So here is my final solution for anyone else.
Put the following in the root folder:
AuthType Basic
AuthName "restricted"
AuthUserFile E:\\path\\to\\.htpasswd
Require user admin
Put the following in any folder where admin and user1 can access the file:
AuthType Basic
AuthName "restricted"
AuthUserFile E:\\path\\to\\.htpasswd
Require user admin user1 #users separated by space or "Require valid-user" if all users
If you want to allow user1 to only access certain files you can use <FilesMatch>
:
AuthType Basic
AuthName "restricted"
AuthUserFile E:\\path\\to\\.htpasswd
Require user admin
<FilesMatch "^(doc1.pdf|doc2.txt|doc3.docx)$">
Require user admin user1 #or valid-user
</FilesMatch>
This gives admin access to all files in that folder but user1 only access to the files listed in <FilesMatch>
Note: The files in <FilesMatch>
are for the current directory and any sub directory. I'm not sure how to limit it to only the current directory.