diff --git a/echo-server/app/helmrelease.yaml b/echo-server/base/helmrelease.yaml
similarity index 100%
rename from echo-server/app/helmrelease.yaml
rename to echo-server/base/helmrelease.yaml
diff --git a/echo-server/base/kustomization.yaml b/echo-server/base/kustomization.yaml
new file mode 100644
index 0000000..016463c
--- /dev/null
+++ b/echo-server/base/kustomization.yaml
@@ -0,0 +1,2 @@
+resources:
+  - helmrelease.yaml
diff --git a/echo-server/ks.yaml b/echo-server/ks.yaml
index 4448636..d47f94b 100644
--- a/echo-server/ks.yaml
+++ b/echo-server/ks.yaml
@@ -9,7 +9,7 @@ spec:
   commonMetadata:
     labels:
       app.kubernetes.io/name: *app
-  path: ./echo-server/app
+  path: ./echo-server/overlays/${TENANT_NAMESPACE}
   prune: true
   sourceRef:
     kind: GitRepository
diff --git a/echo-server/overlays/tenant-tpl-dev/kustomization.yaml b/echo-server/overlays/tenant-tpl-dev/kustomization.yaml
new file mode 100644
index 0000000..f4ce706
--- /dev/null
+++ b/echo-server/overlays/tenant-tpl-dev/kustomization.yaml
@@ -0,0 +1,5 @@
+resources:
+  - ../../base
+
+patchesStrategicMerge:
+  - patch-replicas.yaml
diff --git a/echo-server/overlays/tenant-tpl-dev/patch-replicas.yaml b/echo-server/overlays/tenant-tpl-dev/patch-replicas.yaml
new file mode 100644
index 0000000..20ab7f6
--- /dev/null
+++ b/echo-server/overlays/tenant-tpl-dev/patch-replicas.yaml
@@ -0,0 +1,10 @@
+apiVersion: helm.toolkit.fluxcd.io/v2
+kind: HelmRelease
+metadata:
+  name: echo-server
+spec:
+  values:
+    controllers:
+      echo-server:
+        replicas: 5  # increase replicas for dev
+
diff --git a/echo-server/overlays/tenant-tpl/kustomization.yaml b/echo-server/overlays/tenant-tpl/kustomization.yaml
new file mode 100644
index 0000000..e6474d2
--- /dev/null
+++ b/echo-server/overlays/tenant-tpl/kustomization.yaml
@@ -0,0 +1,5 @@
+resources:
+  - ../../base
+
+patchesStrategicMerge:
+  - patch-resources.yaml
diff --git a/echo-server/overlays/tenant-tpl/patch-resources.yaml b/echo-server/overlays/tenant-tpl/patch-resources.yaml
new file mode 100644
index 0000000..0a35fe1
--- /dev/null
+++ b/echo-server/overlays/tenant-tpl/patch-resources.yaml
@@ -0,0 +1,17 @@
+apiVersion: helm.toolkit.fluxcd.io/v2
+kind: HelmRelease
+metadata:
+  name: echo-server
+spec:
+  values:
+    controllers:
+      echo-server:
+        containers:
+          app:
+            resources:
+              requests:
+                cpu: 100m
+                memory: 128Mi
+              limits:
+                cpu: 500m
+                memory: 512Mi
diff --git a/vars/tenant-tpl-dev/dev-example.yaml b/vars/tenant-tpl-dev/dev-example.yaml
new file mode 100644
index 0000000..8b83b7d
--- /dev/null
+++ b/vars/tenant-tpl-dev/dev-example.yaml
@@ -0,0 +1,7 @@
+---
+apiVersion: v1
+kind: ConfigMap
+metadata:
+  name: example-vars-dev
+data:
+  EXAMPLE: foo-dev