diff --git a/conf/capsule.yaml.template b/conf/capsule.yaml.template
index 11ae548d61a..079f5410638 100644
--- a/conf/capsule.yaml.template
+++ b/conf/capsule.yaml.template
@@ -7,7 +7,7 @@ CAPSULE:
     # The snap version currently testing (if applicable)
     # SNAP:
     # The source of Capsule packages. Can be one of:
-    # internal, ga, beta
+    # internal, ga, nightly, beta
     SOURCE: "internal"
     # The base os rhel version where the capsule installed
     # RHEL_VERSION:
diff --git a/conf/dynaconf_hooks.py b/conf/dynaconf_hooks.py
index ff5c538f86d..0372bb233f7 100644
--- a/conf/dynaconf_hooks.py
+++ b/conf/dynaconf_hooks.py
@@ -11,8 +11,12 @@
 
 
 def post(settings):
-    settings_cache_path = Path(f'settings_cache-{settings.server.version.release}.json')
-    if getattr(settings.robottelo.settings, 'get_fresh', True):
+    settings_cache_path = Path(
+        f'settings_cache-{settings.server.version.release}-{settings.server.version.snap}.json'
+    )
+    if settings.server.version.source == 'nightly':
+        data = Box({'REPOS': {}})
+    elif getattr(settings.robottelo.settings, 'get_fresh', True):
         data = get_repos_config(settings)
         write_cache(settings_cache_path, data)
     else:
diff --git a/conf/server.yaml.template b/conf/server.yaml.template
index c5b844e6509..b68a7932444 100644
--- a/conf/server.yaml.template
+++ b/conf/server.yaml.template
@@ -9,7 +9,7 @@ SERVER:
     # The snap version currently testing (if applicable)
     SNAP: 1.0
     # The source of Satellite packages. Can be one of:
-    # internal, ga, beta
+    # internal, ga, nightly, beta
     SOURCE: "internal"
     # The RHEL Base OS Version(x.y) where the Satellite is installed
     RHEL_VERSION: '7'
diff --git a/pytest_fixtures/core/sat_cap_factory.py b/pytest_fixtures/core/sat_cap_factory.py
index a1efc5b16a3..71f7735d963 100644
--- a/pytest_fixtures/core/sat_cap_factory.py
+++ b/pytest_fixtures/core/sat_cap_factory.py
@@ -329,13 +329,28 @@ def installer_satellite(request):
     else:
         sat = lru_sat_ready_rhel(getattr(request, 'param', None))
     sat.setup_firewall()
-    # # Register for RHEL8 repos, get Ohsnap repofile, and enable and download satellite
+    # register to cdn (also enables rhel repos from cdn)
     sat.register_to_cdn()
-    sat.download_repofile(
-        product='satellite',
-        release=settings.server.version.release,
-        snap=settings.server.version.snap,
-    )
+
+    # setup source repositories
+    if settings.server.version.source == "ga":
+        # enable satellite repos
+        for repo in sat.SATELLITE_CDN_REPOS.values():
+            sat.enable_repo(repo, force=True)
+    else:
+        if settings.server.version.source == 'nightly':
+            sat.create_custom_repos(
+                satellite_repo=settings.repos.satellite_repo,
+                satmaintenance_repo=settings.repos.satmaintenance_repo,
+            )
+        else:
+            # get ohsnap repofile
+            sat.download_repofile(
+                product='satellite',
+                release=settings.server.version.release,
+                snap=settings.server.version.snap,
+            )
+
     sat.install_satellite_or_capsule_package()
     # Install Satellite
     sat.execute(
diff --git a/robottelo/config/validators.py b/robottelo/config/validators.py
index b4211dc7f05..9a453825d47 100644
--- a/robottelo/config/validators.py
+++ b/robottelo/config/validators.py
@@ -13,7 +13,7 @@
         Validator('server.hostname', is_type_of=str),
         Validator('server.hostnames', must_exist=True, is_type_of=list),
         Validator('server.version.release', must_exist=True),
-        Validator('server.version.source', must_exist=True),
+        Validator('server.version.source', default='internal', is_in=['internal', 'ga', 'nightly']),
         Validator('server.version.rhel_version', must_exist=True, cast=str),
         Validator(
             'server.xdist_behavior', must_exist=True, is_in=['run-on-one', 'balance', 'on-demand']
@@ -78,7 +78,9 @@
     ],
     capsule=[
         Validator('capsule.version.release', must_exist=True),
-        Validator('capsule.version.source', must_exist=True),
+        Validator(
+            'capsule.version.source', default='internal', is_in=['internal', 'ga', 'nightly']
+        ),
         Validator('capsule.deploy_workflows', must_exist=True, is_type_of=dict),
         Validator('capsule.deploy_workflows.product', must_exist=True),
         Validator('capsule.deploy_workflows.os', must_exist=True),