This is valid for Apache2.

Example of a .htaccess file

AuthName "Restricted Area"
Authtype Basic
AuthUserFile /home/priv_mikkel/public_html/mikkelbundgaard/download/.htpasswd
require valid-user

Prompts for password

$ htpasswd -c .htpasswd <username>

Create htpasswd file with password from shell

$ htpasswd -bc .htpasswd <username> <password>

”-c” creates new file