diff --git a/modules/misc/ids.nix b/modules/misc/ids.nix
index 34b368593..81dd0acb1 100644
--- a/modules/misc/ids.nix
+++ b/modules/misc/ids.nix
@@ -39,11 +39,13 @@ in
     ids.uids = {
       nixbld = lib.mkDefault 350;
       _prometheus-node-exporter = 534;
+      colima = 400;
     };
 
     ids.gids = {
       nixbld = lib.mkDefault (if config.system.stateVersion < 5 then 30000 else 350);
       _prometheus-node-exporter = 534;
+      _colima = 400;
     };
 
   };
diff --git a/modules/module-list.nix b/modules/module-list.nix
index 8b2215ba3..fcca17d82 100644
--- a/modules/module-list.nix
+++ b/modules/module-list.nix
@@ -61,6 +61,7 @@
   ./services/buildkite-agents.nix
   ./services/chunkwm.nix
   ./services/cachix-agent.nix
+  ./services/colima
   ./services/dnsmasq.nix
   ./services/emacs.nix
   ./services/eternal-terminal.nix
diff --git a/modules/services/colima/default.nix b/modules/services/colima/default.nix
new file mode 100644
index 000000000..01d964fde
--- /dev/null
+++ b/modules/services/colima/default.nix
@@ -0,0 +1,192 @@
+{
+  config,
+  lib,
+  pkgs,
+  ...
+}:
+
+with lib;
+let
+  cfg = config.services.colima;
+  user = config.users.users."colima";
+  group = config.users.groups."_colima";
+in
+{
+  options.services.colima = {
+    enable = mkEnableOption "Colima, a macOS container runtime";
+
+    enableDockerCompatability = mkOption {
+      type = types.bool;
+      default = false;
+      description = ''
+        Create a symlink from Colima's socket to /var/run/docker.sock, and set
+        its permissions so that users part of the _colima group can use it.
+      '';
+    };
+
+    package = mkPackageOption pkgs "colima" { };
+
+    stateDir = lib.mkOption {
+      type = types.path;
+      default = "/var/lib/colima";
+      description = "State directory of the Colima process.";
+    };
+
+    logFile = mkOption {
+      type = types.path;
+      default = "/var/log/colima.log";
+      description = "Combined stdout and stderr of the colima process. Set to /dev/null to disable.";
+    };
+
+    groupMembers = mkOption {
+      type = types.listOf types.str;
+      default = [ ];
+      description = ''
+        List of users that should be added to the _colima group.
+        Only has effect with enableDockerCompatability enabled.
+      '';
+    };
+
+    runtime = mkOption {
+      type = types.enum [
+        "docker"
+        "containerd"
+        "incus"
+      ];
+      default = "docker";
+      description = "The runtime to use with Colima.";
+    };
+
+    architectue = mkOption {
+      type = types.enum [
+        "x86_64"
+        "aarch64"
+        "host"
+      ];
+      default = "host";
+      description = "The architecture to use for the Colima virtual machine.";
+    };
+
+    extraFlags = mkOption {
+      type = types.listOf types.str;
+      default = [ ];
+      example = [ "--vz-rosetta" ];
+      description = "Extra commandline options to pass to the colima start command.";
+    };
+
+    vmType = mkOption {
+      type = types.enum [
+        "qemu"
+        "vz"
+      ];
+      default = "vz";
+      description = "Virtual machine type to use with Colima.";
+    };
+  };
+
+  config = mkMerge [
+    (mkIf cfg.enableDockerCompatability {
+      assertions = [
+        {
+          assertion = !cfg.enable;
+          message = "services.colima.enableDockerCompatability doesn't make sense without enabling services.colima.enable";
+        }
+      ];
+
+      launchd.daemons.colima-docker-compat = {
+        script = ''
+          # Wait for the docker socket to be created. This is important when
+          # we enabled Colima and Docker compatability at the same time, for
+          # the first time. Colima takes a while creating the VM.
+          until [ -S ${cfg.stateDir}/.colima/default/docker.sock ]
+          do
+            sleep 5
+          done
+
+          chmod g+rw ${cfg.stateDir}/.colima/default/docker.sock
+          ln -sf ${cfg.stateDir}/.colima/default/docker.sock /var/run/docker.sock
+        '';
+
+        serviceConfig = {
+          RunAtLoad = true;
+          EnvironmentVariables.PATH = "/usr/bin:/bin:/usr/sbin:/sbin";
+        };
+      };
+
+      users.groups."_colima".members = cfg.groupMembers;
+
+      environment.systemPackages = [
+        pkgs.docker
+      ];
+    })
+
+    (mkIf cfg.enable {
+      launchd.daemons.colima = {
+        script =
+          concatStringsSep " " [
+            "exec"
+            (getExe cfg.package)
+            "start"
+            "--foreground"
+            "--runtime ${cfg.runtime}"
+            "--arch ${cfg.architectue}"
+            "--vm-type ${cfg.vmType}"
+          ]
+          + escapeShellArgs cfg.extraFlags;
+
+        serviceConfig = {
+          KeepAlive = true;
+          RunAtLoad = true;
+          StandardErrorPath = cfg.logFile;
+          StandardOutPath = cfg.logFile;
+          GroupName = group.name;
+          UserName = user.name;
+          WorkingDirectory = cfg.stateDir;
+          EnvironmentVariables = {
+            PATH = "${pkgs.colima}/bin:${pkgs.docker}/bin:/usr/bin:/bin:/usr/sbin:/sbin";
+            COLIMA_HOME = "${cfg.stateDir}/.colima";
+          };
+        };
+      };
+
+      system.activationScripts.preActivation.text = ''
+        touch '${cfg.logFile}'
+        chown ${toString user.uid}:${toString user.gid} '${cfg.logFile}'
+      '';
+
+      users = {
+        knownGroups = [
+          "colima"
+          "_colima"
+        ];
+        knownUsers = [
+          "colima"
+          "_colima"
+        ];
+      };
+
+      users.users."colima" = {
+        uid = config.ids.uids.colima;
+        gid = config.ids.gids._colima;
+        home = cfg.stateDir;
+        # The username isn't allowed to have an underscore in the beginning of
+        # its name, otherwise the VM will fail to start with the following error
+        #   > "[hostagent] identifier \"_colima\" must match ^[A-Za-z0-9]+(?:[._-](?:[A-Za-z0-9]+))*$: invalid argument" fields.level=fatal
+        name = "colima";
+        createHome = true;
+        shell = "/bin/bash";
+        description = "System user for Colima";
+      };
+
+      users.groups."_colima" = {
+        gid = config.ids.gids._colima;
+        name = "_colima";
+        description = "System group for Colima";
+      };
+    })
+  ];
+
+  meta.maintainers = [
+    lib.maintainers.bryanhonof or "bryanhonof"
+  ];
+}
diff --git a/release.nix b/release.nix
index b3e2df7ed..4c8f807f5 100644
--- a/release.nix
+++ b/release.nix
@@ -97,6 +97,7 @@ in {
   tests.services-activate-system = makeTest ./tests/services-activate-system.nix;
   tests.services-activate-system-changed-label-prefix = makeTest ./tests/services-activate-system-changed-label-prefix.nix;
   tests.services-buildkite-agent = makeTest ./tests/services-buildkite-agent.nix;
+  tests.services-colima = makeTest ./tests/services-colima.nix;
   tests.services-github-runners = makeTest ./tests/services-github-runners.nix;
   tests.services-lorri = makeTest ./tests/services-lorri.nix;
   tests.services-nix-daemon = makeTest ./tests/services-nix-daemon.nix;
diff --git a/tests/services-colima.nix b/tests/services-colima.nix
new file mode 100644
index 000000000..0fb0c94ab
--- /dev/null
+++ b/tests/services-colima.nix
@@ -0,0 +1,45 @@
+{ config, pkgs, ... }:
+
+let
+  colima = pkgs.runCommand "colima-0.0.0" { } "mkdir $out";
+in
+
+{
+  services.colima = {
+    enable = true;
+    enableDockerCompatability = true;
+    package = colima;
+    groupMembers = [ "john" "jane" ];
+  };
+
+  test = ''
+    echo "checking colima service in /Library/LaunchDaemons" >&2
+    grep "org.nixos.colima" ${config.out}/Library/LaunchDaemons/org.nixos.colima.plist
+    grep "${colima}/bin/dnsmasq" ${config.out}/Library/LaunchDaemons/org.nixos.colima.plist
+
+    echo "checking colima docker compat service in /Library/LaunchDaemons" >&2
+    grep "org.nixos.colima-docker-compat" ${config.out}/Library/LaunchDaemons/org.nixos.colima-docker-compat.plist
+
+    echo "checking colima config" >&2
+    grep -F "--foreground" ${config.out}/Library/LaunchDaemons/org.nixos.colima.plist
+    grep -F "--runtime docker" ${config.out}/Library/LaunchDaemons/org.nixos.colima.plist
+    grep -F "--architectue host" ${config.out}/Library/LaunchDaemons/org.nixos.colima.plist
+
+    echo "checking user creation in /activate" >&2
+    grep "sysadminctl -addUser ${lib.escapeShellArgs [ "foo" "-UID" config.ids.uids.colima "-GID" config.ids.uids._colima "-fullName" "colima" "-home" "/var/lib/colima" "-shell" "/bin/bash" ]}" ${config.out}/activate
+    grep "createhomedir -cu ${lib.escapeShellArg "colima"}" ${config.out}/activate
+    grep "sysadminctl -addUser ${lib.escapeShellArgs [ "colima" "-UID" config.ids.uids.colima ]} .* ${lib.escapeShellArgs [ "-shell" "/bin/bash" ] }" ${config.out}/activate
+    grep "sysadminctl -addUser ${lib.escapeShellArg "colima"} .* ${lib.escapeShellArgs [ "-home" "/var/lib/colima" ]}" ${config.out}/activate
+    (! grep "dscl . -delete ${lib.escapeShellArg "/Users/colima"}" ${config.out}/activate)
+    (! grep "dscl . -delete ${lib.escapeShellArg "/Groups/_colima"}" ${config.out}/activate)
+
+    echo "checking group creation in /activate" >&2
+    grep "dscl . -create ${lib.escapeShellArg "/Groups/_colima"} PrimaryGroupID ${builtins.toString config.ids.gids._colima}" ${config.out}/activate
+    grep "dscl . -create ${lib.escapeShellArg "/Groups/_colima"} RealName ${lib.escapeShellArg "_colima"}" ${config.out}/activate
+    grep "dscl . -create ${lib.escapeShellArg "/Groups/_colima"} PrimaryGroupID ${builtins.toString config.ids.gids._colima}" ${config.out}/activate
+    (! grep "dscl . -delete ${lib.escapeShellArg "/Groups/_colima"}" ${config.out}/activate)
+
+    echo "checking group membership in /activate" >&2
+    grep "dscl . -create ${lib.escapeShellArg "/Groups/_colima"} GroupMembership ${lib.escapeShellArgs [ "john" "jane" ]}" ${config.out}/activate
+  '';
+}