diff --git a/constraint/pkg/client/drivers/interface.go b/constraint/pkg/client/drivers/interface.go
index 5663ac20b..55f1185cc 100644
--- a/constraint/pkg/client/drivers/interface.go
+++ b/constraint/pkg/client/drivers/interface.go
@@ -4,7 +4,6 @@ import (
 	"context"
 
 	"github.com/open-policy-agent/frameworks/constraint/pkg/core/templates"
-
 	"github.com/open-policy-agent/frameworks/constraint/pkg/types"
 )
 
diff --git a/constraint/pkg/client/drivers/local/local.go b/constraint/pkg/client/drivers/local/local.go
index ebff7e275..76e5e6b97 100644
--- a/constraint/pkg/client/drivers/local/local.go
+++ b/constraint/pkg/client/drivers/local/local.go
@@ -195,7 +195,7 @@ func (d *Driver) PutModule(name string, src string) error {
 	return err
 }
 
-// PutModules upserts a number of modules under a given prefix.
+// putModules upserts a number of modules under a given prefix.
 func (d *Driver) putModules(namePrefix string, srcs []string) error {
 	if err := d.checkModuleSetName(namePrefix); err != nil {
 		return err
diff --git a/constraint/pkg/client/drivers/local/local_unit_test.go b/constraint/pkg/client/drivers/local/local_unit_test.go
index 0847f4fad..45d048a57 100644
--- a/constraint/pkg/client/drivers/local/local_unit_test.go
+++ b/constraint/pkg/client/drivers/local/local_unit_test.go
@@ -6,6 +6,9 @@ import (
 	"sort"
 	"testing"
 
+	"github.com/open-policy-agent/frameworks/constraint/pkg/core/templates"
+	v1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+
 	"github.com/google/go-cmp/cmp"
 	"github.com/google/go-cmp/cmp/cmpopts"
 	"github.com/open-policy-agent/opa/ast"
@@ -39,6 +42,8 @@ fooisbar[msg] {
   msg := "input.foo is bar"
 }
 `
+	MockTemplate      string = "MockConstraintTemplate"
+	MockTargetHandler string = "foo"
 )
 
 func TestDriver_PutModule(t *testing.T) {
@@ -434,6 +439,144 @@ func TestDriver_DeleteModules(t *testing.T) {
 	}
 }
 
+func TestDriver_AddTemplates(t *testing.T) {
+	testCases := []struct {
+		name          string
+		rego          string
+		targetHandler string
+		externs       []string
+
+		wantErr     error
+		wantModules []string
+	}{
+		{
+			name:        "no target",
+			wantErr:     ErrInvalidConstraintTemplate,
+			wantModules: nil,
+		},
+		{
+			name:          "rego missing violation",
+			targetHandler: MockTargetHandler,
+			rego:          Module,
+			wantErr:       ErrInvalidConstraintTemplate,
+			wantModules:   nil,
+		},
+		{
+			name:          "valid template",
+			targetHandler: MockTargetHandler,
+			rego: `
+package something
+
+violation[msg] {msg := "always"}`,
+			wantModules: []string{toModuleSetName(createTemplatePath(MockTargetHandler, MockTemplate), 0)},
+		},
+		{
+			name:          "inventory disallowed template",
+			targetHandler: MockTargetHandler,
+			rego: `package something
+
+violation[{"msg": "msg"}] {
+	data.inventory = "something_else"
+}`,
+			wantErr: ErrInvalidConstraintTemplate,
+		},
+		{
+			name:          "inventory allowed template",
+			targetHandler: MockTargetHandler,
+			rego: `package something
+
+violation[{"msg": "msg"}] {
+	data.inventory = "something_else"
+}`,
+			externs:     []string{"data.inventory"},
+			wantErr:     nil,
+			wantModules: []string{toModuleSetName(createTemplatePath(MockTargetHandler, MockTemplate), 0)},
+		},
+	}
+
+	for _, tc := range testCases {
+		t.Run(tc.name, func(t *testing.T) {
+			d := New()
+			dr, ok := d.(*Driver)
+			if !ok {
+				t.Fatalf("got New() type = %T, want %T", dr, &Driver{})
+			}
+			dr.SetExterns(tc.externs)
+			tmpl := createTemplate(tc.targetHandler, tc.rego)
+			gotErr := dr.AddTemplate(tmpl)
+			if !errors.Is(gotErr, tc.wantErr) {
+				t.Fatalf("got AddTemplate() error = %v, want %v", gotErr, tc.wantErr)
+			}
+
+			gotModules := make([]string, 0, len(dr.modules))
+			for gotModule := range dr.modules {
+				gotModules = append(gotModules, gotModule)
+			}
+			sort.Strings(gotModules)
+
+			if diff := cmp.Diff(tc.wantModules, gotModules, cmpopts.EquateEmpty()); diff != "" {
+				t.Error(diff)
+			}
+		})
+	}
+}
+
+func TestDriver_RemoveTemplates(t *testing.T) {
+	testCases := []struct {
+		name          string
+		rego          string
+		targetHandler string
+		externs       []string
+		wantErr       error
+	}{
+		{
+			name:          "valid template",
+			targetHandler: MockTargetHandler,
+			rego: `
+package something
+
+violation[msg] {msg := "always"}`,
+		},
+		{
+			name:          "inventory allowed template",
+			targetHandler: MockTargetHandler,
+			rego: `package something
+
+violation[{"msg": "msg"}] {
+	data.inventory = "something_else"
+}`,
+			externs: []string{"data.inventory"},
+			wantErr: nil,
+		},
+	}
+
+	for _, tc := range testCases {
+		t.Run(tc.name, func(t *testing.T) {
+			d := New()
+			dr, ok := d.(*Driver)
+			if !ok {
+				t.Fatalf("got New() type = %T, want %T", dr, &Driver{})
+			}
+			dr.SetExterns(tc.externs)
+			tmpl := createTemplate(tc.targetHandler, tc.rego)
+			gotErr := dr.AddTemplate(tmpl)
+			if !errors.Is(gotErr, tc.wantErr) {
+				t.Fatalf("got AddTemplate() error = %v, want %v", gotErr, tc.wantErr)
+			}
+			if len(dr.modules) == 0 {
+				t.Errorf("driver failed to add module")
+			}
+			gotErr = dr.RemoveTemplate(context.Background(), tmpl)
+			if gotErr != nil {
+				t.Errorf("err = %v; want nil", gotErr)
+			}
+			if len(dr.modules) != 0 {
+				t.Errorf("driver has module = %v; want nil", len(dr.modules))
+			}
+		})
+	}
+}
+
 func TestDriver_PutData(t *testing.T) {
 	testCases := []struct {
 		name        string
@@ -835,3 +978,32 @@ type readErrorStorage struct {
 func (s *readErrorStorage) Read(_ context.Context, _ storage.Transaction, _ storage.Path) (interface{}, error) {
 	return nil, errors.New("error writing data")
 }
+
+func createTemplate(targetHandler, rego string) *templates.ConstraintTemplate {
+	tmpl := &templates.ConstraintTemplate{
+		TypeMeta: v1.TypeMeta{},
+		ObjectMeta: v1.ObjectMeta{
+			Name: "mockconstrainttemplate",
+		},
+		Spec: templates.ConstraintTemplateSpec{
+			CRD: templates.CRD{
+				Spec: templates.CRDSpec{
+					Names: templates.Names{
+						Kind:       MockTemplate,
+						ShortNames: nil,
+					},
+				},
+			},
+		},
+	}
+	if targetHandler == "" && rego == "" {
+		return tmpl
+	}
+	tmpl.Spec.Targets = []templates.Target{
+		{
+			Target: targetHandler,
+			Rego:   rego,
+		},
+	}
+	return tmpl
+}