diff --git a/tests/cwd.t b/tests/cwd.t
new file mode 100644
index 0000000..9764e74
--- /dev/null
+++ b/tests/cwd.t
@@ -0,0 +1,29 @@
+Test $PWD and $_dotenv_cwd.
+
+Ensure we have our mocked out ENV_AUTHORIZATION_FILE.
+
+  $ [[ $ENV_AUTHORIZATION_FILE[0,4] == '/tmp' ]] || return 1
+
+Setup env actions / output.
+
+  $ DOTENV_LOOK_UPWARDS=1
+  $ mkdir -p sub/sub2
+  $ cd sub
+  $ echo 'echo ENTERED: cwd:${PWD:t} ${_dotenv_cwd:t}' >> .env
+  $ echo 'echo LEFT: cwd:${PWD:t} ${_dotenv_cwd:t}' >> .env.leave
+
+Manually create auth files.
+
+  $ echo "$PWD/$DOTENV_FILE_ENTER:$(echo $(<$DOTENV_FILE_ENTER) | shasum)" > $ENV_AUTHORIZATION_FILE
+  $ echo "$PWD/$DOTENV_FILE_LEAVE:$(echo $(<$DOTENV_FILE_LEAVE) | shasum)" >> $ENV_AUTHORIZATION_FILE
+
+The actual tests.
+
+  $ cd .
+  ENTERED: cwd:sub sub
+
+  $ cd ..
+  LEFT: cwd:sub cwd.t
+
+  $ cd sub/sub2
+  ENTERED: cwd:sub sub2