diff --git a/cms/envs/common.py b/cms/envs/common.py
index 6faecafec1..1767202141 100644
--- a/cms/envs/common.py
+++ b/cms/envs/common.py
@@ -90,6 +90,16 @@ TEMPLATE_CONTEXT_PROCESSORS = (
 ################################# Jasmine ###################################
 JASMINE_TEST_DIRECTORY = PROJECT_ROOT + '/static/coffee'
 
+
+#################### CAPA External Code Evaluation #############################
+XQUEUE_INTERFACE = {
+    'url': 'http://localhost:8888',
+    'django_auth': {'username': 'local',
+                    'password': 'local'},
+    'basic_auth': None,
+}
+
+
 ################################# Middleware ###################################
 # List of finder classes that know how to find static files in
 # various locations.
diff --git a/common/lib/capa/capa/xqueue_interface.py b/common/lib/capa/capa/xqueue_interface.py
index 70f086120e..2847968a89 100644
--- a/common/lib/capa/capa/xqueue_interface.py
+++ b/common/lib/capa/capa/xqueue_interface.py
@@ -7,13 +7,10 @@ import logging
 import requests
 import time
 
-# TODO: Collection of parameters to be hooked into rest of edX system
-XQUEUE_LMS_AUTH = { 'username': 'LMS',
-                    'password': 'PaloAltoCA' }
-XQUEUE_URL = 'http://xqueue.edx.org'
 
 log = logging.getLogger('mitx.' + __name__)
 
+
 def make_hashkey(seed=None):
     '''
     Generate a string key by hashing 
@@ -58,15 +55,15 @@ def parse_xreply(xreply):
     return (return_code, content)
 
 
-class XqueueInterface:
+class XQueueInterface(object):
     '''
     Interface to the external grading system
     '''
 
-    def __init__(self, url=XQUEUE_URL, auth=XQUEUE_LMS_AUTH):
+    def __init__(self, url, django_auth, requests_auth=None):
         self.url  = url
-        self.auth = auth
-        self.session = requests.session()
+        self.auth = django_auth
+        self.session = requests.session(auth=requests_auth)
         
     def send_to_queue(self, header, body, file_to_upload=None):
         '''
@@ -117,5 +114,3 @@ class XqueueInterface:
             return (1, 'unexpected HTTP status code [%d]' % r.status_code)
 
         return parse_xreply(r.text)
-
-qinterface = XqueueInterface()
diff --git a/lms/djangoapps/courseware/module_render.py b/lms/djangoapps/courseware/module_render.py
index 85eeb72c24..5184cd9866 100644
--- a/lms/djangoapps/courseware/module_render.py
+++ b/lms/djangoapps/courseware/module_render.py
@@ -7,9 +7,9 @@ from django.http import Http404
 from django.http import HttpResponse
 from django.views.decorators.csrf import csrf_exempt
 
+from capa.xqueue_interface import XQueueInterface
 from django.contrib.auth.models import User
 from xmodule.modulestore.django import modulestore
-from capa.xqueue_interface import qinterface
 from mitxmako.shortcuts import render_to_string
 from models import StudentModule, StudentModuleCache
 from static_replace import replace_urls
@@ -19,10 +19,23 @@ from xmodule_modifiers import replace_static_urls, add_histogram, wrap_xmodule
 
 from courseware.courses import (has_staff_access_to_course,
                                 has_staff_access_to_location)
+from requests.auth import HTTPBasicAuth
 
 log = logging.getLogger("mitx.courseware")
 
 
+if settings.XQUEUE_INTERFACE['basic_auth'] is not None:
+    requests_auth = HTTPBasicAuth(*settings.XQUEUE_INTERFACE['basic_auth'])
+else:
+    requests_auth = None
+
+xqueue_interface = XQueueInterface(
+    settings.XQUEUE_INTERFACE['url'],
+    settings.XQUEUE_INTERFACE['django_auth'],
+    requests_auth,
+)
+
+
 def make_track_function(request):
     '''
     Make a tracking function that logs what happened.
@@ -172,9 +185,9 @@ def get_module(user, request, location, student_module_cache, position=None):
     # TODO: Queuename should be derived from 'course_settings.json' of each course
     xqueue_default_queuename = descriptor.location.org + '-' + descriptor.location.course
 
-    xqueue = { 'interface': qinterface,
-               'callback_url': xqueue_callback_url,
-               'default_queuename': xqueue_default_queuename.replace(' ','_') }
+    xqueue = {'interface': xqueue_interface,
+              'callback_url': xqueue_callback_url,
+              'default_queuename': xqueue_default_queuename.replace(' ', '_')}
 
     def _get_module(location):
         return get_module(user, request, location,
diff --git a/lms/envs/aws.py b/lms/envs/aws.py
index 460ec18d27..c704fd164e 100644
--- a/lms/envs/aws.py
+++ b/lms/envs/aws.py
@@ -54,3 +54,5 @@ AWS_ACCESS_KEY_ID = AUTH_TOKENS["AWS_ACCESS_KEY_ID"]
 AWS_SECRET_ACCESS_KEY = AUTH_TOKENS["AWS_SECRET_ACCESS_KEY"]
 
 DATABASES = AUTH_TOKENS['DATABASES']
+
+XQUEUE_INTERFACE = AUTH_TOKENS['XQUEUE_INTERFACE']
diff --git a/lms/envs/dev.py b/lms/envs/dev.py
index 85850e81e3..882a82b8f0 100644
--- a/lms/envs/dev.py
+++ b/lms/envs/dev.py
@@ -53,6 +53,15 @@ CACHES = {
     }
 }
 
+XQUEUE_INTERFACE = {
+    "url": "http://xqueue.sandbox.edx.org",
+    "django_auth": {
+        "username": "lms",
+        "password": "***REMOVED***"
+    },
+    "basic_auth": ('anant', 'agarwal'),
+}
+
 # Make the keyedcache startup warnings go away
 CACHE_TIMEOUT = 0
 
diff --git a/lms/envs/test.py b/lms/envs/test.py
index cd0e984940..187cb5c68e 100644
--- a/lms/envs/test.py
+++ b/lms/envs/test.py
@@ -50,6 +50,16 @@ COMMON_TEST_DATA_ROOT = COMMON_ROOT / "test" / "data"
 GITHUB_REPO_ROOT = ENV_ROOT / "data"
 
 
+XQUEUE_INTERFACE = {
+    "url": "http://xqueue.sandbox.edx.org",
+    "django_auth": {
+        "username": "lms",
+        "password": "***REMOVED***"
+    },
+    "basic_auth": ('anant', 'agarwal'),
+}
+
+
 # TODO (cpennington): We need to figure out how envs/test.py can inject things
 # into common.py so that we don't have to repeat this sort of thing
 STATICFILES_DIRS = [