diff --git a/CHANGELOG.md b/CHANGELOG.md
index c475b405..46ffbc79 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -2,6 +2,10 @@
 All enhancements and patches to Cookiecutter Django will be documented in this file.
 This project adheres to [Semantic Versioning](http://semver.org/).
 
+##[2016-06-24]
+## Added
+- Settings file for running tests faster (@audreyr)
+
 ##[2016-06-19]
 ## Added
 - Webpack as an option (@goldhand)
diff --git a/{{cookiecutter.project_slug}}/config/settings/test.py b/{{cookiecutter.project_slug}}/config/settings/test.py
new file mode 100644
index 00000000..adfa38c2
--- /dev/null
+++ b/{{cookiecutter.project_slug}}/config/settings/test.py
@@ -0,0 +1,64 @@
+# -*- coding: utf-8 -*-
+'''
+Test settings
+
+- Used to run tests fast on the continuous integration server and locally
+- Use console backend for emails
+- Add django-extensions as app
+'''
+
+from .common import *  # noqa
+
+
+# DEBUG
+# ------------------------------------------------------------------------------
+# Turn debug off so tests run faster
+DEBUG = False
+TEMPLATES[0]['OPTIONS']['debug'] = False
+
+# SECRET CONFIGURATION
+# ------------------------------------------------------------------------------
+# See: https://docs.djangoproject.com/en/dev/ref/settings/#secret-key
+# Note: This key only used for development and testing.
+SECRET_KEY = env('DJANGO_SECRET_KEY', default='CHANGEME!!!')
+
+# Mail settings
+# ------------------------------------------------------------------------------
+EMAIL_HOST = 'localhost'
+EMAIL_PORT = 1025
+
+# In-memory email backend stores messages in django.core.mail.outbox
+# for unit testing purposes
+EMAIL_BACKEND = 'django.core.mail.backends.locmem.EmailBackend'
+
+# CACHING
+# ------------------------------------------------------------------------------
+# Speed advantages of in-memory caching without having to run Memcached
+CACHES = {
+    'default': {
+        'BACKEND': 'django.core.cache.backends.locmem.LocMemCache',
+        'LOCATION': ''
+    }
+}
+
+# TESTING
+# ------------------------------------------------------------------------------
+TEST_RUNNER = 'django.test.runner.DiscoverRunner'
+
+
+# PASSWORD HASHING
+# ------------------------------------------------------------------------------
+# Use fast password hasher so tests run faster
+PASSWORD_HASHERS = (
+    'django.contrib.auth.hashers.MD5PasswordHasher',
+)
+
+# TEMPLATE LOADERS
+# ------------------------------------------------------------------------------
+# Keep templates in memory so tests run faster
+TEMPLATES[0]['OPTIONS']['loaders'] = [
+    ('django.template.loaders.cached.Loader', [
+        'django.template.loaders.filesystem.Loader',
+        'django.template.loaders.app_directories.Loader',
+    ]),
+]