diff --git a/.gitignore b/.gitignore
index 9fad0c2..bff8718 100644
--- a/.gitignore
+++ b/.gitignore
@@ -13,3 +13,4 @@
 node_modules
 checkstyle.xml
 loopback-boot-*.tgz
+/test/sandbox/
diff --git a/.jshintignore b/.jshintignore
index 25fbf5a..d8f8557 100644
--- a/.jshintignore
+++ b/.jshintignore
@@ -1,2 +1,3 @@
 node_modules/
 coverage/
+test/sandbox/
diff --git a/CHANGES.md b/CHANGES.md
new file mode 100644
index 0000000..c62e362
--- /dev/null
+++ b/CHANGES.md
@@ -0,0 +1,14 @@
+## Changes in version 1.0
+
+ - New options: `modelsRootDir`, `dsRootDir`
+
+ - Load configuration from files, support dynamic (scripted) options
+
+    ```sh
+    app.json, app.local.*, app.{env}.*
+    datasources.json, datasources.local.*, datasources.{env}.*
+    ```
+
+ - Scripts in `models/` and `boot/` can export `function(app)`,
+   this function is then called by the bootstrapper. The existing code
+   using `var app = require('../app')` will continue to work.
diff --git a/index.js b/index.js
new file mode 100644
index 0000000..2b309e7
--- /dev/null
+++ b/index.js
@@ -0,0 +1,313 @@
+var assert = require('assert');
+var fs = require('fs');
+var path = require('path');
+var _ = require('underscore');
+var loopback = require('loopback');
+var ConfigLoader = require('./lib/config-loader');
+var debug = require('debug')('loopback:boot');
+
+/**
+ * Initialize an application from an options object or
+ * a set of JSON and JavaScript files.
+ *
+ * This function takes an optional argument that is either a string
+ * or an object.
+ *
+ * If the argument is a string, then it sets the application root directory
+ * based on the string value. Then it:
+ *
+ *  1. Creates DataSources from the `datasources.json` file in the application
+ *   root directory.
+ *
+ *  2. Creates Models from the `models.json` file in the application
+ *    root directory.
+ *
+ * If the argument is an object, then it looks for `model`, `dataSources`,
+ * and `appRootDir` properties of the object.
+ * If the object has no `appRootDir` property then it sets the current working
+ * directory as the application root directory.
+ * Then it:
+ *
+ * 1. Creates DataSources from the `options.dataSources` object.
+ *
+ * 2. Creates Models from the `options.models` object.
+ *
+ * In both cases, the function loads JavaScript files in the `/models` and
+ * `/boot` subdirectories of the application root directory with `require()`.
+ *
+ *  **NOTE:** mixing `app.boot()` and `app.model(name, config)` in multiple
+ *  files may result in models being **undefined** due to race conditions.
+ *  To avoid this when using `app.boot()` make sure all models are passed
+ *  as part of the `models` definition.
+ *
+ * Throws an error if the config object is not valid or if boot fails.
+ *
+ * <a name="model-definition"></a>
+ * **Model Definitions**
+ *
+ * The following is example JSON for two `Model` definitions:
+ * "dealership" and "location".
+ *
+ * ```js
+ * {
+ *   "dealership": {
+ *     // a reference, by name, to a dataSource definition
+ *     "dataSource": "my-db",
+ *     // the options passed to Model.extend(name, properties, options)
+ *     "options": {
+ *       "relations": {
+ *         "cars": {
+ *           "type": "hasMany",
+ *           "model": "Car",
+ *           "foreignKey": "dealerId"
+ *         }
+ *       }
+ *     },
+ *     // the properties passed to Model.extend(name, properties, options)
+ *     "properties": {
+ *       "id": {"id": true},
+ *       "name": "String",
+ *       "zip": "Number",
+ *       "address": "String"
+ *     }
+ *   },
+ *   "car": {
+ *     "dataSource": "my-db"
+ *     "properties": {
+ *       "id": {
+ *         "type": "String",
+ *         "required": true,
+ *         "id": true
+ *       },
+ *       "make": {
+ *         "type": "String",
+ *         "required": true
+ *       },
+ *       "model": {
+ *         "type": "String",
+ *         "required": true
+ *       }
+ *     }
+ *   }
+ * }
+ * ```
+ *
+ * @param app LoopBack application created by `loopback()`.
+ * @options {String|Object} options Boot options; If String, this is
+ * the application root directory; if object, has below properties.
+ * @property {String} appRootDir Directory to use when loading JSON and
+ * JavaScript files (optional).
+ * Defaults to the current directory (`process.cwd()`).
+ * @property {Object} models Object containing `Model` definitions (optional).
+ * @property {Object} dataSources Object containing `DataSource`
+ * definitions (optional).
+ * @property {String} modelsRootDir Directory to use when loading `models.json`
+ * and `models/*.js`. Defaults to `appRootDir`.
+ * @property {String} datasourcesRootDir Directory to use when loading
+ * `datasources.json`. Defaults to `appRootDir`.
+ * @end
+ *
+ * @header boot(app, [options])
+ */
+
+exports = module.exports = function bootLoopBackApp(app, options) {
+  /*jshint camelcase:false */
+  options = options || {};
+
+  if(typeof options === 'string') {
+    options = { appRootDir: options };
+  }
+  var appRootDir = options.appRootDir = options.appRootDir || process.cwd();
+  var env = app.get('env');
+
+  var appConfig = options.app || ConfigLoader.loadAppConfig(appRootDir, env);
+
+  var modelsRootDir = options.modelsRootDir || appRootDir;
+  var modelConfig = options.models ||
+    ConfigLoader.loadModels(modelsRootDir, env);
+
+  var dsRootDir = options.dsRootDir || appRootDir;
+  var dataSourceConfig = options.dataSources ||
+    ConfigLoader.loadDataSources(dsRootDir, env);
+
+  assertIsValidConfig('app', appConfig);
+  assertIsValidConfig('model', modelConfig);
+  assertIsValidConfig('data source', dataSourceConfig);
+
+  appConfig.host =
+    process.env.npm_config_host ||
+    process.env.OPENSHIFT_SLS_IP ||
+    process.env.OPENSHIFT_NODEJS_IP ||
+    process.env.HOST ||
+    appConfig.host ||
+    process.env.npm_package_config_host ||
+    app.get('host');
+
+  appConfig.port = _.find([
+    process.env.npm_config_port,
+    process.env.OPENSHIFT_SLS_PORT,
+    process.env.OPENSHIFT_NODEJS_PORT,
+    process.env.PORT,
+    appConfig.port,
+    process.env.npm_package_config_port,
+    app.get('port'),
+    3000
+  ], _.isFinite);
+
+  appConfig.restApiRoot =
+    appConfig.restApiRoot ||
+    app.get('restApiRoot') ||
+    '/api';
+
+  if(appConfig.host !== undefined) {
+    assert(typeof appConfig.host === 'string', 'app.host must be a string');
+    app.set('host', appConfig.host);
+  }
+
+  if(appConfig.port !== undefined) {
+    var portType = typeof appConfig.port;
+    assert(portType === 'string' || portType === 'number',
+      'app.port must be a string or number');
+    app.set('port', appConfig.port);
+  }
+
+  assert(appConfig.restApiRoot !== undefined, 'app.restBasePath is required');
+  assert(typeof appConfig.restApiRoot === 'string',
+    'app.restBasePath must be a string');
+  assert(/^\//.test(appConfig.restApiRoot),
+    'app.restBasePath must start with "/"');
+  app.set('restApiRoot', appConfig.restBasePath);
+
+  for(var configKey in appConfig) {
+    var cur = app.get(configKey);
+    if(cur === undefined || cur === null) {
+      app.set(configKey, appConfig[configKey]);
+    }
+  }
+
+  // instantiate data sources
+  forEachKeyedObject(dataSourceConfig, function(key, obj) {
+    app.dataSource(key, obj);
+  });
+
+  // instantiate models
+  forEachKeyedObject(modelConfig, function(key, obj) {
+    app.model(key, obj);
+  });
+
+  // try to attach models to dataSources by type
+  try {
+    loopback.autoAttach();
+  } catch(e) {
+    if(e.name === 'AssertionError') {
+      console.warn(e);
+    } else {
+      throw e;
+    }
+  }
+
+  // disable token requirement for swagger, if available
+  var swagger = app.remotes().exports.swagger;
+  var requireTokenForSwagger = appConfig.swagger &&
+    appConfig.swagger.requireToken;
+  if(swagger) {
+    swagger.requireToken = requireTokenForSwagger || false;
+  }
+
+  // require directories
+  requireDir(path.join(modelsRootDir, 'models'), app);
+  requireDir(path.join(appRootDir, 'boot'), app);
+};
+
+function assertIsValidConfig(name, config) {
+  if(config) {
+    assert(typeof config === 'object',
+        name + ' config must be a valid JSON object');
+  }
+}
+
+function forEachKeyedObject(obj, fn) {
+  if(typeof obj !== 'object') return;
+
+  Object.keys(obj).forEach(function(key) {
+    fn(key, obj[key]);
+  });
+}
+
+function requireDir(dir, app) {
+  assert(dir, 'cannot require directory contents without directory name');
+
+  var requires = {};
+
+  // require all javascript files (except for those prefixed with _)
+  // and all directories
+
+  var files = tryReadDir(dir);
+
+  // sort files in lowercase alpha for linux
+  files.sort(function(a, b) {
+    a = a.toLowerCase();
+    b = b.toLowerCase();
+
+    if (a < b) {
+      return -1;
+    } else if (b < a) {
+      return 1;
+    } else {
+      return 0;
+    }
+  });
+
+  files.forEach(function(filename) {
+    // ignore index.js and files prefixed with underscore
+    if ((filename === 'index.js') || (filename[0] === '_')) {
+      return;
+    }
+
+    var filepath = path.resolve(path.join(dir, filename));
+    var ext = path.extname(filename);
+    var stats = fs.statSync(filepath);
+
+    // only require files supported by require.extensions (.txt .md etc.)
+    if (stats.isFile() && !(ext in require.extensions)) {
+      return;
+    }
+
+    var exports = tryRequire(filepath);
+    if (isFunctionNotModelCtor(exports))
+      exports(app);
+
+    var basename = path.basename(filename, ext);
+    requires[basename] = exports;
+  });
+
+  return requires;
+}
+
+function tryRequire(modulePath) {
+  try {
+    return require.apply(this, arguments);
+  } catch(e) {
+    if(e.code === 'MODULE_NOT_FOUND') {
+      debug('Warning: cannot require %s - module not found.', modulePath);
+      return undefined;
+    }
+    console.error('failed to require "%s"', modulePath);
+    throw e;
+  }
+}
+
+function tryReadDir() {
+  try {
+    return fs.readdirSync.apply(fs, arguments);
+  } catch(e) {
+    return [];
+  }
+}
+
+function isFunctionNotModelCtor(fn) {
+ return typeof fn === 'function' &&
+   !(fn.prototype instanceof loopback.Model);
+}
+
+exports.ConfigLoader = ConfigLoader;
diff --git a/lib/config-loader.js b/lib/config-loader.js
new file mode 100644
index 0000000..7cafb35
--- /dev/null
+++ b/lib/config-loader.js
@@ -0,0 +1,154 @@
+var fs = require('fs');
+var path = require('path');
+
+var ConfigLoader = exports;
+
+/**
+ * Load application config from `app.json` and friends.
+ * @param {String} rootDir Directory where to look for files.
+ * @param {String} env Environment, usually `process.env.NODE_ENV`
+ * @returns {Object}
+ */
+ConfigLoader.loadAppConfig = function(rootDir, env) {
+  return loadNamed(rootDir, env, 'app', mergeAppConfig);
+};
+
+/**
+ * Load data-sources config from `datasources.json` and friends.
+ * @param {String} rootDir Directory where to look for files.
+ * @param {String} env Environment, usually `process.env.NODE_ENV`
+ * @returns {Object}
+ */
+ConfigLoader.loadDataSources = function(rootDir, env) {
+  return loadNamed(rootDir, env, 'datasources', mergeDataSourceConfig);
+};
+
+/**
+ * Load models config from `models.json` and friends.
+ * @param {String} rootDir Directory where to look for files.
+ * @param {String} env Environment, usually `process.env.NODE_ENV`
+ * @returns {Object}
+ */
+ConfigLoader.loadModels = function(rootDir, env) {
+  /*jshint unused:false */
+  return tryReadJsonConfig(rootDir, 'models') || {};
+};
+
+/*-- Implementation --*/
+
+/**
+ * Load named configuration.
+ * @param {String} rootDir Directory where to look for files.
+ * @param {String} env Environment, usually `process.env.NODE_ENV`
+ * @param {String} name
+ * @param {function(target:Object, config:Object, filename:String)} mergeFn
+ * @returns {Object}
+ */
+function loadNamed(rootDir, env, name, mergeFn) {
+  var files = findConfigFiles(rootDir, env, name);
+  var configs = loadConfigFiles(files);
+  return mergeConfigurations(configs, mergeFn);
+}
+
+/**
+ * Search `appRootDir` for all files containing configuration for `name`.
+ * @param {String} appRootDir
+ * @param {String} env Environment, usually `process.env.NODE_ENV`
+ * @param {String} name
+ * @returns {Array.<String>} Array of absolute file paths.
+ */
+function findConfigFiles(appRootDir, env, name) {
+  var master = ifExists(name + '.json');
+  if (!master) return [];
+
+  var candidates = [
+    master,
+    ifExistsWithAnyExt(name + '.local'),
+    ifExistsWithAnyExt(name + '.' + env)
+  ];
+
+  return candidates.filter(function(c) { return c !== undefined; });
+
+  function ifExists(fileName) {
+    var filepath = path.resolve(appRootDir, fileName);
+    return fs.existsSync(filepath) ? filepath : undefined;
+  }
+
+  function ifExistsWithAnyExt(fileName) {
+    return ifExists(fileName + '.js') || ifExists(fileName + '.json');
+  }
+}
+
+/**
+ * Load configuration files into an array of objects.
+ * Attach non-enumerable `_filename` property to each object.
+ * @param {Array.<String>} files
+ * @returns {Array.<Object>}
+ */
+function loadConfigFiles(files) {
+  return files.map(function(f) {
+    var config = require(f);
+    Object.defineProperty(config, '_filename', {
+      enumerable: false,
+      value: f
+    });
+    return config;
+  });
+}
+
+/**
+ * Merge multiple configuration objects into a single one.
+ * @param {Array.<Object>} configObjects
+ * @param {function(target:Object, config:Object, filename:String)} mergeFn
+ */
+function mergeConfigurations(configObjects, mergeFn) {
+  var result = configObjects.shift() || {};
+  while(configObjects.length) {
+    var next = configObjects.shift();
+    mergeFn(result, next, next._filename);
+  }
+  return result;
+}
+
+function mergeDataSourceConfig(target, config, fileName) {
+  for (var ds in target) {
+    var err = applyCustomConfig(target[ds], config[ds]);
+    if (err) {
+      throw new Error('Cannot apply ' + fileName + ' to `'  + ds + '`: ' + err);
+    }
+  }
+}
+
+function mergeAppConfig(target, config, fileName) {
+  var err = applyCustomConfig(target, config);
+  if (err) {
+    throw new Error('Cannot apply ' + fileName + ': ' + err);
+  }
+}
+
+function applyCustomConfig(target, config) {
+  for (var key in config) {
+    var value = config[key];
+    if (typeof value === 'object') {
+      return 'override for the option `' + key + '` is not a value type.';
+    }
+    target[key] = value;
+  }
+  return null; // no error
+}
+
+/**
+ * Try to read a config file with .json extension
+ * @param cwd Dirname of the file
+ * @param fileName Name of the file without extension
+ * @returns {Object|undefined} Content of the file, undefined if not found.
+ */
+function tryReadJsonConfig(cwd, fileName) {
+  try {
+    return require(path.join(cwd, fileName + '.json'));
+  } catch(e) {
+    if(e.code !== 'MODULE_NOT_FOUND') {
+      throw e;
+    }
+  }
+}
diff --git a/package.json b/package.json
index 9b973fe..8c614f1 100644
--- a/package.json
+++ b/package.json
@@ -14,10 +14,25 @@
   },
   "main": "index.js",
   "scripts": {
-    "pretest": "jshint ."
+    "pretest": "jshint .",
+    "test": "mocha"
   },
   "license": {
     "name": "Dual MIT/StrongLoop",
     "url": "https://github.com/strongloop/loopback-boot/blob/master/LICENSE"
+  },
+  "dependencies": {
+    "underscore": "^1.6.0",
+    "debug": "^0.8.1"
+  },
+  "devDependencies": {
+    "loopback": "^1.5.0",
+    "mocha": "^1.19.0",
+    "must": "^0.11.0",
+    "supertest": "^0.13.0",
+    "fs-extra": "^0.9.1"
+  },
+  "peerDependencies": {
+    "loopback": "1.x"
   }
 }
diff --git a/test/boot.test.js b/test/boot.test.js
new file mode 100644
index 0000000..6ebdcc8
--- /dev/null
+++ b/test/boot.test.js
@@ -0,0 +1,442 @@
+var boot = require('../');
+var fs = require('fs-extra');
+var extend = require('util')._extend;
+var path = require('path');
+var loopback = require('loopback');
+var assert = require('assert');
+var expect = require('must');
+var sandbox = require('./helpers/sandbox');
+
+var SIMPLE_APP = path.join(__dirname, 'fixtures', 'simple-app');
+
+var appDir;
+
+describe('bootLoopBackApp', function() {
+  beforeEach(sandbox.reset);
+
+  beforeEach(function makeUniqueAppDir(done) {
+    // Node's module loader has a very aggressive caching, therefore
+    // we can't reuse the same path for multiple tests
+    // The code here is used to generate a random string
+    require('crypto').randomBytes(5, function(ex, buf) {
+      var randomStr = buf.toString('hex');
+      appDir = sandbox.resolve(randomStr);
+      done();
+    });
+  });
+
+  describe('from options', function () {
+    var app;
+    beforeEach(function () {
+      app = loopback();
+      boot(app, {
+        app: {
+          port: 3000,
+          host: '127.0.0.1',
+          restApiRoot: '/rest-api',
+          foo: {bar: 'bat'},
+          baz: true
+        },
+        models: {
+          'foo-bar-bat-baz': {
+            options: {
+              plural: 'foo-bar-bat-bazzies'
+            },
+            dataSource: 'the-db'
+          }
+        },
+        dataSources: {
+          'the-db': {
+            connector: 'memory',
+            defaultForType: 'db'
+          }
+        }
+      });
+    });
+
+    it('should have port setting', function () {
+      assert.equal(app.get('port'), 3000);
+    });
+
+    it('should have host setting', function() {
+      assert.equal(app.get('host'), '127.0.0.1');
+    });
+
+    it('should have restApiRoot setting', function() {
+      assert.equal(app.get('restApiRoot'), '/rest-api');
+    });
+
+    it('should have other settings', function () {
+      expect(app.get('foo')).to.eql({
+        bar: 'bat'
+      });
+      expect(app.get('baz')).to.eql(true);
+    });
+
+    it('Instantiate models', function () {
+      assert(app.models);
+      assert(app.models.FooBarBatBaz);
+      assert(app.models.fooBarBatBaz);
+      assertValidDataSource(app.models.FooBarBatBaz.dataSource);
+      assert.isFunc(app.models.FooBarBatBaz, 'find');
+      assert.isFunc(app.models.FooBarBatBaz, 'create');
+    });
+
+    it('Attach models to data sources', function () {
+      assert.equal(app.models.FooBarBatBaz.dataSource, app.dataSources.theDb);
+    });
+
+    it('Instantiate data sources', function () {
+      assert(app.dataSources);
+      assert(app.dataSources.theDb);
+      assertValidDataSource(app.dataSources.theDb);
+      assert(app.dataSources.TheDb);
+    });
+
+    describe('boot and models directories', function() {
+      beforeEach(function() {
+        boot(app, SIMPLE_APP);
+      });
+
+      it('should run all modules in the boot directory', function () {
+        assert(process.loadedFooJS);
+        delete process.loadedFooJS;
+      });
+
+      it('should run all modules in the models directory', function () {
+        assert(process.loadedBarJS);
+        delete process.loadedBarJS;
+      });
+    });
+
+    describe('PaaS and npm env variables', function() {
+      function bootWithDefaults() {
+        app = loopback();
+        boot(app, {
+          app: {
+            port: undefined,
+            host: undefined
+          }
+        });
+      }
+
+      it('should be honored', function() {
+        function assertHonored(portKey, hostKey) {
+          process.env[hostKey] = randomPort();
+          process.env[portKey] = randomHost();
+          bootWithDefaults();
+          assert.equal(app.get('port'), process.env[portKey]);
+          assert.equal(app.get('host'), process.env[hostKey]);
+          delete process.env[portKey];
+          delete process.env[hostKey];
+        }
+
+        assertHonored('OPENSHIFT_SLS_PORT', 'OPENSHIFT_NODEJS_IP');
+        assertHonored('npm_config_port', 'npm_config_host');
+        assertHonored('npm_package_config_port', 'npm_package_config_host');
+        assertHonored('OPENSHIFT_SLS_PORT', 'OPENSHIFT_SLS_IP');
+        assertHonored('PORT', 'HOST');
+      });
+
+      it('should be honored in order', function() {
+        /*jshint camelcase:false */
+        process.env.npm_config_host = randomHost();
+        process.env.OPENSHIFT_SLS_IP = randomHost();
+        process.env.OPENSHIFT_NODEJS_IP = randomHost();
+        process.env.HOST = randomHost();
+        process.env.npm_package_config_host = randomHost();
+
+        bootWithDefaults();
+        assert.equal(app.get('host'), process.env.npm_config_host);
+
+        delete process.env.npm_config_host;
+        delete process.env.OPENSHIFT_SLS_IP;
+        delete process.env.OPENSHIFT_NODEJS_IP;
+        delete process.env.HOST;
+        delete process.env.npm_package_config_host;
+
+        process.env.npm_config_port = randomPort();
+        process.env.OPENSHIFT_SLS_PORT = randomPort();
+        process.env.OPENSHIFT_NODEJS_PORT = randomPort();
+        process.env.PORT = randomPort();
+        process.env.npm_package_config_port = randomPort();
+
+        bootWithDefaults();
+        assert.equal(app.get('host'), process.env.npm_config_host);
+        assert.equal(app.get('port'), process.env.npm_config_port);
+
+        delete process.env.npm_config_port;
+        delete process.env.OPENSHIFT_SLS_PORT;
+        delete process.env.OPENSHIFT_NODEJS_PORT;
+        delete process.env.PORT;
+        delete process.env.npm_package_config_port;
+      });
+
+      function randomHost() {
+        return Math.random().toString().split('.')[1];
+      }
+
+      function randomPort() {
+        return Math.floor(Math.random() * 10000);
+      }
+
+      it('should honor 0 for free port', function () {
+        boot(app, {app: {port: 0}});
+        assert.equal(app.get('port'), 0);
+      });
+
+      it('should default to port 3000', function () {
+        boot(app, {app: {port: undefined}});
+        assert.equal(app.get('port'), 3000);
+      });
+    });
+  });
+
+  describe('from directory', function () {
+    it('Load config files', function () {
+      var app = loopback();
+
+      boot(app, SIMPLE_APP);
+
+      assert(app.models.foo);
+      assert(app.models.Foo);
+      assert(app.models.Foo.dataSource);
+      assert.isFunc(app.models.Foo, 'find');
+      assert.isFunc(app.models.Foo, 'create');
+    });
+
+    it('merges datasource configs from multiple files', function() {
+      givenAppInSandbox();
+
+      writeAppConfigFile('datasources.local.json', {
+        db: { local: 'applied' }
+      });
+
+      var env = process.env.NODE_ENV || 'development';
+      writeAppConfigFile('datasources.' + env + '.json', {
+        db: { env: 'applied' }
+      });
+
+      var app = loopback();
+      boot(app, appDir);
+
+      var db = app.datasources.db.settings;
+      expect(db).to.have.property('local', 'applied');
+      expect(db).to.have.property('env', 'applied');
+
+      var expectedLoadOrder = ['local', 'env'];
+      var actualLoadOrder = Object.keys(db).filter(function(k) {
+        return expectedLoadOrder.indexOf(k) !== -1;
+      });
+
+      expect(actualLoadOrder, 'load order').to.eql(expectedLoadOrder);
+    });
+
+    it('supports .js for custom datasource config files', function() {
+      givenAppInSandbox();
+      fs.writeFileSync(
+        path.resolve(appDir, 'datasources.local.js'),
+        'module.exports = { db: { fromJs: true } };');
+
+      var app = loopback();
+      boot(app, appDir);
+
+      var db = app.datasources.db.settings;
+      expect(db).to.have.property('fromJs', true);
+    });
+
+    it('refuses to merge Object properties', function() {
+      givenAppInSandbox();
+      writeAppConfigFile('datasources.local.json', {
+        db: { nested: { key: 'value' } }
+      });
+
+      var app = loopback();
+      expect(function() { boot(app, appDir); })
+        .to.throw(/`nested` is not a value type/);
+    });
+
+    it('refuses to merge Array properties', function() {
+      givenAppInSandbox();
+      writeAppConfigFile('datasources.local.json', {
+        db: { nested: ['value'] }
+      });
+
+      var app = loopback();
+      expect(function() { boot(app, appDir); })
+        .to.throw(/`nested` is not a value type/);
+    });
+
+    it('merges app configs from multiple files', function() {
+      givenAppInSandbox();
+
+      writeAppConfigFile('app.local.json', { cfgLocal: 'applied' });
+
+      var env = process.env.NODE_ENV || 'development';
+      writeAppConfigFile('app.' + env + '.json', { cfgEnv: 'applied' });
+
+      var app = loopback();
+      boot(app, appDir);
+
+      expect(app.settings).to.have.property('cfgLocal', 'applied');
+      expect(app.settings).to.have.property('cfgEnv', 'applied');
+
+      var expectedLoadOrder = ['cfgLocal', 'cfgEnv'];
+      var actualLoadOrder = Object.keys(app.settings).filter(function(k) {
+        return expectedLoadOrder.indexOf(k) !== -1;
+      });
+
+      expect(actualLoadOrder, 'load order').to.eql(expectedLoadOrder);
+    });
+
+    it('supports .js for custom app config files', function() {
+      givenAppInSandbox();
+      fs.writeFileSync(
+        path.resolve(appDir, 'app.local.js'),
+        'module.exports = { fromJs: true };');
+
+      var app = loopback();
+      boot(app, appDir);
+
+      expect(app.settings).to.have.property('fromJs', true);
+    });
+
+    it('supports `dsRootDir` option', function() {
+      givenAppInSandbox();
+
+      var customDir = path.resolve(appDir, 'custom');
+      fs.mkdirsSync(customDir);
+      fs.renameSync(
+        path.resolve(appDir, 'datasources.json'),
+        path.resolve(customDir, 'datasources.json'));
+
+      var app = loopback();
+
+      // workaround for https://github.com/strongloop/loopback/pull/283
+      app.datasources = app.dataSources = {};
+
+      boot(app, {
+        appRootDir: appDir,
+        dsRootDir: path.resolve(appDir, 'custom')
+      });
+
+      expect(app.datasources).to.have.property('db');
+    });
+
+    it('supports `modelsRootDir` option', function() {
+      givenAppInSandbox();
+
+      writeAppConfigFile('custom/models.json', {
+        foo: { dataSource: 'db' }
+      });
+
+      global.testData = {};
+      writeAppFile('custom/models/foo.js', 'global.testData.foo = "loaded";');
+
+      var app = loopback();
+      boot(app, {
+        appRootDir: appDir,
+        modelsRootDir: path.resolve(appDir, 'custom')
+      });
+
+      expect(app.models).to.have.property('foo');
+      expect(global.testData).to.have.property('foo', 'loaded');
+    });
+
+    it('calls function exported by models/model.js', function() {
+      givenAppInSandbox();
+      writeAppFile('models/model.js',
+        'module.exports = function(app) { app.fnCalled = true; };');
+
+      var app = loopback();
+      delete app.fnCalled;
+      boot(app, appDir);
+      expect(app.fnCalled, 'exported fn was called').to.be.true();
+    });
+
+    it('calls function exported by boot/init.js', function() {
+      givenAppInSandbox();
+      writeAppFile('boot/init.js',
+        'module.exports = function(app) { app.fnCalled = true; };');
+
+      var app = loopback();
+      delete app.fnCalled;
+      boot(app, appDir);
+      expect(app.fnCalled, 'exported fn was called').to.be.true();
+    });
+
+    it('does not call Model ctor exported by models/model.json', function() {
+      givenAppInSandbox();
+      writeAppFile('models/model.js',
+        'var loopback = require("loopback");\n' +
+          'module.exports = loopback.Model.extend("foo");\n' +
+          'module.exports.prototype._initProperties = function() {\n' +
+          '  global.fnCalled = true;\n' +
+          '};');
+
+      var app = loopback();
+      delete global.fnCalled;
+      boot(app, appDir);
+      expect(global.fnCalled, 'exported fn was called').to.be.undefined();
+    });
+
+    it('supports models/ subdirectires that are not require()able', function() {
+      givenAppInSandbox();
+      writeAppFile('models/test/model.test.js',
+        'throw new Error("should not been called");');
+
+      var app = loopback();
+      boot(app, appDir);
+
+      // no assert, the test passed when we got here
+    });
+  });
+});
+
+
+function assertValidDataSource(dataSource) {
+  // has methods
+  assert.isFunc(dataSource, 'createModel');
+  assert.isFunc(dataSource, 'discoverModelDefinitions');
+  assert.isFunc(dataSource, 'discoverSchema');
+  assert.isFunc(dataSource, 'enableRemote');
+  assert.isFunc(dataSource, 'disableRemote');
+  assert.isFunc(dataSource, 'defineOperation');
+  assert.isFunc(dataSource, 'operations');
+}
+
+assert.isFunc = function (obj, name) {
+  assert(obj, 'cannot assert function ' + name +
+    ' on object that does not exist');
+  assert(typeof obj[name] === 'function', name + ' is not a function');
+};
+
+function givenAppInSandbox(appConfig, dataSources, models) {
+  fs.mkdirsSync(appDir);
+
+  appConfig = extend({
+  }, appConfig);
+  writeAppConfigFile('app.json', appConfig);
+
+  dataSources = extend({
+    db: {
+      connector: 'memory',
+      defaultForType: 'db'
+    }
+  }, dataSources);
+  writeAppConfigFile('datasources.json', dataSources);
+
+  models = extend({
+  }, models);
+  writeAppConfigFile('models.json', models);
+}
+
+function writeAppConfigFile(name, json) {
+  writeAppFile(name, JSON.stringify(json, null, 2));
+}
+
+function writeAppFile(name, content) {
+  var filePath = path.resolve(appDir, name);
+  fs.mkdirsSync(path.dirname(filePath));
+  fs.writeFileSync(filePath, content, 'utf-8');
+}
diff --git a/test/fixtures/simple-app/app.json b/test/fixtures/simple-app/app.json
new file mode 100644
index 0000000..8358c75
--- /dev/null
+++ b/test/fixtures/simple-app/app.json
@@ -0,0 +1,4 @@
+{
+  "port": 3000,
+  "host": "127.0.0.1"
+}
diff --git a/test/fixtures/simple-app/boot/bad.txt b/test/fixtures/simple-app/boot/bad.txt
new file mode 100644
index 0000000..81fae52
--- /dev/null
+++ b/test/fixtures/simple-app/boot/bad.txt
@@ -0,0 +1 @@
+this is not a js file!
diff --git a/test/fixtures/simple-app/boot/foo.js b/test/fixtures/simple-app/boot/foo.js
new file mode 100644
index 0000000..7e74863
--- /dev/null
+++ b/test/fixtures/simple-app/boot/foo.js
@@ -0,0 +1 @@
+process.loadedFooJS = true;
diff --git a/test/fixtures/simple-app/datasources.json b/test/fixtures/simple-app/datasources.json
new file mode 100644
index 0000000..05a18b3
--- /dev/null
+++ b/test/fixtures/simple-app/datasources.json
@@ -0,0 +1,5 @@
+{
+  "db": {
+    "connector": "memory"
+  }
+}
diff --git a/test/fixtures/simple-app/models.json b/test/fixtures/simple-app/models.json
new file mode 100644
index 0000000..3a22f13
--- /dev/null
+++ b/test/fixtures/simple-app/models.json
@@ -0,0 +1,5 @@
+{
+  "foo": {
+    "dataSource": "db"
+  }
+}
diff --git a/test/fixtures/simple-app/models/bar.js b/test/fixtures/simple-app/models/bar.js
new file mode 100644
index 0000000..0eef5d9
--- /dev/null
+++ b/test/fixtures/simple-app/models/bar.js
@@ -0,0 +1 @@
+process.loadedBarJS = true;
diff --git a/test/global-setup.js b/test/global-setup.js
new file mode 100644
index 0000000..1152607
--- /dev/null
+++ b/test/global-setup.js
@@ -0,0 +1,11 @@
+var loopback = require('loopback');
+
+// bootLoopBackApp() calls loopback.autoAttach
+// which attempts to attach all models to default datasources
+// one of those models is Email which requires 'email' datasource
+loopback.setDefaultDataSourceForType('mail', {
+  connector: loopback.Mail,
+  transports: [
+    {type: 'STUB'}
+  ]
+});
diff --git a/test/helpers/sandbox.js b/test/helpers/sandbox.js
new file mode 100644
index 0000000..cdd35bd
--- /dev/null
+++ b/test/helpers/sandbox.js
@@ -0,0 +1,16 @@
+var fs = require('fs-extra');
+var path = require('path');
+
+var sandbox = exports;
+sandbox.PATH = path.join(__dirname, '..', 'sandbox');
+
+sandbox.reset = function() {
+  fs.removeSync(sandbox.PATH);
+  fs.mkdirsSync(sandbox.PATH);
+};
+
+sandbox.resolve = function() {
+  var args = Array.prototype.slice.apply(arguments);
+  args.unshift(sandbox.PATH);
+  return path.resolve.apply(path.resolve, args);
+};