diff --git a/doc/source/user/howto.rst b/doc/source/user/howto.rst
index cf4cfeea3..77501b521 100644
--- a/doc/source/user/howto.rst
+++ b/doc/source/user/howto.rst
@@ -32,12 +32,12 @@ The following two environment variables can be set:
 - ``OS_AUTH_TYPE`` - set to ``none`` to bypass authentication.
 - ``OS_ENDPOINT`` - A URL to the ironic API, such as http://localhost:6385/
 
-For convenience, an environment file called ``env-vars`` is provided that
-contains default values for these variables and can be sourced to allow the CLI
-to connect to a local Ironic installation operating in noauth mode. For
-example::
+For convenience, an environment file called ``openrc`` is created in the home
+directory of the current user that contains default values for these variables
+and can be sourced to allow the CLI to connect to a local Ironic installation.
+For example::
 
-    . env-vars
+    . ~/openrc bifrost
     baremetal node list
 
 This should display a table of nodes, or nothing if there are no nodes
diff --git a/env-vars b/env-vars
deleted file mode 100644
index acdba56a0..000000000
--- a/env-vars
+++ /dev/null
@@ -1,2 +0,0 @@
-export OS_ENDPOINT=http://localhost:6385/
-export OS_AUTH_TYPE=none
diff --git a/releasenotes/notes/env-vars-f07a4779a881c039.yaml b/releasenotes/notes/env-vars-f07a4779a881c039.yaml
new file mode 100644
index 000000000..1e11358fa
--- /dev/null
+++ b/releasenotes/notes/env-vars-f07a4779a881c039.yaml
@@ -0,0 +1,6 @@
+---
+other:
+  - |
+    The file ``env-vars`` has been removed. It contains variables that only
+    work for no-auth mode and only for ironic itself (not inspector). Use
+    the generated ``clouds.yaml`` or ``openrc`` in the home directory.
diff --git a/scripts/env-setup.sh b/scripts/env-setup.sh
index cfa4a167f..af2f7160c 100755
--- a/scripts/env-setup.sh
+++ b/scripts/env-setup.sh
@@ -78,6 +78,5 @@ else
     echo "Prepend ~/.local/bin to your PATH if it is not that way already.."
     echo ".. or use full path to local Ansible at ~/.local/bin/ansible-playbook"
 fi
-echo "source env-vars"
 echo "Then run playbooks as normal."
 echo