diff --git a/rhodecode/svn_support/tests/test_mod_dav_svn_config.py b/rhodecode/svn_support/tests/test_mod_dav_svn_config.py
new file mode 100644
--- /dev/null
+++ b/rhodecode/svn_support/tests/test_mod_dav_svn_config.py
@@ -0,0 +1,138 @@
+# -*- coding: utf-8 -*-
+
+# Copyright (C) 2016-2016  RhodeCode GmbH
+#
+# This program is free software: you can redistribute it and/or modify
+# it under the terms of the GNU Affero General Public License, version 3
+# (only), as published by the Free Software Foundation.
+#
+# This program is distributed in the hope that it will be useful,
+# but WITHOUT ANY WARRANTY; without even the implied warranty of
+# MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+# GNU General Public License for more details.
+#
+# You should have received a copy of the GNU Affero General Public License
+# along with this program.  If not, see <http://www.gnu.org/licenses/>.
+#
+# This program is dual-licensed. If you wish to learn more about the
+# RhodeCode Enterprise Edition, including its added features, Support services,
+# and proprietary license terms, please see https://rhodecode.com/licenses/
+
+
+import mock
+import re
+import shutil
+import tempfile
+
+from pyramid import testing
+
+from rhodecode.svn_support import keys
+from rhodecode.svn_support.utils import generate_mod_dav_svn_config
+
+
+class TestModDavSvnConfig(object):
+    @classmethod
+    def setup_class(cls):
+        # Make mako renderer available in tests.
+        config = testing.setUp()
+        config.include('pyramid_mako')
+
+        # Temporary directory holding the generated config files.
+        cls.tempdir = tempfile.mkdtemp(suffix='pytest-mod-dav-svn')
+
+        # Regex pattern to match a location block in the generated config.
+        cls.location_regex = (
+            '<Location {location}>\s+'
+            'DAV svn\s+'
+            'SVNParentPath {svn_parent_path}\s+'
+            'SVNListParentPath {svn_list_parent_path}\s+'
+            'Allow from all\s+'
+            'Order allow,deny\s+'
+            '</Location>')
+
+    @classmethod
+    def teardown_class(cls):
+        testing.tearDown()
+        shutil.rmtree(cls.tempdir, ignore_errors=True)
+
+    @classmethod
+    def get_settings(cls):
+        config_file_path = tempfile.mkstemp(
+            suffix='mod-dav-svn.conf', dir=cls.tempdir)[1]
+        return {
+            keys.config_file_path: config_file_path,
+            keys.location_root: '/location/root/',
+            keys.parent_path_root: '/parent/path/root/',
+            keys.list_parent_path: True,
+        }
+
+    @classmethod
+    def get_repo_groups(cls, count=1):
+        repo_groups = []
+        for num in range(0, count):
+            repo_group_mock = mock.MagicMock()
+            repo_group_mock.full_path = '/path/to/RepoGroup{}'.format(num)
+            repo_groups.append(repo_group_mock)
+        return repo_groups
+
+    @mock.patch('rhodecode.svn_support.utils.RepoGroup')
+    def test_generate_mod_dav_svn_config(self, RepoGroupMock):
+        num_groups = 3
+        RepoGroupMock.get_all_repo_groups.return_value = self.get_repo_groups(
+            count=num_groups)
+
+        # Execute the method under test.
+        settings = self.get_settings()
+        generate_mod_dav_svn_config(settings)
+
+        # Read generated file.
+        with open(settings[keys.config_file_path], 'r') as file_:
+            content = file_.read()
+
+        # Assert that one location block exists for each repository group.
+        repo_group_pattern = self.location_regex.format(
+            location='/location/root/path/to/RepoGroup\d+',
+            svn_parent_path='/parent/path/root/path/to/RepoGroup\d+',
+            svn_list_parent_path='On')
+        assert len(re.findall(repo_group_pattern, content)) == num_groups
+
+        # Assert that the root location block exists.
+        root_pattern = self.location_regex.format(
+            location='/location/root/',
+            svn_parent_path='/parent/path/root/',
+            svn_list_parent_path='On')
+        assert len(re.findall(root_pattern, content)) == 1
+
+    @mock.patch('rhodecode.svn_support.utils.RepoGroup')
+    def test_list_parent_path_on(self, RepoGroupMock):
+        RepoGroupMock.get_all_repo_groups.return_value = self.get_repo_groups()
+
+        # Execute the method under test.
+        settings = self.get_settings()
+        settings[keys.list_parent_path] = True
+        generate_mod_dav_svn_config(settings)
+
+        # Read generated file.
+        with open(settings[keys.config_file_path], 'r') as file_:
+            content = file_.read()
+
+        # Make assertions.
+        assert not re.search('SVNListParentPath\s+Off', content)
+        assert re.search('SVNListParentPath\s+On', content)
+
+    @mock.patch('rhodecode.svn_support.utils.RepoGroup')
+    def test_list_parent_path_off(self, RepoGroupMock):
+        RepoGroupMock.get_all_repo_groups.return_value = self.get_repo_groups()
+
+        # Execute the method under test.
+        settings = self.get_settings()
+        settings[keys.list_parent_path] = False
+        generate_mod_dav_svn_config(settings)
+
+        # Read generated file.
+        with open(settings[keys.config_file_path], 'r') as file_:
+            content = file_.read()
+
+        # Make assertions.
+        assert re.search('SVNListParentPath\s+Off', content)
+        assert not re.search('SVNListParentPath\s+On', content)