diff --git a/consensus/state.go b/consensus/state.go
index 50488f8d1..f89de3921 100644
--- a/consensus/state.go
+++ b/consensus/state.go
@@ -1236,6 +1236,7 @@ func (cs *ConsensusState) finalizeCommit(height int) {
 	}
 
 	// txs committed, bad ones removed from mepool; fire events
+	// NOTE: the block.AppHash wont reflect these txs until the next block
 	eventCache.Flush()
 
 	// Save to blockStore.
diff --git a/scripts/glide/parse.sh b/scripts/glide/parse.sh
new file mode 100644
index 000000000..a2f68d540
--- /dev/null
+++ b/scripts/glide/parse.sh
@@ -0,0 +1,7 @@
+#! /bin/bash
+set -euo pipefail
+
+GLIDE=$1
+LIB=$2
+
+cat $GLIDE | grep -A1 $LIB | grep -v $LIB | awk '{print $2}'
diff --git a/scripts/glide/glide_status.sh b/scripts/glide/status.sh
similarity index 100%
rename from scripts/glide/glide_status.sh
rename to scripts/glide/status.sh
diff --git a/scripts/glide/glide_update.sh b/scripts/glide/update.sh
similarity index 67%
rename from scripts/glide/glide_update.sh
rename to scripts/glide/update.sh
index 2d78da4f3..630859d84 100644
--- a/scripts/glide/glide_update.sh
+++ b/scripts/glide/update.sh
@@ -7,12 +7,7 @@ IFS=$'\n\t'
 GLIDE=$1
 LIB=$2
 
-# get vendored commit for given lib
-function parseGlide() {
-	cat $1 | grep -A1 $2 | grep -v $2 | awk '{print $2}'
-}
-
-OLD_COMMIT=`parseGlide $GLIDE $LIB`
+OLD_COMMIT=`bash scripts/glide/parse.sh $GLIDE $LIB`
 
 PWD=`pwd`
 cd $GOPATH/src/github.com/tendermint/$LIB
diff --git a/scripts/install_tmsp_apps.sh b/scripts/install_tmsp_apps.sh
new file mode 100644
index 000000000..035bc8d3e
--- /dev/null
+++ b/scripts/install_tmsp_apps.sh
@@ -0,0 +1,11 @@
+#! /bin/bash
+
+go get github.com/tendermint/tmsp/...
+
+COMMIT=`bash scripts/glide/parse.sh $(pwd)/glide.lock tmsp`
+
+cd $GOPATH/src/github.com/tendermint/tmsp
+git checkout $COMMIT
+go install ./cmd/...
+
+
diff --git a/test/Dockerfile b/test/Dockerfile
index 9978d3674..26995de38 100644
--- a/test/Dockerfile
+++ b/test/Dockerfile
@@ -1,7 +1,23 @@
 # Pull base image.
 FROM golang:1.6
 
+# Grab deps (jq, hexdump)
+RUN apt-get update && \
+  apt-get install -y --no-install-recommends \
+    jq bsdmainutils && \
+  rm -rf /var/lib/apt/lists/*
+
 ENV TENDERMINT_ORG $GOPATH/src/github.com/tendermint/
 RUN mkdir -p $TENDERMINT_ORG
 COPY . $TENDERMINT_ORG/tendermint
 WORKDIR $TENDERMINT_ORG/tendermint
+
+RUN make get_vendor_deps
+
+RUN go install ./cmd/tendermint
+
+RUN bash scripts/install_tmsp_apps.sh
+
+
+EXPOSE 46656
+EXPOSE 46657
diff --git a/test/rpc/clean.sh b/test/broadcast_tx/clean.sh
similarity index 100%
rename from test/rpc/clean.sh
rename to test/broadcast_tx/clean.sh
diff --git a/test/rpc/counter_test.sh b/test/broadcast_tx/counter_test.sh
similarity index 100%
rename from test/rpc/counter_test.sh
rename to test/broadcast_tx/counter_test.sh
diff --git a/test/rpc/dummy_test.sh b/test/broadcast_tx/dummy_test.sh
similarity index 84%
rename from test/rpc/dummy_test.sh
rename to test/broadcast_tx/dummy_test.sh
index 9410c88da..d294e56f8 100644
--- a/test/rpc/dummy_test.sh
+++ b/test/broadcast_tx/dummy_test.sh
@@ -1,4 +1,5 @@
 #! /bin/bash
+set -e
 
 function toHex() {
 	echo -n $1 | hexdump -ve '1/1 "%.2X"'
@@ -12,23 +13,31 @@ TESTNAME=$1
 # store key value pair
 KEY="abcd"
 VALUE="dcba"
-curl localhost:46657/broadcast_tx_commit?tx=\"$(toHex $KEY=$VALUE)\"
+curl 127.0.0.1:46657/broadcast_tx_commit?tx=\"$(toHex $KEY=$VALUE)\"
+echo $?
 echo ""
 
 # we should be able to look up the key
 RESPONSE=`tmsp-cli query $KEY`
+
+set +e
 A=`echo $RESPONSE | grep exists=true`
 if [[ $? != 0 ]]; then
 	echo "Failed to find 'exists=true' for $KEY. Response:"
 	echo "$RESPONSE"
+	exit 1
 fi
+set -e
 
 # we should not be able to look up the value
 RESPONSE=`tmsp-cli query $VALUE`
+set +e
 A=`echo $RESPONSE | grep exists=true`
 if [[ $? == 0 ]]; then
 	echo "Found 'exists=true' for $VALUE when we should not have. Response:"
 	echo "$RESPONSE"
+	exit 1
 fi
+set -e
 
 echo "Passed Test: $TESTNAME"
diff --git a/test/rpc/test.sh b/test/broadcast_tx/test.sh
similarity index 55%
rename from test/rpc/test.sh
rename to test/broadcast_tx/test.sh
index f31b19c55..ee31d34da 100644
--- a/test/rpc/test.sh
+++ b/test/broadcast_tx/test.sh
@@ -8,37 +8,59 @@ set -e
 
 # TODO: install everything
 
+export TMROOT=$HOME/.tendermint_broadcast_tx
+
 function dummy_over_socket(){
+	rm -rf $TMROOT
+	tendermint init
+	echo "Starting dummy and tendermint"
 	dummy > /dev/null &
+	pid_dummy=$!
 	tendermint node > tendermint.log &
-	sleep 3
+	pid_tendermint=$!
+	sleep 5
 
+	echo "running test"
 	bash dummy_test.sh "Dummy over Socket"
 
-	killall dummy tendermint
+	kill -9 $pid_dummy $pid_tendermint
 }
 
 
 function counter_over_socket() {
+	rm -rf $TMROOT
+	tendermint init
+	echo "Starting counter and tendermint"
 	counter --serial > /dev/null &
+	pid_counter=$!
 	tendermint node > tendermint.log &
-	sleep 3
+	pid_tendermint=$!
+	sleep 5
 
+	echo "running test"
 	bash counter_test.sh "Counter over Socket"
 
-	killall counter tendermint
+	kill -9 $pid_counter $pid_tendermint
 }
 
 function counter_over_grpc() {
+	rm -rf $TMROOT
+	tendermint init
+	echo "Starting counter and tendermint"
 	counter --serial --tmsp grpc > /dev/null &
+	pid_counter=$!
 	tendermint node --tmsp grpc > tendermint.log &
-	sleep 3
+	pid_tendermint=$!
+	sleep 5
 
+	echo "running test"
 	bash counter_test.sh "Counter over GRPC"
 
-	killall counter tendermint
+	kill -9 $pid_counter $pid_tendermint
 }
 
+cd $GOPATH/src/github.com/tendermint/tendermint/test/broadcast_tx
+
 case "$1" in 
 	"dummy_over_socket")
 		dummy_over_socket
@@ -50,8 +72,11 @@ case "$1" in
 		counter_over_grpc
 		;;
 	*)
+		echo "Running all"
 		dummy_over_socket
+		echo ""
 		counter_over_socket
+		echo ""
 		counter_over_grpc
 esac
 
diff --git a/test/p2p/clean.sh b/test/p2p/clean.sh
new file mode 100644
index 000000000..e0fb36956
--- /dev/null
+++ b/test/p2p/clean.sh
@@ -0,0 +1,4 @@
+#! /bin/bash
+
+docker rm -vf $(docker ps -aq)
+docker network rm local_testnet
diff --git a/test/p2p/data/app/init.sh b/test/p2p/data/app/init.sh
new file mode 100755
index 000000000..abaccae43
--- /dev/null
+++ b/test/p2p/data/app/init.sh
@@ -0,0 +1,9 @@
+#! /bin/bash
+# This is a sample bash script for a TMSP application
+
+cd app/
+git clone https://github.com/tendermint/nomnomcoin.git
+cd nomnomcoin
+npm install .
+
+node app.js --eyes="unix:///data/tendermint/data/data.sock"
\ No newline at end of file
diff --git a/test/p2p/data/chain_config.json b/test/p2p/data/chain_config.json
new file mode 100644
index 000000000..54fcea524
--- /dev/null
+++ b/test/p2p/data/chain_config.json
@@ -0,0 +1,53 @@
+{
+	"id": "",
+	"val_set_id": "anon",
+	"validators": [
+		{
+			"validator": {
+				"id": "mach1",
+				"pub_key": [
+					1,
+					"BE8933DFF1600C026E34718F1785A4CDEAB90C35698B394E38B6947AE91DE116"
+				]
+			},
+			"p2p_addr": "",
+			"rpc_addr": ""
+		},
+		{
+			"validator": {
+				"id": "mach2",
+				"pub_key": [
+					1,
+					"6DC534465323126587D2A2A93B59D689B717073B1DE968A25A6EF13D595318AD"
+				]
+			},
+			"p2p_addr": "",
+			"rpc_addr": "",
+			"index": 1
+		},
+		{
+			"validator": {
+				"id": "mach3",
+				"pub_key": [
+					1,
+					"AE67AC697D135AA0B4601EA57EAAB3FEBF4BAA4F229C45A598C2985B12FCD1A1"
+				]
+			},
+			"p2p_addr": "",
+			"rpc_addr": "",
+			"index": 2
+		},
+		{
+			"validator": {
+				"id": "mach4",
+				"pub_key": [
+					1,
+					"9EBC8F58CED4B46DCD5AB8ABA591DD253CD7CB5037273FDA32BC0B6461C4EFD9"
+				]
+			},
+			"p2p_addr": "",
+			"rpc_addr": "",
+			"index": 3
+		}
+	]
+}
\ No newline at end of file
diff --git a/test/p2p/data/core/init.sh b/test/p2p/data/core/init.sh
new file mode 100755
index 000000000..95db91191
--- /dev/null
+++ b/test/p2p/data/core/init.sh
@@ -0,0 +1,20 @@
+#! /bin/bash
+# This is a sample bash script for tendermint core
+# Edit this script before "mintnet start" to change
+# the core blockchain engine.
+
+TMREPO="github.com/tendermint/tendermint"
+BRANCH="master"
+
+go get -d $TMREPO/cmd/tendermint
+### DEPENDENCIES (example)
+# cd $GOPATH/src/github.com/tendermint/tmsp
+# git fetch origin $BRANCH
+# git checkout $BRANCH
+### DEPENDENCIES END
+cd $GOPATH/src/$TMREPO
+git fetch origin $BRANCH
+git checkout $BRANCH
+make install
+
+tendermint node --seeds="$TMSEEDS" --moniker="$TMNAME" --proxy_app="$PROXYAPP"
\ No newline at end of file
diff --git a/test/p2p/data/data/init.sh b/test/p2p/data/data/init.sh
new file mode 100755
index 000000000..41122a547
--- /dev/null
+++ b/test/p2p/data/data/init.sh
@@ -0,0 +1,7 @@
+#! /bin/bash
+# This is a sample bash script for MerkleEyes.
+# NOTE: mintnet expects data.sock to be created
+
+go get github.com/tendermint/merkleeyes/cmd/merkleeyes
+
+merkleeyes server --address="unix:///data/tendermint/data/data.sock"
\ No newline at end of file
diff --git a/test/p2p/data/mach1/core/genesis.json b/test/p2p/data/mach1/core/genesis.json
new file mode 100644
index 000000000..3f6fbe5a2
--- /dev/null
+++ b/test/p2p/data/mach1/core/genesis.json
@@ -0,0 +1,39 @@
+{
+	"app_hash": "",
+	"chain_id": "chain-9ujDWI",
+	"genesis_time": "2016-06-24T20:01:19.322Z",
+	"validators": [
+		{
+			"amount": 1,
+			"name": "mach1",
+			"pub_key": [
+				1,
+				"BE8933DFF1600C026E34718F1785A4CDEAB90C35698B394E38B6947AE91DE116"
+			]
+		},
+		{
+			"amount": 1,
+			"name": "mach2",
+			"pub_key": [
+				1,
+				"6DC534465323126587D2A2A93B59D689B717073B1DE968A25A6EF13D595318AD"
+			]
+		},
+		{
+			"amount": 1,
+			"name": "mach3",
+			"pub_key": [
+				1,
+				"AE67AC697D135AA0B4601EA57EAAB3FEBF4BAA4F229C45A598C2985B12FCD1A1"
+			]
+		},
+		{
+			"amount": 1,
+			"name": "mach4",
+			"pub_key": [
+				1,
+				"9EBC8F58CED4B46DCD5AB8ABA591DD253CD7CB5037273FDA32BC0B6461C4EFD9"
+			]
+		}
+	]
+}
\ No newline at end of file
diff --git a/test/p2p/data/mach1/core/priv_validator.json b/test/p2p/data/mach1/core/priv_validator.json
new file mode 100644
index 000000000..242c7b9fc
--- /dev/null
+++ b/test/p2p/data/mach1/core/priv_validator.json
@@ -0,0 +1,14 @@
+{
+	"address": "0E6925C3EE4C599DFF1536A5071AF4A26DF33635",
+	"last_height": 0,
+	"last_round": 0,
+	"last_step": 0,
+	"priv_key": [
+		1,
+		"547AA07C7A8CE16C5CB2A40C6C26D15B0A32960410A9F1EA6E50B636F1AB389ABE8933DFF1600C026E34718F1785A4CDEAB90C35698B394E38B6947AE91DE116"
+	],
+	"pub_key": [
+		1,
+		"BE8933DFF1600C026E34718F1785A4CDEAB90C35698B394E38B6947AE91DE116"
+	]
+}
\ No newline at end of file
diff --git a/test/p2p/data/mach2/core/genesis.json b/test/p2p/data/mach2/core/genesis.json
new file mode 100644
index 000000000..3f6fbe5a2
--- /dev/null
+++ b/test/p2p/data/mach2/core/genesis.json
@@ -0,0 +1,39 @@
+{
+	"app_hash": "",
+	"chain_id": "chain-9ujDWI",
+	"genesis_time": "2016-06-24T20:01:19.322Z",
+	"validators": [
+		{
+			"amount": 1,
+			"name": "mach1",
+			"pub_key": [
+				1,
+				"BE8933DFF1600C026E34718F1785A4CDEAB90C35698B394E38B6947AE91DE116"
+			]
+		},
+		{
+			"amount": 1,
+			"name": "mach2",
+			"pub_key": [
+				1,
+				"6DC534465323126587D2A2A93B59D689B717073B1DE968A25A6EF13D595318AD"
+			]
+		},
+		{
+			"amount": 1,
+			"name": "mach3",
+			"pub_key": [
+				1,
+				"AE67AC697D135AA0B4601EA57EAAB3FEBF4BAA4F229C45A598C2985B12FCD1A1"
+			]
+		},
+		{
+			"amount": 1,
+			"name": "mach4",
+			"pub_key": [
+				1,
+				"9EBC8F58CED4B46DCD5AB8ABA591DD253CD7CB5037273FDA32BC0B6461C4EFD9"
+			]
+		}
+	]
+}
\ No newline at end of file
diff --git a/test/p2p/data/mach2/core/priv_validator.json b/test/p2p/data/mach2/core/priv_validator.json
new file mode 100644
index 000000000..ead45d5e6
--- /dev/null
+++ b/test/p2p/data/mach2/core/priv_validator.json
@@ -0,0 +1,14 @@
+{
+	"address": "99DBBD2AFC28FB5BAC5574AFAF0D9C806CED3B55",
+	"last_height": 0,
+	"last_round": 0,
+	"last_step": 0,
+	"priv_key": [
+		1,
+		"D047889E60502FC3129D0AB7F334B1838ED9ED1ECD99CBB96B71AD5ABF5A81436DC534465323126587D2A2A93B59D689B717073B1DE968A25A6EF13D595318AD"
+	],
+	"pub_key": [
+		1,
+		"6DC534465323126587D2A2A93B59D689B717073B1DE968A25A6EF13D595318AD"
+	]
+}
\ No newline at end of file
diff --git a/test/p2p/data/mach3/core/genesis.json b/test/p2p/data/mach3/core/genesis.json
new file mode 100644
index 000000000..3f6fbe5a2
--- /dev/null
+++ b/test/p2p/data/mach3/core/genesis.json
@@ -0,0 +1,39 @@
+{
+	"app_hash": "",
+	"chain_id": "chain-9ujDWI",
+	"genesis_time": "2016-06-24T20:01:19.322Z",
+	"validators": [
+		{
+			"amount": 1,
+			"name": "mach1",
+			"pub_key": [
+				1,
+				"BE8933DFF1600C026E34718F1785A4CDEAB90C35698B394E38B6947AE91DE116"
+			]
+		},
+		{
+			"amount": 1,
+			"name": "mach2",
+			"pub_key": [
+				1,
+				"6DC534465323126587D2A2A93B59D689B717073B1DE968A25A6EF13D595318AD"
+			]
+		},
+		{
+			"amount": 1,
+			"name": "mach3",
+			"pub_key": [
+				1,
+				"AE67AC697D135AA0B4601EA57EAAB3FEBF4BAA4F229C45A598C2985B12FCD1A1"
+			]
+		},
+		{
+			"amount": 1,
+			"name": "mach4",
+			"pub_key": [
+				1,
+				"9EBC8F58CED4B46DCD5AB8ABA591DD253CD7CB5037273FDA32BC0B6461C4EFD9"
+			]
+		}
+	]
+}
\ No newline at end of file
diff --git a/test/p2p/data/mach3/core/priv_validator.json b/test/p2p/data/mach3/core/priv_validator.json
new file mode 100644
index 000000000..dd366d205
--- /dev/null
+++ b/test/p2p/data/mach3/core/priv_validator.json
@@ -0,0 +1,14 @@
+{
+	"address": "4C5F061DAC28660853904A66705B12CA2B317572",
+	"last_height": 0,
+	"last_round": 0,
+	"last_step": 0,
+	"priv_key": [
+		1,
+		"C1A4E47F349FC5F556F4A9A27BA776B94424C312BAA6CF6EE44B867348D7C3F2AE67AC697D135AA0B4601EA57EAAB3FEBF4BAA4F229C45A598C2985B12FCD1A1"
+	],
+	"pub_key": [
+		1,
+		"AE67AC697D135AA0B4601EA57EAAB3FEBF4BAA4F229C45A598C2985B12FCD1A1"
+	]
+}
\ No newline at end of file
diff --git a/test/p2p/data/mach4/core/genesis.json b/test/p2p/data/mach4/core/genesis.json
new file mode 100644
index 000000000..3f6fbe5a2
--- /dev/null
+++ b/test/p2p/data/mach4/core/genesis.json
@@ -0,0 +1,39 @@
+{
+	"app_hash": "",
+	"chain_id": "chain-9ujDWI",
+	"genesis_time": "2016-06-24T20:01:19.322Z",
+	"validators": [
+		{
+			"amount": 1,
+			"name": "mach1",
+			"pub_key": [
+				1,
+				"BE8933DFF1600C026E34718F1785A4CDEAB90C35698B394E38B6947AE91DE116"
+			]
+		},
+		{
+			"amount": 1,
+			"name": "mach2",
+			"pub_key": [
+				1,
+				"6DC534465323126587D2A2A93B59D689B717073B1DE968A25A6EF13D595318AD"
+			]
+		},
+		{
+			"amount": 1,
+			"name": "mach3",
+			"pub_key": [
+				1,
+				"AE67AC697D135AA0B4601EA57EAAB3FEBF4BAA4F229C45A598C2985B12FCD1A1"
+			]
+		},
+		{
+			"amount": 1,
+			"name": "mach4",
+			"pub_key": [
+				1,
+				"9EBC8F58CED4B46DCD5AB8ABA591DD253CD7CB5037273FDA32BC0B6461C4EFD9"
+			]
+		}
+	]
+}
\ No newline at end of file
diff --git a/test/p2p/data/mach4/core/priv_validator.json b/test/p2p/data/mach4/core/priv_validator.json
new file mode 100644
index 000000000..4a73707e8
--- /dev/null
+++ b/test/p2p/data/mach4/core/priv_validator.json
@@ -0,0 +1,14 @@
+{
+	"address": "86F6DA4B34F16D743D2D992B5ACB12F5E724CC2D",
+	"last_height": 0,
+	"last_round": 0,
+	"last_step": 0,
+	"priv_key": [
+		1,
+		"C4CC3ED28F020C2DBDA98BCDBF08C3CED370470E74F25E938D5D295E8E3D2B0C9EBC8F58CED4B46DCD5AB8ABA591DD253CD7CB5037273FDA32BC0B6461C4EFD9"
+	],
+	"pub_key": [
+		1,
+		"9EBC8F58CED4B46DCD5AB8ABA591DD253CD7CB5037273FDA32BC0B6461C4EFD9"
+	]
+}
\ No newline at end of file
diff --git a/test/p2p/local_testnet.sh b/test/p2p/local_testnet.sh
new file mode 100644
index 000000000..2b4183b95
--- /dev/null
+++ b/test/p2p/local_testnet.sh
@@ -0,0 +1,28 @@
+#! /bin/bash
+set -eu
+
+DOCKER_IMAGE=$1
+NETWORK_NAME=$2
+
+cd $GOPATH/src/github.com/tendermint/tendermint
+
+# create docker network
+docker network create --driver bridge --subnet 172.57.0.0/16 $NETWORK_NAME
+
+N=4
+seeds="172.57.0.101:46656"
+for i in `seq 2 $N`; do
+	seeds="$seeds,172.57.0.$((100+$i)):46656"
+done
+echo "Seeds: $seeds"
+
+for i in `seq 1 $N`; do
+	# start tendermint container
+	docker run -d \
+		--net=$NETWORK_NAME \
+		--ip=172.57.0.$((100+$i)) \
+		--name local_testnet_$i \
+		--entrypoint tendermint \
+		-e TMROOT=/go/src/github.com/tendermint/tendermint/test/p2p/data/mach$i/core \
+		$DOCKER_IMAGE node --seeds $seeds --proxy_app=dummy
+done
diff --git a/test/p2p/run_test.sh b/test/p2p/run_test.sh
new file mode 100644
index 000000000..87ab8e1f7
--- /dev/null
+++ b/test/p2p/run_test.sh
@@ -0,0 +1,79 @@
+#! /bin/bash
+
+# wait for everyone to come online
+echo "Waiting for nodes to come online"
+for i in `seq 1 4`; do
+	addr="172.57.0.$((100+$i)):46657"
+	curl -s $addr/status > /dev/null
+	ERR=$?
+	while [ "$ERR" != 0 ]; do
+		sleep 1	
+		curl -s $addr/status > /dev/null
+		ERR=$?
+	done
+	echo "... node $i is up"
+done
+
+echo ""
+# run the test on each of them
+for i in `seq 1 4`; do
+	addr="172.57.0.$((100+$i)):46657"
+
+	# - assert everyone has 3 other peers
+	N_PEERS=`curl -s $addr/net_info | jq '.result[1].peers | length'`
+	while [ "$N_PEERS" != 3 ]; do
+		echo "Waiting for node $i to connect to all peers ..."
+		sleep 1
+		N_PEERS=`curl -s $addr/net_info | jq '.result[1].peers | length'`
+	done
+
+	# - assert block height is greater than 1
+	BLOCK_HEIGHT=`curl -s $addr/status | jq .result[1].latest_block_height`
+	while [ "$BLOCK_HEIGHT" -le 1 ]; do
+		echo "Waiting for node $i to commit a block ..."
+		sleep 1
+		BLOCK_HEIGHT=`curl -s $addr/status | jq .result[1].latest_block_height`
+	done
+	echo "Node $i is connected to all peers and at block $BLOCK_HEIGHT"
+
+	# current state
+	HASH1=`curl -s $addr/status | jq .result[1].latest_app_hash`
+	
+	# - send a tx
+	TX=\"aadeadbeefbeefbeef0$i\"
+	echo "Broadcast Tx $TX"
+	curl -s $addr/broadcast_tx_commit?tx=$TX
+	echo ""
+
+	# we need to wait another block to get the new app_hash
+	h1=`curl -s $addr/status | jq .result[1].latest_block_height`
+	h2=$h1
+	while [ "$h2" == "$h1" ]; do
+		sleep 1
+		h2=`curl -s $addr/status | jq .result[1].latest_block_height`
+	done
+
+	# check that hash was updated
+	HASH2=`curl -s $addr/status | jq .result[1].latest_app_hash`
+	if [[ "$HASH1" == "$HASH2" ]]; then
+		echo "Expected state hash to update from $HASH1. Got $HASH2"
+		exit 1
+	fi
+
+	# check we get the same new hash on all other nodes
+	for j in `seq 1 4`; do
+		if [[ "$i" != "$j" ]]; then
+			HASH3=`curl -s 172.57.0.$((100+$j)):46657/status | jq .result[1].latest_app_hash`
+			
+			if [[ "$HASH2" != "$HASH3" ]]; then
+				echo "App hash for node $j doesn't match. Got $HASH3, expected $HASH2"
+				exit 1
+			fi
+		fi
+	done
+
+	echo "All nodes are up to date"
+done
+
+echo ""
+echo "PASS"
diff --git a/test/p2p/test.sh b/test/p2p/test.sh
new file mode 100644
index 000000000..f139fd675
--- /dev/null
+++ b/test/p2p/test.sh
@@ -0,0 +1,10 @@
+#! /bin/bash
+
+DOCKER_IMAGE=$1
+NETWORK_NAME=local_testnet
+
+# start the testnet on a local network
+bash test/p2p/local_testnet.sh $DOCKER_IMAGE $NETWORK_NAME
+
+# run the test
+bash test/p2p/test_client.sh $DOCKER_IMAGE $NETWORK_NAME test/p2p/run_test.sh
diff --git a/test/p2p/test_client.sh b/test/p2p/test_client.sh
new file mode 100644
index 000000000..d9fe64c5c
--- /dev/null
+++ b/test/p2p/test_client.sh
@@ -0,0 +1,16 @@
+#! /bin/bash
+set -eu
+
+DOCKER_IMAGE=$1
+NETWORK_NAME=$2
+CMD=$3
+
+# run the test container on the local network
+docker run -t \
+	--rm \
+	-v $GOPATH/src/github.com/tendermint/tendermint/test/p2p/:/go/src/github.com/tendermint/tendermint/test/p2p \
+	--net=$NETWORK_NAME \
+	--ip=172.57.0.99 \
+	--name test_container \
+	--entrypoint bash \
+	$DOCKER_IMAGE $CMD
diff --git a/test/run_test.sh b/test/run_test.sh
index 67d1f23ca..a7de6a141 100644
--- a/test/run_test.sh
+++ b/test/run_test.sh
@@ -1,14 +1,22 @@
 #! /bin/bash
+set -e
 
 echo `pwd`
 
 BRANCH=`git rev-parse --abbrev-ref HEAD`
 echo "Current branch: $BRANCH"
 
-make get_vendor_deps
-
+# go test --race github.com/tendermint/tendermint/...
 make test_race
 
+# run the broadcast_tx tests
+bash test/broadcast_tx/test.sh
+
 if [[ "$BRANCH" == "master" || "$BRANCH" == "staging" ]]; then
+	echo ""
+	echo "* branch $BRANCH; testing libs"
+	# checkout every github.com/tendermint dir and run its tests
 	bash test/test_libs.sh
+
+	# TODO: mintnet/netmon
 fi
diff --git a/test/test.sh b/test/test.sh
index 5c646c27a..83787f82b 100644
--- a/test/test.sh
+++ b/test/test.sh
@@ -8,5 +8,16 @@
 # If we pushed to STAGING or MASTER,
 # it will also run the tests for all dependencies
 
+echo ""
+echo "* building docker file"
 docker build -t tester -f ./test/Dockerfile .
+
+echo ""
+echo "* running go tests and broadcast tests"
 docker run -t tester bash test/run_test.sh
+
+# test basic network connectivity
+# by starting a local testnet and checking peers connect and make blocks
+echo ""
+echo "* running basic peer tests"
+bash test/p2p/test.sh tester