diff --git a/gitosis/repository.py b/gitosis/repository.py
new file mode 100644
index 0000000..ea8db54
--- /dev/null
+++ b/gitosis/repository.py
@@ -0,0 +1,39 @@
+import errno
+import os
+import subprocess
+
+def _mkdir(*a, **kw):
+    try:
+        os.mkdir(*a, **kw)
+    except OSError, e:
+        if e.errno == errno.EEXIST:
+            pass
+        else:
+            raise
+
+def init(
+    path,
+    template=None,
+    _git=None,
+    ):
+    if _git is None:
+        _git = 'git'
+
+    _mkdir(path, 0750)
+    args = [_git, 'init']
+    if template is not None:
+        args.append('--template=%s' % template)
+    env = {}
+    env.update(os.environ)
+    env['GIT_DIR'] = '.'
+    returncode = subprocess.call(
+        args=args,
+        cwd=path,
+        close_fds=True,
+        env=env,
+        )
+    if returncode != 0:
+        raise RuntimeError(
+            ("Command '%r' returned non-zero exit status %d"
+             % (args, returncode)),
+            )
diff --git a/gitosis/test/mocktemplates/hooks/post-update b/gitosis/test/mocktemplates/hooks/post-update
new file mode 100755
index 0000000..7e81207
--- /dev/null
+++ b/gitosis/test/mocktemplates/hooks/post-update
@@ -0,0 +1,2 @@
+#!/bin/sh
+# i can override standard templates
diff --git a/gitosis/test/mocktemplates/no-confusion b/gitosis/test/mocktemplates/no-confusion
new file mode 100644
index 0000000..4d1bc79
--- /dev/null
+++ b/gitosis/test/mocktemplates/no-confusion
@@ -0,0 +1 @@
+i should show up
diff --git a/gitosis/test/test_repository.py b/gitosis/test/test_repository.py
new file mode 100644
index 0000000..9b8b70c
--- /dev/null
+++ b/gitosis/test/test_repository.py
@@ -0,0 +1,63 @@
+from nose.tools import eq_ as eq
+
+import os
+import stat
+import shutil
+
+from gitosis import repository
+
+from gitosis.test.util import mkdir, maketemp, writeFile, readFile
+
+def check_bare(path):
+    # we want it to be a bare repository
+    assert not os.path.exists(os.path.join(path, '.git'))
+
+def test_init_simple():
+    tmp = maketemp()
+    path = os.path.join(tmp, 'repo.git')
+    repository.init(path)
+    st = os.stat(path)
+    assert stat.S_ISDIR(st.st_mode)
+    eq(stat.S_IMODE(st.st_mode), 0750)
+    check_bare(path)
+
+def test_init_exist_dir():
+    tmp = maketemp()
+    path = os.path.join(tmp, 'repo.git')
+    mkdir(path)
+    repository.init(path)
+    st = os.stat(path)
+    assert stat.S_ISDIR(st.st_mode)
+    eq(stat.S_IMODE(st.st_mode), 0750)
+    check_bare(path)
+
+def test_init_exist_git():
+    tmp = maketemp()
+    path = os.path.join(tmp, 'repo.git')
+    repository.init(path)
+    repository.init(path)
+    st = os.stat(path)
+    assert stat.S_ISDIR(st.st_mode)
+    eq(stat.S_IMODE(st.st_mode), 0750)
+    check_bare(path)
+
+def test_init_templates():
+    tmp = maketemp()
+    path = os.path.join(tmp, 'repo.git')
+    if os.path.exists(path):
+        shutil.rmtree(path)
+    templatedir = os.path.join(
+        os.path.dirname(__file__),
+        'mocktemplates',
+        )
+    repository.init(path, template=templatedir)
+    repository.init(path)
+    got = readFile(os.path.join(path, 'no-confusion'))
+    eq(got, 'i should show up\n')
+    st = os.stat(os.path.join(path, 'hooks', 'post-update'))
+    assert stat.S_ISREG(st.st_mode)
+    eq('%04o'%stat.S_IMODE(st.st_mode), '%04o'%0755)
+    got = readFile(os.path.join(path, 'hooks', 'post-update'))
+    eq(got, '#!/bin/sh\n# i can override standard templates\n')
+    # standard templates are there, too
+    assert os.path.isfile(os.path.join(path, 'hooks', 'pre-rebase'))