diff --git a/tests/components/test_proximity.py b/tests/components/test_proximity.py
new file mode 100644
index 00000000000..feca18a7a4e
--- /dev/null
+++ b/tests/components/test_proximity.py
@@ -0,0 +1,616 @@
+"""
+tests.components.proximity
+~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+
+Tests proximity component.
+"""
+
+import homeassistant.core as ha
+from homeassistant.components import proximity
+
+class TestProximity:
+    """ Test the Proximity component. """
+
+    def setup_method(self, method):
+        self.hass = ha.HomeAssistant()
+        self.hass.states.set(
+            'zone.home', 'zoning',
+            {
+                'name': 'home',
+                'latitude': 2.1,
+                'longitude': 1.1,
+                'radius': 10
+            })
+
+    def teardown_method(self, method):
+        """ Stop down stuff we started. """
+        self.hass.stop()
+        
+    def test_proximity(self):
+        assert proximity.setup(self.hass, {
+            'proximity': {
+                'zone': 'home',
+                'ignored_zones': {
+                    'work'
+                },
+                'devices': {
+                    'device_tracker.test1',
+                    'device_tracker.test2'
+                },
+                'tolerance': '1'
+            }
+        })
+
+        state = self.hass.states.get('proximity.home')
+        assert state.state == 'not set'
+        assert state.attributes.get('nearest') == 'not set'
+        assert state.attributes.get('dir_of_travel') == 'not set'
+        
+        self.hass.states.set('proximity.home', '0')
+        self.hass.pool.block_till_done()
+        state = self.hass.states.get('proximity.home')
+        assert state.state == '0'
+        
+    def test_no_devices_in_config(self):
+        assert not proximity.setup(self.hass, {
+            'proximity': {
+                'zone': 'home',
+                'ignored_zones': {
+                    'work'
+                },
+                'tolerance': '1'
+            }
+        })
+        
+    def test_no_tolerance_in_config(self):
+        assert proximity.setup(self.hass, {
+            'proximity': {
+                'zone': 'home',
+                'ignored_zones': {
+                    'work'
+                },
+                'devices': {
+                    'device_tracker.test1',
+                    'device_tracker.test2'
+                }
+            }
+        })
+        
+    def test_no_ignored_zones_in_config(self):
+        assert proximity.setup(self.hass, {
+            'proximity': {
+                'zone': 'home',
+                'devices': {
+                    'device_tracker.test1',
+                    'device_tracker.test2'
+                },
+                'tolerance': '1'
+            }
+        })
+     
+    def test_no_zone_in_config(self):
+        assert proximity.setup(self.hass, {
+            'proximity': {
+                'ignored_zones': {
+                    'work'
+                },
+                'devices': {
+                    'device_tracker.test1',
+                    'device_tracker.test2'
+                },
+                'tolerance': '1'
+            }
+        })     
+    
+    def test_device_tracker_test1_in_zone(self):
+        assert proximity.setup(self.hass, {
+            'proximity': {
+                'zone': 'home',
+                'ignored_zones': {
+                    'work'
+                },
+                'devices': {
+                    'device_tracker.test1'
+                },
+                'tolerance': '1'
+            }
+        })
+        
+        self.hass.states.set(
+            'device_tracker.test1', 'home',
+            {
+                'friendly_name': 'test1',
+                'latitude': 2.1,
+                'longitude': 1.1
+            })
+        self.hass.pool.block_till_done()
+        state = self.hass.states.get('proximity.home')
+        assert state.state == '0'
+        assert state.attributes.get('nearest') == 'test1'
+        assert state.attributes.get('dir_of_travel') == 'arrived'
+        
+    def test_device_trackers_in_zone(self):
+        assert proximity.setup(self.hass, {
+            'proximity': {
+                'zone': 'home',
+                'ignored_zones': {
+                    'work'
+                },
+                'devices': {
+                    'device_tracker.test1',
+                    'device_tracker.test2'
+                },
+                'tolerance': '1'
+            }
+        })
+        
+        self.hass.states.set(
+            'device_tracker.test1', 'home',
+            {
+                'friendly_name': 'test1',
+                'latitude': 2.1,
+                'longitude': 1.1
+            })
+        self.hass.pool.block_till_done()
+        self.hass.states.set(
+            'device_tracker.test2', 'home',
+            {
+                'friendly_name': 'test2',
+                'latitude': 2.1,
+                'longitude': 1.1
+            })
+        self.hass.pool.block_till_done()
+        state = self.hass.states.get('proximity.home')
+        assert state.state == '0'
+        assert (state.attributes.get('nearest') == 'test1, test2') or (state.attributes.get('nearest') == 'test2, test1')
+        assert state.attributes.get('dir_of_travel') == 'arrived'
+        
+    def test_device_tracker_test1_away(self):
+        assert proximity.setup(self.hass, {
+            'proximity': {
+                'zone': 'home',
+                'ignored_zones': {
+                    'work'
+                },
+                'devices': {
+                    'device_tracker.test1'
+                },
+                'tolerance': '1'
+            }
+        })
+        
+        self.hass.states.set(
+            'device_tracker.test1', 'not_home',
+            {
+                'friendly_name': 'test1',
+                'latitude': 20.1,
+                'longitude': 10.1
+            })
+        self.hass.pool.block_till_done()
+        state = self.hass.states.get('proximity.home')
+        assert state.attributes.get('nearest') == 'test1'
+        assert state.attributes.get('dir_of_travel') == 'unknown'
+        
+    def test_device_tracker_test1_awayfurther(self):
+        assert proximity.setup(self.hass, {
+            'proximity': {
+                'zone': 'home',
+                'ignored_zones': {
+                    'work'
+                },
+                'devices': {
+                    'device_tracker.test1'
+                }
+            }
+        })
+        
+        self.hass.states.set(
+            'device_tracker.test1', 'not_home',
+            {
+                'friendly_name': 'test1',
+                'latitude': 20.1,
+                'longitude': 10.1
+            })
+        self.hass.pool.block_till_done()
+        state = self.hass.states.get('proximity.home')
+        assert state.attributes.get('nearest') == 'test1'
+        assert state.attributes.get('dir_of_travel') == 'unknown'
+        self.hass.states.set(
+            'device_tracker.test1', 'not_home',
+            {
+                'friendly_name': 'test1',
+                'latitude': 40.1,
+                'longitude': 20.1
+            })
+        self.hass.pool.block_till_done()
+        state = self.hass.states.get('proximity.home')
+        assert state.attributes.get('nearest') == 'test1'
+        assert state.attributes.get('dir_of_travel') == 'away_from'
+        
+    def test_device_tracker_test1_awaycloser(self):
+        assert proximity.setup(self.hass, {
+            'proximity': {
+                'zone': 'home',
+                'ignored_zones': {
+                    'work'
+                },
+                'devices': {
+                    'device_tracker.test1'
+                }
+            }
+        })
+        
+        self.hass.states.set(
+            'device_tracker.test1', 'not_home',
+            {
+                'friendly_name': 'test1',
+                'latitude': 40.1,
+                'longitude': 20.1
+            })
+        self.hass.pool.block_till_done()
+        state = self.hass.states.get('proximity.home')
+        assert state.attributes.get('nearest') == 'test1'
+        assert state.attributes.get('dir_of_travel') == 'unknown'
+        self.hass.states.set(
+            'device_tracker.test1', 'not_home',
+            {
+                'friendly_name': 'test1',
+                'latitude': 20.1,
+                'longitude': 10.1
+            })
+        self.hass.pool.block_till_done()
+        state = self.hass.states.get('proximity.home')
+        assert state.attributes.get('nearest') == 'test1'
+        assert state.attributes.get('dir_of_travel') == 'towards'
+        
+    def test_all_device_trackers_in_ignored_zone(self):
+        assert proximity.setup(self.hass, {
+            'proximity': {
+                'zone': 'home',
+                'ignored_zones': {
+                    'work'
+                },
+                'devices': {
+                    'device_tracker.test1'
+                }
+            }
+        })
+        
+        self.hass.states.set(
+            'device_tracker.test1', 'work',
+            {
+                'friendly_name': 'test1'
+            })
+        self.hass.pool.block_till_done()
+        state = self.hass.states.get('proximity.home')
+        assert state.state == 'not set'
+        assert state.attributes.get('nearest') == 'not set'
+        assert state.attributes.get('dir_of_travel') == 'not set'
+        
+    def test_device_tracker_test1_no_coordinates(self):
+        assert proximity.setup(self.hass, {
+            'proximity': {
+                'zone': 'home',
+                'ignored_zones': {
+                    'work'
+                },
+                'devices': {
+                    'device_tracker.test1'
+                },
+                'tolerance': '1'
+            }
+        })
+        
+        self.hass.states.set(
+            'device_tracker.test1', 'not_home',
+            {
+                'friendly_name': 'test1'
+            })
+        self.hass.pool.block_till_done()
+        state = self.hass.states.get('proximity.home')
+        assert state.attributes.get('nearest') == 'not set'
+        assert state.attributes.get('dir_of_travel') == 'not set'
+        
+    def test_device_tracker_test1_awayfurther_than_test2_first_test1(self):
+        self.hass.states.set(
+            'device_tracker.test1', 'not_home',
+            {
+                'friendly_name': 'test1'
+            })
+        self.hass.pool.block_till_done()
+        self.hass.states.set(
+            'device_tracker.test2', 'not_home',
+            {
+                'friendly_name': 'test2'
+            })
+        self.hass.pool.block_till_done()
+        assert proximity.setup(self.hass, {
+            'proximity': {
+                'zone': 'home',
+                'ignored_zones': {
+                    'work'
+                },
+                'devices': {
+                    'device_tracker.test1',
+                    'device_tracker.test2'
+                }
+            }
+        })
+        
+        self.hass.states.set(
+            'device_tracker.test1', 'not_home',
+            {
+                'friendly_name': 'test1',
+                'latitude': 20.1,
+                'longitude': 10.1
+            })
+        self.hass.pool.block_till_done()
+        state = self.hass.states.get('proximity.home')
+        assert state.attributes.get('nearest') == 'test1'
+        assert state.attributes.get('dir_of_travel') == 'unknown'
+        self.hass.states.set(
+            'device_tracker.test2', 'not_home',
+            {
+                'friendly_name': 'test2',
+                'latitude': 40.1,
+                'longitude': 20.1
+            })
+        self.hass.pool.block_till_done()
+        state = self.hass.states.get('proximity.home')
+        assert state.attributes.get('nearest') == 'test1'
+        assert state.attributes.get('dir_of_travel') == 'unknown'
+        
+    def test_device_tracker_test1_awayfurther_than_test2_first_test2(self):
+        self.hass.states.set(
+            'device_tracker.test1', 'not_home',
+            {
+                'friendly_name': 'test1'
+            })
+        self.hass.pool.block_till_done()
+        self.hass.states.set(
+            'device_tracker.test2', 'not_home',
+            {
+                'friendly_name': 'test2'
+            })
+        self.hass.pool.block_till_done()
+        assert proximity.setup(self.hass, {
+            'proximity': {
+                'zone': 'home',
+                'ignored_zones': {
+                    'work'
+                },
+                'devices': {
+                    'device_tracker.test1',
+                    'device_tracker.test2'
+                }
+            }
+        })
+        
+        self.hass.states.set(
+            'device_tracker.test2', 'not_home',
+            {
+                'friendly_name': 'test2',
+                'latitude': 40.1,
+                'longitude': 20.1
+            })
+        self.hass.pool.block_till_done()
+        state = self.hass.states.get('proximity.home')
+        assert state.attributes.get('nearest') == 'test2'
+        assert state.attributes.get('dir_of_travel') == 'unknown'
+        self.hass.states.set(
+            'device_tracker.test1', 'not_home',
+            {
+                'friendly_name': 'test1',
+                'latitude': 20.1,
+                'longitude': 10.1
+            })
+        self.hass.pool.block_till_done()
+        state = self.hass.states.get('proximity.home')
+        assert state.attributes.get('nearest') == 'test1'
+        assert state.attributes.get('dir_of_travel') == 'unknown'
+        
+    def test_device_tracker_test1_awayfurther_test2_in_ignored_zone(self):
+        self.hass.states.set(
+            'device_tracker.test1', 'not_home',
+            {
+                'friendly_name': 'test1'
+            })
+        self.hass.pool.block_till_done()
+        self.hass.states.set(
+            'device_tracker.test2', 'work',
+            {
+                'friendly_name': 'test2'
+            })
+        self.hass.pool.block_till_done()
+        assert proximity.setup(self.hass, {
+            'proximity': {
+                'zone': 'home',
+                'ignored_zones': {
+                    'work'
+                },
+                'devices': {
+                    'device_tracker.test1',
+                    'device_tracker.test2'
+                }
+            }
+        })
+        
+        self.hass.states.set(
+            'device_tracker.test1', 'not_home',
+            {
+                'friendly_name': 'test1',
+                'latitude': 20.1,
+                'longitude': 10.1
+            })
+        self.hass.pool.block_till_done()
+        state = self.hass.states.get('proximity.home')
+        assert state.attributes.get('nearest') == 'test1'
+        assert state.attributes.get('dir_of_travel') == 'unknown'
+        
+    def test_device_tracker_test1_awayfurther_than_test2_first_test1_than_test2_than_test1(self):
+        self.hass.states.set(
+            'device_tracker.test1', 'not_home',
+            {
+                'friendly_name': 'test1'
+            })
+        self.hass.pool.block_till_done()
+        self.hass.states.set(
+            'device_tracker.test2', 'not_home',
+            {
+                'friendly_name': 'test2'
+            })
+        self.hass.pool.block_till_done()
+        assert proximity.setup(self.hass, {
+            'proximity': {
+                'zone': 'home',
+                'ignored_zones': {
+                    'work'
+                },
+                'devices': {
+                    'device_tracker.test1',
+                    'device_tracker.test2'
+                }
+            }
+        })
+        
+        self.hass.states.set(
+            'device_tracker.test1', 'not_home',
+            {
+                'friendly_name': 'test1',
+                'latitude': 10.1,
+                'longitude': 5.1
+            })
+        self.hass.pool.block_till_done()
+        
+        self.hass.states.set(
+            'device_tracker.test2', 'not_home',
+            {
+                'friendly_name': 'test2',
+                'latitude': 20.1,
+                'longitude': 10.1
+            })
+        self.hass.pool.block_till_done()
+        self.hass.states.set(
+            'device_tracker.test1', 'not_home',
+            {
+                'friendly_name': 'test1',
+                'latitude': 40.1,
+                'longitude': 20.1
+            })
+        self.hass.pool.block_till_done()
+        self.hass.states.set(
+            'device_tracker.test1', 'not_home',
+            {
+                'friendly_name': 'test1',
+                'latitude': 35.1,
+                'longitude': 15.1
+            })
+        self.hass.pool.block_till_done()
+        self.hass.states.set(
+            'device_tracker.test1', 'work',
+            {
+                'friendly_name': 'test1'
+            })
+        self.hass.pool.block_till_done()
+        state = self.hass.states.get('proximity.home')
+        assert state.attributes.get('nearest') == 'test2'
+        assert state.attributes.get('dir_of_travel') == 'unknown'
+        
+    def test_device_tracker_test1_awayfurther_a_bit(self):
+        assert proximity.setup(self.hass, {
+            'proximity': {
+                'zone': 'home',
+                'ignored_zones': {
+                    'work'
+                },
+                'devices': {
+                    'device_tracker.test1'
+                },
+                'tolerance': 1000
+            }
+        })
+        
+        self.hass.states.set(
+            'device_tracker.test1', 'not_home',
+            {
+                'friendly_name': 'test1',
+                'latitude': 20.1000001,
+                'longitude': 10.1000001
+            })
+        self.hass.pool.block_till_done()
+        state = self.hass.states.get('proximity.home')
+        assert state.attributes.get('nearest') == 'test1'
+        assert state.attributes.get('dir_of_travel') == 'unknown'
+        self.hass.states.set(
+            'device_tracker.test1', 'not_home',
+            {
+                'friendly_name': 'test1',
+                'latitude': 20.1000002,
+                'longitude': 10.1000002
+            })
+        self.hass.pool.block_till_done()
+        state = self.hass.states.get('proximity.home')
+        assert state.attributes.get('nearest') == 'test1'
+        assert state.attributes.get('dir_of_travel') == 'stationary'
+    
+    def test_device_tracker_test1_nearest_after_test2_in_ignored_zone(self):
+        self.hass.states.set(
+            'device_tracker.test1', 'not_home',
+            {
+                'friendly_name': 'test1'
+            })
+        self.hass.pool.block_till_done()
+        self.hass.states.set(
+            'device_tracker.test2', 'not_home',
+            {
+                'friendly_name': 'test2'
+            })
+        self.hass.pool.block_till_done()
+        assert proximity.setup(self.hass, {
+            'proximity': {
+                'zone': 'home',
+                'ignored_zones': {
+                    'work'
+                },
+                'devices': {
+                    'device_tracker.test1',
+                    'device_tracker.test2'
+                }
+            }
+        })
+        
+        self.hass.states.set(
+            'device_tracker.test1', 'not_home',
+            {
+                'friendly_name': 'test1',
+                'latitude': 20.1,
+                'longitude': 10.1
+            })
+        self.hass.pool.block_till_done()
+        state = self.hass.states.get('proximity.home')
+        assert state.attributes.get('nearest') == 'test1'
+        assert state.attributes.get('dir_of_travel') == 'unknown'
+        
+        self.hass.states.set(
+            'device_tracker.test2', 'not_home',
+            {
+                'friendly_name': 'test2',
+                'latitude': 10.1,
+                'longitude': 5.1
+            })
+        self.hass.pool.block_till_done()
+        state = self.hass.states.get('proximity.home')
+        assert state.attributes.get('nearest') == 'test2'
+        assert state.attributes.get('dir_of_travel') == 'unknown'
+        
+        self.hass.states.set(
+            'device_tracker.test2', 'work',
+            {
+                'friendly_name': 'test2',
+                'latitude': 12.6,
+                'longitude': 7.6
+            })
+        self.hass.pool.block_till_done()
+        state = self.hass.states.get('proximity.home')
+        assert state.attributes.get('nearest') == 'test1'
+        assert state.attributes.get('dir_of_travel') == 'unknown'