diff --git a/README.rst b/README.rst
index ff9d3c7..8b52e14 100644
--- a/README.rst
+++ b/README.rst
@@ -22,7 +22,9 @@ Installs the ``openssh`` package and service.
 ------------------
 
 Installs the configuration file included in this formula
-(under "openssh/files").
+(under "openssh/files"). This configuration file is populated
+by values from pillar. ``pillar.example`` results in the generation
+of the default ``sshd_config`` file on Debian Wheezy.
 
 ``openssh.banner``
 ------------------
diff --git a/openssh/config.sls b/openssh/config.sls
index cbf7376..1a9e7a8 100644
--- a/openssh/config.sls
+++ b/openssh/config.sls
@@ -7,6 +7,10 @@ sshd_config:
   file.managed:
     - name: {{ openssh.sshd_config }}
     - source: {{ openssh.sshd_config_src }}
+    - template: jinja
+    - user: root
+    - group: root
+    - mode: 644
     - watch_in:
-      - service: {{ openssh.service }}
+      - service: openssh
 
diff --git a/openssh/files/sshd_config b/openssh/files/sshd_config
index b59c59c..43e2566 100644
--- a/openssh/files/sshd_config
+++ b/openssh/files/sshd_config
@@ -1,88 +1,100 @@
-#	$OpenBSD: sshd_config,v 1.89 2013/02/06 00:20:42 dtucker Exp $
+{% set sshd_config = pillar.get('sshd_config', {}) %}
 
-# This is the sshd server system-wide configuration file.  See
-# sshd_config(5) for more information.
+# This file is managed by salt. Manual changes risk being overwritten.
+# The contents of the original sshd_config are kept on the bottom for
+# quick reference.
+# See the sshd_config(5) manpage for details
 
-# This sshd was compiled with PATH=/usr/bin:/bin:/usr/sbin:/sbin
-
-# The strategy used for options in the default sshd_config shipped with
-# OpenSSH is to specify options with their default value where
-# possible, but leave them commented.  Uncommented options override the
-# default value.
+{% for keyword, argument in sshd_config.iteritems() %}
+    {%- if argument is sameas true %}
+{{ keyword }} yes
+    {%- elif argument is sameas false %}
+{{ keyword }} no
+    {%- elif argument is string or argument is number %}
+{{ keyword }} {{ argument }}
+    {%- else %}
+        {%- for item in argument %}
+{{ keyword }} {{ item }}
+        {%- endfor %}
+    {%- endif %}
+{%- endfor %}
 
+# What ports, IPs and protocols we listen for
 #Port 22
-#AddressFamily any
-#ListenAddress 0.0.0.0
+# Use these options to restrict which interfaces/protocols sshd will bind to
 #ListenAddress ::
-
-# The default requires explicit activation of protocol 1
+#ListenAddress 0.0.0.0
 #Protocol 2
-
-# HostKey for protocol version 1
-#HostKey /etc/ssh/ssh_host_key
 # HostKeys for protocol version 2
 #HostKey /etc/ssh/ssh_host_rsa_key
 #HostKey /etc/ssh/ssh_host_dsa_key
 #HostKey /etc/ssh/ssh_host_ecdsa_key
+#Privilege Separation is turned on for security
+#UsePrivilegeSeparation yes
 
 # Lifetime and size of ephemeral version 1 server key
-#KeyRegenerationInterval 1h
-#ServerKeyBits 1024
+#KeyRegenerationInterval 3600
+#ServerKeyBits 768
 
 # Logging
-# obsoletes QuietMode and FascistLogging
 #SyslogFacility AUTH
 #LogLevel INFO
 
 # Authentication:
-
-#LoginGraceTime 2m
+#LoginGraceTime 120
 #PermitRootLogin yes
 #StrictModes yes
-#MaxAuthTries 6
-#MaxSessions 10
 
 #RSAAuthentication yes
 #PubkeyAuthentication yes
+#AuthorizedKeysFile	%h/.ssh/authorized_keys
 
-# The default is to check both .ssh/authorized_keys and .ssh/authorized_keys2
-# but this is overridden so installations will only check .ssh/authorized_keys
-AuthorizedKeysFile	.ssh/authorized_keys
-
-#AuthorizedPrincipalsFile none
-
-#AuthorizedKeysCommand none
-#AuthorizedKeysCommandUser nobody
-
-# For this to work you will also need host keys in /etc/ssh/ssh_known_hosts
+# Don't read the user's ~/.rhosts and ~/.shosts files
+#IgnoreRhosts yes
+# For this to work you will also need host keys in /etc/ssh_known_hosts
 #RhostsRSAAuthentication no
 # similar for protocol version 2
 #HostbasedAuthentication no
-# Change to yes if you don't trust ~/.ssh/known_hosts for
-# RhostsRSAAuthentication and HostbasedAuthentication
-#IgnoreUserKnownHosts no
-# Don't read the user's ~/.rhosts and ~/.shosts files
-#IgnoreRhosts yes
+# Uncomment if you don't trust ~/.ssh/known_hosts for RhostsRSAAuthentication
+#IgnoreUserKnownHosts yes
 
-# To disable tunneled clear text passwords, change to no here!
-#PasswordAuthentication yes
+# To enable empty passwords, change to yes (NOT RECOMMENDED)
 #PermitEmptyPasswords no
 
-# Change to no to disable s/key passwords
-ChallengeResponseAuthentication no
+# Change to yes to enable challenge-response passwords (beware issues with
+# some PAM modules and threads)
+#ChallengeResponseAuthentication no
+
+# Change to no to disable tunnelled clear text passwords
+#PasswordAuthentication yes
 
 # Kerberos options
 #KerberosAuthentication no
+#KerberosGetAFSToken no
 #KerberosOrLocalPasswd yes
 #KerberosTicketCleanup yes
-#KerberosGetAFSToken no
 
 # GSSAPI options
 #GSSAPIAuthentication no
 #GSSAPICleanupCredentials yes
 
-# Set this to 'yes' to enable PAM authentication, account processing, 
-# and session processing. If this is enabled, PAM authentication will 
+#X11Forwarding yes
+#X11DisplayOffset 10
+#PrintMotd no
+#PrintLastLog yes
+#TCPKeepAlive yes
+#UseLogin no
+
+#MaxStartups 10:30:60
+#Banner /etc/issue.net
+
+# Allow client to pass locale environment variables
+#AcceptEnv LANG LC_*
+
+#Subsystem sftp /usr/lib/openssh/sftp-server
+
+# Set this to 'yes' to enable PAM authentication, account processing,
+# and session processing. If this is enabled, PAM authentication will
 # be allowed through the ChallengeResponseAuthentication and
 # PasswordAuthentication.  Depending on your PAM configuration,
 # PAM authentication via ChallengeResponseAuthentication may bypass
@@ -90,38 +102,4 @@ ChallengeResponseAuthentication no
 # If you just want the PAM account and session checks to run without
 # PAM authentication, then enable this but set PasswordAuthentication
 # and ChallengeResponseAuthentication to 'no'.
-UsePAM yes
-
-#AllowAgentForwarding yes
-#AllowTcpForwarding yes
-#GatewayPorts no
-X11Forwarding yes
-#X11DisplayOffset 10
-#X11UseLocalhost yes
-PrintMotd no # pam does that
-#PrintLastLog yes
-#TCPKeepAlive yes
-#UseLogin no
-UsePrivilegeSeparation sandbox		# Default for new installations.
-#PermitUserEnvironment no
-#Compression delayed
-#ClientAliveInterval 0
-#ClientAliveCountMax 3
-#UseDNS yes
-#PidFile /run/sshd.pid
-#MaxStartups 10:30:100
-#PermitTunnel no
-#ChrootDirectory none
-#VersionAddendum none
-
-# no default banner path
-Banner /etc/ssh/banner
-
-# override default of no subsystems
-Subsystem	sftp	/usr/lib/ssh/sftp-server
-
-# Example of overriding settings on a per-user basis
-#Match User anoncvs
-#	X11Forwarding no
-#	AllowTcpForwarding no
-#	ForceCommand cvs server
+#UsePAM yes
diff --git a/pillar.example b/pillar.example
index e69de29..53db7c0 100644
--- a/pillar.example
+++ b/pillar.example
@@ -0,0 +1,30 @@
+sshd_config:
+  Port: 22
+  Protocol: 2
+  HostKey:
+    - /etc/ssh/ssh_host_rsa_key
+    - /etc/ssh/ssh_host_dsa_key
+    - /etc/ssh/ssh_host_ecdsa_key
+  UsePrivilegeSeparation: yes
+  KeyRegenerationInterval: 3600
+  ServerKeyBits: 768
+  SyslogFacility: AUTH
+  LogLevel: INFO
+  LoginGraceTime: 120
+  PermitRootLogin: yes
+  StrictModes: yes
+  RSAAuthentication: yes
+  PubkeyAuthentication: yes
+  IgnoreRhosts: yes
+  RhostsRSAAuthentication: no
+  HostbasedAuthentication: no
+  PermitEmptyPasswords: no
+  ChallengeResponseAuthentication: no
+  X11Forwarding: yes
+  X11DisplayOffset: 10
+  PrintMotd: no
+  PrintLastLog: yes
+  TCPKeepAlive: yes
+  AcceptEnv: "LANG LC_*"
+  Subsystem: "sftp /usr/lib/openssh/sftp-server"
+  UsePAM: yes