diff --git a/.gitignore b/.gitignore
index f81252a5..000e943f 100644
--- a/.gitignore
+++ b/.gitignore
@@ -37,3 +37,5 @@ vagrant-settings.yaml
 
 .ssh/
 .cache
+
+.tox
diff --git a/docs/removal.md b/docs/removal.md
new file mode 100644
index 00000000..d932077a
--- /dev/null
+++ b/docs/removal.md
@@ -0,0 +1,29 @@
+# Problems to solve with removal operation
+
+1. It is tricky to figure out what to do with data that will be left when
+you are removing resource that is a parent for other resources.
+
+The basic example is a node resource.
+If hosts_file1 subscribed to node properties, and we will just remove
+node - hosts_file1 will be left with corrupted data.
+Validation is not a solution, because we can not expect user to remove
+each resource one-by-one.
+
+log task=hosts_file1.run uid=c1545041-a5c5-400e-8c46-ad52d871e6c3
+    ++ ip: None
+    ++ ssh_user: None
+    ++ hosts: [{u'ip': None, u'name': u'riak_server1.solar'}]
+    ++ ssh_key: None
+
+Proposed solution:
+
+Add `solar res remove node1 -r` where *r* stands for recursive.
+During this operation we will find all childs of specified resource, and
+stage them for removal as well.
+
+2. If so we need to be able to determine what to do with child resource
+on removal.
+Basically this seems like another type of event:
+hosts1.remove -> success -> node1.remove
+And
+hosts2.update -> success -> node2.remove
diff --git a/solar/solar/cli/main.py b/solar/solar/cli/main.py
index 569ce1d4..e7231ecb 100644
--- a/solar/solar/cli/main.py
+++ b/solar/solar/cli/main.py
@@ -41,6 +41,7 @@ from solar.cli import executors
 from solar.cli.orch import orchestration
 from solar.cli.system_log import changes
 from solar.cli.events import events
+from solar.cli.resource import resource as cli_resource
 
 
 # HELPERS
@@ -157,203 +158,12 @@ def init_cli_connections():
         fabric_api.local('dot -Tsvg graph.dot -o graph.svg')
 
 
-def init_cli_resource():
-    @main.group()
-    def resource():
-        pass
-
-    @resource.command()
-    @click.argument('action')
-    @click.argument('resource')
-    @click.option('-d', '--dry-run', default=False, is_flag=True)
-    @click.option('-m', '--dry-run-mapping', default='{}')
-    def action(dry_run_mapping, dry_run, action, resource):
-        if dry_run:
-            dry_run_executor = executors.DryRunExecutor(mapping=json.loads(dry_run_mapping))
-
-        click.echo(
-            'action {} for resource {}'.format(action, resource)
-        )
-
-        r = sresource.load(resource)
-        try:
-            actions.resource_action(r, action)
-        except errors.SolarError as e:
-            log.debug(e)
-            sys.exit(1)
-
-        if dry_run:
-            click.echo('EXECUTED:')
-            for key in dry_run_executor.executed:
-                click.echo('{}: {}'.format(
-                    click.style(dry_run_executor.compute_hash(key), fg='green'),
-                    str(key)
-                ))
-
-    @resource.command()
-    @click.argument('resource')
-    def backtrack_inputs(resource):
-        r = sresource.load(resource)
-
-        inputs = []
-
-        def backtrack(i):
-            def format_input(i):
-                return '{}::{}'.format(i.resource.name, i.name)
-
-            if isinstance(i, list):
-                return [backtrack(bi) for bi in i]
-
-            if isinstance(i, dict):
-                return {
-                    k: backtrack(bi) for k, bi in i.items()
-                }
-
-            bi = i.backtrack_value_emitter(level=1)
-            if isinstance(i, orm.DBResourceInput) and isinstance(bi, orm.DBResourceInput) and i == bi:
-                return (format_input(i), )
-
-            return (format_input(i), backtrack(bi))
-
-        for i in r.resource_inputs().values():
-            click.echo(yaml.safe_dump({i.name: backtrack(i)}, default_flow_style=False))
-
-    @resource.command()
-    def compile_all():
-        from solar.core.resource import compiler
-
-        destination_path = utils.read_config()['resources-compiled-file']
-
-        if os.path.exists(destination_path):
-            os.remove(destination_path)
-
-        for path in utils.find_by_mask(utils.read_config()['resources-files-mask']):
-            meta = utils.yaml_load(path)
-            meta['base_path'] = os.path.dirname(path)
-
-            compiler.compile(meta)
-
-    @resource.command()
-    def clear_all():
-        click.echo('Clearing all resources and connections')
-        orm.db.clear()
-
-    @resource.command()
-    @click.argument('name')
-    @click.argument(
-        'base_path', type=click.Path(exists=True, resolve_path=True))
-    @click.argument('args', nargs=-1)
-    def create(args, base_path, name):
-        args_parsed = {}
-
-        click.echo('create {} {} {}'.format(name, base_path, args))
-        for arg in args:
-            try:
-                args_parsed.update(json.loads(arg))
-            except ValueError:
-                k, v = arg.split('=')
-                args_parsed.update({k: v})
-        resources = vr.create(name, base_path, args=args_parsed)
-        for res in resources:
-            click.echo(res.color_repr())
-
-    @resource.command()
-    @click.option('--name', default=None)
-    @click.option('--tag', default=None)
-    @click.option('--json', default=False, is_flag=True)
-    @click.option('--color', default=True, is_flag=True)
-    def show(**kwargs):
-        resources = []
-
-        for res in sresource.load_all():
-            show = True
-            if kwargs['tag']:
-                if kwargs['tag'] not in res.tags:
-                    show = False
-            if kwargs['name']:
-                if res.name != kwargs['name']:
-                    show = False
-
-            if show:
-                resources.append(res)
-
-        echo = click.echo_via_pager
-        if kwargs['json']:
-            output = json.dumps([r.to_dict() for r in resources], indent=2)
-            echo = click.echo
-        else:
-            if kwargs['color']:
-                formatter = lambda r: r.color_repr()
-            else:
-                formatter = lambda r: unicode(r)
-            output = '\n'.join(formatter(r) for r in resources)
-
-        if output:
-            echo(output)
-
-    @resource.command()
-    @click.argument('resource_name')
-    @click.argument('tag_name')
-    @click.option('--add/--delete', default=True)
-    def tag(add, tag_name, resource_name):
-        click.echo('Tag {} with {} {}'.format(resource_name, tag_name, add))
-        r = sresource.load(resource_name)
-        if add:
-            r.add_tag(tag_name)
-        else:
-            r.remove_tag(tag_name)
-        # TODO: the above functions should save resource automatically to the DB
-
-    @resource.command()
-    @click.argument('name')
-    @click.argument('args', nargs=-1)
-    def update(name, args):
-        args_parsed = {}
-        for arg in args:
-            try:
-                args_parsed.update(json.loads(arg))
-            except ValueError:
-                k, v = arg.split('=')
-                args_parsed.update({k: v})
-        click.echo('Updating resource {} with args {}'.format(name, args_parsed))
-        res = sresource.load(name)
-        res.update(args_parsed)
-
-    @resource.command()
-    @click.option('--check-missing-connections', default=False, is_flag=True)
-    def validate(check_missing_connections):
-        errors = vr.validate_resources()
-        for r, error in errors:
-            click.echo('ERROR: %s: %s' % (r.name, error))
-
-        if check_missing_connections:
-            missing_connections = vr.find_missing_connections()
-            if missing_connections:
-                click.echo(
-                    'The following resources have inputs of the same value '
-                    'but are not connected:'
-                )
-                click.echo(
-                    tabulate.tabulate([
-                        ['%s::%s' % (r1, i1), '%s::%s' % (r2, i2)]
-                        for r1, i1, r2, i2 in missing_connections
-                    ])
-                )
-
-    @resource.command()
-    @click.argument('path', type=click.Path(exists=True, dir_okay=False))
-    def get_inputs(path):
-        with open(path) as f:
-            content = f.read()
-        click.echo(vr.get_inputs(content))
-
-
 def run():
     init_actions()
     init_cli_connect()
     init_cli_connections()
-    init_cli_resource()
 
+    main.add_command(cli_resource)
     main.add_command(orchestration)
     main.add_command(changes)
     main.add_command(events)
diff --git a/solar/solar/cli/resource.py b/solar/solar/cli/resource.py
new file mode 100644
index 00000000..d4938a69
--- /dev/null
+++ b/solar/solar/cli/resource.py
@@ -0,0 +1,227 @@
+#    Copyright 2015 Mirantis, Inc.
+#
+#    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.
+
+import sys
+import os
+import json
+import yaml
+import tabulate
+
+import click
+
+from solar.core import actions
+from solar.core import resource as sresource
+from solar.core.resource import virtual_resource as vr
+from solar.core.log import log
+from solar import errors
+from solar.interfaces import orm
+from solar import utils
+
+from solar.cli import executors
+
+
+@click.group()
+def resource():
+    pass
+
+@resource.command()
+@click.argument('action')
+@click.argument('resource')
+@click.option('-d', '--dry-run', default=False, is_flag=True)
+@click.option('-m', '--dry-run-mapping', default='{}')
+def action(dry_run_mapping, dry_run, action, resource):
+    if dry_run:
+        dry_run_executor = executors.DryRunExecutor(mapping=json.loads(dry_run_mapping))
+
+    click.echo(
+        'action {} for resource {}'.format(action, resource)
+    )
+
+    r = sresource.load(resource)
+    try:
+        actions.resource_action(r, action)
+    except errors.SolarError as e:
+        log.debug(e)
+        sys.exit(1)
+
+    if dry_run:
+        click.echo('EXECUTED:')
+        for key in dry_run_executor.executed:
+            click.echo('{}: {}'.format(
+                click.style(dry_run_executor.compute_hash(key), fg='green'),
+                str(key)
+            ))
+
+@resource.command()
+@click.argument('resource')
+def backtrack_inputs(resource):
+    r = sresource.load(resource)
+
+    inputs = []
+
+    def backtrack(i):
+        def format_input(i):
+            return '{}::{}'.format(i.resource.name, i.name)
+
+        if isinstance(i, list):
+            return [backtrack(bi) for bi in i]
+
+        if isinstance(i, dict):
+            return {
+                k: backtrack(bi) for k, bi in i.items()
+            }
+
+        bi = i.backtrack_value_emitter(level=1)
+        if isinstance(i, orm.DBResourceInput) and isinstance(bi, orm.DBResourceInput) and i == bi:
+            return (format_input(i), )
+
+        return (format_input(i), backtrack(bi))
+
+    for i in r.resource_inputs().values():
+        click.echo(yaml.safe_dump({i.name: backtrack(i)}, default_flow_style=False))
+
+@resource.command()
+def compile_all():
+    from solar.core.resource import compiler
+
+    destination_path = utils.read_config()['resources-compiled-file']
+
+    if os.path.exists(destination_path):
+        os.remove(destination_path)
+
+    for path in utils.find_by_mask(utils.read_config()['resources-files-mask']):
+        meta = utils.yaml_load(path)
+        meta['base_path'] = os.path.dirname(path)
+
+        compiler.compile(meta)
+
+@resource.command()
+def clear_all():
+    click.echo('Clearing all resources and connections')
+    orm.db.clear()
+
+@resource.command()
+@click.argument('name')
+@click.argument(
+    'base_path', type=click.Path(exists=True, resolve_path=True))
+@click.argument('args', nargs=-1)
+def create(args, base_path, name):
+    args_parsed = {}
+
+    click.echo('create {} {} {}'.format(name, base_path, args))
+    for arg in args:
+        try:
+            args_parsed.update(json.loads(arg))
+        except ValueError:
+            k, v = arg.split('=')
+            args_parsed.update({k: v})
+    resources = vr.create(name, base_path, args=args_parsed)
+    for res in resources:
+        click.echo(res.color_repr())
+
+@resource.command()
+@click.option('--name', default=None)
+@click.option('--tag', default=None)
+@click.option('--json', default=False, is_flag=True)
+@click.option('--color', default=True, is_flag=True)
+def show(**kwargs):
+    resources = []
+
+    for res in sresource.load_all():
+        show = True
+        if kwargs['tag']:
+            if kwargs['tag'] not in res.tags:
+                show = False
+        if kwargs['name']:
+            if res.name != kwargs['name']:
+                show = False
+
+        if show:
+            resources.append(res)
+
+    echo = click.echo_via_pager
+    if kwargs['json']:
+        output = json.dumps([r.to_dict() for r in resources], indent=2)
+        echo = click.echo
+    else:
+        if kwargs['color']:
+            formatter = lambda r: r.color_repr()
+        else:
+            formatter = lambda r: unicode(r)
+        output = '\n'.join(formatter(r) for r in resources)
+
+    if output:
+        echo(output)
+
+@resource.command()
+@click.argument('resource_name')
+@click.argument('tag_name')
+@click.option('--add/--delete', default=True)
+def tag(add, tag_name, resource_name):
+    click.echo('Tag {} with {} {}'.format(resource_name, tag_name, add))
+    r = sresource.load(resource_name)
+    if add:
+        r.add_tag(tag_name)
+    else:
+        r.remove_tag(tag_name)
+    # TODO: the above functions should save resource automatically to the DB
+
+@resource.command()
+@click.argument('name')
+@click.argument('args', nargs=-1)
+def update(name, args):
+    args_parsed = {}
+    for arg in args:
+        try:
+            args_parsed.update(json.loads(arg))
+        except ValueError:
+            k, v = arg.split('=')
+            args_parsed.update({k: v})
+    click.echo('Updating resource {} with args {}'.format(name, args_parsed))
+    res = sresource.load(name)
+    res.update(args_parsed)
+
+@resource.command()
+@click.option('--check-missing-connections', default=False, is_flag=True)
+def validate(check_missing_connections):
+    errors = vr.validate_resources()
+    for r, error in errors:
+        click.echo('ERROR: %s: %s' % (r.name, error))
+
+    if check_missing_connections:
+        missing_connections = vr.find_missing_connections()
+        if missing_connections:
+            click.echo(
+                'The following resources have inputs of the same value '
+                'but are not connected:'
+            )
+            click.echo(
+                tabulate.tabulate([
+                    ['%s::%s' % (r1, i1), '%s::%s' % (r2, i2)]
+                    for r1, i1, r2, i2 in missing_connections
+                ])
+            )
+
+@resource.command()
+@click.argument('path', type=click.Path(exists=True, dir_okay=False))
+def get_inputs(path):
+    with open(path) as f:
+        content = f.read()
+    click.echo(vr.get_inputs(content))
+
+@resource.command()
+@click.argument('name')
+def remove(name):
+    res = sresource.load(name)
+    res.delete()
diff --git a/solar/solar/core/resource/resource.py b/solar/solar/core/resource/resource.py
index 00b57b8a..bb07663a 100644
--- a/solar/solar/core/resource/resource.py
+++ b/solar/solar/core/resource/resource.py
@@ -112,6 +112,9 @@ class Resource(object):
             i.value = v
             i.save()
 
+    def delete(self):
+        return self.db_obj.delete()
+
     def resource_inputs(self):
         return {
             i.name: i for i in self.db_obj.inputs.as_set()
diff --git a/solar/solar/interfaces/orm.py b/solar/solar/interfaces/orm.py
index 4f3e6a51..3cb69113 100644
--- a/solar/solar/interfaces/orm.py
+++ b/solar/solar/interfaces/orm.py
@@ -413,6 +413,17 @@ class DBResourceInput(DBObject):
             )[0].start_node.properties
         )
 
+    def delete(self):
+        db.delete_relations(
+            source=self._db_node,
+            type_=base.BaseGraphDB.RELATION_TYPES.input_to_input
+        )
+        db.delete_relations(
+            dest=self._db_node,
+            type_=base.BaseGraphDB.RELATION_TYPES.input_to_input
+        )
+        super(DBResourceInput, self).delete()
+
     def backtrack_value_emitter(self, level=None):
         # TODO: this is actually just fetching head element in linked list
         #       so this whole algorithm can be moved to the db backend probably
@@ -559,6 +570,12 @@ class DBResource(DBObject):
         event.save()
         self.events.add(event)
 
+    def delete(self):
+        for input in self.inputs.as_set():
+            self.inputs.remove(input)
+            input.delete()
+        super(DBResource, self).delete()
+
 
 # TODO: remove this
 if __name__ == '__main__':
diff --git a/solar/solar/system_log/change.py b/solar/solar/system_log/change.py
index 110bb486..b9d6cc06 100644
--- a/solar/solar/system_log/change.py
+++ b/solar/solar/system_log/change.py
@@ -52,7 +52,8 @@ def create_logitem(resource, action, diffed):
 
 def _stage_changes(staged_resources, commited_resources, staged_log):
 
-    for res_uid in staged_resources.keys():
+    union = set(staged_resources.keys()) | set(commited_resources.keys())
+    for res_uid in union:
         commited_data = commited_resources.get(res_uid, {})
         staged_data = staged_resources.get(res_uid, {})
 
diff --git a/solar/solar/test/test_orm.py b/solar/solar/test/test_orm.py
index 43ad6a20..38df33a6 100644
--- a/solar/solar/test/test_orm.py
+++ b/solar/solar/test/test_orm.py
@@ -228,6 +228,12 @@ class TestResourceORM(BaseResourceTest):
         r.add_input('ip', 'str!', '10.0.0.2')
         self.assertEqual(len(r.inputs.as_set()), 1)
 
+    def test_delete_resource(self):
+        r = orm.DBResource(id='test1', name='test1', base_path='x')
+        r.save()
+
+        r.add_input('ip', 'str!', '10.0.0.2')
+
 
 class TestResourceInputORM(BaseResourceTest):
     def test_backtrack_simple(self):
diff --git a/solar/solar/test/test_resource.py b/solar/solar/test/test_resource.py
index 20171412..a3af0256 100644
--- a/solar/solar/test/test_resource.py
+++ b/solar/solar/test/test_resource.py
@@ -93,3 +93,29 @@ input:
 
         self.assertDictEqual(sample.args, sample_l.args)
         self.assertListEqual(sample.tags, sample_l.tags)
+
+    def test_removal(self):
+        """Test that connection removed with resource."""
+        sample_meta_dir = self.make_resource_meta("""
+id: sample
+handler: ansible
+version: 1.0.0
+input:
+  value:
+    schema: int
+    value: 0
+        """)
+
+        sample1 = self.create_resource(
+            'sample1', sample_meta_dir, {'value': 1}
+        )
+        sample2 = self.create_resource(
+            'sample2', sample_meta_dir, {}
+        )
+        signals.connect(sample1, sample2)
+        self.assertEqual(sample1.args['value'], sample2.args['value'])
+
+        sample1 = resource.load('sample1')
+        sample2 = resource.load('sample2')
+        sample1.delete()
+        self.assertEqual(sample2.args['value'], 0)
diff --git a/solar/test-requirements.txt b/solar/test-requirements.txt
index 49dcbbbb..18ecb06e 100644
--- a/solar/test-requirements.txt
+++ b/solar/test-requirements.txt
@@ -1,2 +1,4 @@
 -r requirements.txt
 pytest-mock
+tox
+hacking==0.7
diff --git a/tox.ini b/tox.ini
new file mode 100644
index 00000000..b2795f6f
--- /dev/null
+++ b/tox.ini
@@ -0,0 +1,37 @@
+[tox]
+minversion = 1.6
+skipsdist = True
+envlist = py27,pep8
+
+[testenv]
+usedevelop = True
+install_command = pip install -U {opts} {packages}
+setenv = VIRTUAL_ENV={envdir}
+deps = -r{toxinidir}/test-requirements.txt
+commands =
+    py.test {posargs:solar/solar/test}
+
+[testenv:pep8]
+deps = hacking==0.7
+usedevelop = False
+commands =
+    flake8 {posargs:solar/solar}
+
+
+[testenv:venv]
+deps = -r{toxinidir}/requirements.txt
+commands = {posargs:}
+
+[testenv:devenv]
+envdir = devenv
+usedevelop = True
+
+[flake8]
+# NOTE(eli): H304 is "No relative imports" error, relative
+# imports are required for extensions which can be moved
+# from nailgun directory to different place
+ignore = H234,H302,H802,H304
+exclude = .venv,.git,.tox,dist,doc,*lib/python*,*egg,build,tools,__init__.py,docs
+show-pep8 = True
+show-source = True
+count = True