diff --git a/src/test/java/org/fcrepo/auth/xacml/XACMLWorkspaceInitializerTest.java b/src/test/java/org/fcrepo/auth/xacml/XACMLWorkspaceInitializerTest.java
new file mode 100644
index 0000000..153b9d4
--- /dev/null
+++ b/src/test/java/org/fcrepo/auth/xacml/XACMLWorkspaceInitializerTest.java
@@ -0,0 +1,147 @@
+/**
+ * Copyright 2014 DuraSpace, Inc.
+ *
+ * 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.
+ */
+package org.fcrepo.auth.xacml;
+
+import static org.fcrepo.kernel.utils.TestHelpers.setField;
+import static org.junit.Assert.assertNotNull;
+import static org.mockito.Matchers.any;
+import static org.mockito.Matchers.anyString;
+import static org.mockito.Matchers.eq;
+import static org.mockito.Mockito.times;
+import static org.mockito.Mockito.verify;
+import static org.mockito.Mockito.when;
+import static org.mockito.MockitoAnnotations.initMocks;
+
+import java.io.File;
+import java.io.FileInputStream;
+
+import javax.jcr.Node;
+import javax.jcr.RepositoryException;
+import javax.jcr.Session;
+
+import org.fcrepo.http.commons.session.SessionFactory;
+import org.fcrepo.kernel.Datastream;
+import org.fcrepo.kernel.services.DatastreamService;
+
+import org.junit.Before;
+import org.junit.Test;
+import org.mockito.Matchers;
+import org.mockito.Mock;
+
+/**
+ * <p>
+ * XACMLWorkspaceInitializerTest class.
+ * </p>
+ * 
+ * @author mohideen
+ */
+public class XACMLWorkspaceInitializerTest {
+
+    private XACMLWorkspaceInitializer xacmlWI;
+
+    @Mock
+    private SessionFactory mockSessionFactory;
+
+    @Mock
+    private Session mockSession;
+
+    @Mock
+    private Node mockNode;
+
+    @Mock
+    private DatastreamService mockDsService;
+
+    @Mock
+    Datastream mockDatastream;
+
+    @Before
+    public void setUp() throws Exception {
+        initMocks(this);
+
+        when(mockSessionFactory.getInternalSession()).thenReturn(mockSession);
+        when(mockSession.getRootNode()).thenReturn(mockNode);
+        when(
+                mockDsService.createDatastream(eq(mockSession), anyString(), eq("application/xml"), anyString(),
+                        Matchers.any(FileInputStream.class))).thenReturn(mockDatastream);
+        when(mockDatastream.getPath()).thenReturn("/dummy/test/path");
+
+        final File initialPoliciesDirectory = policiesDirectory();
+        final File initialRootPolicyFile = rootPolicyFile();
+        xacmlWI = new XACMLWorkspaceInitializer(initialPoliciesDirectory, initialRootPolicyFile);
+
+        setField(xacmlWI, "sessionFactory", mockSessionFactory);
+        setField(xacmlWI, "datastreamService", mockDsService);
+    }
+
+    private File policiesDirectory() {
+        return new File(this.getClass().getResource("/xacml").getPath());
+    }
+
+    private File rootPolicyFile() {
+        return new File(this.getClass().getResource("/xacml/testPolicy.xml").getPath());
+    }
+
+    @Test
+    public void testConstructor() {
+        assertNotNull(xacmlWI);
+    }
+
+    @Test(expected = IllegalArgumentException.class)
+    public void testConstructorIllegalArg0() {
+        xacmlWI = new XACMLWorkspaceInitializer(null, rootPolicyFile());
+    }
+
+    @Test(expected = IllegalArgumentException.class)
+    public void testConstructorIllegalArg1() {
+        xacmlWI = new XACMLWorkspaceInitializer(policiesDirectory(), null);
+    }
+
+    @Test(expected = IllegalArgumentException.class)
+    public void testConstructorEmptyDir() {
+        final File emptyPoliciesDirectory = new File(this.getClass().getResource("/web.xml").getPath());
+        xacmlWI = new XACMLWorkspaceInitializer(emptyPoliciesDirectory, rootPolicyFile());
+    }
+
+    @Test
+    public void testInit() throws Exception {
+        xacmlWI.init();
+
+        final int expectedFiles = policiesDirectory().list().length;
+        verify(mockDsService, times(expectedFiles)).createDatastream(eq(mockSession),
+                                                                     anyString(),
+                                                                     eq("application/xml"),
+                                                                     anyString(),
+                                                                     Matchers.any(FileInputStream.class));
+
+        verify(mockNode).addMixin("authz:xacmlAssignable");
+        verify(mockNode).setProperty(eq("authz:policy"), any(Node.class));
+    }
+
+    @Test(expected = Error.class)
+    public void testInitInitialPoliciesException() throws Exception {
+        when(mockSessionFactory.getInternalSession()).thenThrow(new RepositoryException("expected"));
+
+        xacmlWI.init();
+    }
+
+    @Test(expected = Error.class)
+    public void testInitLinkRootToPolicyException() throws Exception {
+        when(mockSession.getRootNode()).thenThrow(new RepositoryException("expected"));
+
+        xacmlWI.init();
+    }
+
+}
diff --git a/src/test/resources/xacml/adminPermissionPolicySet.xml b/src/test/resources/xacml/adminPermissionPolicySet.xml
index fed7281..e03a9f9 100644
--- a/src/test/resources/xacml/adminPermissionPolicySet.xml
+++ b/src/test/resources/xacml/adminPermissionPolicySet.xml
@@ -1,7 +1,7 @@
 <PolicySet xmlns="urn:oasis:names:tc:xacml:2.0:policy:schema:os"
         xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
         xmlns:fcrepo="http://fedora.info/definitions/v4/repository#"
-        xsi:schemaLocation = “urn:oasis:names:tc:xacml:2.0:policy:schema:os access_control-xacml-2.0-policyschema-os.xsd”
+        xsi:schemaLocation="urn:oasis:names:tc:xacml:2.0:policy:schema:os access_control-xacml-2.0-policyschema-os.xsd"
         PolicySetId="fcrepo:policies/AdminPermissionPolicySet"
         PolicyCombiningAlgId="urn:oasis:names:tc:xacml:1.0:policy-combining-algorithm:permit-overrides">
   <Policy PolicyId="fcrepo-xacml:AdminPermissionPolicy" RuleCombiningAlgId="urn:oasis:names:tc:xacml:1.0:rule-combining-algorithm:first-applicable">