diff --git a/rhodecode/tests/vcs/__init__.py b/rhodecode/tests/vcs/__init__.py
new file mode 100644
--- /dev/null
+++ b/rhodecode/tests/vcs/__init__.py
@@ -0,0 +1,56 @@
+"""
+Unit tests for vcs_ library.
+
+In order to run tests we need to prepare our environment first. Tests would be
+run for each engine listed at ``conf.SCM_TESTS`` - keys are aliases from
+``vcs.backends.BACKENDS``.
+
+For each SCM we run tests for, we need some repository. We would use
+repositories location from system environment variables or test suite defaults
+- see ``conf`` module for more detail. We simply try to check if repository at
+certain location exists, if not we would try to fetch them. At ``test_vcs`` or
+``test_common`` we run unit tests common for each repository type and for
+example specific mercurial tests are located at ``test_hg`` module.
+
+Oh, and tests are run with ``unittest.collector`` wrapped by ``collector``
+function at ``tests/__init__.py``.
+
+.. _vcs: http://bitbucket.org/marcinkuzminski/vcs
+.. _unittest: http://pypi.python.org/pypi/unittest
+
+"""
+import os
+from rhodecode.lib import vcs
+from rhodecode.lib.vcs.utils.compat import unittest
+from rhodecode.tests import *
+from utils import VCSTestError, SCMFetcher
+
+
+def setup_package():
+    """
+    Prepares whole package for tests which mainly means it would try to fetch
+    test repositories or use already existing ones.
+    """
+    fetchers = {
+        'hg': {
+            'alias': 'hg',
+            'test_repo_path': TEST_HG_REPO,
+            'remote_repo': HG_REMOTE_REPO,
+            'clone_cmd': 'hg clone',
+        },
+        'git': {
+            'alias': 'git',
+            'test_repo_path': TEST_GIT_REPO,
+            'remote_repo': GIT_REMOTE_REPO,
+            'clone_cmd': 'git clone --bare',
+        },
+    }
+    try:
+        for scm, fetcher_info in fetchers.items():
+            fetcher = SCMFetcher(**fetcher_info)
+            fetcher.setup()
+    except VCSTestError, err:
+        raise RuntimeError(str(err))
+
+start_dir = os.path.abspath(os.path.dirname(__file__))
+unittest.defaultTestLoader.discover(start_dir)