diff --git a/MANIFEST.in b/MANIFEST.in
index 8a2a9e9b..455d1943 100644
--- a/MANIFEST.in
+++ b/MANIFEST.in
@@ -1,2 +1,3 @@
 recursive-include fuel_health *
-recursive-include fuel_plugin *
\ No newline at end of file
+recursive-include fuel_plugin *
+include requirements.txt
\ No newline at end of file
diff --git a/README.md b/README.md
index 09fc1829..6ab0df45 100644
--- a/README.md
+++ b/README.md
@@ -1,2 +1,14 @@
 fuel-ostf-tests
 ===============
+
+In order to start tests you will need to perform next commands:
+    fab unit
+    fab testall
+
+Ideally tests should be runned with tox, e.g:
+    tox -e py27
+
+    or
+
+    tox
+
diff --git a/fabfile.py b/fabfile.py
index 36b9e95c..96a1c5f3 100644
--- a/fabfile.py
+++ b/fabfile.py
@@ -37,7 +37,6 @@ def startserver():
 def startdebugserver():
     local(('ostf-server '
            '--debug '
-           '--nailgun-port=8888 '
            '--debug_tests=fuel_plugin/testing/fixture/dummy_tests'))
 
 
diff --git a/fuel_health/tests/platform_tests/test_ceilometer.py b/fuel_health/tests/platform_tests/test_ceilometer.py
index c8c47ac8..c60eefde 100644
--- a/fuel_health/tests/platform_tests/test_ceilometer.py
+++ b/fuel_health/tests/platform_tests/test_ceilometer.py
@@ -14,7 +14,6 @@
 
 import logging
 from fuel_health import ceilometermanager
-from fuel_health import nmanager
 from fuel_health.common.utils.data_utils import rand_name
 
 LOG = logging.getLogger(__name__)
diff --git a/fuel_plugin/bin/__init__.py b/fuel_plugin/bin/__init__.py
deleted file mode 100644
index 141ca6ab..00000000
--- a/fuel_plugin/bin/__init__.py
+++ /dev/null
@@ -1,13 +0,0 @@
-#    Copyright 2013 Mirantis, Inc.
-#
-#    Licensed under the Apache License, Version 2.0 (the "License"); you may
-#    not use this file except in compliance with the License. You may obtain
-#    a copy of the License at
-#
-#         http://www.apache.org/licenses/LICENSE-2.0
-#
-#    Unless required by applicable law or agreed to in writing, software
-#    distributed under the License is distributed on an "AS IS" BASIS, WITHOUT
-#    WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied. See the
-#    License for the specific language governing permissions and limitations
-#    under the License.
diff --git a/fuel_plugin/bin/adapter_api.py b/fuel_plugin/bin/adapter_api.py
deleted file mode 100644
index 99ff5362..00000000
--- a/fuel_plugin/bin/adapter_api.py
+++ /dev/null
@@ -1,169 +0,0 @@
-#!/usr/bin/env python
-# -*- coding: utf-8 -*-
-#    Copyright 2013 Mirantis, Inc.
-#
-#    Licensed under the Apache License, Version 2.0 (the "License"); you may
-#    not use this file except in compliance with the License. You may obtain
-#    a copy of the License at
-#
-#         http://www.apache.org/licenses/LICENSE-2.0
-#
-#    Unless required by applicable law or agreed to in writing, software
-#    distributed under the License is distributed on an "AS IS" BASIS, WITHOUT
-#    WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied. See the
-#    License for the specific language governing permissions and limitations
-#    under the License.
-
-import os
-import logging
-import signal
-import sys
-import pecan
-from gevent import pywsgi
-
-from oslo.config import cfg
-
-from fuel_plugin.ostf_adapter import cli_config
-from fuel_plugin.ostf_adapter import nailgun_hooks
-from fuel_plugin.ostf_adapter import logger
-from fuel_plugin.ostf_adapter.wsgi import app
-from fuel_plugin.ostf_adapter.nose_plugin import nose_discovery
-from fuel_plugin.ostf_adapter.storage import engine
-from fuel_plugin.ostf_adapter import mixins
-
-adapter_group = cfg.OptGroup(name='adapter',
-                             title='Adapter Options')
-AdapterGroup = [
-    cfg.StrOpt('server_host',
-               default='127.0.0.1',
-               help="adapter host"),
-    cfg.StrOpt('server_port',
-               default='8777',
-               help="Port number"),
-    cfg.StrOpt('dbpath',
-               default='postgresql+psycopg2://ostf:ostf@localhost/ostf',
-               help=""),
-    cfg.StrOpt('lock_dir',
-               default='/var/lock',
-               help=""),
-    cfg.StrOpt('nailgun_host',
-               default='127.0.0.1',
-               help=""),
-    cfg.StrOpt('nailgun_port',
-               default='8000',
-               help=""),
-    cfg.StrOpt('log_file',
-               default='/var/log/ostf.log',
-               help=""),
-    cfg.BoolOpt('after_init_hook',
-                default='False',
-                help='Should be true when we need migrate data to db')
-    ]
-
-
-def register_adapter_opts(conf):
-    conf.register_group(adapter_group)
-    for opt in AdapterGroup:
-        conf.register_opt(opt, group='adapter')
-
-
-class Ostf_Config(object):
-
-    DEFAULT_CONFIG_DIR = os.path.join(os.path.abspath(
-        os.path.dirname(__file__)), '/etc')
-
-    DEFAULT_CONFIG_FILE = "ostf.conf"
-
-    def __init__(self):
-        """Initialize a configuration from a conf directory and conf file."""
-        config_files = []
-
-        failsafe_path = "/etc/ostf/" + self.DEFAULT_CONFIG_FILE
-
-        # Environment variables override defaults...
-        custom_config = os.environ.get('CUSTOM_OSTF_CONFIG')
-        if custom_config:
-            path = custom_config
-        else:
-            conf_dir = os.environ.get('OSTF_CONFIG_DIR',
-                                      self.DEFAULT_CONFIG_DIR)
-            conf_file = os.environ.get('OSTF_CONFIG', self.DEFAULT_CONFIG_FILE)
-
-            path = os.path.join(conf_dir, conf_file)
-
-            if not (os.path.isfile(path)
-                    or 'OSTF_CONFIG_DIR' in os.environ
-                    or 'OSTF_CONFIG' in os.environ):
-                path = failsafe_path
-
-        if not os.path.exists(path):
-            msg = "Config file %(path)s not found" % locals()
-            print >> sys.stderr, RuntimeError(msg)
-        else:
-            config_files.append(path)
-
-        cfg.CONF([], project='ostf', default_config_files=config_files)
-
-        register_adapter_opts(cfg.CONF)
-        self.adapter = cfg.CONF.adapter
-
-
-def main():
-
-    settings = Ostf_Config()
-
-    cli_args = cli_config.parse_cli()
-
-    config = {
-        'server': {
-            'host': settings.adapter.server_host or cli_args.host,
-            'port': settings.adapter.server_port or cli_args.port
-        },
-        'dbpath': settings.adapter.dbpath or cli_args.dbpath,
-        'debug': cli_args.debug,
-        'debug_tests': cli_args.debug_tests,
-        'lock_dir': settings.adapter.lock_dir or cli_args.lock_dir,
-        'nailgun': {
-            'host': settings.adapter.nailgun_host or cli_args.nailgun_host,
-            'port': settings.adapter.nailgun_port or cli_args.nailgun_port
-        }
-    }
-    logger.setup(log_file=(
-        settings.adapter.log_file or cli_args.log_file))
-
-    log = logging.getLogger(__name__)
-
-    root = app.setup_app(config=config)
-
-    if settings.adapter.after_init_hook or\
-            getattr(cli_args, 'after_init_hook'):
-        return nailgun_hooks.after_initialization_environment_hook()
-
-    with engine.contexted_session(pecan.conf.dbpath) as session:
-        # performing cleaning of expired data (if any) in db
-        mixins.clean_db(session)
-
-        # discover testsets and their tests
-        CORE_PATH = pecan.conf.debug_tests if \
-            pecan.conf.get('debug_tests') else 'fuel_health'
-
-        nose_discovery.discovery(path=CORE_PATH, session=session)
-
-        # cache needed data from test repository
-        mixins.cache_test_repository(session)
-
-    host, port = pecan.conf.server.host, pecan.conf.server.port
-    srv = pywsgi.WSGIServer((host, int(port)), root)
-
-    log.info('Starting server in PID %s', os.getpid())
-    log.info("serving on http://%s:%s", host, port)
-
-    try:
-        signal.signal(signal.SIGCHLD, signal.SIG_IGN)
-        srv.serve_forever()
-    except KeyboardInterrupt:
-        pass
-
-
-if __name__ == '__main__':
-    main()
diff --git a/fuel_plugin/ostf_adapter/cli_config.py b/fuel_plugin/ostf_adapter/cli_config.py
deleted file mode 100644
index e9ba352f..00000000
--- a/fuel_plugin/ostf_adapter/cli_config.py
+++ /dev/null
@@ -1,36 +0,0 @@
-#    Copyright 2013 Mirantis, Inc.
-#
-#    Licensed under the Apache License, Version 2.0 (the "License"); you may
-#    not use this file except in compliance with the License. You may obtain
-#    a copy of the License at
-#
-#         http://www.apache.org/licenses/LICENSE-2.0
-#
-#    Unless required by applicable law or agreed to in writing, software
-#    distributed under the License is distributed on an "AS IS" BASIS, WITHOUT
-#    WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied. See the
-#    License for the specific language governing permissions and limitations
-#    under the License.
-
-import argparse
-import sys
-
-
-def parse_cli():
-    parser = argparse.ArgumentParser()
-    parser.add_argument('--after-initialization-environment-hook',
-                        action='store_true', dest='after_init_hook')
-    parser.add_argument('--debug',
-                        action='store_true', dest='debug')
-    parser.add_argument(
-        '--dbpath', metavar='DB_PATH',
-        default='postgresql+psycopg2://ostf:ostf@localhost/ostf')
-    parser.add_argument('--host', default='127.0.0.1')
-    parser.add_argument('--port', default='8989')
-    parser.add_argument('--log_file', default=None, metavar='PATH')
-    parser.add_argument('--nailgun-host', default='127.0.0.1')
-    parser.add_argument('--nailgun-port', default='8000')
-    parser.add_argument('--debug_tests', default=None)
-    parser.add_argument('--lock_dir', default='/var/lock')
-
-    return parser.parse_args(sys.argv[1:])
diff --git a/fuel_plugin/ostf_adapter/config.py b/fuel_plugin/ostf_adapter/config.py
new file mode 100644
index 00000000..e46624b6
--- /dev/null
+++ b/fuel_plugin/ostf_adapter/config.py
@@ -0,0 +1,96 @@
+#    Copyright 2013 Mirantis, Inc.
+#
+#    Licensed under the Apache License, Version 2.0 (the "License"); you may
+#    not use this file except in compliance with the License. You may obtain
+#    a copy of the License at
+#
+#         http://www.apache.org/licenses/LICENSE-2.0
+#
+#    Unless required by applicable law or agreed to in writing, software
+#    distributed under the License is distributed on an "AS IS" BASIS, WITHOUT
+#    WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied. See the
+#    License for the specific language governing permissions and limitations
+#    under the License.
+
+import os
+import logging
+
+from oslo.config import cfg
+
+
+LOG = logging.getLogger(__name__)
+
+adapter_group = cfg.OptGroup(name='adapter',
+                             title='Adapter Options')
+
+adapter_opts = [
+    cfg.StrOpt('server_host',
+               default='127.0.0.1',
+               help="adapter host"),
+    cfg.IntOpt('server_port',
+               default=8777,
+               help="Port number"),
+    cfg.StrOpt('dbpath',
+               default='postgresql+psycopg2://ostf:ostf@localhost/ostf',
+               help=""),
+    cfg.StrOpt('lock_dir',
+               default='/var/lock',
+               help=""),
+    cfg.StrOpt('nailgun_host',
+               default='127.0.0.1',
+               help=""),
+    cfg.StrOpt('nailgun_port',
+               default='8000',
+               help=""),
+    cfg.StrOpt('log_file',
+               default='/var/log/ostf.log',
+               help="")
+]
+
+cli_opts = [
+    cfg.BoolOpt('debug', default=False),
+    cfg.BoolOpt('after-initialization-environment-hook', default=False),
+    cfg.StrOpt('debug_tests')
+]
+
+
+cfg.CONF.register_cli_opts(cli_opts)
+cfg.CONF.register_opts(adapter_opts, group='adapter')
+
+
+DEFAULT_CONFIG_DIR = os.path.join(os.path.abspath(
+    os.path.dirname(__file__)), '/etc')
+
+DEFAULT_CONFIG_FILE = "ostf.conf"
+
+
+def init_config(args=[]):
+
+    config_files = []
+
+    failsafe_path = "/etc/ostf/" + DEFAULT_CONFIG_FILE
+
+    # Environment variables override defaults...
+    custom_config = os.environ.get('CUSTOM_OSTF_CONFIG')
+    if custom_config:
+        path = custom_config
+    else:
+        conf_dir = os.environ.get('OSTF_CONFIG_DIR',
+                                  DEFAULT_CONFIG_DIR)
+        conf_file = os.environ.get('OSTF_CONFIG', DEFAULT_CONFIG_FILE)
+
+        path = os.path.join(conf_dir, conf_file)
+
+        if not (os.path.isfile(path)
+                or 'OSTF_CONFIG_DIR' in os.environ
+                or 'OSTF_CONFIG' in os.environ):
+            path = failsafe_path
+
+    if not os.path.exists(path):
+        msg = "Config file {0} not found".format(path)
+        LOG.warning(msg)
+        # No need to fail here! If config doesnot exist defaults are used
+    else:
+        config_files.append(path)
+
+    cfg.CONF(args, project='ostf', default_config_files=config_files)
diff --git a/fuel_plugin/ostf_adapter/mixins.py b/fuel_plugin/ostf_adapter/mixins.py
index 3a47f502..3b9d16fe 100644
--- a/fuel_plugin/ostf_adapter/mixins.py
+++ b/fuel_plugin/ostf_adapter/mixins.py
@@ -14,13 +14,15 @@
 
 
 import requests
-from pecan import conf
 from sqlalchemy.orm import joinedload
 import logging
 
+from oslo.config import cfg
+
 from fuel_plugin.ostf_adapter.storage import models
 from fuel_plugin.ostf_adapter.nose_plugin import nose_utils
 
+
 LOG = logging.getLogger(__name__)
 
 REQ_SES = requests.Session()
@@ -33,6 +35,7 @@ TEST_REPOSITORY = []
 
 
 def clean_db(session):
+    LOG.info('Starting clean db action.')
     session.query(models.ClusterTestingPattern).delete()
     session.query(models.ClusterState).delete()
     session.query(models.TestSet).delete()
@@ -105,15 +108,15 @@ def discovery_check(session, cluster):
 
 def _get_cluster_depl_tags(cluster_id):
     cluster_url = NAILGUN_API_URL.format(cluster_id)
-    request_url = URL.format(conf.nailgun.host,
-                             conf.nailgun.port,
+    request_url = URL.format(cfg.CONF.adapter.nailgun_host,
+                             cfg.CONF.adapter.nailgun_port,
                              cluster_url)
 
     response = REQ_SES.get(request_url).json()
     release_id = response.get('release_id', 'failed to get id')
 
     release_url = URL.format(
-        conf.nailgun.host, conf.nailgun.port,
+        cfg.CONF.adapter.nailgun_host, cfg.CONF.adapter.nailgun_port,
         'api/releases/{0}'.format(release_id))
 
     deployment_tags = set()
diff --git a/fuel_plugin/ostf_adapter/nose_plugin/nose_adapter.py b/fuel_plugin/ostf_adapter/nose_plugin/nose_adapter.py
index 8e165dd3..6c95f6ec 100644
--- a/fuel_plugin/ostf_adapter/nose_plugin/nose_adapter.py
+++ b/fuel_plugin/ostf_adapter/nose_plugin/nose_adapter.py
@@ -17,7 +17,7 @@ import os
 import logging
 import signal
 
-from pecan import conf
+from oslo.config import cfg
 
 from fuel_plugin.ostf_adapter.nose_plugin import nose_test_runner
 from fuel_plugin.ostf_adapter.nose_plugin import nose_utils
@@ -48,7 +48,7 @@ class NoseDriver(object):
         else:
             argv_add = [test_set.test_path] + test_set.additional_arguments
 
-        lock_path = conf.lock_dir
+        lock_path = cfg.CONF.adapter.lock_dir
         test_run.pid = nose_utils.run_proc(self._run_tests,
                                            lock_path,
                                            dbpath,
@@ -132,8 +132,8 @@ class NoseDriver(object):
         try:
             module_obj = __import__(cleanup, -1)
 
-            os.environ['NAILGUN_HOST'] = str(conf.nailgun.host)
-            os.environ['NAILGUN_PORT'] = str(conf.nailgun.port)
+            os.environ['NAILGUN_HOST'] = str(cfg.CONF.adapter.nailgun_host)
+            os.environ['NAILGUN_PORT'] = str(cfg.CONF.adapter.nailgun_port)
             os.environ['CLUSTER_ID'] = str(cluster_id)
 
             module_obj.cleanup.cleanup(cluster_deployment_info)
diff --git a/fuel_plugin/ostf_adapter/nose_plugin/nose_storage_plugin.py b/fuel_plugin/ostf_adapter/nose_plugin/nose_storage_plugin.py
index 793723ad..6449528d 100644
--- a/fuel_plugin/ostf_adapter/nose_plugin/nose_storage_plugin.py
+++ b/fuel_plugin/ostf_adapter/nose_plugin/nose_storage_plugin.py
@@ -16,11 +16,14 @@ from time import time
 import logging
 import os
 from nose import plugins
-from pecan import conf
+
+from oslo.config import cfg
 
 from fuel_plugin.ostf_adapter.nose_plugin import nose_utils
 from fuel_plugin.ostf_adapter.storage import models
 
+CONF = cfg.CONF
+
 
 LOG = logging.getLogger(__name__)
 
@@ -38,8 +41,8 @@ class StoragePlugin(plugins.Plugin):
         self._start_time = None
 
     def options(self, parser, env=os.environ):
-        env['NAILGUN_HOST'] = str(conf.nailgun.host)
-        env['NAILGUN_PORT'] = str(conf.nailgun.port)
+        env['NAILGUN_HOST'] = str(CONF.adapter.nailgun_host)
+        env['NAILGUN_PORT'] = str(CONF.adapter.nailgun_port)
         if self.cluster_id:
             env['CLUSTER_ID'] = str(self.cluster_id)
 
diff --git a/fuel_plugin/ostf_adapter/server.py b/fuel_plugin/ostf_adapter/server.py
new file mode 100644
index 00000000..1e0614b9
--- /dev/null
+++ b/fuel_plugin/ostf_adapter/server.py
@@ -0,0 +1,75 @@
+#    Copyright 2014 Mirantis, Inc.
+#
+#    Licensed under the Apache License, Version 2.0 (the "License"); you may
+#    not use this file except in compliance with the License. You may obtain
+#    a copy of the License at
+#
+#         http://www.apache.org/licenses/LICENSE-2.0
+#
+#    Unless required by applicable law or agreed to in writing, software
+#    distributed under the License is distributed on an "AS IS" BASIS, WITHOUT
+#    WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied. See the
+#    License for the specific language governing permissions and limitations
+#    under the License.
+
+
+import os
+import sys
+import logging
+import signal
+
+from oslo.config import cfg
+from gevent import pywsgi
+
+from fuel_plugin.ostf_adapter import config as ostf_config
+from fuel_plugin.ostf_adapter import nailgun_hooks
+from fuel_plugin.ostf_adapter import logger
+from fuel_plugin.ostf_adapter.wsgi import app
+from fuel_plugin.ostf_adapter.nose_plugin import nose_discovery
+from fuel_plugin.ostf_adapter.storage import engine
+from fuel_plugin.ostf_adapter import mixins
+
+
+CONF = cfg.CONF
+
+
+def main():
+
+    ostf_config.init_config(sys.argv[1:])
+
+    logger.setup(log_file=CONF.adapter.log_file)
+
+    log = logging.getLogger(__name__)
+    log.info('Start app configuration')
+
+    root = app.setup_app({})
+
+    if CONF.after_initialization_environment_hook:
+        return nailgun_hooks.after_initialization_environment_hook()
+
+    with engine.contexted_session(CONF.adapter.dbpath) as session:
+        # performing cleaning of expired data (if any) in db
+        mixins.clean_db(session)
+        log.info('Cleaned up database.')
+        # discover testsets and their tests
+        CORE_PATH = CONF.debug_tests or 'fuel_health'
+
+        log.info('Performing nose discovery with {0}.'.format(CORE_PATH))
+
+        nose_discovery.discovery(path=CORE_PATH, session=session)
+
+        # cache needed data from test repository
+        mixins.cache_test_repository(session)
+
+    log.info('Discovery is completed')
+    host, port = CONF.adapter.server_host, CONF.adapter.server_port
+    srv = pywsgi.WSGIServer((host, port), root)
+
+    log.info('Starting server in PID %s', os.getpid())
+    log.info("serving on http://%s:%s", host, port)
+
+    try:
+        signal.signal(signal.SIGCHLD, signal.SIG_IGN)
+        srv.serve_forever()
+    except KeyboardInterrupt:
+        pass
diff --git a/fuel_plugin/ostf_adapter/storage/alembic_cli.py b/fuel_plugin/ostf_adapter/storage/alembic_cli.py
index 2d4e52c7..6f15b7d5 100644
--- a/fuel_plugin/ostf_adapter/storage/alembic_cli.py
+++ b/fuel_plugin/ostf_adapter/storage/alembic_cli.py
@@ -15,8 +15,10 @@
 import os
 import logging
 
-from alembic import command, config
-from pecan import conf
+from oslo.config import cfg
+
+from alembic import command
+from alembic import config
 
 
 log = logging.getLogger(__name__)
@@ -28,7 +30,7 @@ def do_apply_migrations():
     )
     alembic_conf.set_main_option('script_location',
                                  'fuel_plugin.ostf_adapter.storage:migrations')
-    alembic_conf.set_main_option('sqlalchemy.url', conf.dbpath)
+    alembic_conf.set_main_option('sqlalchemy.url', cfg.CONF.adapter.dbpath)
 
     # apply initial migration
     command.upgrade(alembic_conf, 'head')
diff --git a/fuel_plugin/ostf_adapter/storage/engine.py b/fuel_plugin/ostf_adapter/storage/engine.py
index 80cd9cc0..92f10d26 100644
--- a/fuel_plugin/ostf_adapter/storage/engine.py
+++ b/fuel_plugin/ostf_adapter/storage/engine.py
@@ -12,21 +12,28 @@
 #    License for the specific language governing permissions and limitations
 #    under the License.
 
+import logging
+
 from contextlib import contextmanager
 from sqlalchemy import create_engine, orm
 
 
+LOG = logging.getLogger(__name__)
+
+
 @contextmanager
 def contexted_session(dbpath):
     '''Allows to handle session via context manager
     '''
+    LOG.debug('Starting session with dbpath={0}'.format(dbpath))
     engine = create_engine(dbpath)
     session = orm.Session(bind=engine)
-
     try:
+        LOG.debug('Before yielding session.')
         yield session
         session.commit()
     except Exception:
+        LOG.exception('Raised error in contexted session.')
         session.rollback()
         raise
     finally:
diff --git a/fuel_plugin/ostf_adapter/wsgi/app.py b/fuel_plugin/ostf_adapter/wsgi/app.py
index 791fd102..24365613 100644
--- a/fuel_plugin/ostf_adapter/wsgi/app.py
+++ b/fuel_plugin/ostf_adapter/wsgi/app.py
@@ -12,27 +12,12 @@
 #    License for the specific language governing permissions and limitations
 #    under the License.
 
+from oslo.config import cfg
 import pecan
+
 from fuel_plugin.ostf_adapter.wsgi import hooks
 
-
-PECAN_DEFAULT = {
-    'server': {
-        'host': '0.0.0.0',
-        'port': 8989
-    },
-    'app': {
-        'root': 'fuel_plugin.ostf_adapter.wsgi.root.RootController',
-        'modules': ['fuel_plugin.ostf_adapter.wsgi']
-    },
-    'nailgun': {
-        'host': '127.0.0.1',
-        'port': 8000
-    },
-    'dbpath': 'postgresql+psycopg2://ostf:ostf@localhost/ostf',
-    'debug': False,
-    'debug_tests': 'fuel_plugin/tests/functional/dummy_tests'
-}
+CONF = cfg.CONF
 
 
 def setup_config(custom_pecan_config):
@@ -41,7 +26,24 @@ def setup_config(custom_pecan_config):
     by those supplied via command line arguments
     when ostf-server is started
     '''
-    config_to_use = PECAN_DEFAULT
+    config_to_use = {
+        'server': {
+            'host': CONF.adapter.server_host,
+            'port': CONF.adapter.server_port
+        },
+        'dbpath': CONF.adapter.dbpath,
+        'debug': CONF.debug,
+        'debug_tests': CONF.debug_tests,
+        'lock_dir': CONF.adapter.lock_dir,
+        'nailgun': {
+            'host': CONF.adapter.nailgun_host,
+            'port': CONF.adapter.nailgun_port
+        },
+        'app': {
+            'root': 'fuel_plugin.ostf_adapter.wsgi.root.RootController',
+            'modules': ['fuel_plugin.ostf_adapter.wsgi']
+        },
+    }
     config_to_use.update(custom_pecan_config)
     pecan.conf.update(config_to_use)
 
diff --git a/fuel_plugin/ostf_adapter/wsgi/controllers.py b/fuel_plugin/ostf_adapter/wsgi/controllers.py
index 9dbe51c8..44d6e960 100644
--- a/fuel_plugin/ostf_adapter/wsgi/controllers.py
+++ b/fuel_plugin/ostf_adapter/wsgi/controllers.py
@@ -17,7 +17,9 @@ import logging
 
 from sqlalchemy import func
 from sqlalchemy.orm import joinedload
-from pecan import conf, rest, expose, request
+from pecan import rest, expose, request
+
+from oslo.config import cfg
 
 from fuel_plugin.ostf_adapter import mixins
 from fuel_plugin.ostf_adapter.storage import models
@@ -140,7 +142,7 @@ class TestrunsController(BaseRestController):
                 test_set,
                 metadata,
                 tests,
-                conf.dbpath
+                cfg.CONF.adapter.dbpath
             )
 
             res.append(test_run)
@@ -164,6 +166,6 @@ class TestrunsController(BaseRestController):
                     data.append(test_run.stop(request.session))
                 elif status == 'restarted':
                     data.append(test_run.restart(request.session,
-                                                 conf.dbpath,
+                                                 cfg.CONF.adapter.dbpath,
                                                  tests=tests))
         return data
diff --git a/fuel_plugin/testing/tests/__init__.py b/fuel_plugin/testing/tests/__init__.py
index 4dddf018..6520e426 100644
--- a/fuel_plugin/testing/tests/__init__.py
+++ b/fuel_plugin/testing/tests/__init__.py
@@ -37,7 +37,6 @@ def setup():
                     [
                         'ostf-server',
                         '--debug',
-                        '--nailgun-port=8888',
                         ('--debug_tests=fuel_plugin/testing/'
                          'fixture/dummy_tests')
                     ],
diff --git a/fuel_plugin/testing/tests/etc/.gitignore b/fuel_plugin/testing/tests/etc/.gitignore
deleted file mode 100644
index 51f05cf0..00000000
--- a/fuel_plugin/testing/tests/etc/.gitignore
+++ /dev/null
@@ -1,4 +0,0 @@
-# Ignore everything in this directory
-*
-# Do not ignore .gitignore itself
-!.gitignore
diff --git a/fuel_plugin/testing/tests/unit/base.py b/fuel_plugin/testing/tests/unit/base.py
index cd25c3f1..4eae2e74 100644
--- a/fuel_plugin/testing/tests/unit/base.py
+++ b/fuel_plugin/testing/tests/unit/base.py
@@ -18,6 +18,7 @@ from mock import patch, MagicMock
 from sqlalchemy import create_engine
 from sqlalchemy.orm import sessionmaker
 
+from fuel_plugin.ostf_adapter import config
 from fuel_plugin.ostf_adapter.nose_plugin.nose_discovery import discovery
 from fuel_plugin.ostf_adapter.storage import models
 from fuel_plugin.ostf_adapter import mixins
@@ -61,6 +62,7 @@ class BaseWSGITest(unittest2.TestCase):
 
     def setUp(self):
         # orm session wrapping
+        config.init_config([])
         self.connection = self.engine.connect()
         self.trans = self.connection.begin()
 
@@ -87,25 +89,6 @@ class BaseWSGITest(unittest2.TestCase):
         )
         self.request_patcher.start()
 
-        # pecan conf mocking
-        self.pecan_conf_mock = MagicMock()
-        self.pecan_conf_mock.nailgun.host = '127.0.0.1'
-        self.pecan_conf_mock.nailgun.port = 8888
-
-        self.pecan_conf_patcher = patch(
-            'fuel_plugin.ostf_adapter.mixins.conf',
-            self.pecan_conf_mock
-        )
-        self.pecan_conf_patcher.start()
-
-        # pecan conf mocking in wsgi.controllers
-        self.wsgi_controllers_pecan_conf_mock = MagicMock()
-        self.controllers_pecan_conf_patcher = patch(
-            'fuel_plugin.ostf_adapter.wsgi.controllers.conf',
-            self.wsgi_controllers_pecan_conf_mock
-        )
-        self.controllers_pecan_conf_patcher.start()
-
         # engine.get_session mocking
         self.request_mock.session = self.session
 
@@ -118,8 +101,6 @@ class BaseWSGITest(unittest2.TestCase):
 
         # end of test_case patching
         self.request_patcher.stop()
-        self.pecan_conf_patcher.stop()
-        self.controllers_pecan_conf_patcher.stop()
 
         mixins.TEST_REPOSITORY = []
 
diff --git a/fuel_plugin/testing/tests/unit/test_support_utilities.py b/fuel_plugin/testing/tests/unit/test_support_utilities.py
index e0a9a626..8f94030b 100644
--- a/fuel_plugin/testing/tests/unit/test_support_utilities.py
+++ b/fuel_plugin/testing/tests/unit/test_support_utilities.py
@@ -13,7 +13,6 @@
 #    under the License.
 
 import unittest
-import mock
 
 from fuel_plugin.ostf_adapter import mixins
 
@@ -29,15 +28,6 @@ class TestDeplTagsGetter(unittest.TestCase):
             )
         }
 
-        mocked_pecan_conf = mock.Mock()
-        mocked_pecan_conf.nailgun.host = '127.0.0.1'
-        mocked_pecan_conf.nailgun.port = 8888
-
-        with mock.patch(
-            'fuel_plugin.ostf_adapter.mixins.conf',
-            mocked_pecan_conf
-        ):
-            res = mixins._get_cluster_depl_tags(expected['cluster_id'])
-            print res
+        res = mixins._get_cluster_depl_tags(expected['cluster_id'])
 
         self.assertEqual(res, expected['depl_tags'])
diff --git a/fuel_plugin/testing/tests/unit/tests_wsgi_interface.py b/fuel_plugin/testing/tests/unit/tests_wsgi_interface.py
index e9ace61d..a63d5e0f 100644
--- a/fuel_plugin/testing/tests/unit/tests_wsgi_interface.py
+++ b/fuel_plugin/testing/tests/unit/tests_wsgi_interface.py
@@ -17,7 +17,6 @@ from mock import patch, MagicMock
 from webtest import TestApp
 
 from fuel_plugin.ostf_adapter.wsgi import app
-from fuel_plugin.ostf_adapter.wsgi.app import PECAN_DEFAULT
 from fuel_plugin.testing.tests.unit import base
 
 
@@ -30,14 +29,7 @@ class WsgiInterfaceTests(base.BaseWSGITest):
     def setUp(self):
         super(WsgiInterfaceTests, self).setUp()
 
-        test_custom_config = PECAN_DEFAULT
-        test_custom_config['nailgun']['port'] = 8888
-
-        with patch(
-            'fuel_plugin.ostf_adapter.wsgi.app.PECAN_DEFAULT',
-            test_custom_config
-        ):
-            self.app = TestApp(app.setup_app())
+        self.app = TestApp(app.setup_app())
 
         self.fixture = {
             'cluster_id': 1
diff --git a/requirements.txt b/requirements.txt
new file mode 100644
index 00000000..82e75505
--- /dev/null
+++ b/requirements.txt
@@ -0,0 +1,19 @@
+oslo.config>=1.1.1
+python-cinderclient>=1.0.7
+python-ceilometerclient>=1.0.9
+python-keystoneclient>=0.4.2
+python-novaclient>=2.17.0
+python-heatclient>=0.2.9
+python-saharaclient>=0.6.0
+paramiko>=1.10.1,<1.13
+requests>=1.2.3
+unittest2>=0.5.1
+pyyaml>=3.10
+testresources>=0.2.7
+nose>=1.3.0
+SQLAlchemy>=0.7.8,<=0.9.99
+alembic>=0.5.0
+gevent==0.13.8
+pecan>=0.3.0
+psycopg2>=2.5.1
+stevedore>=0.10
\ No newline at end of file
diff --git a/setup.py b/setup.py
index f255e5f6..6f1fb0e6 100644
--- a/setup.py
+++ b/setup.py
@@ -12,45 +12,16 @@
 #    License for the specific language governing permissions and limitations
 #    under the License.
 
+import os
 import setuptools
 
 
-fuel_health_reqs = [
-    'oslo.config>=1.1.1',
-    'python-cinderclient>=1.0.7',
-    'python-ceilometerclient>=1.0.9',
-    'python-keystoneclient>=0.4.2',
-    'python-novaclient>=2.17.0',
-    'python-heatclient>=0.2.9',
-    'python-muranoclient>=0.4.1',
-    'python-saharaclient>=0.6.0',
-    'paramiko>=1.10.1',
-    'requests>=1.2.3',
-    'unittest2>=0.5.1',
-    'pyyaml>=3.10',
-    'testresources>=0.2.7'
-]
-
-fuel_ostf_reqs = [
-    'nose>=1.3.0',
-    'SQLAlchemy>=0.7.8,<=0.9.99',
-    'alembic>=0.5.0',
-    'gevent==0.13.8',
-    'pecan>=0.3.0',
-    'psycopg2>=2.5.1',
-    'stevedore>=0.10'
-]
-
-test_requires = [
-    'mock>=1.0.1',
-    'pep8>=1.4.6',
-    'py>=1.4.15',
-    'six>=1.5.2',
-    'tox>=1.5.0',
-    'unittest2',
-    'nose',
-    'requests'
-]
+def requirements():
+    dir_path = os.path.dirname(os.path.realpath(__file__))
+    requirements = []
+    with open('{0}/requirements.txt'.format(dir_path), 'r') as reqs:
+        requirements = reqs.readlines()
+    return requirements
 
 
 setuptools.setup(
@@ -80,7 +51,7 @@ setuptools.setup(
 
     packages=setuptools.find_packages(),
 
-    install_requires=fuel_health_reqs+fuel_ostf_reqs,
+    install_requires=requirements(),
 
     entry_points={
         'plugins': [
@@ -88,7 +59,7 @@ setuptools.setup(
              'nose_plugin.nose_adapter:NoseDriver')
         ],
         'console_scripts': [
-            'ostf-server = fuel_plugin.bin.adapter_api:main',
+            'ostf-server = fuel_plugin.ostf_adapter.server:main',
             ('update-commands = fuel_plugin.tests.'
              'test_utils.update_commands:main'),
             'ostfctl = adapter_utils.bin.ostf_utils:main'
diff --git a/test-requires b/test-requirements.txt
similarity index 59%
rename from test-requires
rename to test-requirements.txt
index 8c95211b..80186f95 100644
--- a/test-requires
+++ b/test-requirements.txt
@@ -1,6 +1,7 @@
+-r requirements.txt
 mock==1.0.1
 pep8==1.4.6
-py==1.4.15
-six<=1.3.0
 tox==1.5.0
 coverage==3.6
+fabric
+bottle
\ No newline at end of file
diff --git a/tox.ini b/tox.ini
index cd11c537..b70d8334 100644
--- a/tox.ini
+++ b/tox.ini
@@ -12,6 +12,10 @@ skipsdist = True
 show-source = True
 exclude = .tox
 
+[testenv]
+commands = nosetests fuel_plugin/testing/tests/unit fuel_plugin/testing/tests/functional/tests.py:AdapterTests
+deps = -r{toxinidir}/test-requirements.txt
+
 [testenv:flake8]
 deps = flake8
 commands = flake8