diff --git a/cinder/exception.py b/cinder/exception.py
index 7c2bdddc9c2..cf4add63119 100644
--- a/cinder/exception.py
+++ b/cinder/exception.py
@@ -637,3 +637,7 @@ class InvalidQoSSpecs(Invalid):
 
 class QoSSpecsInUse(CinderException):
     message = _("QoS Specs %(specs_id)s is still associated with entities.")
+
+
+class KeyManagerError(CinderException):
+    msg_fmt = _("key manager error: %(reason)s")
diff --git a/cinder/keymgr/__init__.py b/cinder/keymgr/__init__.py
index 5540c738cf2..f87e9f5b535 100644
--- a/cinder/keymgr/__init__.py
+++ b/cinder/keymgr/__init__.py
@@ -17,22 +17,17 @@
 from oslo.config import cfg
 
 from cinder.openstack.common import importutils
-from cinder.openstack.common import log as logging
 
 keymgr_opts = [
-    cfg.StrOpt('keymgr_api_class',
-               default='cinder.keymgr.'
-                       'not_implemented_key_mgr.NotImplementedKeyManager',
+    cfg.StrOpt('api_class',
+               default='cinder.keymgr.conf_key_mgr.ConfKeyManager',
                help='The full class name of the key manager API class'),
 ]
 
 CONF = cfg.CONF
-CONF.register_opts(keymgr_opts)
-
-LOG = logging.getLogger(__name__)
+CONF.register_opts(keymgr_opts, group='keymgr')
 
 
 def API():
-    keymgr_api_class = CONF.keymgr_api_class
-    cls = importutils.import_class(keymgr_api_class)
+    cls = importutils.import_class(CONF.keymgr.api_class)
     return cls()
diff --git a/cinder/keymgr/conf_key_mgr.py b/cinder/keymgr/conf_key_mgr.py
new file mode 100644
index 00000000000..7b53e0cb49c
--- /dev/null
+++ b/cinder/keymgr/conf_key_mgr.py
@@ -0,0 +1,137 @@
+# vim: tabstop=4 shiftwidth=4 softtabstop=4
+# Copyright (c) 2013 The Johns Hopkins University/Applied Physics Laboratory
+# All Rights Reserved.
+#
+#    Licensed under the Apache License, Version 2.0 (the "License"); you may
+#    not use this file except in compliance with the License. You may obtain
+#    a copy of the License at
+#
+#         http://www.apache.org/licenses/LICENSE-2.0
+#
+#    Unless required by applicable law or agreed to in writing, software
+#    distributed under the License is distributed on an "AS IS" BASIS, WITHOUT
+#    WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied. See the
+#    License for the specific language governing permissions and limitations
+#    under the License.
+
+"""
+An implementation of a key manager that reads its key from the project's
+configuration options.
+
+This key manager implementation provides limited security, assuming that the
+key remains secret. Using the volume encryption feature as an example,
+encryption provides protection against a lost or stolen disk, assuming that
+the configuration file that contains the key is not stored on the disk.
+Encryption also protects the confidentiality of data as it is transmitted via
+iSCSI from the compute host to the storage host (again assuming that an
+attacker who intercepts the data does not know the secret key).
+
+Because this implementation uses a single, fixed key, it proffers no
+protection once that key is compromised. In particular, different volumes
+encrypted with a key provided by this key manager actually share the same
+encryption key so *any* volume can be decrypted once the fixed key is known.
+"""
+
+import array
+
+from oslo.config import cfg
+
+from cinder import exception
+from cinder.keymgr import key
+from cinder.keymgr import key_mgr
+from cinder.openstack.common.gettextutils import _
+from cinder.openstack.common import log as logging
+
+
+key_mgr_opts = [
+    cfg.StrOpt('fixed_key',
+               help='Fixed key returned by key manager, specified in hex'),
+]
+
+CONF = cfg.CONF
+CONF.register_opts(key_mgr_opts, group='keymgr')
+
+
+LOG = logging.getLogger(__name__)
+
+
+class ConfKeyManager(key_mgr.KeyManager):
+    """
+    This key manager implementation supports all the methods specified by the
+    key manager interface. This implementation creates a single key in response
+    to all invocations of create_key. Side effects (e.g., raising exceptions)
+    for each method are handled as specified by the key manager interface.
+    """
+
+    def __init__(self):
+        LOG.warn(_('This key manager is insecure and is not recommended for '
+                   'production deployments'))
+        super(ConfKeyManager, self).__init__()
+
+        self.key_id = '00000000-0000-0000-0000-000000000000'
+        if CONF.keymgr.fixed_key is None:
+            LOG.warn(_('config option keymgr.fixed_key has not been defined: '
+                       'some operations may fail unexpectedly'))
+
+    def _generate_key(self, **kwargs):
+        _hex = self._generate_hex_key(**kwargs)
+        return key.SymmetricKey('AES',
+                                array.array('B', _hex.decode('hex')).tolist())
+
+    def _generate_hex_key(self, **kwargs):
+        if CONF.keymgr.fixed_key is None:
+            raise ValueError(_('keymgr.fixed_key not defined'))
+        return CONF.keymgr.fixed_key
+
+    def create_key(self, ctxt, **kwargs):
+        """Creates a key.
+
+        This implementation returns a UUID for the created key. A
+        NotAuthorized exception is raised if the specified context is None.
+        """
+        if ctxt is None:
+            raise exception.NotAuthorized()
+
+        return self.key_id
+
+    def store_key(self, ctxt, key, **kwargs):
+        """Stores (i.e., registers) a key with the key manager."""
+        if ctxt is None:
+            raise exception.NotAuthorized()
+
+        if key != self._generate_key():
+            raise exception.KeyManagerError(
+                reason="cannot store arbitrary keys")
+
+        return self.key_id
+
+    def copy_key(self, ctxt, key_id, **kwargs):
+        if ctxt is None:
+            raise exception.NotAuthorized()
+
+        return self.key_id
+
+    def get_key(self, ctxt, key_id, **kwargs):
+        """Retrieves the key identified by the specified id.
+
+        This implementation returns the key that is associated with the
+        specified UUID. A NotAuthorized exception is raised if the specified
+        context is None; a KeyError is raised if the UUID is invalid.
+        """
+        if ctxt is None:
+            raise exception.NotAuthorized()
+
+        if key_id != self.key_id:
+            raise KeyError(key_id)
+
+        return self._generate_key()
+
+    def delete_key(self, ctxt, key_id, **kwargs):
+        if ctxt is None:
+            raise exception.NotAuthorized()
+
+        if key_id != self.key_id:
+            raise exception.KeyManagerError(
+                reason="cannot delete non-existent key")
+
+        LOG.warn(_("Not deleting key %s"), key_id)
diff --git a/cinder/keymgr/key.py b/cinder/keymgr/key.py
index 3e3f1394122..644cf34c4d5 100644
--- a/cinder/keymgr/key.py
+++ b/cinder/keymgr/key.py
@@ -79,3 +79,15 @@ class SymmetricKey(Key):
     def get_encoded(self):
         """Returns the key in its encoded format."""
         return self.key
+
+    def __eq__(self, other):
+        if isinstance(other, SymmetricKey):
+            return (self.alg == other.alg and
+                    self.key == other.key)
+        return NotImplemented
+
+    def __ne__(self, other):
+        result = self.__eq__(other)
+        if result is NotImplemented:
+            return result
+        return not result
diff --git a/cinder/tests/conf_fixture.py b/cinder/tests/conf_fixture.py
index 499f332630b..dbf8d08c783 100644
--- a/cinder/tests/conf_fixture.py
+++ b/cinder/tests/conf_fixture.py
@@ -48,3 +48,6 @@ def set_defaults(conf):
         'xiv_ds8k_proxy',
         'cinder.tests.test_xiv_ds8k.XIVDS8KFakeProxyDriver')
     conf.set_default('backup_driver', 'cinder.tests.backup.fake_service')
+    # NOTE(joel-coffman): This option for the ConfKeyManager must be set or
+    # else the ConfKeyManager cannot be instantiated.
+    conf.set_default('fixed_key', default='0' * 64, group='keymgr')
diff --git a/cinder/tests/keymgr/mock_key_mgr.py b/cinder/tests/keymgr/mock_key_mgr.py
index 62b7c4a3d61..9c5fd1d088a 100644
--- a/cinder/tests/keymgr/mock_key_mgr.py
+++ b/cinder/tests/keymgr/mock_key_mgr.py
@@ -15,8 +15,16 @@
 #    under the License.
 
 """
-A mock implementation of a key manager. This module should NOT be used for
-anything but integration testing.
+A mock implementation of a key manager that stores keys in a dictionary.
+
+This key manager implementation is primarily intended for testing. In
+particular, it does not store keys persistently. Lack of a centralized key
+store also makes this implementation unsuitable for use among different
+services.
+
+Note: Instantiating this class multiple times will create separate key stores.
+Keys created in one instance will not be accessible from other instances of
+this class.
 """
 
 import array
@@ -24,16 +32,11 @@ import array
 from cinder import exception
 from cinder.keymgr import key
 from cinder.keymgr import key_mgr
-from cinder.openstack.common import log as logging
 from cinder.openstack.common import uuidutils
 from cinder import utils
 
 
-LOG = logging.getLogger(__name__)
-
-
 class MockKeyManager(key_mgr.KeyManager):
-
     """
     This mock key manager implementation supports all the methods specified
     by the key manager interface. This implementation stores keys within a
@@ -41,13 +44,24 @@ class MockKeyManager(key_mgr.KeyManager):
     services. Side effects (e.g., raising exceptions) for each method are
     handled as specified by the key manager interface.
 
-    This class should NOT be used for anything but integration testing because
-    keys are not stored persistently.
+    This key manager is not suitable for use in production deployments.
     """
 
     def __init__(self):
         self.keys = {}
 
+    def _generate_hex_key(self, **kwargs):
+        key_length = kwargs.get('key_length', 256)
+        # hex digit => 4 bits
+        hex_encoded = utils.generate_password(length=key_length / 4,
+                                              symbolgroups='0123456789ABCDEF')
+        return hex_encoded
+
+    def _generate_key(self, **kwargs):
+        _hex = self._generate_hex_key(**kwargs)
+        return key.SymmetricKey('AES',
+                                array.array('B', _hex.decode('hex')).tolist())
+
     def create_key(self, ctxt, **kwargs):
         """Creates a key.
 
@@ -57,16 +71,8 @@ class MockKeyManager(key_mgr.KeyManager):
         if ctxt is None:
             raise exception.NotAuthorized()
 
-        # generate the key
-        key_length = kwargs.get('key_length', 256)
-        # hex digit => 4 bits
-        hex_string = utils.generate_password(length=key_length / 4,
-                                             symbolgroups='0123456789ABCDEF')
-
-        _bytes = array.array('B', hex_string.decode('hex')).tolist()
-        _key = key.SymmetricKey('AES', _bytes)
-
-        return self.store_key(ctxt, _key)
+        key = self._generate_key(**kwargs)
+        return self.store_key(ctxt, key)
 
     def _generate_key_id(self):
         key_id = uuidutils.generate_uuid()
@@ -76,8 +82,7 @@ class MockKeyManager(key_mgr.KeyManager):
         return key_id
 
     def store_key(self, ctxt, key, **kwargs):
-        """Stores (i.e., registers) a key with the key manager.
-        """
+        """Stores (i.e., registers) a key with the key manager."""
         if ctxt is None:
             raise exception.NotAuthorized()
 
diff --git a/cinder/tests/keymgr/test_conf_key_mgr.py b/cinder/tests/keymgr/test_conf_key_mgr.py
new file mode 100644
index 00000000000..eb846aafa7e
--- /dev/null
+++ b/cinder/tests/keymgr/test_conf_key_mgr.py
@@ -0,0 +1,124 @@
+# vim: tabstop=4 shiftwidth=4 softtabstop=4
+# Copyright (c) 2013 The Johns Hopkins University/Applied Physics Laboratory
+# All Rights Reserved.
+#
+#    Licensed under the Apache License, Version 2.0 (the "License"); you may
+#    not use this file except in compliance with the License. You may obtain
+#    a copy of the License at
+#
+#         http://www.apache.org/licenses/LICENSE-2.0
+#
+#    Unless required by applicable law or agreed to in writing, software
+#    distributed under the License is distributed on an "AS IS" BASIS, WITHOUT
+#    WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied. See the
+#    License for the specific language governing permissions and limitations
+#    under the License.
+
+"""
+Test cases for the conf key manager.
+"""
+
+import array
+
+from oslo.config import cfg
+
+from cinder import context
+from cinder import exception
+from cinder.keymgr import conf_key_mgr
+from cinder.keymgr import key
+from cinder.tests.keymgr import test_key_mgr
+
+
+CONF = cfg.CONF
+CONF.import_opt('fixed_key', 'cinder.keymgr.conf_key_mgr', group='keymgr')
+
+
+class ConfKeyManagerTestCase(test_key_mgr.KeyManagerTestCase):
+    def __init__(self, *args, **kwargs):
+        super(ConfKeyManagerTestCase, self).__init__(*args, **kwargs)
+
+        self._hex_key = '1' * 64
+
+    def _create_key_manager(self):
+        CONF.set_default('fixed_key', default=self._hex_key, group='keymgr')
+        return conf_key_mgr.ConfKeyManager()
+
+    def setUp(self):
+        super(ConfKeyManagerTestCase, self).setUp()
+
+        self.ctxt = context.RequestContext('fake', 'fake')
+
+        self.key_id = '00000000-0000-0000-0000-000000000000'
+        encoded = array.array('B', self._hex_key.decode('hex')).tolist()
+        self.key = key.SymmetricKey('AES', encoded)
+
+    def test___init__(self):
+        self.assertEqual(self.key_id, self.key_mgr.key_id)
+
+    def test_create_key(self):
+        key_id_1 = self.key_mgr.create_key(self.ctxt)
+        key_id_2 = self.key_mgr.create_key(self.ctxt)
+        # ensure that the UUIDs are the same
+        self.assertEqual(key_id_1, key_id_2)
+
+    def test_create_null_context(self):
+        self.assertRaises(exception.NotAuthorized,
+                          self.key_mgr.create_key, None)
+
+    def test_store_key(self):
+        key_id = self.key_mgr.store_key(self.ctxt, self.key)
+
+        actual_key = self.key_mgr.get_key(self.ctxt, key_id)
+        self.assertEqual(self.key, actual_key)
+
+    def test_store_null_context(self):
+        self.assertRaises(exception.NotAuthorized,
+                          self.key_mgr.store_key, None, self.key)
+
+    def test_store_key_invalid(self):
+        encoded = self.key.get_encoded()
+        inverse_key = key.SymmetricKey('AES', [~b for b in encoded])
+
+        self.assertRaises(exception.KeyManagerError,
+                          self.key_mgr.store_key, self.ctxt, inverse_key)
+
+    def test_copy_key(self):
+        key_id = self.key_mgr.create_key(self.ctxt)
+        key = self.key_mgr.get_key(self.ctxt, key_id)
+
+        copied_key_id = self.key_mgr.copy_key(self.ctxt, key_id)
+        copied_key = self.key_mgr.get_key(self.ctxt, copied_key_id)
+
+        self.assertEqual(key_id, copied_key_id)
+        self.assertEqual(key, copied_key)
+
+    def test_copy_null_context(self):
+        self.assertRaises(exception.NotAuthorized,
+                          self.key_mgr.copy_key, None, None)
+
+    def test_delete_key(self):
+        key_id = self.key_mgr.create_key(self.ctxt)
+        self.key_mgr.delete_key(self.ctxt, key_id)
+
+        # cannot delete key -- might have lingering references
+        self.assertEqual(self.key,
+                         self.key_mgr.get_key(self.ctxt, self.key_id))
+
+    def test_delete_null_context(self):
+        self.assertRaises(exception.NotAuthorized,
+                          self.key_mgr.delete_key, None, None)
+
+    def test_delete_unknown_key(self):
+        self.assertRaises(exception.KeyManagerError,
+                          self.key_mgr.delete_key, self.ctxt, None)
+
+    def test_get_key(self):
+        self.assertEqual(self.key,
+                         self.key_mgr.get_key(self.ctxt, self.key_id))
+
+    def test_get_null_context(self):
+        self.assertRaises(exception.NotAuthorized,
+                          self.key_mgr.get_key, None, None)
+
+    def test_get_unknown_key(self):
+        self.assertRaises(KeyError, self.key_mgr.get_key, self.ctxt, None)
diff --git a/cinder/tests/keymgr/test_key.py b/cinder/tests/keymgr/test_key.py
index 63dd4effeeb..1355164929a 100644
--- a/cinder/tests/keymgr/test_key.py
+++ b/cinder/tests/keymgr/test_key.py
@@ -55,3 +55,15 @@ class SymmetricKeyTestCase(KeyTestCase):
 
     def test_get_encoded(self):
         self.assertEqual(self.key.get_encoded(), self.encoded)
+
+    def test___eq__(self):
+        self.assertTrue(self.key == self.key)
+
+        self.assertFalse(self.key == None)
+        self.assertFalse(None == self.key)
+
+    def test___ne__(self):
+        self.assertFalse(self.key != self.key)
+
+        self.assertTrue(self.key != None)
+        self.assertTrue(None != self.key)
diff --git a/cinder/tests/keymgr/test_key_mgr.py b/cinder/tests/keymgr/test_key_mgr.py
index 72cf24f1152..7179d408917 100644
--- a/cinder/tests/keymgr/test_key_mgr.py
+++ b/cinder/tests/keymgr/test_key_mgr.py
@@ -23,6 +23,8 @@ from cinder import test
 
 
 class KeyManagerTestCase(test.TestCase):
+    def __init__(self, *args, **kwargs):
+        super(KeyManagerTestCase, self).__init__(*args, **kwargs)
 
     def _create_key_manager(self):
         raise NotImplementedError()
diff --git a/etc/cinder/cinder.conf.sample b/etc/cinder/cinder.conf.sample
index 5b2dcae6a56..ff2bba96325 100644
--- a/etc/cinder/cinder.conf.sample
+++ b/etc/cinder/cinder.conf.sample
@@ -509,7 +509,16 @@
 
 # The full class name of the key manager API class (string
 # value)
-#keymgr_api_class=cinder.keymgr.not_implemented_key_mgr.NotImplementedKeyManager
+#api_class=cinder.keymgr.conf_key_mgr.ConfKeyManager
+
+
+#
+# Options defined in cinder.keymgr.conf_key_mgr
+#
+
+# Fixed key returned by key manager, specified in hex (string
+# value)
+#fixed_key=<None>
 
 
 #
@@ -1769,4 +1778,4 @@
 #volume_dd_blocksize=1M
 
 
-# Total option count: 381
+# Total option count: 382