diff --git a/reloading/test_reloading.py b/reloading/test_reloading.py
index 8ad81ee..64c1b1e 100644
--- a/reloading/test_reloading.py
+++ b/reloading/test_reloading.py
@@ -6,7 +6,8 @@
 from reloading import reloading
 
 SRC_FILE_NAME = 'temporary_testing_file.py'
-SRC_FILE_CONTENT = '''
+
+TEST_CHANGING_SOURCE_CONTENT = '''
 from reloading import reloading
 from time import sleep
 
@@ -15,6 +16,57 @@
     print('INITIAL_FILE_CONTENTS')
 '''
 
+TEST_KEEP_LOCAL_VARIABLES_CONTENT = '''
+from reloading import reloading
+from time import sleep
+
+fpath = "DON'T CHANGE ME"
+for epoch in reloading(range(1)):
+    assert fpath == "DON'T CHANGE ME"
+'''
+
+TEST_PERSIST_AFTER_LOOP = '''
+from reloading import reloading
+from time import sleep
+
+state = 'INIT'
+for epoch in reloading(range(1)):
+    state = 'CHANGED'
+
+assert state == 'CHANGED'
+'''
+
+
+def run_and_update_source(init_src, updated_src=None, update_after=0.2):
+    '''Runs init_src in a subprocess and updates source to updated_src after
+    update_after seconds. Returns the standard output of the subprocess and
+    whether the subprocess produced an uncaught exception.
+    '''
+    with open(SRC_FILE_NAME, 'w') as f:
+        f.write(init_src)
+
+    cmd = ['python', SRC_FILE_NAME]
+    with sp.Popen(cmd, stdout=sp.PIPE, stderr=sp.PIPE) as proc:
+        if updated_src != None:
+            time.sleep(update_after)
+            with open(SRC_FILE_NAME, 'w') as f:
+                f.write(updated_src)
+
+        try:
+            stdout, _ = proc.communicate(timeout=2)
+            stdout = stdout.decode('utf-8')
+            has_error = False
+        except:
+            stdout = ''
+            has_error = True
+            proc.terminate() 
+
+    if os.path.isfile(SRC_FILE_NAME):
+        os.remove(SRC_FILE_NAME)
+
+    return stdout, has_error
+
+
 class TestReloading(unittest.TestCase):
 
     def test_simple_looping(self):
@@ -23,29 +75,21 @@ def test_simple_looping(self):
             iters += 1
 
     def test_changing_source(self):
-        with open(SRC_FILE_NAME, 'w') as f:
-            f.write(SRC_FILE_CONTENT)
+        stdout, _ = run_and_update_source(
+          init_src=TEST_CHANGING_SOURCE_CONTENT,
+          updated_src=TEST_CHANGING_SOURCE_CONTENT.replace('INITIAL', 'CHANGED').rstrip('\n'))
 
-        cmd = ['python', SRC_FILE_NAME]
-        with sp.Popen(cmd, stdout=sp.PIPE) as proc:
-            # wait for first loop iterations to run before changing source file
-            time.sleep(0.2)
-            with open(SRC_FILE_NAME, 'w') as f:
-                f.write(SRC_FILE_CONTENT.replace('INITIAL', 'CHANGED').rstrip('\n'))
+        self.assertTrue('INITIAL_FILE_CONTENTS' in stdout and
+                        'CHANGED_FILE_CONTENTS' in stdout)
 
-            # check if output contains results from before and after change
-            stdout = proc.stdout.read().decode('utf-8')
-            self.assertTrue('INITIAL_FILE_CONTENTS' in stdout and
-                            'CHANGED_FILE_CONTENTS' in stdout)
+    def test_keep_local_variables(self):
+        _, has_error = run_and_update_source(init_src=TEST_KEEP_LOCAL_VARIABLES_CONTENT)
+        self.assertFalse(has_error)
 
-    def test_local_vars_are_not_overwritten(self):
-        fpath = "test"
-        for _ in reloading(range(1)):
-            self.assertEqual(fpath, "test")
+    def test_persist_after_loop(self):
+        _, has_error = run_and_update_source(init_src=TEST_PERSIST_AFTER_LOOP)
+        self.assertFalse(has_error)
 
-    def tearDown(self):
-        if os.path.isfile(SRC_FILE_NAME):
-            os.remove(SRC_FILE_NAME)
 
 if __name__ == '__main__':
     unittest.main()