Some embodiments provide a method for automated configuration of a set of resources for hosting a virtual machine at a particular node in a hosting system. The hosting system includes several nodes for hosting several virtual machines. The method, at a first virtual machine operating using a first set of resources of the particular node, receives a configuration for a second virtual machine to be hosted on a second set of resources of the particular node. The method, from the first virtual machine, accesses the second set of resources to partition a file system for storing the second virtual machine. The method modifies the file system to configure the second virtual machine as specified by the configuration.