diff --git a/test/OWNERS b/test/OWNERS
new file mode 100644
index 00000000000..22688fa3a06
--- /dev/null
+++ b/test/OWNERS
@@ -0,0 +1,8 @@
+# The OWNERS file is used by prow to automatically merge approved PRs.
+
+approvers:
+- adrcunha
+- bobcatfish
+- jessiezcc
+- srinivashegde86
+- steuhs
diff --git a/test/README.md b/test/README.md
new file mode 100644
index 00000000000..be9cc57d236
--- /dev/null
+++ b/test/README.md
@@ -0,0 +1,28 @@
+# Test
+
+This directory contains tests and testing docs.
+
+* [Unit tests](#running-unit-tests) currently reside in the codebase alongside the code they test
+* [End-to-end tests](#running-end-to-end-tests)
+
+## Running unit tests
+
+Use `go test`:
+
+```shell
+go test -v ./pkg/...
+```
+
+## Running end-to-end tests
+
+Simply run the `e2e-tests.sh` script. It will run the end-to-end tests against the
+eventing system built from source.
+
+If you already have the `*_OVERRIDE` environment variables set, call
+the script with the `--run-tests arguments` and it will use the cluster
+and run the tests.
+
+Otherwise, calling this script without arguments will create a new cluster in
+project `$PROJECT_ID`, start Elafros and the eventing system, run the
+tests and delete the cluster. In this case, it's required that `$KO_DOCKER_REPO`
+point to a valid writable docker repo.
diff --git a/test/e2e-tests.sh b/test/e2e-tests.sh
new file mode 100755
index 00000000000..45910d91ebd
--- /dev/null
+++ b/test/e2e-tests.sh
@@ -0,0 +1,232 @@
+#!/bin/bash
+
+# Copyright 2018 Google, Inc. All rights reserved.
+#
+# 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.
+
+# This script runs the end-to-end tests against the eventing
+# built from source.
+
+# If you already have the *_OVERRIDE environment variables set, call
+# this script with the --run-tests arguments and it will use the cluster
+# and run the tests.
+
+# Calling this script without arguments will create a new cluster in
+# project $PROJECT_ID, start elafros and the eventing system, run the
+# tests and delete the cluster.
+# $KO_DOCKER_REPO must point to a valid writable docker repo.
+
+source "$(dirname $(readlink -f ${BASH_SOURCE}))/library.sh"
+
+# Test cluster parameters and location of test files
+readonly E2E_CLUSTER_NAME=eventing-e2e-cluster${BUILD_NUMBER}
+readonly E2E_NETWORK_NAME=eventing-e2e-net${BUILD_NUMBER}
+readonly E2E_CLUSTER_ZONE=us-central1-a
+readonly E2E_CLUSTER_NODES=2
+readonly E2E_CLUSTER_MACHINE=n1-standard-2
+readonly TEST_RESULT_FILE=/tmp/eventing-e2e-result
+readonly ISTIO_VERSION=0.6.0
+readonly ELAFROS_RELEASE=https://storage.googleapis.com/elafros-releases/latest/release.yaml
+export ISTIO_VERSION
+
+# This script.
+readonly SCRIPT_CANONICAL_PATH="$(readlink -f ${BASH_SOURCE})"
+
+# Helper functions.
+
+function teardown() {
+  header "Tearing down test environment"
+  # Free resources in GCP project.
+  if (( ! USING_EXISTING_CLUSTER )); then
+    ko delete --ignore-not-found=true -f config/
+  fi
+
+  # Delete images when using prow.
+  if (( IS_PROW )); then
+    echo "Images in ${KO_DOCKER_REPO}:"
+    gcloud container images list --repository=${KO_DOCKER_REPO}
+    delete_gcr_images ${KO_DOCKER_REPO}
+  else
+    restore_override_vars
+  fi
+}
+
+function exit_if_test_failed() {
+  [[ $? -eq 0 ]] && return 0
+  [[ -n $1 ]] && echo "ERROR: $1"
+  echo "***************************************"
+  echo "***           TEST FAILED           ***"
+  echo "***    Start of information dump    ***"
+  echo "***************************************"
+  if (( IS_PROW )) || [[ $PROJECT_ID != "" ]]; then
+    echo ">>> Project info:"
+    gcloud compute project-info describe
+  fi
+  echo ">>> All resources:"
+  kubectl get all --all-namespaces
+  echo "***************************************"
+  echo "***           TEST FAILED           ***"
+  echo "***     End of information dump     ***"
+  echo "***************************************"
+  exit 1
+}
+
+# Script entry point.
+
+cd ${EVENTING_ROOT_DIR}
+
+# Show help if bad arguments are passed.
+if [[ -n $1 && $1 != "--run-tests" ]]; then
+  echo "usage: $0 [--run-tests]"
+  exit 1
+fi
+
+# No argument provided, create the test cluster.
+
+if [[ -z $1 ]]; then
+  header "Creating test cluster"
+  # Smallest cluster required to run the end-to-end-tests
+  CLUSTER_CREATION_ARGS=(
+    --gke-create-args="--enable-autoscaling --min-nodes=1 --max-nodes=${E2E_CLUSTER_NODES} --scopes=cloud-platform"
+    --gke-shape={\"default\":{\"Nodes\":${E2E_CLUSTER_NODES}\,\"MachineType\":\"${E2E_CLUSTER_MACHINE}\"}}
+    --provider=gke
+    --deployment=gke
+    --gcp-node-image=cos
+    --cluster="${E2E_CLUSTER_NAME}"
+    --gcp-zone="${E2E_CLUSTER_ZONE}"
+    --gcp-network="${E2E_NETWORK_NAME}"
+    --gke-environment=prod
+  )
+  if (( ! IS_PROW )); then
+    CLUSTER_CREATION_ARGS+=(--gcp-project=${PROJECT_ID:?"PROJECT_ID must be set to the GCP project where the tests are run."})
+  else
+    # On prow, set bogus SSH keys for kubetest, we're not using them.
+    touch $HOME/.ssh/google_compute_engine.pub
+    touch $HOME/.ssh/google_compute_engine
+  fi
+  # Clear user and cluster variables, so they'll be set to the test cluster.
+  # KO_DOCKER_REPO is not touched because when running locally it must
+  # be a writeable docker repo.
+  export K8S_USER_OVERRIDE=
+  export K8S_CLUSTER_OVERRIDE=
+  # Assume test failed (see more details at the end of this script).
+  echo -n "1"> ${TEST_RESULT_FILE}
+  kubetest "${CLUSTER_CREATION_ARGS[@]}" \
+    --up \
+    --down \
+    --extract "v${EVENTING_GKE_VERSION}" \
+    --test-cmd "${SCRIPT_CANONICAL_PATH}" \
+    --test-cmd-args --run-tests
+  result="$(cat ${TEST_RESULT_FILE})"
+  echo "Test result code is $result"
+  exit $result
+fi
+
+# --run-tests passed as first argument, run the tests.
+
+# Set the required variables if necessary.
+
+if [[ -z ${K8S_USER_OVERRIDE} ]]; then
+  export K8S_USER_OVERRIDE=$(gcloud config get-value core/account)
+fi
+
+USING_EXISTING_CLUSTER=1
+if [[ -z ${K8S_CLUSTER_OVERRIDE} ]]; then
+  USING_EXISTING_CLUSTER=0
+  export K8S_CLUSTER_OVERRIDE=$(kubectl config current-context)
+  acquire_cluster_admin_role ${K8S_USER_OVERRIDE} ${E2E_CLUSTER_NAME} ${E2E_CLUSTER_ZONE}
+  # Make sure we're in the default namespace
+  kubectl config set-context $K8S_CLUSTER_OVERRIDE --namespace=default
+fi
+readonly USING_EXISTING_CLUSTER
+
+if [[ -z ${KO_DOCKER_REPO} ]]; then
+  export KO_DOCKER_REPO=gcr.io/$(gcloud config get-value project)/eventing-e2e-img
+fi
+
+# Start Elafros.
+
+header "Starting Elafros"
+
+echo "- Cluster is ${K8S_CLUSTER_OVERRIDE}"
+echo "- User is ${K8S_USER_OVERRIDE}"
+echo "- Docker is ${KO_DOCKER_REPO}"
+
+trap teardown EXIT
+
+install_ko
+
+subheader "Fetching istio ${ISTIO_VERSION}"
+rm -fr istio-${ISTIO_VERSION}
+curl -L https://git.io/getLatestIstio | sh -
+
+pushd istio-${ISTIO_VERSION}/install/kubernetes
+
+subheader "Installing istio"
+kubectl apply -f istio.yaml
+wait_until_pods_running istio-system
+
+subheader "Enabling automatic sidecar injection in Istio"
+./webhook-create-signed-cert.sh \
+  --service istio-sidecar-injector \
+  --namespace istio-system \
+  --secret sidecar-injector-certs
+kubectl apply -f istio-sidecar-injector-configmap-release.yaml
+cat ./istio-sidecar-injector.yaml | \
+  ./webhook-patch-ca-bundle.sh > istio-sidecar-injector-with-ca-bundle.yaml
+kubectl apply -f istio-sidecar-injector-with-ca-bundle.yaml
+rm ./istio-sidecar-injector-with-ca-bundle.yaml
+kubectl label namespace default istio-injection=enabled
+wait_until_pods_running istio-system
+
+popd
+
+subheader "Installing Elafros"
+# Install might fail before succeding, so we retry a few times.
+# For details, see https://github.com/elafros/install/issues/13
+installed=0
+for i in {1..10}; do
+  kubectl apply -f ${ELAFROS_RELEASE} && installed=1 && break
+  sleep 30
+done
+(( installed ))
+exit_if_test_failed "could not install Elafros"
+
+wait_until_pods_running ela-system
+wait_until_pods_running build-system
+
+(( IS_PROW )) && gcr_auth
+
+if (( USING_EXISTING_CLUSTER )); then
+  echo "Deleting any previous eventing instance"
+  ko delete --ignore-not-found=true -f config/
+fi
+
+header "Standing up Elafros Binding"
+ko apply -f config/
+exit_if_test_failed
+wait_until_pods_running bind-system
+exit_if_test_failed
+
+# TODO: Add tests.
+
+# kubetest teardown might fail and thus incorrectly report failure of the
+# script, even if the tests pass.
+# We store the real test result to return it later, ignoring any teardown
+# failure in kubetest.
+# TODO(adrcunha): Get rid of this workaround.
+echo -n "0"> ${TEST_RESULT_FILE}
+echo "**************************************"
+echo "***        ALL TESTS PASSED        ***"
+echo "**************************************"
+exit 0
diff --git a/test/library.sh b/test/library.sh
new file mode 100755
index 00000000000..04c41321e04
--- /dev/null
+++ b/test/library.sh
@@ -0,0 +1,122 @@
+#!/bin/bash
+
+# Copyright 2018 Google, Inc. All rights reserved.
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+
+# This is a collection of useful bash functions and constants, intended
+# to be used in test scripts and the like. It doesn't do anything when
+# called from command line.
+
+# Default GKE version to be used with eventing
+readonly EVENTING_GKE_VERSION=1.9.6-gke.1
+
+# Useful environment variables
+[[ -n "${PROW_JOB_ID}" ]] && IS_PROW=1 || IS_PROW=0
+readonly IS_PROW
+readonly EVENTING_ROOT_DIR="$(dirname $(readlink -f ${BASH_SOURCE}))/.."
+readonly OUTPUT_GOBIN="${EVENTING_ROOT_DIR}/_output/bin"
+
+# Copy of *_OVERRIDE variables
+readonly OG_DOCKER_REPO="${DOCKER_REPO_OVERRIDE}"
+readonly OG_K8S_CLUSTER="${K8S_CLUSTER_OVERRIDE}"
+readonly OG_K8S_USER="${K8S_USER_OVERRIDE}"
+readonly OG_KO_DOCKER_REPO="${KO_DOCKER_REPO}"
+
+# Returns a UUID
+function uuid() {
+  # uuidgen is not available in kubekins images
+  cat /proc/sys/kernel/random/uuid
+}
+
+# Simple header for logging purposes.
+function header() {
+  echo "================================================="
+  echo ${1^^}
+  echo "================================================="
+}
+
+# Simple subheader for logging purposes.
+function subheader() {
+  echo "-------------------------------------------------"
+  echo $1
+  echo "-------------------------------------------------"
+}
+
+# Restores the *_OVERRIDE variables to their original value.
+function restore_override_vars() {
+  export DOCKER_REPO_OVERRIDE="${OG_DOCKER_REPO}"
+  export K8S_CLUSTER_OVERRIDE="${OG_K8S_CLUSTER}"
+  export K8S_USER_OVERRIDE="${OG_K8S_CLUSTER}"
+  export KO_DOCKER_REPO="${OG_KO_DOCKER_REPO}"
+}
+
+# Waits until all pods are running in the given namespace.
+# Parameters: $1 - namespace.
+function wait_until_pods_running() {
+  echo -n "Waiting until all pods in namespace $1 are up"
+  for i in {1..150}; do  # timeout after 5 minutes
+    local pods="$(kubectl get pods -n $1 | grep -v NAME)"
+    local not_running=$(echo "${pods}" | grep -v Running | wc -l)
+    if [[ -n "${pods}" && ${not_running} == 0 ]]; then
+      echo -e "\nAll pods are up:"
+      kubectl get pods -n $1
+      return 0
+    fi
+    echo -n "."
+    sleep 2
+  done
+  echo -e "\n\nERROR: timeout waiting for pods to come up"
+  kubectl get pods -n $1
+  return 1
+}
+
+# Sets the given user as cluster admin.
+# Parameters: $1 - user
+#             $2 - cluster name
+#             $3 - cluster zone
+function acquire_cluster_admin_role() {
+  # Get the password of the admin and use it, as the service account (or the user)
+  # might not have the necessary permission.
+  local password=$(gcloud --format="value(masterAuth.password)" \
+      container clusters describe $2 --zone=$3)
+  kubectl --username=admin --password=$password \
+      create clusterrolebinding cluster-admin-binding \
+      --clusterrole=cluster-admin \
+      --user=$1
+}
+
+# Authenticates the current user to GCR in the current project.
+function gcr_auth() {
+  echo "Authenticating to GCR"
+  # kubekins-e2e images lack docker-credential-gcr, install it manually.
+  # TODO(adrcunha): Remove this step once docker-credential-gcr is available.
+  gcloud components install docker-credential-gcr
+  docker-credential-gcr configure-docker
+  echo "Successfully authenticated"
+}
+
+# Installs ko in $OUTPUT_GOBIN
+function install_ko() {
+  GOBIN="${OUTPUT_GOBIN}" go install ./vendor/github.com/google/go-containerregistry/cmd/ko
+}
+
+# Runs ko; prefers using the one installed by install_ko().
+# Parameters: $1..$n - arguments to ko
+function ko() {
+  if [[ -e "${OUTPUT_GOBIN}/ko" ]]; then
+    "${OUTPUT_GOBIN}/ko" $@
+  else
+    ko $@
+  fi
+}
diff --git a/test/presubmit-tests.sh b/test/presubmit-tests.sh
new file mode 100755
index 00000000000..2d2a8c69ecd
--- /dev/null
+++ b/test/presubmit-tests.sh
@@ -0,0 +1,101 @@
+#!/bin/bash
+
+# Copyright 2018 Google, Inc. All rights reserved.
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+
+# This script runs the presubmit tests; it is started by prow for each PR.
+# For convenience, it can also be executed manually.
+# Running the script without parameters, or with the --all-tests
+# flag, causes all tests to be executed, in the right order.
+# Use the flags --build-tests, --unit-tests and --integration-tests
+# to run a specific set of tests.
+
+set -o errexit
+set -o pipefail
+
+# Extensions or file patterns that don't require presubmit tests
+readonly NO_PRESUBMIT_FILES=(\.md \.png ^OWNERS)
+
+# Directories with code to build/test
+readonly CODE_PACKAGES=(cmd pkg sample)
+
+source "$(dirname $(readlink -f ${BASH_SOURCE}))/library.sh"
+
+# Convert list of packages into list of dirs for go
+CODE_PACKAGES_STR="${CODE_PACKAGES[*]}"
+CODE_PACKAGES_STR="./${CODE_PACKAGES_STR// /\/... .\/}/..."
+readonly CODE_PACKAGES_STR
+
+# Helper functions.
+
+function build_tests() {
+  header "Running build tests"
+  go build -v ${CODE_PACKAGES_STR}
+  echo "Code built successfully"
+}
+
+function unit_tests() {
+  header "Running unit tests"
+  go test -v ${CODE_PACKAGES_STR}
+}
+
+function integration_tests() {
+  # Make sure environment variables are intact.
+  ./test/e2e-tests.sh
+}
+
+# Script entry point.
+
+# Parse script argument:
+# --all-tests or no arguments: run all tests
+# --build-tests: run only the build tests
+# --unit-tests: run only the unit tests
+  # --integration-tests: run only the integration tests
+RUN_BUILD_TESTS=0
+RUN_UNIT_TESTS=0
+RUN_INTEGRATION_TESTS=0
+[[ -z "$1" || "$1" == "--all-tests" ]] && RUN_BUILD_TESTS=1 && RUN_UNIT_TESTS=1 && RUN_INTEGRATION_TESTS=1
+[[ "$1" == "--build-tests" ]] && RUN_BUILD_TESTS=1
+[[ "$1" == "--unit-tests" ]] && RUN_UNIT_TESTS=1
+[[ "$1" == "--integration-tests" ]] && RUN_INTEGRATION_TESTS=1
+readonly RUN_BUILD_TESTS
+readonly RUN_UNIT_TESTS
+readonly RUN_INTEGRATION_TESTS
+
+if ! (( RUN_BUILD_TESTS+RUN_UNIT_TESTS+RUN_INTEGRATION_TESTS )); then
+  echo "error: unknown argument $1";
+  exit 1
+fi
+
+cd ${EVENTING_ROOT_DIR}
+
+# Skip presubmit tests if only markdown files were changed.
+if [[ -n "${PULL_PULL_SHA}" ]]; then
+  # On a presubmit job
+  changes="$(git diff --name-only ${PULL_PULL_SHA} ${PULL_BASE_SHA})"
+  no_presubmit_pattern="${NO_PRESUBMIT_FILES[*]}"
+  no_presubmit_pattern="\(${no_presubmit_pattern// /\\|}\)$"
+  echo -e "Changed files in commit ${PULL_PULL_SHA}:\n${changes}"
+  if [[ -z "$(echo "${changes}" | grep -v ${no_presubmit_pattern})" ]]; then
+    # Nothing changed other than files that don't require presubmit tests
+    header "Commit only contains changes that don't affect tests, skipping"
+    exit 0
+  fi
+fi
+
+# Tests to be performed, in the right order if --all-tests is passed.
+
+if (( RUN_BUILD_TESTS )); then build_tests; fi
+if (( RUN_UNIT_TESTS )); then unit_tests; fi
+if (( RUN_INTEGRATION_TESTS )); then integration_tests; fi