View source for LXD configuration for OSM Release ONE

In order to run LXD containers, you need to install lxd (if not installed by default) and zfs package (to be used as storage backend)
 sudo apt-get update
 sudo apt-get install zfs lxd
 newgrp lxd                   # required to log the user in the lxd group if lxd was just installed

Then, just run the following command to configure lxd and answer the questions accordingly:
 sudo lxd init
  Name of the storage backend to use (dir or zfs): zfs
  Create a new ZFS pool (yes/no)?: yes
  Name of the (existing/new) ZFS pool or dataset: lxdpool
  Would you like to use an existing block device (yes/no)? no
  Size in GB of the new loop device (1GB minimum): 50
  Would you like LXD to be available over the network (yes/no)? no 
  Do you want to configure the LXD bridge (yes/no)? yes

Although further customization is possible, default options for LXD bridge configuration will work in all cases.