diff --git a/etc/ironic/policy.json b/etc/ironic/policy.json
index b9458e8fe8..a889e0bb0f 100644
--- a/etc/ironic/policy.json
+++ b/etc/ironic/policy.json
@@ -1,6 +1,6 @@
 {
     "admin_api": "is_admin:True",
     "admin_or_owner": "is_admin:True or project_id:%(project_id)s",
-    "context_is_admin":  "role:admin",
+    "is_admin":  "role:admin or role:administrator",
     "default": "rule:admin_or_owner",
 }
diff --git a/ironic/api/acl.py b/ironic/api/acl.py
index eab697e69c..cf68086b43 100644
--- a/ironic/api/acl.py
+++ b/ironic/api/acl.py
@@ -31,6 +31,8 @@ OPT_GROUP_NAME = 'keystone_authtoken'
 
 def register_opts(conf):
     """Register keystoneclient middleware options
+
+    :param conf: Ironic settings.
     """
     conf.register_opts(auth_token.opts,
                        group=OPT_GROUP_NAME)
@@ -41,16 +43,23 @@ register_opts(cfg.CONF)
 
 
 def install(app, conf):
-    """Install ACL check on application."""
-    return auth_token.AuthProtocol(app,
-                                   conf=dict(conf.get(OPT_GROUP_NAME)))
+    """Install ACL check on application.
+
+    :param app: A WSGI applicatin.
+    :param conf: Settings. Must include OPT_GROUP_NAME section.
+    :return: The same WSGI application with ACL installed.
+    """
+    keystone_config = dict(conf.get(OPT_GROUP_NAME))
+    return auth_token.AuthProtocol(app, conf=keystone_config)
 
 
 class AdminAuthHook(hooks.PecanHook):
-    """Verify that the user has admin rights
-    """
+    """Verify that the user has admin rights.
 
+    Checks whether the request context is an admin context and
+    rejects the request otherwise.
+
+    """
     def before(self, state):
-        headers = state.request.headers
-        if not policy.check_is_admin(headers.get('X-Roles', "").split(",")):
-            raise exc.HTTPUnauthorized()
+        if not policy.check_is_admin(state.request.context):
+            raise exc.HTTPForbidden()
diff --git a/ironic/api/config.py b/ironic/api/config.py
index ad00995b43..632a1dc9af 100644
--- a/ironic/api/config.py
+++ b/ironic/api/config.py
@@ -16,7 +16,7 @@
 
 # Server Specific Configurations
 server = {
-    'port': '6382',
+    'port': '6385',
     'host': '0.0.0.0'
 }
 
@@ -27,12 +27,5 @@ app = {
     'static_root': '%(confdir)s/public',
     'template_path': '%(confdir)s/ironic/api/templates',
     'debug': False,
-    'enable_acl': False,
+    'enable_acl': True,
 }
-
-# Custom Configurations must be in Python dictionary format::
-#
-# foo = {'bar':'baz'}
-#
-# All configurations are accessible at::
-# pecan.conf
diff --git a/ironic/api/hooks.py b/ironic/api/hooks.py
index dacaf92f27..bf884cd2bc 100644
--- a/ironic/api/hooks.py
+++ b/ironic/api/hooks.py
@@ -22,6 +22,7 @@ from pecan import hooks
 from ironic.conductor import rpcapi
 from ironic.db import api as dbapi
 from ironic.openstack.common import context
+from ironic.openstack.common import policy
 
 
 class ConfigHook(hooks.PecanHook):
@@ -40,11 +41,40 @@ class DBHook(hooks.PecanHook):
 
 
 class ContextHook(hooks.PecanHook):
+    """Configures a request context and attaches it to the request.
 
+    The following HTTP request headers are used:
+
+    X-User-Id or X-User:
+        Used for context.user_id.
+
+    X-Tenant-Id or X-Tenant:
+        Used for context.tenant.
+
+    X-Auth-Token:
+        Used for context.auth_token.
+
+    X-Roles:
+        Used for setting context.is_admin flag to either True or False.
+        The flag is set to True, if X-Roles contains either an administrator
+        or admin substring. Otherwise it is set to False.
+
+    """
     def before(self, state):
-        # TODO(deva): Making all requests have admin context for early
-        #             development. This needs to be fixed later!
-        state.request.context = context.get_admin_context()
+        user_id = state.request.headers.get('X-User-Id')
+        user_id = state.request.headers.get('X-User', user_id)
+        tenant = state.request.headers.get('X-Tenant-Id')
+        tenant = state.request.headers.get('X-Tenant', tenant)
+        auth_token = state.request.headers.get('X-Auth-Token')
+        creds = {'roles': state.request.headers.get('X-Roles').split(',')}
+        is_admin = policy.check('is_admin', state.request.headers, creds)
+
+        state.request.context = context.RequestContext(
+            auth_token=auth_token,
+            user=user_id,
+            tenant=tenant,
+            request_id=context.generate_request_id(),
+            is_admin=is_admin)
 
 
 class RPCHook(hooks.PecanHook):
diff --git a/ironic/common/policy.py b/ironic/common/policy.py
index a99aaf3fd5..1c764dacaa 100644
--- a/ironic/common/policy.py
+++ b/ironic/common/policy.py
@@ -83,7 +83,7 @@ def enforce(context, action, target, do_raise=True):
        :param do_raise: if True (the default), raises PolicyNotAuthorized;
            if False, returns False
 
-       :raises nova.exception.PolicyNotAuthorized: if verification fails
+       :raises ironic.exception.PolicyNotAuthorized: if verification fails
            and do_raise is True.
 
        :return: returns a non-False value (not necessarily "True") if
@@ -114,7 +114,7 @@ def check_is_admin(context):
     return policy.check('context_is_admin', target, credentials)
 
 
-@policy.register('is_admin')
+@policy.register('context_is_admin')
 class IsAdminCheck(policy.Check):
     """An explicit check for is_admin."""
 
diff --git a/ironic/tests/api/test_acl.py b/ironic/tests/api/test_acl.py
new file mode 100644
index 0000000000..5d9d58c812
--- /dev/null
+++ b/ironic/tests/api/test_acl.py
@@ -0,0 +1,77 @@
+# -*- encoding: utf-8 -*-
+#
+# 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.
+"""
+Tests for ACL. Checks whether certain kinds of requests
+are blocked or allowed to be processed.
+"""
+
+from oslo.config import cfg
+
+from ironic.api import acl
+from ironic.db import api as db_api
+from ironic.tests.api import base
+from ironic.tests.api import utils
+from ironic.tests.db import utils as db_utils
+
+
+class TestACL(base.FunctionalTest):
+
+    def setUp(self):
+        super(TestACL, self).setUp()
+
+        self.environ = {'fake.cache': utils.FakeMemcache()}
+        self.fake_node = db_utils.get_test_node()
+        self.dbapi = db_api.get_instance()
+        self.node_path = '/nodes/%s' % self.fake_node['uuid']
+
+    def get_json(self, path, expect_errors=False, headers=None, q=[], **param):
+        return super(TestACL, self).get_json(path,
+                                                expect_errors=expect_errors,
+                                                headers=headers,
+                                                q=q,
+                                                extra_environ=self.environ,
+                                                **param)
+
+    def _make_app(self):
+        cfg.CONF.set_override('cache', 'fake.cache', group=acl.OPT_GROUP_NAME)
+        return super(TestACL, self)._make_app(enable_acl=True)
+
+    def test_non_authenticated(self):
+        response = self.get_json(self.node_path, expect_errors=True)
+        self.assertEqual(response.status_int, 401)
+
+    def test_authenticated(self):
+        self.mox.StubOutWithMock(self.dbapi, 'get_node')
+        self.dbapi.get_node(self.fake_node['uuid']).AndReturn(self.fake_node)
+        self.mox.ReplayAll()
+
+        response = self.get_json(self.node_path,
+                                 headers={'X-Auth-Token': utils.ADMIN_TOKEN})
+
+        self.assertEquals(response['uuid'], self.fake_node['uuid'])
+
+    def test_non_admin(self):
+        response = self.get_json(self.node_path,
+                                 headers={'X-Auth-Token': utils.MEMBER_TOKEN},
+                                 expect_errors=True)
+
+        self.assertEqual(response.status_int, 403)
+
+    def test_non_admin_with_admin_header(self):
+        response = self.get_json(self.node_path,
+                                 headers={'X-Auth-Token': utils.MEMBER_TOKEN,
+                                          'X-Roles': 'admin'},
+                                 expect_errors=True)
+
+        self.assertEqual(response.status_int, 403)
diff --git a/ironic/tests/api/test_list_nodes.py b/ironic/tests/api/test_list_nodes.py
index 46f960ff83..b1e4ee09de 100644
--- a/ironic/tests/api/test_list_nodes.py
+++ b/ironic/tests/api/test_list_nodes.py
@@ -20,5 +20,5 @@ from ironic.tests.api import base
 
 class TestListNodes(base.FunctionalTest):
     def test_empty(self):
-        data = self.get_json('/nodes')
+        data = self.get_json('/nodes', headers={'X-Roles': 'admin'})
         self.assertEqual([], data)
diff --git a/ironic/tests/api/utils.py b/ironic/tests/api/utils.py
new file mode 100644
index 0000000000..9d7017ab3c
--- /dev/null
+++ b/ironic/tests/api/utils.py
@@ -0,0 +1,60 @@
+# -*- encoding: utf-8 -*-
+#
+# 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
+
+import datetime
+import json
+
+ADMIN_TOKEN = '4562138218392831'
+MEMBER_TOKEN = '4562138218392832'
+
+
+class FakeMemcache(object):
+    """Fake cache that is used for keystone tokens lookup."""
+
+    _cache = {
+        'tokens/%s' % ADMIN_TOKEN: {
+            'access': {
+                'token': {'id': ADMIN_TOKEN},
+                'user': {'id': 'user_id1',
+                         'name': 'user_name1',
+                         'tenantId': '123i2910',
+                         'tenantName': 'mytenant',
+                         'roles': [{'name': 'admin'}]
+                 },
+            }
+        },
+        'tokens/%s' % MEMBER_TOKEN: {
+            'access': {
+                'token': {'id': MEMBER_TOKEN},
+                'user': {'id': 'user_id2',
+                         'name': 'user-good',
+                         'tenantId': 'project-good',
+                         'tenantName': 'goodies',
+                         'roles': [{'name': 'Member'}]
+                }
+            }
+        }
+    }
+
+    def __init__(self):
+        self.set_key = None
+        self.set_value = None
+        self.token_expiration = None
+
+    def get(self, key):
+        dt = datetime.datetime.now() + datetime.timedelta(minutes=5)
+        return json.dumps((self._cache.get(key), dt.strftime('%s')))
+
+    def set(self, key, value, timeout=None):
+        self.set_value = value
+        self.set_key = key
diff --git a/ironic/tests/fake_policy.py b/ironic/tests/fake_policy.py
index ecd72eaf21..15e19db95d 100644
--- a/ironic/tests/fake_policy.py
+++ b/ironic/tests/fake_policy.py
@@ -19,7 +19,7 @@ policy_data = """
 {
     "admin_api": "role:admin",
     "admin_or_owner": "is_admin:True or project_id:%(project_id)s",
-    "context_is_admin": "role:admin or role:administrator",
+    "is_admin": "role:admin or role:administrator",
     "default": "rule:admin_or_owner"
 }
 """
diff --git a/ironic/tests/policy.json b/ironic/tests/policy.json
index b9458e8fe8..a889e0bb0f 100644
--- a/ironic/tests/policy.json
+++ b/ironic/tests/policy.json
@@ -1,6 +1,6 @@
 {
     "admin_api": "is_admin:True",
     "admin_or_owner": "is_admin:True or project_id:%(project_id)s",
-    "context_is_admin":  "role:admin",
+    "is_admin":  "role:admin or role:administrator",
     "default": "rule:admin_or_owner",
 }