure grains in /etc/salt/grains. Written with the py renderer. Utilizes
+compound matches in the pillar to apply the grains and their values.
diff --git a/grains/init.sls b/grains/init.sls
new file mode 100644
index 0000000..ebb3c1f
--- /dev/null
+++ b/grains/init.sls
@@ -0,0 +1,72 @@
+#!py
+import yaml
+
+class GrainMaker:
+  """Generates the /etc/salt/grains file based on pillar data.
+  Example pillar:
+  grains:
+    grain1:
+      grainvalue1:
+        - G@id:host1
+        - G@id:host2
+      grainvalue2:
+        - G@id:host3
+    grain2:
+      grainvalue1:
+        - G@id:host1
+        - G@id:host2
+
+  Grains are assigned to each minion via compound matchers.
+  """
+  def __init__(self):
+    self._grains = {}
+
+  def _createGrainsYaml(self):
+    # Outputs the final yaml for /etc/salt/grains
+    return yaml.dump(self._grains, default_flow_style=False)
+
+  def _matchValueToMinion(self, matchList):
+    # Checks that the matches for each grain value apply to this minion
+    matchList = matchList or []
+    return any(__salt__["match.compound"](match) for match in matchList)
+
+  def _addToGrains(self, grain, grainKey, value):
+    # Collects the grains into a dictionary
+    if self._matchValueToMinion(grain[grainKey][value]):
+      valueList = self._grains.get(grainKey, [])
+      valueList.append(value)
+
+      self._grains[grainKey] = valueList
+
+  def _parseGrainValues(self, grain):
+    # Parses individual grains and their values passed from the pillar
+    grainKey = grain.keys()[0]
+    if grain[grainKey]:
+      for value in grain[grainKey]:
+        self._addToGrains(grain, grainKey, value)
+
+      # If there is only one value for a grain, make sure it is a string
+      # and not a single item list. This is import for the yaml to be
+      # properly formatted.
+      if len(self._grains.get(grainKey, [])) == 1:
+        self._grains[grainKey] = self._grains[grainKey][0]
+
+  def buildGrains(self, grains):
+    """Starts the grain building process."""
+    for grain in grains:
+      self._parseGrainValues({grain: grains[grain]})
+
+    return self._createGrainsYaml()
+
+def run():
+  maker=GrainMaker()
+  grainsYaml = maker.buildGrains(__pillar__["grains"])
+
+  return {'/etc/salt/grains':
+           {'file.managed': [
+             {'contents': grainsYaml},
+             {'user': 'root'},
+             {'group': 'root'},
+             {'mode': '644'}]
+           }
+         }
diff --git a/pillar.example b/pillar.example
new file mode 100644
index 0000000..100b9b8
--- /dev/null
+++ b/pillar.example
@@ -0,0 +1,44 @@
+####################################################################
+# Grains pillar:                                                   #
+# Only compound matches are uses                                   #
+#                                                                  #
+# Matches with single value will appear in /etc/salt/grains as:    #
+# grain: value                                                     #
+#                                                                  #
+# Matches with multiple values will appear in /etc/salt/grains as: #
+# grain:                                                           #
+# - value1                                                         #
+# - value2                                                         #
+####################################################################
+grains:
+  # Grain
+  environment:
+    # Grain value
+    prod:
+      # Compound match to apply the grain and value to
+      - G@environment:prod
+    qa:
+      - G@environment:qa
+    dev:
+      - G@environment:dev
+    testing:
+      - G@environment:testing
+  datacenter:
+    phx:
+      - G@id:*phx*
+    ewr:
+      - G@id:*ewr*
+  roles:
+    database:
+      - G@id:db*
+    memcache:
+      - G@id:memcache*
+    docker:
+      - G@id:docker*
+    logserver:
+      - G@id:log*
+    web:
+      - G@id:web*
+  subrole:
+    primary:
+      - E@web[0-9]+-(phx|ewr).example.com or E@db[0-9]+-(phx|ewr).example.com