diff --git a/roles/setup-project/defaults/main.yml b/roles/setup-project/defaults/main.yml
index 5b3f56e..2901784 100644
--- a/roles/setup-project/defaults/main.yml
+++ b/roles/setup-project/defaults/main.yml
@@ -1,12 +1,14 @@
 ---
+# TODO: When using a template repo, we should probably clone it into
+#       the project directory somewhere.
 
 # template_dir:
 #   path: "/path/to/template/dir
 #   vars: "repo_vars"
 #   repo: (optional if using a repo as a template)
 template:
-  path: "/path/to/template/dir"
-  vars: "repo_vars"
+  #path: "/path/to/template/dir"
+  #vars: "repo_vars"
 
   # When using a repository as a template dir. In general, it's
   # probably best to pin to a particular version of the repo template
@@ -15,10 +17,10 @@ template:
   # repo:
   #   url: "https://example.com/repo.git"
   #   version: "main"
-  repo: {}
+  #repo: {}
 
-# The output directory to setup a project in.
-output_dir: "{{ lookup('env', 'PWD') }}"
+# The preject directory to setup in.
+project_dir: "{{ lookup('env', 'PWD') }}"
 
 # Files that are copied from the template directory to the output
 # directory.
diff --git a/roles/setup-project/tasks/main.yml b/roles/setup-project/tasks/main.yml
index 3500f99..6322bdf 100644
--- a/roles/setup-project/tasks/main.yml
+++ b/roles/setup-project/tasks/main.yml
@@ -1,11 +1,43 @@
 ---
 - name: Starting setup project.
   ansible.builtin.debug:
-    msg: "Output dir: {{ output_dir }}"
+    msg: "Project dir: {{ project_dir }}"
+
+- name: Debug template vars pre parse.
+  ansible.builtin.debug:
+    var: template
+  tags:
+    - debug
+    - never
+
+- name: Parse template path.
+  ansible.builtin.set_fact:
+    template:
+      path: "{{ project_dir }}/{{ build_dir | default('.build') }}/template"
+  when: not template.path is defined
+
+- name: Parse template vars.
+  ansible.builtin.set_fact:
+    template:
+      vars: "repo_vars"
+  when: not template.vars is defined
+
+# - name: Prepare variables.
+#   ansible.builtin.include_tasks:
+#     file: "prepare_vars.yml"
+#   vars:
+#     template: "{{ template }}"
+
+- name: Debug template vars post parse.
+  ansible.builtin.debug:
+    var: template
+  tags:
+    - debug
+    - never
 
 - name: Ensure output directory exists.
   ansible.builtin.file:
-    path: "{{ output_dir }}"
+    path: "{{ project_dir }}"
     state: directory
 
 - name: Ensure repo.
@@ -37,6 +69,6 @@
     file: "copy_if_not_exists.yml"
   vars:
     source: "{{ template.path }}/{{ item.src | default(item) }}"
-    destination: "{{ output_dir }}/{{ item.dest | default(item) }}"
+    destination: "{{ project_dir }}/{{ item.dest | default(item) }}"
     mode: "{{ item.mode | default('0600') }}"
   loop: "{{ copy_on_setup }}"
diff --git a/roles/setup-project/tasks/prepare_vars.yml b/roles/setup-project/tasks/prepare_vars.yml
new file mode 100644
index 0000000..71334ad
--- /dev/null
+++ b/roles/setup-project/tasks/prepare_vars.yml
@@ -0,0 +1,16 @@
+---
+- name: Parse template path.
+  ansible.builtin.set_fact:
+    template:
+      path: "{{ project_dir }}/{{ build_dir | default('.build') }}/template"
+  when: not template.path is defined
+  tags:
+    - always
+
+- name: Parse template vars.
+  ansible.builtin.set_fact:
+    template:
+      vars: "repo_vars"
+  when: not template.vars is defined
+  tags:
+    - always
diff --git a/test/test.yml b/test/test.yml
index bc22541..f446080 100644
--- a/test/test.yml
+++ b/test/test.yml
@@ -10,7 +10,7 @@
         template_dir:
           path: "/tmp/hpa-playbook-tmp"
           vars: "repo_vars"
-        output_dir: "/tmp/hpa-setup-project-tmp"
+        project_dir: "/tmp/hpa-setup-project-tmp"
 
     - role: repo-template
       tags:
@@ -25,3 +25,36 @@
           path: "/tmp/hpa-playbook-tmp"
           vars: "repo_vars"
         project_dir: "/tmp/hpa-setup-project-tmp"
+
+  tasks:
+    - name: Test complex var, set fact.
+      ansible.builtin.set_fact:
+        template_path: "{{ template.path | default('.build') }}"
+      vars:
+        template:
+          repo:
+            url: "https://example.com"
+            version: "main"
+      tags:
+        - vars
+        - never
+
+    - name: Test complex var, set fact when path is specified.
+      ansible.builtin.set_fact:
+        template_path_specified: true
+      vars:
+        template:
+          repo:
+            url: "https://example.com"
+            version: "main"
+      when: template.path is defined
+      tags:
+        - vars
+        - never
+
+    - name: Test complex var was set.
+      ansible.builtin.debug:
+        msg: "Template path: {{ template_path }}, specified: {{ template_path_specified | default(false) }}"
+      tags:
+        - vars
+        - never