diff --git a/gns3server/handlers/__init__.py b/gns3server/handlers/__init__.py
index 727b4053..78bb3ca6 100644
--- a/gns3server/handlers/__init__.py
+++ b/gns3server/handlers/__init__.py
@@ -3,4 +3,5 @@ __all__ = ["version_handler",
            "vpcs_handler",
            "project_handler",
            "virtualbox_handler",
-           "dynamips_handler"]
+           "dynamips_handler",
+           "iou_handler"]
diff --git a/gns3server/handlers/iou_handler.py b/gns3server/handlers/iou_handler.py
new file mode 100644
index 00000000..70ccc6b6
--- /dev/null
+++ b/gns3server/handlers/iou_handler.py
@@ -0,0 +1,180 @@
+# -*- coding: utf-8 -*-
+#
+# Copyright (C) 2015 GNS3 Technologies Inc.
+#
+# This program is free software: you can redistribute it and/or modify
+# it under the terms of the GNU General Public License as published by
+# the Free Software Foundation, either version 3 of the License, or
+# (at your option) any later version.
+#
+# This program is distributed in the hope that it will be useful,
+# but WITHOUT ANY WARRANTY; without even the implied warranty of
+# MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+# GNU General Public License for more details.
+#
+# You should have received a copy of the GNU General Public License
+# along with this program.  If not, see <http://www.gnu.org/licenses/>.
+
+from ..web.route import Route
+from ..schemas.iou import IOU_CREATE_SCHEMA
+from ..schemas.iou import IOU_UPDATE_SCHEMA
+from ..schemas.iou import IOU_OBJECT_SCHEMA
+from ..modules.iou import IOU
+
+
+class IOUHandler:
+
+    """
+    API entry points for IOU.
+    """
+
+    @classmethod
+    @Route.post(
+        r"/projects/{project_id}/iou/vms",
+        parameters={
+            "project_id": "UUID for the project"
+        },
+        status_codes={
+            201: "Instance created",
+            400: "Invalid request",
+            409: "Conflict"
+        },
+        description="Create a new IOU instance",
+        input=IOU_CREATE_SCHEMA,
+        output=IOU_OBJECT_SCHEMA)
+    def create(request, response):
+
+        iou = IOU.instance()
+        vm = yield from iou.create_vm(request.json["name"],
+                                       request.match_info["project_id"],
+                                       request.json.get("vm_id"),
+                                       console=request.json.get("console"),
+                                       )
+        vm.iou_path = request.json.get("iou_path", vm.iou_path)
+        vm.iourc_path = request.json.get("iourc_path", vm.iourc_path)
+        response.set_status(201)
+        response.json(vm)
+
+    @classmethod
+    @Route.get(
+        r"/projects/{project_id}/iou/vms/{vm_id}",
+        parameters={
+            "project_id": "UUID for the project",
+            "vm_id": "UUID for the instance"
+        },
+        status_codes={
+            200: "Success",
+            400: "Invalid request",
+            404: "Instance doesn't exist"
+        },
+        description="Get a IOU instance",
+        output=IOU_OBJECT_SCHEMA)
+    def show(request, response):
+
+        iou_manager = IOU.instance()
+        vm = iou_manager.get_vm(request.match_info["vm_id"], project_id=request.match_info["project_id"])
+        response.json(vm)
+
+    @classmethod
+    @Route.put(
+        r"/projects/{project_id}/iou/vms/{vm_id}",
+        parameters={
+            "project_id": "UUID for the project",
+            "vm_id": "UUID for the instance"
+        },
+        status_codes={
+            200: "Instance updated",
+            400: "Invalid request",
+            404: "Instance doesn't exist",
+            409: "Conflict"
+        },
+        description="Update a IOU instance",
+        input=IOU_UPDATE_SCHEMA,
+        output=IOU_OBJECT_SCHEMA)
+    def update(request, response):
+
+        iou_manager = IOU.instance()
+        vm = iou_manager.get_vm(request.match_info["vm_id"], project_id=request.match_info["project_id"])
+        vm.name = request.json.get("name", vm.name)
+        vm.console = request.json.get("console", vm.console)
+        vm.iou_path = request.json.get("iou_path", vm.iou_path)
+        vm.iourc_path = request.json.get("iourc_path", vm.iourc_path)
+        response.json(vm)
+
+    @classmethod
+    @Route.delete(
+        r"/projects/{project_id}/iou/vms/{vm_id}",
+        parameters={
+            "project_id": "UUID for the project",
+            "vm_id": "UUID for the instance"
+        },
+        status_codes={
+            204: "Instance deleted",
+            400: "Invalid request",
+            404: "Instance doesn't exist"
+        },
+        description="Delete a IOU instance")
+    def delete(request, response):
+
+        yield from IOU.instance().delete_vm(request.match_info["vm_id"])
+        response.set_status(204)
+
+    @classmethod
+    @Route.post(
+        r"/projects/{project_id}/iou/vms/{vm_id}/start",
+        parameters={
+            "project_id": "UUID for the project",
+            "vm_id": "UUID for the instance"
+        },
+        status_codes={
+            204: "Instance started",
+            400: "Invalid request",
+            404: "Instance doesn't exist"
+        },
+        description="Start a IOU instance")
+    def start(request, response):
+
+        iou_manager = IOU.instance()
+        vm = iou_manager.get_vm(request.match_info["vm_id"], project_id=request.match_info["project_id"])
+        yield from vm.start()
+        response.set_status(204)
+
+    @classmethod
+    @Route.post(
+        r"/projects/{project_id}/iou/vms/{vm_id}/stop",
+        parameters={
+            "project_id": "UUID for the project",
+            "vm_id": "UUID for the instance"
+        },
+        status_codes={
+            204: "Instance stopped",
+            400: "Invalid request",
+            404: "Instance doesn't exist"
+        },
+        description="Stop a IOU instance")
+    def stop(request, response):
+
+        iou_manager = IOU.instance()
+        vm = iou_manager.get_vm(request.match_info["vm_id"], project_id=request.match_info["project_id"])
+        yield from vm.stop()
+        response.set_status(204)
+
+    @classmethod
+    @Route.post(
+        r"/projects/{project_id}/iou/vms/{vm_id}/reload",
+        parameters={
+            "project_id": "UUID for the project",
+            "vm_id": "UUID for the instance",
+        },
+        status_codes={
+            204: "Instance reloaded",
+            400: "Invalid request",
+            404: "Instance doesn't exist"
+        },
+        description="Reload a IOU instance")
+    def reload(request, response):
+
+        iou_manager = IOU.instance()
+        vm = iou_manager.get_vm(request.match_info["vm_id"], project_id=request.match_info["project_id"])
+        yield from vm.reload()
+        response.set_status(204)
diff --git a/gns3server/modules/iou/iou_vm.py b/gns3server/modules/iou/iou_vm.py
index 5abf0b44..9651e210 100644
--- a/gns3server/modules/iou/iou_vm.py
+++ b/gns3server/modules/iou/iou_vm.py
@@ -63,7 +63,7 @@ class IOUVM(BaseVM):
         self._iou_stdout_file = ""
         self._started = False
         self._iou_path = None
-        self._iourc = None
+        self._iourc_path = None
         self._ioucon_thread = None
 
         # IOU settings
@@ -124,13 +124,24 @@ class IOUVM(BaseVM):
             raise IOUError("IOU image '{}' is not executable".format(self._iou_path))
 
     @property
-    def iourc(self):
+    def iourc_path(self):
         """
         Returns the path to the iourc file.
         :returns: path to the iourc file
         """
 
-        return self._iourc
+        return self._iourc_path
+
+    @iourc_path.setter
+    def iourc_path(self, path):
+        """
+        Set path to IOURC file
+        """
+
+        self._iourc_path = path
+        log.info("IOU {name} [id={id}]: iourc file path set to {path}".format(name=self._name,
+                                                                              id=self._id,
+                                                                              path=self._iourc_path))
 
     @property
     def use_default_iou_values(self):
@@ -154,18 +165,6 @@ class IOUVM(BaseVM):
         else:
             log.info("IOU {name} [id={id}]: does not use the default IOU image values".format(name=self._name, id=self._id))
 
-    @iourc.setter
-    def iourc(self, iourc):
-        """
-        Sets the path to the iourc file.
-        :param iourc: path to the iourc file.
-        """
-
-        self._iourc = iourc
-        log.info("IOU {name} [id={id}]: iourc file path set to {path}".format(name=self._name,
-                                                                              id=self._id,
-                                                                              path=self._iourc))
-
     def _check_requirements(self):
         """
         Check if IOUYAP is available
@@ -186,6 +185,8 @@ class IOUVM(BaseVM):
                 "vm_id": self.id,
                 "console": self._console,
                 "project_id": self.project.id,
+                "iourc_path": self._iourc_path,
+                "iou_path": self.iou_path
                 }
 
     @property
@@ -229,7 +230,7 @@ class IOUVM(BaseVM):
     def application_id(self):
         return self._manager.get_application_id(self.id)
 
-    #TODO: ASYNCIO
+    # TODO: ASYNCIO
     def _library_check(self):
         """
         Checks for missing shared library dependencies in the IOU image.
@@ -257,9 +258,9 @@ class IOUVM(BaseVM):
         if not self.is_running():
 
             # TODO: ASYNC
-            #self._library_check()
+            # self._library_check()
 
-            if not self._iourc or not os.path.isfile(self._iourc):
+            if not self._iourc_path or not os.path.isfile(self._iourc_path):
                 raise IOUError("A valid iourc file is necessary to start IOU")
 
             iouyap_path = self.iouyap_path
@@ -269,18 +270,18 @@ class IOUVM(BaseVM):
             self._create_netmap_config()
             # created a environment variable pointing to the iourc file.
             env = os.environ.copy()
-            env["IOURC"] = self._iourc
+            env["IOURC"] = self._iourc_path
             self._command = self._build_command()
             try:
                 log.info("Starting IOU: {}".format(self._command))
                 self._iou_stdout_file = os.path.join(self.working_dir, "iou.log")
                 log.info("Logging to {}".format(self._iou_stdout_file))
                 with open(self._iou_stdout_file, "w") as fd:
-                    self._iou_process = yield from asyncio.create_subprocess_exec(self._command,
-                                                                              stdout=fd,
-                                                                              stderr=subprocess.STDOUT,
-                                                                              cwd=self.working_dir,
-                                                                             env=env)
+                    self._iou_process = yield from asyncio.create_subprocess_exec(*self._command,
+                                                                                  stdout=fd,
+                                                                                  stderr=subprocess.STDOUT,
+                                                                                  cwd=self.working_dir,
+                                                                                  env=env)
                 log.info("IOU instance {} started PID={}".format(self._id, self._iou_process.pid))
                 self._started = True
             except FileNotFoundError as e:
@@ -291,10 +292,9 @@ class IOUVM(BaseVM):
                 raise IOUError("could not start IOU {}: {}\n{}".format(self._iou_path, e, iou_stdout))
 
             # start console support
-            #self._start_ioucon()
+            # self._start_ioucon()
             # connections support
-            #self._start_iouyap()
-
+            # self._start_iouyap()
 
     @asyncio.coroutine
     def stop(self):
diff --git a/gns3server/schemas/iou.py b/gns3server/schemas/iou.py
new file mode 100644
index 00000000..562ac0f7
--- /dev/null
+++ b/gns3server/schemas/iou.py
@@ -0,0 +1,127 @@
+# -*- coding: utf-8 -*-
+#
+# Copyright (C) 2015 GNS3 Technologies Inc.
+#
+# This program is free software: you can redistribute it and/or modify
+# it under the terms of the GNU General Public License as published by
+# the Free Software Foundation, either version 3 of the License, or
+# (at your option) any later version.
+#
+# This program is distributed in the hope that it will be useful,
+# but WITHOUT ANY WARRANTY; without even the implied warranty of
+# MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+# GNU General Public License for more details.
+#
+# You should have received a copy of the GNU General Public License
+# along with this program.  If not, see <http://www.gnu.org/licenses/>.
+
+
+IOU_CREATE_SCHEMA = {
+    "$schema": "http://json-schema.org/draft-04/schema#",
+    "description": "Request validation to create a new IOU instance",
+    "type": "object",
+    "properties": {
+        "name": {
+            "description": "IOU VM name",
+            "type": "string",
+            "minLength": 1,
+        },
+        "vm_id": {
+            "description": "IOU VM identifier",
+            "oneOf": [
+                {"type": "string",
+                 "minLength": 36,
+                 "maxLength": 36,
+                 "pattern": "^[a-fA-F0-9]{8}-[a-fA-F0-9]{4}-[a-fA-F0-9]{4}-[a-fA-F0-9]{4}-[a-fA-F0-9]{12}$"},
+                {"type": "integer"}  # for legacy projects
+            ]
+        },
+        "console": {
+            "description": "console TCP port",
+            "minimum": 1,
+            "maximum": 65535,
+            "type": ["integer", "null"]
+        },
+        "iou_path": {
+            "description": "Path of iou binary",
+            "type": "string"
+        },
+        "iourc_path": {
+            "description": "Path of iourc",
+            "type": "string"
+        },
+    },
+    "additionalProperties": False,
+    "required": ["name", "iou_path", "iourc_path"]
+}
+
+IOU_UPDATE_SCHEMA = {
+    "$schema": "http://json-schema.org/draft-04/schema#",
+    "description": "Request validation to update a IOU instance",
+    "type": "object",
+    "properties": {
+        "name": {
+            "description": "IOU VM name",
+            "type": ["string", "null"],
+            "minLength": 1,
+        },
+        "console": {
+            "description": "console TCP port",
+            "minimum": 1,
+            "maximum": 65535,
+            "type": ["integer", "null"]
+        },
+        "iou_path": {
+            "description": "Path of iou binary",
+            "type": "string"
+        },
+        "iourc_path": {
+            "description": "Path of iourc",
+            "type": "string"
+        },
+    },
+    "additionalProperties": False,
+}
+
+IOU_OBJECT_SCHEMA = {
+    "$schema": "http://json-schema.org/draft-04/schema#",
+    "description": "IOU instance",
+    "type": "object",
+    "properties": {
+        "name": {
+            "description": "IOU VM name",
+            "type": "string",
+            "minLength": 1,
+        },
+        "vm_id": {
+            "description": "IOU VM UUID",
+            "type": "string",
+            "minLength": 36,
+            "maxLength": 36,
+            "pattern": "^[a-fA-F0-9]{8}-[a-fA-F0-9]{4}-[a-fA-F0-9]{4}-[a-fA-F0-9]{4}-[a-fA-F0-9]{12}$"
+        },
+        "console": {
+            "description": "console TCP port",
+            "minimum": 1,
+            "maximum": 65535,
+            "type": "integer"
+        },
+        "project_id": {
+            "description": "Project UUID",
+            "type": "string",
+            "minLength": 36,
+            "maxLength": 36,
+            "pattern": "^[a-fA-F0-9]{8}-[a-fA-F0-9]{4}-[a-fA-F0-9]{4}-[a-fA-F0-9]{4}-[a-fA-F0-9]{12}$"
+        },
+        "iou_path": {
+            "description": "Path of iou binary",
+            "type": "string"
+        },
+        "iourc_path": {
+            "description": "Path of iourc",
+            "type": "string"
+        },
+    },
+    "additionalProperties": False,
+    "required": ["name", "vm_id", "console", "project_id", "iou_path", "iourc_path"]
+}
diff --git a/tests/api/test_iou.py b/tests/api/test_iou.py
new file mode 100644
index 00000000..5dd3268c
--- /dev/null
+++ b/tests/api/test_iou.py
@@ -0,0 +1,97 @@
+# -*- coding: utf-8 -*-
+#
+# Copyright (C) 2015 GNS3 Technologies Inc.
+#
+# This program is free software: you can redistribute it and/or modify
+# it under the terms of the GNU General Public License as published by
+# the Free Software Foundation, either version 3 of the License, or
+# (at your option) any later version.
+#
+# This program is distributed in the hope that it will be useful,
+# but WITHOUT ANY WARRANTY; without even the implied warranty of
+# MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+# GNU General Public License for more details.
+#
+# You should have received a copy of the GNU General Public License
+# along with this program.  If not, see <http://www.gnu.org/licenses/>.
+
+import pytest
+import os
+import stat
+from tests.utils import asyncio_patch
+from unittest.mock import patch
+
+
+@pytest.fixture
+def fake_iou_bin(tmpdir):
+    """Create a fake IOU image on disk"""
+
+    path = str(tmpdir / "iou.bin")
+    with open(path, "w+") as f:
+        f.write('\x7fELF\x01\x01\x01')
+    os.chmod(path, stat.S_IREAD | stat.S_IEXEC)
+    return path
+
+@pytest.fixture
+def base_params(tmpdir, fake_iou_bin):
+    """Return standard parameters"""
+    return {"name": "PC TEST 1", "iou_path": fake_iou_bin, "iourc_path": str(tmpdir / "iourc")}
+
+
+@pytest.fixture
+def vm(server, project, base_params):
+    response = server.post("/projects/{project_id}/iou/vms".format(project_id=project.id), base_params)
+    assert response.status == 201
+    return response.json
+
+
+def test_iou_create(server, project, base_params):
+    response = server.post("/projects/{project_id}/iou/vms".format(project_id=project.id), base_params, example=True)
+    assert response.status == 201
+    assert response.route == "/projects/{project_id}/iou/vms"
+    assert response.json["name"] == "PC TEST 1"
+    assert response.json["project_id"] == project.id
+
+
+def test_iou_get(server, project, vm):
+    response = server.get("/projects/{project_id}/iou/vms/{vm_id}".format(project_id=vm["project_id"], vm_id=vm["vm_id"]), example=True)
+    assert response.status == 200
+    assert response.route == "/projects/{project_id}/iou/vms/{vm_id}"
+    assert response.json["name"] == "PC TEST 1"
+    assert response.json["project_id"] == project.id
+
+
+def test_iou_start(server, vm):
+    with asyncio_patch("gns3server.modules.iou.iou_vm.IOUVM.start", return_value=True) as mock:
+        response = server.post("/projects/{project_id}/iou/vms/{vm_id}/start".format(project_id=vm["project_id"], vm_id=vm["vm_id"]))
+        assert mock.called
+        assert response.status == 204
+
+
+def test_iou_stop(server, vm):
+    with asyncio_patch("gns3server.modules.iou.iou_vm.IOUVM.stop", return_value=True) as mock:
+        response = server.post("/projects/{project_id}/iou/vms/{vm_id}/stop".format(project_id=vm["project_id"], vm_id=vm["vm_id"]))
+        assert mock.called
+        assert response.status == 204
+
+
+def test_iou_reload(server, vm):
+    with asyncio_patch("gns3server.modules.iou.iou_vm.IOUVM.reload", return_value=True) as mock:
+        response = server.post("/projects/{project_id}/iou/vms/{vm_id}/reload".format(project_id=vm["project_id"], vm_id=vm["vm_id"]))
+        assert mock.called
+        assert response.status == 204
+
+
+def test_iou_delete(server, vm):
+    with asyncio_patch("gns3server.modules.iou.IOU.delete_vm", return_value=True) as mock:
+        response = server.delete("/projects/{project_id}/iou/vms/{vm_id}".format(project_id=vm["project_id"], vm_id=vm["vm_id"]))
+        assert mock.called
+        assert response.status == 204
+
+
+def test_iou_update(server, vm, tmpdir, free_console_port):
+    response = server.put("/projects/{project_id}/iou/vms/{vm_id}".format(project_id=vm["project_id"], vm_id=vm["vm_id"]), {"name": "test",
+                                                                                                                             "console": free_console_port})
+    assert response.status == 200
+    assert response.json["name"] == "test"
+    assert response.json["console"] == free_console_port