diff --git a/tests/unit/test_conf.py b/tests/unit/test_conf.py
new file mode 100644
index 000000000..1cd9a2e7f
--- /dev/null
+++ b/tests/unit/test_conf.py
@@ -0,0 +1,36 @@
+import os
+
+from twisted.trial import unittest
+
+from lbrynet import conf
+
+
+class SettingsTest(unittest.TestCase):
+    def setUp(self):
+        os.environ['LBRY_TEST'] = 'test_string'
+
+    def tearDown(self):
+        del os.environ['LBRY_TEST']
+
+    def test_envvar_is_read(self):
+        env = conf.Env(test=(str, ''))
+        settings = conf.AdjustableSettings(env)
+        self.assertEqual('test_string', settings.test)
+
+    def test_setting_can_be_overriden(self):
+        env = conf.Env(test=(str, ''))
+        settings = conf.AdjustableSettings(env)
+        settings.test = 'my_override'
+        self.assertEqual('my_override', settings.test)
+
+    def test_setting_can_be_updated(self):
+        env = conf.Env(test=(str, ''))
+        settings = conf.AdjustableSettings(env)
+        settings.update({'test': 'my_update'})
+        self.assertEqual('my_update', settings.test)
+
+    def test_setting_is_in_dict(self):
+        env = conf.Env(test=(str, ''))
+        settings = conf.AdjustableSettings(env)
+        setting_dict = settings.get_dict()
+        self.assertEqual({'test': 'test_string'}, setting_dict)