diff --git a/controllers/bucket_controller_test.go b/controllers/bucket_controller_test.go
new file mode 100644
index 000000000..cce269107
--- /dev/null
+++ b/controllers/bucket_controller_test.go
@@ -0,0 +1,308 @@
+/*
+Copyright 2020 The Flux authors
+
+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 controllers
+
+import (
+	"crypto/md5"
+	"fmt"
+	"net/http"
+	"net/http/httptest"
+	"net/url"
+	"os"
+	"path"
+	"runtime"
+	"strings"
+	"time"
+
+	. "github.com/onsi/ginkgo"
+	. "github.com/onsi/gomega"
+	corev1 "k8s.io/api/core/v1"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/apimachinery/pkg/types"
+
+	sourcev1 "github.com/fluxcd/source-controller/api/v1beta1"
+)
+
+var _ = Describe("BucketReconciler", func() {
+
+	const (
+		timeout       = time.Second * 30
+		interval      = time.Second * 1
+		indexInterval = time.Second * 1
+		bucketTimeout = time.Second * 5
+	)
+
+	var (
+		namespace *corev1.Namespace
+		s3Server  *s3MockServer
+		err       error
+	)
+
+	BeforeEach(func() {
+		namespace = &corev1.Namespace{
+			ObjectMeta: metav1.ObjectMeta{Name: "bucket-test-" + randStringRunes(5)},
+		}
+		err = k8sClient.Create(ctx, namespace)
+		Expect(err).NotTo(HaveOccurred(), "failed to create test namespace")
+
+		s3Server = newS3Server("test-bucket")
+		s3Server.Objects = []*s3MockObject{
+			{
+				Key:          "test.txt",
+				Content:      []byte("test"),
+				ContentType:  "text/plain",
+				LastModified: time.Now(),
+			},
+		}
+		s3Server.Start()
+	})
+
+	AfterEach(func() {
+		s3Server.Stop()
+
+		err = k8sClient.Delete(ctx, namespace)
+		Expect(err).NotTo(HaveOccurred(), "failed to delete test namespace")
+	})
+
+	It("Creates artifacts for", func() {
+		u, err := url.Parse(s3Server.GetURL())
+		Expect(err).NotTo(HaveOccurred())
+
+		key := types.NamespacedName{
+			Name:      "bucket-test-" + randStringRunes(5),
+			Namespace: namespace.Name,
+		}
+
+		secret := &corev1.Secret{
+			ObjectMeta: metav1.ObjectMeta{
+				Name:      key.Name,
+				Namespace: key.Namespace,
+			},
+			Data: map[string][]byte{
+				"accesskey": []byte("key"),
+				"secretkey": []byte("secret"),
+			},
+		}
+
+		Expect(k8sClient.Create(ctx, secret)).Should(Succeed())
+		defer k8sClient.Delete(ctx, secret)
+
+		bucket := &sourcev1.Bucket{
+			ObjectMeta: metav1.ObjectMeta{
+				Name:      key.Name,
+				Namespace: key.Namespace,
+			},
+			Spec: sourcev1.BucketSpec{
+				Provider:   "aws",
+				BucketName: s3Server.BucketName,
+				Endpoint:   u.Host,
+				Insecure:   true,
+				Interval:   metav1.Duration{Duration: indexInterval},
+				Timeout:    &metav1.Duration{Duration: bucketTimeout},
+				SecretRef: &corev1.LocalObjectReference{
+					Name: secret.Name,
+				},
+			},
+		}
+
+		Expect(k8sClient.Create(ctx, bucket)).Should(Succeed())
+		defer k8sClient.Delete(ctx, bucket)
+
+		By("Expecting artifact")
+		Eventually(func() bool {
+			if err := k8sClient.Get(ctx, key, bucket); err != nil {
+				return false
+			}
+			return bucket.Status.Artifact != nil &&
+				storage.ArtifactExist(*bucket.Status.Artifact)
+		}, timeout, interval).Should(BeTrue())
+
+		By("Expecting finalizers to be registered")
+		Expect(len(bucket.Finalizers) > 0).To(BeTrue())
+
+		By("Updating the bucket files")
+		s3Server.Objects = append(s3Server.Objects, &s3MockObject{
+			Key:          "new.txt",
+			Content:      []byte("new"),
+			ContentType:  "text/plain",
+			LastModified: time.Now(),
+		})
+
+		By("Expecting checksum change and GC")
+		Eventually(func() bool {
+			now := &sourcev1.Bucket{}
+			if err := k8sClient.Get(ctx, key, now); err != nil {
+				return false
+			}
+			// Test revision change and garbage collection
+			return now.Status.Artifact.Checksum != bucket.Status.Artifact.Checksum &&
+				!storage.ArtifactExist(*bucket.Status.Artifact)
+		}, timeout, interval).Should(BeTrue())
+
+		updated := &sourcev1.Bucket{}
+		Expect(k8sClient.Get(ctx, key, updated)).Should(Succeed())
+		updated.Spec.BucketName = "invalid#bucket?"
+		Expect(k8sClient.Update(ctx, updated)).Should(Succeed())
+		Eventually(func() bool {
+			if err := k8sClient.Get(ctx, key, updated); err != nil {
+				return false
+			}
+			for _, c := range updated.Status.Conditions {
+				if c.Reason == sourcev1.BucketOperationFailedReason {
+					return true
+				}
+			}
+			return false
+		}, timeout, interval).Should(BeTrue())
+		Expect(updated.Status.Artifact).ToNot(BeNil())
+
+		By("Expecting to delete successfully")
+		Eventually(func() error {
+			_ = k8sClient.Get(ctx, key, bucket)
+			return k8sClient.Delete(ctx, bucket)
+		}, timeout, interval).Should(Succeed())
+
+		By("Expecting delete to finish")
+		Eventually(func() error {
+			return k8sClient.Get(ctx, key, bucket)
+		}, timeout, interval).ShouldNot(Succeed())
+
+		exists := func(path string) bool {
+			// wait for tmp sync on macOS
+			if runtime.GOOS == "darwin" {
+				time.Sleep(time.Second)
+			}
+
+			_, err := os.Stat(path)
+			return err == nil
+		}
+
+		By("Expecting GC after delete")
+		Eventually(exists(bucket.Status.Artifact.Path), timeout, interval).ShouldNot(BeTrue())
+	})
+})
+
+type s3MockObject struct {
+	Key          string
+	LastModified time.Time
+	ContentType  string
+	Content      []byte
+}
+
+type s3MockServer struct {
+	srv *httptest.Server
+	mux *http.ServeMux
+
+	BucketName string
+	Objects    []*s3MockObject
+}
+
+func newS3Server(bucketName string) *s3MockServer {
+	s := &s3MockServer{BucketName: bucketName}
+	s.mux = http.NewServeMux()
+	s.mux.Handle(fmt.Sprintf("/%s/", s.BucketName), http.HandlerFunc(s.handler))
+
+	s.srv = httptest.NewUnstartedServer(s.mux)
+
+	return s
+}
+
+func (s *s3MockServer) Start() {
+	s.srv.Start()
+}
+
+func (s *s3MockServer) Stop() {
+	s.srv.Close()
+}
+
+func (s *s3MockServer) GetURL() string {
+	return s.srv.URL
+}
+
+func (s *s3MockServer) handler(w http.ResponseWriter, r *http.Request) {
+	key := path.Base(r.URL.Path)
+
+	switch key {
+	case s.BucketName:
+		w.Header().Add("Content-Type", "application/xml")
+
+		if r.Method == http.MethodHead {
+			return
+		}
+
+		q := r.URL.Query()
+
+		if q["location"] != nil {
+			fmt.Fprint(w, `
+<?xml version="1.0" encoding="UTF-8"?>
+<LocationConstraint xmlns="http://s3.amazonaws.com/doc/2006-03-01/">Europe</LocationConstraint>
+			`)
+			return
+		}
+
+		contents := ""
+		for _, o := range s.Objects {
+			etag := md5.Sum([]byte(o.Content))
+			contents += fmt.Sprintf(`
+		<Contents>
+			<Key>%s</Key>
+			<LastModified>%s</LastModified>
+			<Size>%d</Size>
+			<ETag>&quot;%b&quot;</ETag>
+			<StorageClass>STANDARD</StorageClass>
+		</Contents>`, o.Key, o.LastModified.UTC().Format(time.RFC3339), len(o.Content), etag)
+		}
+
+		fmt.Fprintf(w, `
+<?xml version="1.0" encoding="UTF-8"?>
+<ListBucketResult xmlns="http://s3.amazonaws.com/doc/2006-03-01/">
+	<Name>%s</Name>
+	<Prefix/>
+	<Marker/>
+	<KeyCount>%d</KeyCount>
+	<MaxKeys>1000</MaxKeys>
+	<IsTruncated>false</IsTruncated>
+	%s
+</ListBucketResult>
+		`, s.BucketName, len(s.Objects), contents)
+	default:
+		var found *s3MockObject
+		for _, o := range s.Objects {
+			if key == o.Key {
+				found = o
+			}
+		}
+		if found == nil {
+			w.WriteHeader(404)
+			return
+		}
+
+		etag := md5.Sum([]byte(found.Content))
+		lastModified := strings.Replace(found.LastModified.UTC().Format(time.RFC1123), "UTC", "GMT", 1)
+
+		w.Header().Add("Content-Type", found.ContentType)
+		w.Header().Add("Last-Modified", lastModified)
+		w.Header().Add("ETag", fmt.Sprintf("\"%b\"", etag))
+		w.Header().Add("Content-Length", fmt.Sprintf("%d", len(found.Content)))
+
+		if r.Method == http.MethodHead {
+			return
+		}
+
+		w.Write(found.Content)
+	}
+}
diff --git a/controllers/suite_test.go b/controllers/suite_test.go
index 964c15c4f..eb18dbb00 100644
--- a/controllers/suite_test.go
+++ b/controllers/suite_test.go
@@ -17,6 +17,7 @@ limitations under the License.
 package controllers
 
 import (
+	"context"
 	"io/ioutil"
 	"math/rand"
 	"os"
@@ -53,6 +54,8 @@ var examplePublicKey []byte
 var examplePrivateKey []byte
 var exampleCA []byte
 
+var ctx context.Context = context.Background()
+
 func TestAPIs(t *testing.T) {
 	RegisterFailHandler(Fail)
 
@@ -105,6 +108,14 @@ var _ = BeforeSuite(func(done Done) {
 	})
 	Expect(err).ToNot(HaveOccurred())
 
+	err = (&BucketReconciler{
+		Client:  k8sManager.GetClient(),
+		Log:     ctrl.Log.WithName("controllers").WithName(sourcev1.BucketKind),
+		Scheme:  scheme.Scheme,
+		Storage: storage,
+	}).SetupWithManager(k8sManager)
+	Expect(err).ToNot(HaveOccurred(), "failed to setup BucketReconciler")
+
 	err = (&GitRepositoryReconciler{
 		Client:  k8sManager.GetClient(),
 		Log:     ctrl.Log.WithName("controllers").WithName(sourcev1.GitRepositoryKind),