diff --git a/kyaml/setters2/setterdefinition_test.go b/kyaml/setters2/setterdefinition_test.go
index 2ea8ea151..f233271e2 100644
--- a/kyaml/setters2/setterdefinition_test.go
+++ b/kyaml/setters2/setterdefinition_test.go
@@ -11,32 +11,31 @@ import (
 	"github.com/stretchr/testify/assert"
 )
 
-var kptfile = `apiVersion: kpt.dev/v1alpha1
-kind: Kptfile
+var resourcefile = `apiVersion: resource.dev/v1alpha1
+kind: resourcefile
 metadata:
     name: hello-world-set
 upstream:
     type: git
     git:
         commit: 5c1c019b59299a4f6c7edd1ff5ff54d720621bbe
-        repo: git@github.com:GoogleContainerTools/kpt
         directory: /package-examples/helloworld-set
         ref: v0.1.0
 packageMetadata:
     shortDescription: example package using setters`
 
 func TestAddUpdateSetter(t *testing.T) {
-	path := os.TempDir() + "Kptfile"
+	path := os.TempDir() + "/resourcefile"
 
-	//write initial kptfile to temp path
-	err := ioutil.WriteFile(path, []byte(kptfile), 0600)
+	//write initial resourcefile to temp path
+	err := ioutil.WriteFile(path, []byte(resourcefile), 0666)
 	if !assert.NoError(t, err) {
 		t.FailNow()
 	}
 
 	//add a setter definition
 	sd := SetterDefinition{
-		Name:  "no-match-1",
+		Name:  "image",
 		Value: "1",
 	}
 
@@ -48,7 +47,7 @@ func TestAddUpdateSetter(t *testing.T) {
 
 	// update setter definition
 	sd2 := SetterDefinition{
-		Name:  "no-match-1",
+		Name:  "image",
 		Value: "2",
 	}
 
@@ -63,25 +62,24 @@ func TestAddUpdateSetter(t *testing.T) {
 		t.FailNow()
 	}
 
-	expected := `apiVersion: kpt.dev/v1alpha1
-kind: Kptfile
+	expected := `apiVersion: resource.dev/v1alpha1
+kind: resourcefile
 metadata:
   name: hello-world-set
 upstream:
   type: git
   git:
     commit: 5c1c019b59299a4f6c7edd1ff5ff54d720621bbe
-    repo: git@github.com:GoogleContainerTools/kpt
     directory: /package-examples/helloworld-set
     ref: v0.1.0
 packageMetadata:
   shortDescription: example package using setters
 openAPI:
   definitions:
-    io.k8s.cli.setters.no-match-1:
+    io.k8s.cli.setters.image:
       x-k8s-cli:
         setter:
-          name: no-match-1
+          name: image
           value: 2
 `
 	assert.Equal(t, expected, string(b))
diff --git a/kyaml/setters2/substitutiondefinition.go b/kyaml/setters2/substitutiondefinition.go
new file mode 100644
index 000000000..17d4ff34e
--- /dev/null
+++ b/kyaml/setters2/substitutiondefinition.go
@@ -0,0 +1,60 @@
+// Copyright 2019 The Kubernetes Authors.
+// SPDX-License-Identifier: Apache-2.0
+
+package setters2
+
+import (
+	"io/ioutil"
+
+	"sigs.k8s.io/kustomize/kyaml/yaml"
+)
+
+type SubstitutionDefinition struct {
+	Name    string  `yaml:"name"`
+	Pattern string  `yaml:"pattern"`
+	Values  []Value `yaml:"value"`
+}
+
+type Value struct {
+	Marker string `yaml:"marker"`
+	Ref    string `yaml:"ref"`
+}
+
+func (subd SubstitutionDefinition) AddSubstitutionToFile(path string) error {
+	b, err := ioutil.ReadFile(path)
+	if err != nil {
+		return err
+	}
+	y, err := yaml.Parse(string(b))
+	if err != nil {
+		return err
+	}
+	if err := y.PipeE(subd); err != nil {
+		return err
+	}
+	out, err := y.String()
+	if err != nil {
+		return err
+	}
+	if err := ioutil.WriteFile(path, []byte(out), 0666); err != nil {
+		return err
+	}
+	return nil
+}
+
+func (subd SubstitutionDefinition) Filter(object *yaml.RNode) (*yaml.RNode, error) {
+	key := DefinitionPrefix + subd.Name
+
+	def, err := object.Pipe(yaml.LookupCreate(
+		yaml.MappingNode, "openAPI", "definitions", key, "x-k8s-cli", "substitution"))
+	if err != nil {
+		return nil, err
+	}
+	if err := def.PipeE(yaml.FieldSetter{Name: "name", StringValue: subd.Name}); err != nil {
+		return nil, err
+	}
+	if err := def.PipeE(yaml.FieldSetter{Name: "pattern", StringValue: subd.Pattern}); err != nil {
+		return nil, err
+	}
+	return object, nil
+}
diff --git a/kyaml/setters2/substitutiondefinition_test.go b/kyaml/setters2/substitutiondefinition_test.go
new file mode 100644
index 000000000..9b239bd89
--- /dev/null
+++ b/kyaml/setters2/substitutiondefinition_test.go
@@ -0,0 +1,86 @@
+// Copyright 2019 The Kubernetes Authors.
+// SPDX-License-Identifier: Apache-2.0
+
+package setters2
+
+import (
+	"io/ioutil"
+	"os"
+	"testing"
+
+	"github.com/stretchr/testify/assert"
+)
+
+func TestAddUpdateSubstitution(t *testing.T) {
+	path := os.TempDir() + "/resourcefile"
+
+	//write initial resourcefile to temp path
+	err := ioutil.WriteFile(path, []byte(resourcefile), 0666)
+	if !assert.NoError(t, err) {
+		t.FailNow()
+	}
+
+	value1 := Value{
+		Marker: "IMAGE_NAME",
+		Ref:    "#/definitions/io.k8s.cli.setters.image-name",
+	}
+
+	value2 := Value{
+		Marker: "IMAGE_TAG",
+		Ref:    "#/definitions/io.k8s.cli.setters.image-tag",
+	}
+
+	values := []Value{value1, value2}
+
+	//add a setter definition
+	subd := SubstitutionDefinition{
+		Name:    "image",
+		Pattern: "IMAGE_NAME:IMAGE_TAG",
+		Values:  values,
+	}
+
+	err = subd.AddSubstitutionToFile(path)
+
+	if !assert.NoError(t, err) {
+		t.FailNow()
+	}
+
+	// update setter definition
+	subd2 := SubstitutionDefinition{
+		Name:    "image",
+		Pattern: "IMAGE_NAME:IMAGE_TAG2",
+	}
+
+	err = subd2.AddSubstitutionToFile(path)
+
+	if !assert.NoError(t, err) {
+		t.FailNow()
+	}
+
+	b, err := ioutil.ReadFile(path)
+	if err != nil {
+		t.FailNow()
+	}
+
+	expected := `apiVersion: resource.dev/v1alpha1
+kind: resourcefile
+metadata:
+  name: hello-world-set
+upstream:
+  type: git
+  git:
+    commit: 5c1c019b59299a4f6c7edd1ff5ff54d720621bbe
+    directory: /package-examples/helloworld-set
+    ref: v0.1.0
+packageMetadata:
+  shortDescription: example package using setters
+openAPI:
+  definitions:
+    io.k8s.cli.setters.image:
+      x-k8s-cli:
+        substitution:
+          name: image
+          pattern: IMAGE_NAME:IMAGE_TAG2
+`
+	assert.Equal(t, expected, string(b))
+}