diff --git a/allocateipip/allocate_ipip_addr_test.go b/allocateipip/allocate_ipip_addr_test.go
new file mode 100644
index 000000000..e92254839
--- /dev/null
+++ b/allocateipip/allocate_ipip_addr_test.go
@@ -0,0 +1,173 @@
+// Copyright (c) 2018 Tigera, 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.
+
+package main
+
+import (
+	"context"
+	"os"
+
+	. "github.com/onsi/ginkgo"
+	. "github.com/onsi/gomega"
+	log "github.com/sirupsen/logrus"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+
+	"github.com/projectcalico/libcalico-go/lib/apiconfig"
+	api "github.com/projectcalico/libcalico-go/lib/apis/v3"
+	"github.com/projectcalico/libcalico-go/lib/backend"
+	client "github.com/projectcalico/libcalico-go/lib/clientv3"
+	"github.com/projectcalico/libcalico-go/lib/logutils"
+	"github.com/projectcalico/libcalico-go/lib/net"
+	"github.com/projectcalico/libcalico-go/lib/options"
+)
+
+// makeNode creates an api.Node with some BGPSpec info populated.
+func makeNode(ipv4 string, ipv6 string) *api.Node {
+	ip4, ip4net, _ := net.ParseCIDR(ipv4)
+	ip4net.IP = ip4.IP
+
+	ip6Addr := ""
+	if ipv6 != "" {
+		ip6, ip6net, _ := net.ParseCIDR(ipv6)
+		// Guard against nil here in case we pass in an empty string for IPv6.
+		if ip6 != nil {
+			ip6net.IP = ip6.IP
+		}
+		ip6Addr = ip6net.String()
+	}
+
+	n := &api.Node{
+		Spec: api.NodeSpec{
+			BGP: &api.NodeBGPSpec{
+				IPv4Address: ip4net.String(),
+				IPv6Address: ip6Addr,
+			},
+		},
+	}
+	return n
+}
+
+func makeIPv4Pool(ipv4cidr string) *api.IPPool {
+	return &api.IPPool{
+		ObjectMeta: metav1.ObjectMeta{
+			Name: "dont-care",
+		},
+		Spec: api.IPPoolSpec{
+			CIDR:        ipv4cidr,
+			NATOutgoing: true,
+			IPIPMode:    api.IPIPModeAlways,
+		},
+	}
+}
+
+var _ = Describe("ensureHostTunnelAddress", func() {
+	log.SetOutput(os.Stdout)
+	// Set log formatting.
+	log.SetFormatter(&logutils.Formatter{})
+	// Install a hook that adds file and line number information.
+	log.AddHook(&logutils.ContextHook{})
+
+	ctx := context.Background()
+	cfg, _ := apiconfig.LoadClientConfigFromEnvironment()
+
+	var c client.Interface
+	BeforeEach(func() {
+		// Clear out datastore
+		be, _ := backend.NewClient(*cfg)
+		be.Clean()
+
+		//create client and IPPool
+		c, _ = client.New(*cfg)
+		c.IPPools().Create(ctx, makeIPv4Pool("172.16.0.0/24"), options.SetOptions{})
+	})
+
+	It("should add tunnel address to node", func() {
+		node := makeNode("192.168.0.1/24", "fdff:ffff:ffff:ffff:ffff::/80")
+		node.Name = "test.node"
+
+		_, err := c.Nodes().Create(ctx, node, options.SetOptions{})
+		Expect(err).NotTo(HaveOccurred())
+
+		_, ip4net, _ := net.ParseCIDR("172.16.0.0/24")
+		ensureHostTunnelAddress(ctx, c, node.Name, []net.IPNet{*ip4net})
+		n, err := c.Nodes().Get(ctx, node.Name, options.GetOptions{})
+		Expect(err).NotTo(HaveOccurred())
+		Expect(n.Spec.BGP.IPv4IPIPTunnelAddr).ToNot(Equal(""))
+	})
+
+	It("should add tunnel address to node without BGP Spec", func() {
+		node := makeNode("192.168.0.1/24", "fdff:ffff:ffff:ffff:ffff::/80")
+		node.Name = "test.node"
+		node.Spec.BGP = nil
+
+		_, err := c.Nodes().Create(ctx, node, options.SetOptions{})
+		Expect(err).NotTo(HaveOccurred())
+
+		_, ip4net, _ := net.ParseCIDR("172.16.0.0/24")
+		ensureHostTunnelAddress(ctx, c, node.Name, []net.IPNet{*ip4net})
+		n, err := c.Nodes().Get(ctx, node.Name, options.GetOptions{})
+		Expect(err).NotTo(HaveOccurred())
+		Expect(n.Spec.BGP.IPv4IPIPTunnelAddr).ToNot(Equal(""))
+	})
+})
+
+var _ = Describe("removeHostTunnelAddr", func() {
+	log.SetOutput(os.Stdout)
+	// Set log formatting.
+	log.SetFormatter(&logutils.Formatter{})
+	// Install a hook that adds file and line number information.
+	log.AddHook(&logutils.ContextHook{})
+
+	ctx := context.Background()
+	cfg, _ := apiconfig.LoadClientConfigFromEnvironment()
+
+	var c client.Interface
+	BeforeEach(func() {
+		// Clear out datastore
+		be, _ := backend.NewClient(*cfg)
+		be.Clean()
+
+		//create client and IPPool
+		c, _ = client.New(*cfg)
+		c.IPPools().Create(ctx, makeIPv4Pool("172.16.0.0/24"), options.SetOptions{})
+	})
+
+	It("should remove tunnel address from node", func() {
+		node := makeNode("192.168.0.1/24", "fdff:ffff:ffff:ffff:ffff::/80")
+		node.Name = "test.node"
+		node.Spec.BGP.IPv4IPIPTunnelAddr = "172.16.0.5"
+
+		_, err := c.Nodes().Create(ctx, node, options.SetOptions{})
+		Expect(err).NotTo(HaveOccurred())
+
+		removeHostTunnelAddr(ctx, c, node.Name)
+		n, err := c.Nodes().Get(ctx, node.Name, options.GetOptions{})
+		Expect(err).NotTo(HaveOccurred())
+		Expect(n.Spec.BGP.IPv4IPIPTunnelAddr).To(Equal(""))
+	})
+
+	It("should not panic on node without BGP Spec", func() {
+		node := makeNode("192.168.0.1/24", "fdff:ffff:ffff:ffff:ffff::/80")
+		node.Name = "test.node"
+		node.Spec.BGP = nil
+
+		_, err := c.Nodes().Create(ctx, node, options.SetOptions{})
+		Expect(err).NotTo(HaveOccurred())
+
+		removeHostTunnelAddr(ctx, c, node.Name)
+		n, err := c.Nodes().Get(ctx, node.Name, options.GetOptions{})
+		Expect(err).NotTo(HaveOccurred())
+		Expect(n.Spec.BGP).To(BeNil())
+	})
+})