diff --git src/java/test/org/apache/zookeeper/test/SaslAuthFailNotifyTest.java src/java/test/org/apache/zookeeper/test/SaslAuthFailNotifyTest.java
new file mode 100644
index 0000000..2b00d86
--- /dev/null
+++ src/java/test/org/apache/zookeeper/test/SaslAuthFailNotifyTest.java
@@ -0,0 +1,98 @@
+/**
+ * Licensed to the Apache Software Foundation (ASF) under one
+ * or more contributor license agreements.  See the NOTICE file
+ * distributed with this work for additional information
+ * regarding copyright ownership.  The ASF licenses this file
+ * to you 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.
+ */
+
+package org.apache.zookeeper.test;
+
+import java.io.File;
+import java.io.FileWriter;
+import java.io.IOException;
+import java.util.concurrent.atomic.AtomicInteger;
+
+import org.apache.zookeeper.CreateMode;
+import org.apache.zookeeper.TestableZooKeeper;
+import org.apache.zookeeper.WatchedEvent;
+import org.apache.zookeeper.ZooKeeper;
+import org.apache.zookeeper.Watcher.Event.KeeperState;
+import org.apache.zookeeper.ZooDefs.Ids;
+import org.junit.Test;
+import org.junit.Assert;
+
+public class SaslAuthFailNotifyTest extends ClientBase {
+    static {
+        System.setProperty("zookeeper.authProvider.1","org.apache.zookeeper.server.auth.SASLAuthenticationProvider");
+        System.setProperty("zookeeper.allowSaslFailedClients","true");
+
+        try {
+            File tmpDir = createTmpDir();
+            File saslConfFile = new File(tmpDir, "jaas.conf");
+            FileWriter fwriter = new FileWriter(saslConfFile);
+
+            fwriter.write("" +
+                    "Server {\n" +
+                    "          org.apache.zookeeper.server.auth.DigestLoginModule required\n" +
+                    "          user_super=\"test\";\n" +
+                    "};\n" +
+                    "Client {\n" +
+                    "       org.apache.zookeeper.server.auth.DigestLoginModule required\n" +
+                    "       username=\"super\"\n" +
+                    "       password=\"test1\";\n" + // NOTE: wrong password ('test' != 'test1') : this is to test SASL authentication failure.
+                    "};" + "\n");
+            fwriter.close();
+            System.setProperty("java.security.auth.login.config",saslConfFile.getAbsolutePath());
+        }
+        catch (IOException e) {
+            // could not create tmp directory to hold JAAS conf file.
+        }
+    }
+
+    private AtomicInteger authFailed = new AtomicInteger(0);
+    
+    @Override
+    protected TestableZooKeeper createClient(String hp)
+    throws IOException, InterruptedException
+    {
+        MyWatcher watcher = new MyWatcher();
+        return createClient(watcher, hp);
+    }
+
+    private class MyWatcher extends CountdownWatcher {
+        @Override
+        public synchronized void process(WatchedEvent event) {
+            if (event.getState() == KeeperState.AuthFailed) {
+                synchronized(authFailed) {
+                    authFailed.incrementAndGet();
+                    authFailed.notify();
+                }
+            }
+            else {
+                super.process(event);
+            }
+        }
+    }
+
+    @Test
+    public void testBadSaslAuthNotifiesWatch() throws Exception {
+        ZooKeeper zk = createClient();
+        // wait for authFailed event from client's EventThread.
+        synchronized(authFailed) {
+            authFailed.wait();
+        }
+        Assert.assertEquals(authFailed.get(),1);
+        zk.close();
+    }
+}
diff --git src/java/test/org/apache/zookeeper/test/SaslAuthFailTest.java src/java/test/org/apache/zookeeper/test/SaslAuthFailTest.java
index 1589b1f..33a505e 100644
--- src/java/test/org/apache/zookeeper/test/SaslAuthFailTest.java
+++ src/java/test/org/apache/zookeeper/test/SaslAuthFailTest.java
@@ -59,43 +59,6 @@ public class SaslAuthFailTest extends ClientBase {
             // could not create tmp directory to hold JAAS conf file.
         }
     }
-
-    private AtomicInteger authFailed = new AtomicInteger(0);
-    
-    @Override
-    protected TestableZooKeeper createClient(String hp)
-    throws IOException, InterruptedException
-    {
-        MyWatcher watcher = new MyWatcher();
-        return createClient(watcher, hp);
-    }
-
-    private class MyWatcher extends CountdownWatcher {
-        @Override
-        public synchronized void process(WatchedEvent event) {
-            if (event.getState() == KeeperState.AuthFailed) {
-                synchronized(authFailed) {
-                    authFailed.incrementAndGet();
-                    authFailed.notify();
-                }
-            }
-            else {
-                super.process(event);
-            }
-        }
-    }
-
-    @Test
-    public void testBadSaslAuthNotifiesWatch() throws Exception {
-        ZooKeeper zk = createClient();
-        // wait for authFailed event from client's EventThread.
-        synchronized(authFailed) {
-            authFailed.wait();
-        }
-        Assert.assertEquals(authFailed.get(),1);
-        zk.close();
-    }
-
     
     @Test
     public void testAuthFail() throws Exception {