diff --git a/mopidy/backends/local/actor.py b/mopidy/backends/local/actor.py
index abad75ca..a1655dd9 100644
--- a/mopidy/backends/local/actor.py
+++ b/mopidy/backends/local/actor.py
@@ -16,6 +16,8 @@ class LocalBackend(pykka.ThreadingActor, base.Backend):
     def __init__(self, config, audio):
         super(LocalBackend, self).__init__()
 
+        self.config = config
+
         self.library = LocalLibraryProvider(backend=self)
         self.playback = base.BasePlaybackProvider(audio=audio, backend=self)
         self.playlists = LocalPlaylistsProvider(backend=self)
diff --git a/mopidy/backends/local/library.py b/mopidy/backends/local/library.py
index f2a1a520..2b1c93f7 100644
--- a/mopidy/backends/local/library.py
+++ b/mopidy/backends/local/library.py
@@ -2,7 +2,6 @@ from __future__ import unicode_literals
 
 import logging
 
-from mopidy import settings
 from mopidy.backends import base
 from mopidy.models import Album, SearchResult
 
@@ -15,15 +14,17 @@ class LocalLibraryProvider(base.BaseLibraryProvider):
     def __init__(self, *args, **kwargs):
         super(LocalLibraryProvider, self).__init__(*args, **kwargs)
         self._uri_mapping = {}
+        self._music_path = self.backend.config['local']['music_path']
+        self._playlist_path = self.backend.config['local']['playlist_path']
+        self._tag_cache_file = self.backend.config['local']['tag_cache_file']
         self.refresh()
 
     def refresh(self, uri=None):
-        tracks = parse_mpd_tag_cache(
-            settings.LOCAL_TAG_CACHE_FILE, settings.LOCAL_MUSIC_PATH)
+        tracks = parse_mpd_tag_cache(self._tag_cache_file, self._music_path)
 
         logger.info(
             'Loading tracks from %s using %s',
-            settings.LOCAL_MUSIC_PATH, settings.LOCAL_TAG_CACHE_FILE)
+            self._music_path, self._tag_cache_file)
 
         for track in tracks:
             self._uri_mapping[track.uri] = track
diff --git a/mopidy/backends/local/playlists.py b/mopidy/backends/local/playlists.py
index 53f7aaae..063d044d 100644
--- a/mopidy/backends/local/playlists.py
+++ b/mopidy/backends/local/playlists.py
@@ -5,7 +5,6 @@ import logging
 import os
 import shutil
 
-from mopidy import settings
 from mopidy.backends import base, listener
 from mopidy.models import Playlist
 from mopidy.utils import formatting, path
@@ -19,7 +18,8 @@ logger = logging.getLogger('mopidy.backends.local')
 class LocalPlaylistsProvider(base.BasePlaylistsProvider):
     def __init__(self, *args, **kwargs):
         super(LocalPlaylistsProvider, self).__init__(*args, **kwargs)
-        self._path = settings.LOCAL_PLAYLIST_PATH
+        self._music_path = self.backend.config['local']['music_path']
+        self._playlist_path = self.backend.config['local']['playlist_path']
         self.refresh()
 
     def create(self, name):
@@ -42,16 +42,16 @@ class LocalPlaylistsProvider(base.BasePlaylistsProvider):
                 return playlist
 
     def refresh(self):
-        logger.info('Loading playlists from %s', self._path)
+        logger.info('Loading playlists from %s', self._playlist_path)
 
         playlists = []
 
-        for m3u in glob.glob(os.path.join(self._path, '*.m3u')):
+        for m3u in glob.glob(os.path.join(self._playlist_path, '*.m3u')):
             uri = path.path_to_uri(m3u)
             name = os.path.splitext(os.path.basename(m3u))[0]
 
             tracks = []
-            for track_uri in parse_m3u(m3u, settings.LOCAL_MUSIC_PATH):
+            for track_uri in parse_m3u(m3u, self._music_path):
                 try:
                     # TODO We must use core.library.lookup() to support tracks
                     # from other backends
@@ -86,13 +86,13 @@ class LocalPlaylistsProvider(base.BasePlaylistsProvider):
 
     def _get_m3u_path(self, name):
         name = formatting.slugify(name)
-        file_path = os.path.join(self._path, name + '.m3u')
-        path.check_file_path_is_inside_base_dir(file_path, self._path)
+        file_path = os.path.join(self._playlist_path, name + '.m3u')
+        path.check_file_path_is_inside_base_dir(file_path, self._playlist_path)
         return file_path
 
     def _save_m3u(self, playlist):
         file_path = path.uri_to_path(playlist.uri)
-        path.check_file_path_is_inside_base_dir(file_path, self._path)
+        path.check_file_path_is_inside_base_dir(file_path, self._playlist_path)
         with open(file_path, 'w') as file_handle:
             for track in playlist.tracks:
                 if track.uri.startswith('file://'):
@@ -103,16 +103,18 @@ class LocalPlaylistsProvider(base.BasePlaylistsProvider):
 
     def _delete_m3u(self, uri):
         file_path = path.uri_to_path(uri)
-        path.check_file_path_is_inside_base_dir(file_path, self._path)
+        path.check_file_path_is_inside_base_dir(file_path, self._playlist_path)
         if os.path.exists(file_path):
             os.remove(file_path)
 
     def _rename_m3u(self, playlist):
         src_file_path = path.uri_to_path(playlist.uri)
-        path.check_file_path_is_inside_base_dir(src_file_path, self._path)
+        path.check_file_path_is_inside_base_dir(
+            src_file_path, self._playlist_path)
 
         dst_file_path = self._get_m3u_path(playlist.name)
-        path.check_file_path_is_inside_base_dir(dst_file_path, self._path)
+        path.check_file_path_is_inside_base_dir(
+            dst_file_path, self._playlist_path)
 
         shutil.move(src_file_path, dst_file_path)
 
diff --git a/tests/backends/base/playlists.py b/tests/backends/base/playlists.py
index 00e32a6f..ad5648f9 100644
--- a/tests/backends/base/playlists.py
+++ b/tests/backends/base/playlists.py
@@ -1,25 +1,17 @@
 from __future__ import unicode_literals
 
-import os
-import shutil
-import tempfile
-
 import pykka
 
-from mopidy import audio, core, settings
+from mopidy import audio, core
 from mopidy.models import Playlist
 
-from tests import unittest, path_to_data_dir
+from tests import unittest
 
 
 class PlaylistsControllerTest(object):
     config = {}
 
     def setUp(self):
-        settings.LOCAL_PLAYLIST_PATH = tempfile.mkdtemp()
-        settings.LOCAL_TAG_CACHE_FILE = path_to_data_dir('library_tag_cache')
-        settings.LOCAL_MUSIC_PATH = path_to_data_dir('')
-
         self.audio = audio.DummyAudio.start().proxy()
         self.backend = self.backend_class.start(
             config=self.config, audio=self.audio).proxy()
@@ -28,11 +20,6 @@ class PlaylistsControllerTest(object):
     def tearDown(self):
         pykka.ActorRegistry.stop_all()
 
-        if os.path.exists(settings.LOCAL_PLAYLIST_PATH):
-            shutil.rmtree(settings.LOCAL_PLAYLIST_PATH)
-
-        settings.runtime.clear()
-
     def test_create_returns_playlist_with_name_set(self):
         playlist = self.core.playlists.create('test')
         self.assertEqual(playlist.name, 'test')
diff --git a/tests/backends/local/events_test.py b/tests/backends/local/events_test.py
index 5ccf0886..83d77a2f 100644
--- a/tests/backends/local/events_test.py
+++ b/tests/backends/local/events_test.py
@@ -1,4 +1,5 @@
-from mopidy import settings
+from __future__ import unicode_literals
+
 from mopidy.backends.local import actor
 
 from tests import unittest, path_to_data_dir
@@ -7,12 +8,10 @@ from tests.backends.base import events
 
 class LocalBackendEventsTest(events.BackendEventsTest, unittest.TestCase):
     backend_class = actor.LocalBackend
-    # TODO: setup config
-
-    def setUp(self):
-        settings.LOCAL_TAG_CACHE_FILE = path_to_data_dir('empty_tag_cache')
-        super(LocalBackendEventsTest, self).setUp()
-
-    def tearDown(self):
-        super(LocalBackendEventsTest, self).tearDown()
-        settings.runtime.clear()
+    config = {
+        'local': {
+            'music_path': path_to_data_dir(''),
+            'playlist_path': '',
+            'tag_cache_file': path_to_data_dir('empty_tag_cache'),
+        }
+    }
diff --git a/tests/backends/local/library_test.py b/tests/backends/local/library_test.py
index ca90e40b..e582c788 100644
--- a/tests/backends/local/library_test.py
+++ b/tests/backends/local/library_test.py
@@ -1,6 +1,5 @@
 from __future__ import unicode_literals
 
-from mopidy import settings
 from mopidy.backends.local import actor
 
 from tests import unittest, path_to_data_dir
@@ -9,15 +8,10 @@ from tests.backends.base.library import LibraryControllerTest
 
 class LocalLibraryControllerTest(LibraryControllerTest, unittest.TestCase):
     backend_class = actor.LocalBackend
-    # TODO: setup config
-
-    def setUp(self):
-        settings.LOCAL_TAG_CACHE_FILE = path_to_data_dir('library_tag_cache')
-        settings.LOCAL_MUSIC_PATH = path_to_data_dir('')
-
-        super(LocalLibraryControllerTest, self).setUp()
-
-    def tearDown(self):
-        settings.runtime.clear()
-
-        super(LocalLibraryControllerTest, self).tearDown()
+    config = {
+        'local': {
+            'music_path': path_to_data_dir(''),
+            'playlist_path': '',
+            'tag_cache_file': path_to_data_dir('library_tag_cache'),
+        }
+    }
diff --git a/tests/backends/local/playback_test.py b/tests/backends/local/playback_test.py
index e9b3954c..4c304590 100644
--- a/tests/backends/local/playback_test.py
+++ b/tests/backends/local/playback_test.py
@@ -1,6 +1,5 @@
 from __future__ import unicode_literals
 
-from mopidy import settings
 from mopidy.backends.local import actor
 from mopidy.core import PlaybackState
 from mopidy.models import Track
@@ -13,17 +12,15 @@ from tests.backends.local import generate_song
 
 class LocalPlaybackControllerTest(PlaybackControllerTest, unittest.TestCase):
     backend_class = actor.LocalBackend
+    config = {
+        'local': {
+            'music_path': path_to_data_dir(''),
+            'playlist_path': '',
+            'tag_cache_file': path_to_data_dir('empty_tag_cache'),
+        }
+    }
     tracks = [
         Track(uri=generate_song(i), length=4464) for i in range(1, 4)]
-    # TODO: setup config
-
-    def setUp(self):
-        settings.LOCAL_TAG_CACHE_FILE = path_to_data_dir('empty_tag_cache')
-        super(LocalPlaybackControllerTest, self).setUp()
-
-    def tearDown(self):
-        super(LocalPlaybackControllerTest, self).tearDown()
-        settings.runtime.clear()
 
     def add_track(self, path):
         uri = path_to_uri(path_to_data_dir(path))
diff --git a/tests/backends/local/playlists_test.py b/tests/backends/local/playlists_test.py
index 3dbc3a2a..8528adf4 100644
--- a/tests/backends/local/playlists_test.py
+++ b/tests/backends/local/playlists_test.py
@@ -1,8 +1,9 @@
 from __future__ import unicode_literals
 
 import os
+import shutil
+import tempfile
 
-from mopidy import settings
 from mopidy.backends.local import actor
 from mopidy.models import Track
 from mopidy.utils.path import path_to_uri
@@ -17,25 +18,34 @@ class LocalPlaylistsControllerTest(
         PlaylistsControllerTest, unittest.TestCase):
 
     backend_class = actor.LocalBackend
-    # TODO: setup config
+    config = {
+        'local': {
+            'music_path': path_to_data_dir(''),
+            'tag_cache_file': path_to_data_dir('library_tag_cache'),
+        }
+    }
 
     def setUp(self):
-        settings.LOCAL_TAG_CACHE_FILE = path_to_data_dir('empty_tag_cache')
+        self.config['local']['playlist_path'] = tempfile.mkdtemp()
+        self.playlist_path = self.config['local']['playlist_path']
+
         super(LocalPlaylistsControllerTest, self).setUp()
 
     def tearDown(self):
         super(LocalPlaylistsControllerTest, self).tearDown()
-        settings.runtime.clear()
+
+        if os.path.exists(self.playlist_path):
+            shutil.rmtree(self.playlist_path)
 
     def test_created_playlist_is_persisted(self):
-        path = os.path.join(settings.LOCAL_PLAYLIST_PATH, 'test.m3u')
+        path = os.path.join(self.playlist_path, 'test.m3u')
         self.assertFalse(os.path.exists(path))
 
         self.core.playlists.create('test')
         self.assertTrue(os.path.exists(path))
 
     def test_create_slugifies_playlist_name(self):
-        path = os.path.join(settings.LOCAL_PLAYLIST_PATH, 'test-foo-bar.m3u')
+        path = os.path.join(self.playlist_path, 'test-foo-bar.m3u')
         self.assertFalse(os.path.exists(path))
 
         playlist = self.core.playlists.create('test FOO baR')
@@ -43,7 +53,7 @@ class LocalPlaylistsControllerTest(
         self.assertTrue(os.path.exists(path))
 
     def test_create_slugifies_names_which_tries_to_change_directory(self):
-        path = os.path.join(settings.LOCAL_PLAYLIST_PATH, 'test-foo-bar.m3u')
+        path = os.path.join(self.playlist_path, 'test-foo-bar.m3u')
         self.assertFalse(os.path.exists(path))
 
         playlist = self.core.playlists.create('../../test FOO baR')
@@ -51,8 +61,8 @@ class LocalPlaylistsControllerTest(
         self.assertTrue(os.path.exists(path))
 
     def test_saved_playlist_is_persisted(self):
-        path1 = os.path.join(settings.LOCAL_PLAYLIST_PATH, 'test1.m3u')
-        path2 = os.path.join(settings.LOCAL_PLAYLIST_PATH, 'test2-foo-bar.m3u')
+        path1 = os.path.join(self.playlist_path, 'test1.m3u')
+        path2 = os.path.join(self.playlist_path, 'test2-foo-bar.m3u')
 
         playlist = self.core.playlists.create('test1')
 
@@ -67,7 +77,7 @@ class LocalPlaylistsControllerTest(
         self.assertTrue(os.path.exists(path2))
 
     def test_deleted_playlist_is_removed(self):
-        path = os.path.join(settings.LOCAL_PLAYLIST_PATH, 'test.m3u')
+        path = os.path.join(self.playlist_path, 'test.m3u')
         self.assertFalse(os.path.exists(path))
 
         playlist = self.core.playlists.create('test')
@@ -90,7 +100,7 @@ class LocalPlaylistsControllerTest(
         self.assertEqual(track_path, contents.strip())
 
     def test_playlists_are_loaded_at_startup(self):
-        playlist_path = os.path.join(settings.LOCAL_PLAYLIST_PATH, 'test.m3u')
+        playlist_path = os.path.join(self.playlist_path, 'test.m3u')
 
         track = Track(uri=path_to_uri(path_to_data_dir('uri2')))
         playlist = self.core.playlists.create('test')
diff --git a/tests/backends/local/tracklist_test.py b/tests/backends/local/tracklist_test.py
index 24c400fa..3fc8a0be 100644
--- a/tests/backends/local/tracklist_test.py
+++ b/tests/backends/local/tracklist_test.py
@@ -1,6 +1,5 @@
 from __future__ import unicode_literals
 
-from mopidy import settings
 from mopidy.backends.local import actor
 from mopidy.models import Track
 
@@ -11,14 +10,12 @@ from tests.backends.local import generate_song
 
 class LocalTracklistControllerTest(TracklistControllerTest, unittest.TestCase):
     backend_class = actor.LocalBackend
+    config = {
+        'local': {
+            'music_path': path_to_data_dir(''),
+            'playlist_path': '',
+            'tag_cache_file': path_to_data_dir('empty_tag_cache'),
+        }
+    }
     tracks = [
         Track(uri=generate_song(i), length=4464) for i in range(1, 4)]
-    # TODO: setup config
-
-    def setUp(self):
-        settings.LOCAL_TAG_CACHE_FILE = path_to_data_dir('empty_tag_cache')
-        super(LocalTracklistControllerTest, self).setUp()
-
-    def tearDown(self):
-        super(LocalTracklistControllerTest, self).tearDown()
-        settings.runtime.clear()