diff --git a/util/tests/zip.rs b/util/tests/zip.rs
new file mode 100644
index 000000000..2d0641e09
--- /dev/null
+++ b/util/tests/zip.rs
@@ -0,0 +1,59 @@
+// Copyright 2017 The Grin Developers
+//
+// 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.
+
+extern crate  grin_util as util;
+
+use std::fs::{self, File};
+use std::path::Path;
+use std::io::{self, Write};
+use util::zip;
+
+#[test]
+fn zip_unzip() {
+	let root = Path::new("./target");
+	let zip_name = "./target/zipped.zip";
+
+	fs::create_dir_all(root.join("./to_zip/sub")).unwrap();
+	write_files(&root).unwrap();
+
+	let zip_file = File::create(zip_name).unwrap();
+	zip::compress(&root.join("./to_zip"), &zip_file).unwrap();
+	zip_file.sync_all();
+	
+	let zip_path = Path::new(zip_name);
+	assert!(zip_path.exists());
+	assert!(zip_path.is_file());
+	assert!(zip_path.metadata().unwrap().len() > 300);
+	
+	fs::create_dir_all(root.join("./dezipped")).unwrap();
+	let zip_file = File::open(zip_name).unwrap();
+	zip::decompress(zip_file, &root.join("./dezipped")).unwrap();
+
+	assert!(root.join("to_zip/foo.txt").is_file());
+	assert!(root.join("to_zip/bar.txt").is_file());
+	assert!(root.join("to_zip/sub").is_dir());
+	let lorem = root.join("to_zip/sub/lorem");
+	assert!(lorem.is_file());
+	assert!(lorem.metadata().unwrap().len() == 55);
+}
+
+fn write_files(root: &Path) -> io::Result<()> {
+	let mut file = File::create(root.join("to_zip/foo.txt"))?;
+	file.write_all(b"Hello, world!")?;
+	let mut file = File::create(root.join("to_zip/bar.txt"))?;
+	file.write_all(b"Goodbye, world!")?;
+	let mut file = File::create(root.join("to_zip/sub/lorem"))?;
+	file.write_all(b"Lorem ipsum dolor sit amet, consectetur adipiscing elit")?;
+	Ok(())
+}