diff --git a/.gitignore b/.gitignore
index 07f27968cd053c5715b5d40567c4c8fb5220792b..b60872318a0ab777ab30fd0b763eaa30e49c96c5 100644
--- a/.gitignore
+++ b/.gitignore
@@ -10,3 +10,5 @@ setuptools-*gz
 setuptools-*egg
 traceback*txt
 .DS_Store
+.cache/
+.coverage
diff --git a/.gitlab-ci.yml b/.gitlab-ci.yml
index 54dc1b6b755a605e4956d5681d06960742e18e18..9ba9bf068aa9d9c08aeb7f0f037772258abe4269 100644
--- a/.gitlab-ci.yml
+++ b/.gitlab-ci.yml
@@ -2,6 +2,7 @@ Python 2.7:
   script:
   - py_version=2.7
   - curl -L -O -k https://gitlab.tiker.net/inducer/ci-support/raw/master/build-and-test-py-project.sh
+  - export REQUIREMENTS_TXT=requirements.dev.txt
   - ". ./build-and-test-py-project.sh"
   tags:
   - python2.7
@@ -13,6 +14,7 @@ Python 3.5:
   script:
   - py_version=3.5
   - curl -L -O -k https://gitlab.tiker.net/inducer/ci-support/raw/master/build-and-test-py-project.sh
+  - export REQUIREMENTS_TXT=requirements.dev.txt
   - ". ./build-and-test-py-project.sh"
   tags:
   - python3.5
@@ -24,6 +26,7 @@ Python 3.6:
   script:
   - py_version=3.6
   - curl -L -O -k https://gitlab.tiker.net/inducer/ci-support/raw/master/build-and-test-py-project.sh
+  - export REQUIREMENTS_TXT=requirements.dev.txt
   - ". ./build-and-test-py-project.sh"
   tags:
   - python3.6
@@ -35,6 +38,7 @@ Python 2.6:
   script:
   - py_version=2.6
   - curl -L -O -k https://gitlab.tiker.net/inducer/ci-support/raw/master/build-and-test-py-project.sh
+  - export REQUIREMENTS_TXT=requirements.dev.txt
   - ". ./build-and-test-py-project.sh"
   tags:
   - python2.6
diff --git a/pudb/py3compat.py b/pudb/py3compat.py
index 9c6b466c195a5d916fb8804f23a3f0a80dc05743..d390bbd78e2cf9dcd140c21ee091b5022c7797db 100644
--- a/pudb/py3compat.py
+++ b/pudb/py3compat.py
@@ -18,3 +18,11 @@ else:
     string_types = (basestring,)  # noqa: F821
     text_type = unicode  # noqa: F821
     execfile = execfile
+
+
+try:
+    import builtins
+    from configparser import ConfigParser
+except ImportError:
+    import __builtin__ as builtins  # noqa: F401
+    from ConfigParser import ConfigParser  # noqa: F401
diff --git a/pudb/settings.py b/pudb/settings.py
index a5f9019ffc558872559e3c9bce2ccacb63c9a10e..81c4d5b3e0ca52a4ba5e7dbfa6445a48a586f262 100644
--- a/pudb/settings.py
+++ b/pudb/settings.py
@@ -3,11 +3,8 @@ from __future__ import absolute_import, division, print_function
 import os
 import sys
 
-from pudb.py3compat import PY3
-if PY3:
-    from configparser import ConfigParser
-else:
-    from ConfigParser import ConfigParser
+from pudb.py3compat import ConfigParser
+from pudb.lowlevel import lookup_module, get_breakpoint_invalid_reason
 
 # minor LGPL violation: stolen from python-xdg
 
@@ -15,21 +12,24 @@ _home = os.environ.get('HOME', None)
 xdg_data_home = os.environ.get('XDG_DATA_HOME',
             os.path.join(_home, '.local', 'share') if _home else None)
 
-xdg_config_home = os.environ.get('XDG_CONFIG_HOME',
-            os.path.join(_home, '.config') if _home else None)
 
-xdg_config_dirs = [xdg_config_home] if xdg_config_home else [] + \
-    os.environ.get('XDG_CONFIG_DIRS', '/etc/xdg').split(':')
+XDG_CONFIG_HOME = os.environ.get('XDG_CONFIG_HOME',
+                                 os.path.join(_home, '.config') if _home else None)
+
+if XDG_CONFIG_HOME:
+    XDG_CONFIG_DIRS = [XDG_CONFIG_HOME]
+else:
+    XDG_CONFIG_DIRS = os.environ.get('XDG_CONFIG_DIRS', '/etc/xdg').split(':')
 
 
 def get_save_config_path(*resource):
-    if xdg_config_home is None:
+    if XDG_CONFIG_HOME is None:
         return None
     if not resource:
         resource = [XDG_CONF_RESOURCE]
     resource = os.path.join(*resource)
     assert not resource.startswith('/')
-    path = os.path.join(xdg_config_home, resource)
+    path = os.path.join(XDG_CONFIG_HOME, resource)
     if not os.path.isdir(path):
         os.makedirs(path, 448)  # 0o700
     return path
@@ -54,7 +54,7 @@ def load_config():
     try:
         cparser.read([
             join(cdir, XDG_CONF_RESOURCE, CONF_FILE_NAME)
-            for cdir in xdg_config_dirs if isdir(cdir)])
+            for cdir in XDG_CONFIG_DIRS if isdir(cdir)])
 
         if cparser.has_section(CONF_SECTION):
             conf_dict.update(dict(cparser.items(CONF_SECTION)))
@@ -429,9 +429,7 @@ def parse_breakpoints(lines):
         if colon > 0:
             filename = arg[:colon].strip()
 
-            from pudb.lowlevel import lookup_module
             f = lookup_module(filename)
-
             if not f:
                 continue
             else:
@@ -445,7 +443,6 @@ def parse_breakpoints(lines):
         else:
             continue
 
-        from pudb.lowlevel import get_breakpoint_invalid_reason
         if get_breakpoint_invalid_reason(filename, lineno) is None:
             breakpoints.append((filename, lineno, False, cond, funcname))
 
@@ -462,13 +459,17 @@ def get_breakpoints_file_name():
 
 
 def load_breakpoints():
+    """
+    Loads and check saved breakpoints out from files
+    Returns: list of tuples
+    """
     from os.path import join, isdir
 
-    file_names = [
-            join(cdir, XDG_CONF_RESOURCE, name)
-            for cdir in xdg_config_dirs if isdir(cdir)
-            for name in [SAVED_BREAKPOINTS_FILE_NAME, BREAKPOINTS_FILE_NAME]
-            ]
+    file_names = []
+    for cdir in XDG_CONFIG_DIRS:
+        if isdir(cdir):
+            for name in [SAVED_BREAKPOINTS_FILE_NAME, BREAKPOINTS_FILE_NAME]:
+                file_names.append(join(cdir, XDG_CONF_RESOURCE, name))
 
     lines = []
     for fname in file_names:
@@ -485,12 +486,12 @@ def load_breakpoints():
 
 def save_breakpoints(bp_list):
     """
-    :arg bp_list: a list of tuples `(file_name, line)`
+    :arg bp_list: a list of `bdb.Breakpoint` objects
     """
-
     save_path = get_breakpoints_file_name()
     if not save_path:
         return
+
     histfile = open(get_breakpoints_file_name(), 'w')
     bp_list = set([(bp.file, bp.line, bp.cond) for bp in bp_list])
     for bp in bp_list:
diff --git a/requirements.dev.txt b/requirements.dev.txt
new file mode 100644
index 0000000000000000000000000000000000000000..b23697351c83ef3d6765080adea8a27c497a61db
--- /dev/null
+++ b/requirements.dev.txt
@@ -0,0 +1,9 @@
+coverage==4.3.4
+pbr==2.0.0
+py==1.4.33
+Pygments==2.2.0
+pytest==3.0.7
+pytest-cov==2.4.0
+pytest-mock==1.6.0
+six==1.10.0
+urwid==1.3.1
diff --git a/test/test_settings.py b/test/test_settings.py
new file mode 100644
index 0000000000000000000000000000000000000000..d8ed647d8e0f8e405bd75bf2f566bd1c27eee022
--- /dev/null
+++ b/test/test_settings.py
@@ -0,0 +1,34 @@
+import collections
+
+import pytest  # noqa: F401
+
+from pudb.py3compat import builtins
+from pudb.settings import load_breakpoints, save_breakpoints
+
+
+def test_load_breakpoints(mocker):
+    fake_data = ['b /home/user/test.py:41'], ['b /home/user/test.py:50']
+    mock_open = mocker.mock_open()
+    mock_open.return_value.readlines.side_effect = fake_data
+    mocker.patch.object(builtins, 'open', mock_open)
+    mocker.patch('pudb.settings.lookup_module',
+            mocker.Mock(return_value='/home/user/test.py'))
+    mocker.patch('pudb.settings.get_breakpoint_invalid_reason',
+            mocker.Mock(return_value=None))
+    result = load_breakpoints()
+    expected = [('/home/user/test.py', 41, False, None, None),
+                ('/home/user/test.py', 50, False, None, None)]
+    assert result == expected
+
+
+def test_save_breakpoints(mocker):
+    MockBP = collections.namedtuple('MockBreakpoint', 'file line cond')
+    mock_breakpoints = [MockBP('/home/user/test.py', 41, None),
+                        MockBP('/home/user/test.py', 50, None)]
+    mocker.patch('pudb.settings.get_breakpoints_file_name',
+                 mocker.Mock(return_value='saved-breakpoints'))
+    mock_open = mocker.mock_open()
+    mocker.patch.object(builtins, 'open', mock_open)
+
+    save_breakpoints(mock_breakpoints)
+    mock_open.assert_called_with('saved-breakpoints', 'w')