diff --git a/envs/test.py b/envs/test.py
new file mode 100644
index 0000000000..dd37a765c6
--- /dev/null
+++ b/envs/test.py
@@ -0,0 +1,57 @@
+"""
+This config file runs the simplest dev environment using sqlite, and db-based
+sessions. Assumes structure:
+
+/envroot/
+        /db   # This is where it'll write the database file
+        /mitx # The location of this repo
+        /log  # Where we're going to write log files
+"""
+from common import *
+
+LOGGING = logsettings.get_logger_config(PROJECT_ROOT / "log", 
+                                        logging_env="dev",
+                                        tracking_filename="tracking.log",
+                                        debug=True)
+
+DATABASES = {
+    'default': {
+        'ENGINE': 'django.db.backends.sqlite3',
+        'NAME': PROJECT_ROOT / "db" / "mitx.db",
+    }
+}
+
+CACHES = {
+    # This is the cache used for most things. Askbot will not work without a 
+    # functioning cache -- it relies on caching to load its settings in places.
+    # In staging/prod envs, the sessions also live here.
+    'default': {
+        'BACKEND': 'django.core.cache.backends.locmem.LocMemCache',
+        'LOCATION': 'mitx_loc_mem_cache'
+    },
+
+    # The general cache is what you get if you use our util.cache. It's used for
+    # things like caching the course.xml file for different A/B test groups.
+    # We set it to be a DummyCache to force reloading of course.xml in dev.
+    # In staging environments, we would grab VERSION from data uploaded by the
+    # push process.
+    'general': {
+        'BACKEND': 'django.core.cache.backends.dummy.DummyCache',
+        'KEY_PREFIX': 'general',
+        'VERSION': 4,
+    }
+}
+
+# Dummy secret key for dev
+SECRET_KEY = '85920908f28904ed733fe576320db18cabd7b6cd'
+
+############################ FILE UPLOADS (ASKBOT) #############################
+DEFAULT_FILE_STORAGE = 'django.core.files.storage.FileSystemStorage'
+MEDIA_ROOT = PROJECT_ROOT / "uploads"
+MEDIA_URL = "/static/uploads/"
+STATICFILES_DIRS.append(("uploads", MEDIA_ROOT))
+FILE_UPLOAD_TEMP_DIR = PROJECT_ROOT / "uploads"
+FILE_UPLOAD_HANDLERS = (
+    'django.core.files.uploadhandler.MemoryFileUploadHandler',
+    'django.core.files.uploadhandler.TemporaryFileUploadHandler',
+)
diff --git a/rakefile b/rakefile
index 9885076c67..1d4d7fd998 100644
--- a/rakefile
+++ b/rakefile
@@ -29,7 +29,7 @@ CLOBBER.include('build')
 CLEAN.include("#{BUILD_DIR}/*.deb", "#{BUILD_DIR}/util")
 
 task :test do
-    sh("django-admin.py test --settings=envs.dev --pythonpath=. $(ls djangoapps)")
+    sh("django-admin.py test --settings=envs.test --pythonpath=. $(ls djangoapps)")
 end
 
 task :package do