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Diamond is a 3 GeV synchrotron light source under construction at the Rutherford Appleton Laboratory in Oxfordshire (UK). The accelerator complex consists of a 100 MeV linac, a full-energy booster and a 3 GeV storage ring with 22 straight sections available for insertion devices. Installation of all three accelerators has begun and linac commissioning is due to start in summer 2005. This paper will give an overview of the status of the installation and the progress in accelerator physics studies. The Diamond facility is expected to be operational for users in 2007.