Why isn't my apache authentication working?

I am trying to set up apache2 authentication for a given website which can be found locally on my webserver. When I try to open up the website it states Internal Server Error 500. Then I put the content from .htaccess file into my apache2.conf file and now when I try to restart the apache2 service I get an error:

Invalid comman AuthGroupFile...

If I comment out that line, then I get another error:

Unkown Authz provider: dorian

What am I doing wrong? The /etc/apache2/conf/users.conf file contains the user dorian with a password that was generated by the htpasswd command, the /etc/apache2/conf/groups.conf file contains the following:

admin: dorian

Thanks in advance!

The apache2.conf file's content:

<Directory /home/peter/public_html/>
        AuthType Basic
        AuthName "Admins only"
        AuthUserFile /etc/apache2/conf/users.conf
        AuthGroupFile /etc/apache2/conf/groups.conf
        Require dorian
</Directory>