diff --git a/setup.cfg b/setup.cfg
index 36b2270..f28c481 100644
--- a/setup.cfg
+++ b/setup.cfg
@@ -32,7 +32,8 @@
     tempest-cleanup = tempest.cmd.cleanup:main
     tempest-account-generator = tempest.cmd.account_generator:main
     tempest = tempest.cmd.main:main
-
+tempest.cm =
+    init = tempest.cmd.init:TempestInit
 oslo.config.opts =
     tempest.config = tempest.config:list_opts
 
diff --git a/tempest/cmd/init.py b/tempest/cmd/init.py
new file mode 100644
index 0000000..c13fbe5
--- /dev/null
+++ b/tempest/cmd/init.py
@@ -0,0 +1,99 @@
+# Copyright 2015 Hewlett-Packard Development Company, L.P.
+#
+# 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 shutil
+import subprocess
+
+from cliff import command
+from oslo_log import log as logging
+from six import moves
+
+LOG = logging.getLogger(__name__)
+
+TESTR_CONF = """[DEFAULT]
+test_command=OS_STDOUT_CAPTURE=${OS_STDOUT_CAPTURE:-1} \\
+    OS_STDERR_CAPTURE=${OS_STDERR_CAPTURE:-1} \\
+    OS_TEST_TIMEOUT=${OS_TEST_TIMEOUT:-500} \\
+    ${PYTHON:-python} -m subunit.run discover -t %s %s $LISTOPT $IDOPTION
+test_id_option=--load-list $IDFILE
+test_list_option=--list
+group_regex=([^\.]*\.)*
+"""
+
+
+class TempestInit(command.Command):
+    """Setup a local working environment for running tempest"""
+
+    def get_parser(self, prog_name):
+        parser = super(TempestInit, self).get_parser(prog_name)
+        parser.add_argument('dir', nargs='?', default=os.getcwd())
+        parser.add_argument('--config-dir', '-c', default='/etc/tempest')
+        return parser
+
+    def generate_testr_conf(self, local_path):
+        testr_conf_path = os.path.join(local_path, '.testr.conf')
+        top_level_path = os.path.dirname(os.path.dirname(__file__))
+        discover_path = os.path.join(top_level_path, 'test_discover')
+        testr_conf = TESTR_CONF % (top_level_path, discover_path)
+        with open(testr_conf_path, 'w+') as testr_conf_file:
+            testr_conf_file.write(testr_conf)
+
+    def update_local_conf(self, conf_path, lock_dir, log_dir):
+        config_parse = moves.configparser.SafeConfigParser()
+        config_parse.optionxform = str
+        with open(conf_path, 'w+') as conf_file:
+            config_parse.readfp(conf_file)
+            # Set local lock_dir in tempest conf
+            if not config_parse.has_section('oslo_concurrency'):
+                config_parse.add_section('oslo_concurrency')
+            config_parse.set('oslo_concurrency', 'lock_path', lock_dir)
+            # Set local log_dir in tempest conf
+            config_parse.set('DEFAULT', 'log_dir', log_dir)
+            # Set default log filename to tempest.log
+            config_parse.set('DEFAULT', 'log_file', 'tempest.log')
+
+    def copy_config(self, etc_dir, config_dir):
+        shutil.copytree(config_dir, etc_dir)
+
+    def create_working_dir(self, local_dir, config_dir):
+        # Create local dir if missing
+        if not os.path.isdir(local_dir):
+            LOG.debug('Creating local working dir: %s' % local_dir)
+            os.mkdir(local_dir)
+        lock_dir = os.path.join(local_dir, 'tempest_lock')
+        etc_dir = os.path.join(local_dir, 'etc')
+        config_path = os.path.join(etc_dir, 'tempest.conf')
+        log_dir = os.path.join(local_dir, 'logs')
+        testr_dir = os.path.join(local_dir, '.testrepository')
+        # Create lock dir
+        if not os.path.isdir(lock_dir):
+            LOG.debug('Creating lock dir: %s' % lock_dir)
+            os.mkdir(lock_dir)
+        # Create log dir
+        if not os.path.isdir(log_dir):
+            LOG.debug('Creating log dir: %s' % log_dir)
+            os.mkdir(log_dir)
+        # Create and copy local etc dir
+        self.copy_config(etc_dir, config_dir)
+        # Update local confs to reflect local paths
+        self.update_local_conf(config_path, lock_dir, log_dir)
+        # Generate a testr conf file
+        self.generate_testr_conf(local_dir)
+        # setup local testr working dir
+        if not os.path.isdir(testr_dir):
+            subprocess.call(['testr', 'init'], cwd=local_dir)
+
+    def take_action(self, parsed_args):
+        self.create_working_dir(parsed_args.dir, parsed_args.config_dir)
diff --git a/tempest/tests/cmd/test_tempest_init.py b/tempest/tests/cmd/test_tempest_init.py
new file mode 100644
index 0000000..6b5af7e
--- /dev/null
+++ b/tempest/tests/cmd/test_tempest_init.py
@@ -0,0 +1,66 @@
+# Copyright 2015 Hewlett-Packard Development Company, L.P.
+#
+# 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 fixtures
+
+from tempest.cmd import init
+from tempest.tests import base
+
+
+class TestTempestInit(base.TestCase):
+
+    def test_generate_testr_conf(self):
+        # Create fake conf dir
+        conf_dir = self.useFixture(fixtures.TempDir())
+
+        init_cmd = init.TempestInit(None, None)
+        init_cmd.generate_testr_conf(conf_dir.path)
+
+        # Generate expected file contents
+        top_level_path = os.path.dirname(os.path.dirname(init.__file__))
+        discover_path = os.path.join(top_level_path, 'test_discover')
+        testr_conf_file = init.TESTR_CONF % (top_level_path, discover_path)
+
+        conf_path = conf_dir.join('.testr.conf')
+        conf_file = open(conf_path, 'r')
+        self.addCleanup(conf_file.close)
+        self.assertEqual(conf_file.read(), testr_conf_file)
+
+    def test_create_working_dir(self):
+        fake_local_dir = self.useFixture(fixtures.TempDir())
+        fake_local_conf_dir = self.useFixture(fixtures.TempDir())
+        # Create a fake conf file
+        fake_file = fake_local_conf_dir.join('conf_file.conf')
+        open(fake_file, 'w').close()
+        init_cmd = init.TempestInit(None, None)
+        init_cmd.create_working_dir(fake_local_dir.path,
+                                    fake_local_conf_dir.path)
+        # Assert directories are created
+        lock_path = os.path.join(fake_local_dir.path, 'tempest_lock')
+        etc_dir = os.path.join(fake_local_dir.path, 'etc')
+        log_dir = os.path.join(fake_local_dir.path, 'logs')
+        testr_dir = os.path.join(fake_local_dir.path, '.testrepository')
+        self.assertTrue(os.path.isdir(lock_path))
+        self.assertTrue(os.path.isdir(etc_dir))
+        self.assertTrue(os.path.isdir(log_dir))
+        self.assertTrue(os.path.isdir(testr_dir))
+        # Assert file creation
+        fake_file_moved = os.path.join(etc_dir, 'conf_file.conf')
+        local_conf_file = os.path.join(etc_dir, 'tempest.conf')
+        local_testr_conf = os.path.join(fake_local_dir.path, '.testr.conf')
+        self.assertTrue(os.path.isfile(fake_file_moved))
+        self.assertTrue(os.path.isfile(local_conf_file))
+        self.assertTrue(os.path.isfile(local_testr_conf))