diff --git a/acceptance-tests/src/test/java/tech/pegasys/pantheon/tests/acceptance/dsl/node/PantheonNode.java b/acceptance-tests/src/test/java/tech/pegasys/pantheon/tests/acceptance/dsl/node/PantheonNode.java
index 8ceba60b15..1a1df67164 100644
--- a/acceptance-tests/src/test/java/tech/pegasys/pantheon/tests/acceptance/dsl/node/PantheonNode.java
+++ b/acceptance-tests/src/test/java/tech/pegasys/pantheon/tests/acceptance/dsl/node/PantheonNode.java
@@ -23,7 +23,7 @@
 import tech.pegasys.pantheon.ethereum.core.Util;
 import tech.pegasys.pantheon.ethereum.jsonrpc.JsonRpcConfiguration;
 import tech.pegasys.pantheon.ethereum.jsonrpc.websocket.WebSocketConfiguration;
-import tech.pegasys.pantheon.ethereum.permissioning.LocalPermissioningConfiguration;
+import tech.pegasys.pantheon.ethereum.permissioning.PermissioningConfiguration;
 import tech.pegasys.pantheon.metrics.prometheus.MetricsConfiguration;
 import tech.pegasys.pantheon.tests.acceptance.dsl.condition.Condition;
 import tech.pegasys.pantheon.tests.acceptance.dsl.httptransaction.HttpRequestFactory;
@@ -83,7 +83,7 @@ public class PantheonNode implements NodeConfiguration, RunnableNode, AutoClosea
   private final JsonRpcConfiguration jsonRpcConfiguration;
   private final WebSocketConfiguration webSocketConfiguration;
   private final MetricsConfiguration metricsConfiguration;
-  private final Optional<LocalPermissioningConfiguration> permissioningConfiguration;
+  private final Optional<PermissioningConfiguration> permissioningConfiguration;
   private final GenesisConfigProvider genesisConfigProvider;
   private final boolean devMode;
   private final boolean discoveryEnabled;
@@ -103,7 +103,7 @@ public PantheonNode(
       final JsonRpcConfiguration jsonRpcConfiguration,
       final WebSocketConfiguration webSocketConfiguration,
       final MetricsConfiguration metricsConfiguration,
-      final Optional<LocalPermissioningConfiguration> permissioningConfiguration,
+      final Optional<PermissioningConfiguration> permissioningConfiguration,
       final boolean devMode,
       final GenesisConfigProvider genesisConfigProvider,
       final boolean p2pEnabled,
@@ -472,7 +472,7 @@ public boolean isDiscoveryEnabled() {
     return discoveryEnabled;
   }
 
-  Optional<LocalPermissioningConfiguration> getPermissioningConfiguration() {
+  Optional<PermissioningConfiguration> getPermissioningConfiguration() {
     return permissioningConfiguration;
   }
 
diff --git a/acceptance-tests/src/test/java/tech/pegasys/pantheon/tests/acceptance/dsl/node/ProcessPantheonNodeRunner.java b/acceptance-tests/src/test/java/tech/pegasys/pantheon/tests/acceptance/dsl/node/ProcessPantheonNodeRunner.java
index 7958836e07..1770e2f502 100644
--- a/acceptance-tests/src/test/java/tech/pegasys/pantheon/tests/acceptance/dsl/node/ProcessPantheonNodeRunner.java
+++ b/acceptance-tests/src/test/java/tech/pegasys/pantheon/tests/acceptance/dsl/node/ProcessPantheonNodeRunner.java
@@ -16,6 +16,7 @@
 
 import tech.pegasys.pantheon.ethereum.jsonrpc.RpcApi;
 import tech.pegasys.pantheon.ethereum.jsonrpc.RpcApis;
+import tech.pegasys.pantheon.ethereum.permissioning.PermissioningConfiguration;
 
 import java.io.BufferedReader;
 import java.io.File;
@@ -145,6 +146,7 @@ public void startNode(final PantheonNode node) {
     }
 
     node.getPermissioningConfiguration()
+        .flatMap(PermissioningConfiguration::getLocalConfig)
         .ifPresent(
             permissioningConfiguration -> {
               if (permissioningConfiguration.isNodeWhitelistEnabled()) {
diff --git a/acceptance-tests/src/test/java/tech/pegasys/pantheon/tests/acceptance/dsl/node/factory/PantheonFactoryConfiguration.java b/acceptance-tests/src/test/java/tech/pegasys/pantheon/tests/acceptance/dsl/node/factory/PantheonFactoryConfiguration.java
index 0c693e8983..0bd5366bb2 100644
--- a/acceptance-tests/src/test/java/tech/pegasys/pantheon/tests/acceptance/dsl/node/factory/PantheonFactoryConfiguration.java
+++ b/acceptance-tests/src/test/java/tech/pegasys/pantheon/tests/acceptance/dsl/node/factory/PantheonFactoryConfiguration.java
@@ -16,7 +16,7 @@
 import tech.pegasys.pantheon.ethereum.core.PrivacyParameters;
 import tech.pegasys.pantheon.ethereum.jsonrpc.JsonRpcConfiguration;
 import tech.pegasys.pantheon.ethereum.jsonrpc.websocket.WebSocketConfiguration;
-import tech.pegasys.pantheon.ethereum.permissioning.LocalPermissioningConfiguration;
+import tech.pegasys.pantheon.ethereum.permissioning.PermissioningConfiguration;
 import tech.pegasys.pantheon.metrics.prometheus.MetricsConfiguration;
 import tech.pegasys.pantheon.tests.acceptance.dsl.node.GenesisConfigProvider;
 
@@ -30,7 +30,7 @@ class PantheonFactoryConfiguration {
   private final JsonRpcConfiguration jsonRpcConfiguration;
   private final WebSocketConfiguration webSocketConfiguration;
   private final MetricsConfiguration metricsConfiguration;
-  private final Optional<LocalPermissioningConfiguration> permissioningConfiguration;
+  private final Optional<PermissioningConfiguration> permissioningConfiguration;
   private final boolean devMode;
   private final GenesisConfigProvider genesisConfigProvider;
   private final boolean p2pEnabled;
@@ -44,7 +44,7 @@ class PantheonFactoryConfiguration {
       final JsonRpcConfiguration jsonRpcConfiguration,
       final WebSocketConfiguration webSocketConfiguration,
       final MetricsConfiguration metricsConfiguration,
-      final Optional<LocalPermissioningConfiguration> permissioningConfiguration,
+      final Optional<PermissioningConfiguration> permissioningConfiguration,
       final boolean devMode,
       final GenesisConfigProvider genesisConfigProvider,
       final boolean p2pEnabled,
@@ -88,7 +88,7 @@ public MetricsConfiguration getMetricsConfiguration() {
     return metricsConfiguration;
   }
 
-  public Optional<LocalPermissioningConfiguration> getPermissioningConfiguration() {
+  public Optional<PermissioningConfiguration> getPermissioningConfiguration() {
     return permissioningConfiguration;
   }
 
diff --git a/acceptance-tests/src/test/java/tech/pegasys/pantheon/tests/acceptance/dsl/node/factory/PantheonFactoryConfigurationBuilder.java b/acceptance-tests/src/test/java/tech/pegasys/pantheon/tests/acceptance/dsl/node/factory/PantheonFactoryConfigurationBuilder.java
index 4ce1c83bfd..2955af4126 100644
--- a/acceptance-tests/src/test/java/tech/pegasys/pantheon/tests/acceptance/dsl/node/factory/PantheonFactoryConfigurationBuilder.java
+++ b/acceptance-tests/src/test/java/tech/pegasys/pantheon/tests/acceptance/dsl/node/factory/PantheonFactoryConfigurationBuilder.java
@@ -20,7 +20,7 @@
 import tech.pegasys.pantheon.ethereum.jsonrpc.JsonRpcConfiguration;
 import tech.pegasys.pantheon.ethereum.jsonrpc.RpcApis;
 import tech.pegasys.pantheon.ethereum.jsonrpc.websocket.WebSocketConfiguration;
-import tech.pegasys.pantheon.ethereum.permissioning.LocalPermissioningConfiguration;
+import tech.pegasys.pantheon.ethereum.permissioning.PermissioningConfiguration;
 import tech.pegasys.pantheon.metrics.prometheus.MetricsConfiguration;
 import tech.pegasys.pantheon.tests.acceptance.dsl.node.GenesisConfigProvider;
 
@@ -38,7 +38,7 @@ public class PantheonFactoryConfigurationBuilder {
   private JsonRpcConfiguration jsonRpcConfiguration = JsonRpcConfiguration.createDefault();
   private WebSocketConfiguration webSocketConfiguration = WebSocketConfiguration.createDefault();
   private MetricsConfiguration metricsConfiguration = MetricsConfiguration.createDefault();
-  private Optional<LocalPermissioningConfiguration> permissioningConfiguration = Optional.empty();
+  private Optional<PermissioningConfiguration> permissioningConfiguration = Optional.empty();
   private boolean devMode = true;
   private GenesisConfigProvider genesisConfigProvider = ignore -> Optional.empty();
   private Boolean p2pEnabled = true;
@@ -137,7 +137,7 @@ public PantheonFactoryConfigurationBuilder webSocketAuthenticationEnabled()
   }
 
   public PantheonFactoryConfigurationBuilder setPermissioningConfiguration(
-      final LocalPermissioningConfiguration permissioningConfiguration) {
+      final PermissioningConfiguration permissioningConfiguration) {
     this.permissioningConfiguration = Optional.of(permissioningConfiguration);
     return this;
   }
diff --git a/acceptance-tests/src/test/java/tech/pegasys/pantheon/tests/acceptance/dsl/node/factory/PantheonNodeFactory.java b/acceptance-tests/src/test/java/tech/pegasys/pantheon/tests/acceptance/dsl/node/factory/PantheonNodeFactory.java
index a3f50f93d4..506cae280f 100644
--- a/acceptance-tests/src/test/java/tech/pegasys/pantheon/tests/acceptance/dsl/node/factory/PantheonNodeFactory.java
+++ b/acceptance-tests/src/test/java/tech/pegasys/pantheon/tests/acceptance/dsl/node/factory/PantheonNodeFactory.java
@@ -27,6 +27,7 @@
 import tech.pegasys.pantheon.ethereum.jsonrpc.RpcApis;
 import tech.pegasys.pantheon.ethereum.jsonrpc.websocket.WebSocketConfiguration;
 import tech.pegasys.pantheon.ethereum.permissioning.LocalPermissioningConfiguration;
+import tech.pegasys.pantheon.ethereum.permissioning.PermissioningConfiguration;
 import tech.pegasys.pantheon.ethereum.permissioning.WhitelistPersistor;
 import tech.pegasys.pantheon.ethereum.permissioning.WhitelistPersistor.WHITELIST_TYPE;
 import tech.pegasys.pantheon.tests.acceptance.dsl.node.GenesisConfigProvider;
@@ -183,11 +184,15 @@ public PantheonNode createNodeWithWhitelistsEnabled(
       final List<String> accountsWhitelist,
       final String tempFilePath)
       throws IOException {
-    final LocalPermissioningConfiguration permissioningConfiguration =
+    final LocalPermissioningConfiguration localPermissioningConfiguration =
         LocalPermissioningConfiguration.createDefault();
-    permissioningConfiguration.setNodeWhitelist(nodesWhitelist);
-    permissioningConfiguration.setAccountWhitelist(accountsWhitelist);
-    permissioningConfiguration.setConfigurationFilePath(tempFilePath);
+    localPermissioningConfiguration.setNodeWhitelist(nodesWhitelist);
+    localPermissioningConfiguration.setAccountWhitelist(accountsWhitelist);
+    localPermissioningConfiguration.setConfigurationFilePath(tempFilePath);
+
+    final PermissioningConfiguration permissioningConfiguration =
+        new PermissioningConfiguration(
+            Optional.of(localPermissioningConfiguration), Optional.empty());
 
     return create(
         new PantheonFactoryConfigurationBuilder()
@@ -204,18 +209,22 @@ public PantheonNode createNodeWithNodesWhitelist(
 
   public PantheonNode createNodeWithNodesWhitelist(
       final String name, final List<URI> nodesWhitelist) throws IOException {
-    final LocalPermissioningConfiguration permissioningConfiguration =
+    final LocalPermissioningConfiguration localPermissioningConfiguration =
         LocalPermissioningConfiguration.createDefault();
-    permissioningConfiguration.setNodeWhitelist(nodesWhitelist);
+    localPermissioningConfiguration.setNodeWhitelist(nodesWhitelist);
 
     final List<String> whitelistAsStrings =
         nodesWhitelist.parallelStream().map(URI::toString).collect(toList());
     final File tempFile = createTempPermissioningConfigurationFile();
     tempFile.deleteOnExit();
-    permissioningConfiguration.setConfigurationFilePath(tempFile.getPath());
+    localPermissioningConfiguration.setConfigurationFilePath(tempFile.getPath());
     initPermissioningConfigurationFile(
         WhitelistPersistor.WHITELIST_TYPE.NODES, whitelistAsStrings, tempFile.toPath());
 
+    final PermissioningConfiguration permissioningConfiguration =
+        new PermissioningConfiguration(
+            Optional.of(localPermissioningConfiguration), Optional.empty());
+
     return create(
         new PantheonFactoryConfigurationBuilder()
             .setName(name)
@@ -241,18 +250,22 @@ private void initPermissioningConfigurationFile(
 
   public PantheonNode createNodeWithAccountsWhitelist(
       final String name, final List<String> accountsWhitelist) throws IOException {
-    final LocalPermissioningConfiguration permissioningConfiguration =
+    final LocalPermissioningConfiguration localPermissioningConfiguration =
         LocalPermissioningConfiguration.createDefault();
-    permissioningConfiguration.setAccountWhitelist(accountsWhitelist);
-    permissioningConfiguration.setConfigurationFilePath(
+    localPermissioningConfiguration.setAccountWhitelist(accountsWhitelist);
+    localPermissioningConfiguration.setConfigurationFilePath(
         createTempPermissioningConfigurationFile().getPath());
 
     final File tempFile = createTempPermissioningConfigurationFile();
     tempFile.deleteOnExit();
-    permissioningConfiguration.setConfigurationFilePath(tempFile.getPath());
+    localPermissioningConfiguration.setConfigurationFilePath(tempFile.getPath());
     initPermissioningConfigurationFile(
         WHITELIST_TYPE.ACCOUNTS, accountsWhitelist, tempFile.toPath());
 
+    final PermissioningConfiguration permissioningConfiguration =
+        new PermissioningConfiguration(
+            Optional.of(localPermissioningConfiguration), Optional.empty());
+
     return create(
         new PantheonFactoryConfigurationBuilder()
             .setName(name)
diff --git a/build.gradle b/build.gradle
index 4586e6b0fd..889dd550d0 100644
--- a/build.gradle
+++ b/build.gradle
@@ -14,11 +14,11 @@
 import net.ltgt.gradle.errorprone.CheckSeverity
 
 plugins {
-  id 'com.diffplug.gradle.spotless' version '3.17.0'
+  id 'com.diffplug.gradle.spotless' version '3.19.0'
   id 'com.jfrog.bintray' version '1.8.4'
-  id 'com.github.ben-manes.versions' version '0.20.0'
+  id 'com.github.ben-manes.versions' version '0.21.0'
   id 'com.github.hierynomus.license' version '0.15.0'
-  id 'io.spring.dependency-management' version '1.0.6.RELEASE'
+  id 'io.spring.dependency-management' version '1.0.7.RELEASE'
   id 'me.champeau.gradle.jmh' version '0.4.8' apply false
   id 'net.ltgt.errorprone' version '0.6.1'
   id 'net.researchgate.release' version '2.7.0'
diff --git a/ethereum/eth/src/test/java/tech/pegasys/pantheon/ethereum/eth/sync/worldstate/WorldStateDownloaderTest.java b/ethereum/eth/src/test/java/tech/pegasys/pantheon/ethereum/eth/sync/worldstate/WorldStateDownloaderTest.java
index 6b6b324201..c6dc4ae033 100644
--- a/ethereum/eth/src/test/java/tech/pegasys/pantheon/ethereum/eth/sync/worldstate/WorldStateDownloaderTest.java
+++ b/ethereum/eth/src/test/java/tech/pegasys/pantheon/ethereum/eth/sync/worldstate/WorldStateDownloaderTest.java
@@ -86,10 +86,14 @@
 
 import com.google.common.util.concurrent.ThreadFactoryBuilder;
 import org.junit.After;
+import org.junit.Rule;
 import org.junit.Test;
+import org.junit.rules.Timeout;
 
 public class WorldStateDownloaderTest {
 
+  @Rule public Timeout globalTimeout = Timeout.seconds(60); // 1 minute max per test
+
   private static final Hash EMPTY_TRIE_ROOT = Hash.wrap(MerklePatriciaTrie.EMPTY_TRIE_NODE_HASH);
 
   private final BlockDataGenerator dataGen = new BlockDataGenerator(1);
diff --git a/ethereum/eth/src/test/java/tech/pegasys/pantheon/ethereum/eth/transactions/TestNode.java b/ethereum/eth/src/test/java/tech/pegasys/pantheon/ethereum/eth/transactions/TestNode.java
index 9a203b93bf..c86b3a3bda 100644
--- a/ethereum/eth/src/test/java/tech/pegasys/pantheon/ethereum/eth/transactions/TestNode.java
+++ b/ethereum/eth/src/test/java/tech/pegasys/pantheon/ethereum/eth/transactions/TestNode.java
@@ -123,6 +123,7 @@ public TestNode(
                         () -> true,
                         new PeerBlacklist(),
                         new NoOpMetricsSystem(),
+                        Optional.empty(),
                         Optional.empty()))
             .metricsSystem(new NoOpMetricsSystem())
             .build();
diff --git a/ethereum/p2p/src/main/java/tech/pegasys/pantheon/ethereum/p2p/discovery/PeerDiscoveryAgent.java b/ethereum/p2p/src/main/java/tech/pegasys/pantheon/ethereum/p2p/discovery/PeerDiscoveryAgent.java
index a0af74bbb7..3277a5c7a8 100644
--- a/ethereum/p2p/src/main/java/tech/pegasys/pantheon/ethereum/p2p/discovery/PeerDiscoveryAgent.java
+++ b/ethereum/p2p/src/main/java/tech/pegasys/pantheon/ethereum/p2p/discovery/PeerDiscoveryAgent.java
@@ -35,6 +35,7 @@
 import tech.pegasys.pantheon.ethereum.p2p.peers.PeerBlacklist;
 import tech.pegasys.pantheon.ethereum.p2p.wire.messages.DisconnectMessage;
 import tech.pegasys.pantheon.ethereum.permissioning.NodeLocalConfigPermissioningController;
+import tech.pegasys.pantheon.ethereum.permissioning.node.NodePermissioningController;
 import tech.pegasys.pantheon.util.NetworkUtility;
 import tech.pegasys.pantheon.util.Subscribers;
 import tech.pegasys.pantheon.util.bytes.BytesValue;
@@ -71,6 +72,7 @@ public abstract class PeerDiscoveryAgent implements DisconnectCallback {
   private final PeerRequirement peerRequirement;
   private final PeerBlacklist peerBlacklist;
   private final Optional<NodeLocalConfigPermissioningController> nodeWhitelistController;
+  private final Optional<NodePermissioningController> nodePermissioningController;
   /* The peer controller, which takes care of the state machine of peers. */
   protected Optional<PeerDiscoveryController> controller = Optional.empty();
 
@@ -93,7 +95,8 @@ public PeerDiscoveryAgent(
       final DiscoveryConfiguration config,
       final PeerRequirement peerRequirement,
       final PeerBlacklist peerBlacklist,
-      final Optional<NodeLocalConfigPermissioningController> nodeWhitelistController) {
+      final Optional<NodeLocalConfigPermissioningController> nodeWhitelistController,
+      final Optional<NodePermissioningController> nodePermissioningController) {
     checkArgument(keyPair != null, "keypair cannot be null");
     checkArgument(config != null, "provided configuration cannot be null");
 
@@ -102,6 +105,7 @@ public PeerDiscoveryAgent(
     this.peerRequirement = peerRequirement;
     this.peerBlacklist = peerBlacklist;
     this.nodeWhitelistController = nodeWhitelistController;
+    this.nodePermissioningController = nodePermissioningController;
     this.bootstrapPeers =
         config.getBootstrapPeers().stream().map(DiscoveryPeer::new).collect(Collectors.toList());
 
@@ -164,6 +168,7 @@ private PeerDiscoveryController createController() {
         peerRequirement,
         peerBlacklist,
         nodeWhitelistController,
+        nodePermissioningController,
         peerBondedObservers,
         peerDroppedObservers);
   }
diff --git a/ethereum/p2p/src/main/java/tech/pegasys/pantheon/ethereum/p2p/discovery/VertxPeerDiscoveryAgent.java b/ethereum/p2p/src/main/java/tech/pegasys/pantheon/ethereum/p2p/discovery/VertxPeerDiscoveryAgent.java
index 76bd818a8d..9ba71cfadb 100644
--- a/ethereum/p2p/src/main/java/tech/pegasys/pantheon/ethereum/p2p/discovery/VertxPeerDiscoveryAgent.java
+++ b/ethereum/p2p/src/main/java/tech/pegasys/pantheon/ethereum/p2p/discovery/VertxPeerDiscoveryAgent.java
@@ -25,6 +25,7 @@
 import tech.pegasys.pantheon.ethereum.p2p.peers.Endpoint;
 import tech.pegasys.pantheon.ethereum.p2p.peers.PeerBlacklist;
 import tech.pegasys.pantheon.ethereum.permissioning.NodeLocalConfigPermissioningController;
+import tech.pegasys.pantheon.ethereum.permissioning.node.NodePermissioningController;
 import tech.pegasys.pantheon.util.NetworkUtility;
 import tech.pegasys.pantheon.util.Preconditions;
 
@@ -58,8 +59,15 @@ public VertxPeerDiscoveryAgent(
       final DiscoveryConfiguration config,
       final PeerRequirement peerRequirement,
       final PeerBlacklist peerBlacklist,
-      final Optional<NodeLocalConfigPermissioningController> nodeWhitelistController) {
-    super(keyPair, config, peerRequirement, peerBlacklist, nodeWhitelistController);
+      final Optional<NodeLocalConfigPermissioningController> nodeWhitelistController,
+      final Optional<NodePermissioningController> nodePermissioningController) {
+    super(
+        keyPair,
+        config,
+        peerRequirement,
+        peerBlacklist,
+        nodeWhitelistController,
+        nodePermissioningController);
     checkArgument(vertx != null, "vertx instance cannot be null");
     this.vertx = vertx;
   }
diff --git a/ethereum/p2p/src/main/java/tech/pegasys/pantheon/ethereum/p2p/discovery/internal/PeerDiscoveryController.java b/ethereum/p2p/src/main/java/tech/pegasys/pantheon/ethereum/p2p/discovery/internal/PeerDiscoveryController.java
index 08bbf31112..a5ad162ff6 100644
--- a/ethereum/p2p/src/main/java/tech/pegasys/pantheon/ethereum/p2p/discovery/internal/PeerDiscoveryController.java
+++ b/ethereum/p2p/src/main/java/tech/pegasys/pantheon/ethereum/p2p/discovery/internal/PeerDiscoveryController.java
@@ -34,6 +34,7 @@
 import tech.pegasys.pantheon.ethereum.permissioning.node.NodeWhitelistUpdatedEvent;
 import tech.pegasys.pantheon.util.Subscribers;
 import tech.pegasys.pantheon.util.bytes.BytesValue;
+import tech.pegasys.pantheon.util.enode.EnodeURL;
 
 import java.util.Collection;
 import java.util.List;
@@ -118,6 +119,7 @@ public class PeerDiscoveryController {
   private final OutboundMessageHandler outboundMessageHandler;
   private final PeerBlacklist peerBlacklist;
   private final Optional<NodeLocalConfigPermissioningController> nodeWhitelistController;
+  private final Optional<NodePermissioningController> nodePermissioningController;
 
   private RetryDelayFunction retryDelayFunction = RetryDelayFunction.linear(1.5, 2000, 60000);
 
@@ -136,9 +138,6 @@ public class PeerDiscoveryController {
 
   private RecursivePeerRefreshState recursivePeerRefreshState;
 
-  private final Optional<NodePermissioningController> nodePermissioningController =
-      Optional.empty();
-
   public PeerDiscoveryController(
       final KeyPair keypair,
       final DiscoveryPeer localPeer,
@@ -151,6 +150,7 @@ public PeerDiscoveryController(
       final PeerRequirement peerRequirement,
       final PeerBlacklist peerBlacklist,
       final Optional<NodeLocalConfigPermissioningController> nodeWhitelistController,
+      final Optional<NodePermissioningController> nodePermissioningController,
       final Subscribers<Consumer<PeerBondedEvent>> peerBondedObservers,
       final Subscribers<Consumer<PeerDroppedEvent>> peerDroppedObservers) {
     this.timerUtil = timerUtil;
@@ -163,6 +163,7 @@ public PeerDiscoveryController(
     this.peerRequirement = peerRequirement;
     this.peerBlacklist = peerBlacklist;
     this.nodeWhitelistController = nodeWhitelistController;
+    this.nodePermissioningController = nodePermissioningController;
     this.outboundMessageHandler = outboundMessageHandler;
     this.peerBondedObservers = peerBondedObservers;
     this.peerDroppedObservers = peerDroppedObservers;
@@ -173,25 +174,23 @@ public void start() {
       throw new IllegalStateException("The peer table had already been started");
     }
 
-    bootstrapNodes.stream()
-        .filter(this::whitelistIfPresentIsNodePermitted)
-        .forEach(peerTable::tryAdd);
+    bootstrapNodes.stream().filter(p -> isPeerPermitted(localPeer, p)).forEach(peerTable::tryAdd);
 
     recursivePeerRefreshState =
         new RecursivePeerRefreshState(
             peerBlacklist,
-            nodeWhitelistController,
+            nodePermissioningController,
             this::bond,
             this::findNodes,
             timerUtil,
-            localPeer.getId(),
+            localPeer,
             peerTable,
             PEER_REFRESH_ROUND_TIMEOUT_IN_SECONDS,
             100);
 
     final List<DiscoveryPeer> initialDiscoveryPeers =
         bootstrapNodes.stream()
-            .filter(this::whitelistIfPresentIsNodePermitted)
+            .filter(p -> isPeerPermitted(localPeer, p))
             .collect(Collectors.toList());
 
     if (nodePermissioningController.isPresent()) {
@@ -225,9 +224,13 @@ public CompletableFuture<?> stop() {
     return CompletableFuture.completedFuture(null);
   }
 
-  private boolean whitelistIfPresentIsNodePermitted(final DiscoveryPeer sender) {
-    return nodeWhitelistController
-        .map(nodeWhitelistController -> nodeWhitelistController.isPermitted(sender.getEnodeURI()))
+  private boolean isPeerPermitted(final Peer sourcePeer, final Peer destinationPeer) {
+    return nodePermissioningController
+        .map(
+            c ->
+                c.isPermitted(
+                    new EnodeURL(sourcePeer.getEnodeURI()),
+                    new EnodeURL(destinationPeer.getEnodeURI())))
         .orElse(true);
   }
 
@@ -250,7 +253,7 @@ public void onMessage(final Packet packet, final DiscoveryPeer sender) {
       return;
     }
 
-    if (!whitelistIfPresentIsNodePermitted(sender)) {
+    if (!isPeerPermitted(sender, localPeer)) {
       LOG.trace("Dropping packet from peer not in the whitelist ({})", sender.getEnodeURI());
       return;
     }
diff --git a/ethereum/p2p/src/main/java/tech/pegasys/pantheon/ethereum/p2p/discovery/internal/RecursivePeerRefreshState.java b/ethereum/p2p/src/main/java/tech/pegasys/pantheon/ethereum/p2p/discovery/internal/RecursivePeerRefreshState.java
index 330908266a..f4b8a7b353 100644
--- a/ethereum/p2p/src/main/java/tech/pegasys/pantheon/ethereum/p2p/discovery/internal/RecursivePeerRefreshState.java
+++ b/ethereum/p2p/src/main/java/tech/pegasys/pantheon/ethereum/p2p/discovery/internal/RecursivePeerRefreshState.java
@@ -17,8 +17,9 @@
 import tech.pegasys.pantheon.ethereum.p2p.discovery.DiscoveryPeer;
 import tech.pegasys.pantheon.ethereum.p2p.discovery.PeerDiscoveryStatus;
 import tech.pegasys.pantheon.ethereum.p2p.peers.PeerBlacklist;
-import tech.pegasys.pantheon.ethereum.permissioning.NodeLocalConfigPermissioningController;
+import tech.pegasys.pantheon.ethereum.permissioning.node.NodePermissioningController;
 import tech.pegasys.pantheon.util.bytes.BytesValue;
+import tech.pegasys.pantheon.util.enode.EnodeURL;
 
 import java.util.List;
 import java.util.Map;
@@ -39,9 +40,9 @@ public class RecursivePeerRefreshState {
   private static final int MAX_CONCURRENT_REQUESTS = 3;
   private BytesValue target;
   private final PeerBlacklist peerBlacklist;
-  private final Optional<NodeLocalConfigPermissioningController> peerWhitelist;
+  private final Optional<NodePermissioningController> nodePermissioningController;
   private final PeerTable peerTable;
-  private final BytesValue localPeerId;
+  private final DiscoveryPeer localPeer;
 
   private final BondingAgent bondingAgent;
   private final FindNeighbourDispatcher findNeighbourDispatcher;
@@ -59,20 +60,20 @@ public class RecursivePeerRefreshState {
 
   RecursivePeerRefreshState(
       final PeerBlacklist peerBlacklist,
-      final Optional<NodeLocalConfigPermissioningController> peerWhitelist,
+      final Optional<NodePermissioningController> nodePermissioningController,
       final BondingAgent bondingAgent,
       final FindNeighbourDispatcher neighborFinder,
       final TimerUtil timerUtil,
-      final BytesValue localPeerId,
+      final DiscoveryPeer localPeer,
       final PeerTable peerTable,
       final int timeoutPeriodInSeconds,
       final int maxRounds) {
     this.peerBlacklist = peerBlacklist;
-    this.peerWhitelist = peerWhitelist;
+    this.nodePermissioningController = nodePermissioningController;
     this.bondingAgent = bondingAgent;
     this.findNeighbourDispatcher = neighborFinder;
     this.timerUtil = timerUtil;
-    this.localPeerId = localPeerId;
+    this.localPeer = localPeer;
     this.peerTable = peerTable;
     this.timeoutPeriodInSeconds = timeoutPeriodInSeconds;
     this.maxRounds = maxRounds;
@@ -183,11 +184,18 @@ private void neighboursCancelOutstandingRequests() {
   private boolean satisfiesMapAdditionCriteria(final DiscoveryPeer discoPeer) {
     return !oneTrueMap.containsKey(discoPeer.getId())
         && !peerBlacklist.contains(discoPeer)
-        && peerWhitelist
-            .map(whitelist -> whitelist.isPermitted(discoPeer.getEnodeURI()))
-            .orElse(true)
+        && isPeerPermitted(discoPeer)
         && (initialPeers.contains(discoPeer) || !peerTable.get(discoPeer).isPresent())
-        && !discoPeer.getId().equals(localPeerId);
+        && !discoPeer.getId().equals(localPeer);
+  }
+
+  private Boolean isPeerPermitted(final DiscoveryPeer discoPeer) {
+    return nodePermissioningController
+        .map(
+            controller ->
+                controller.isPermitted(
+                    new EnodeURL(localPeer.getEnodeURI()), new EnodeURL(discoPeer.getEnodeURI())))
+        .orElse(true);
   }
 
   void onNeighboursPacketReceived(
diff --git a/ethereum/p2p/src/main/java/tech/pegasys/pantheon/ethereum/p2p/netty/NettyP2PNetwork.java b/ethereum/p2p/src/main/java/tech/pegasys/pantheon/ethereum/p2p/netty/NettyP2PNetwork.java
index 222c6bce02..dced8a61f8 100644
--- a/ethereum/p2p/src/main/java/tech/pegasys/pantheon/ethereum/p2p/netty/NettyP2PNetwork.java
+++ b/ethereum/p2p/src/main/java/tech/pegasys/pantheon/ethereum/p2p/netty/NettyP2PNetwork.java
@@ -161,8 +161,8 @@ public class NettyP2PNetwork implements P2PNetwork {
 
   private final LabelledMetric<Counter> outboundMessagesCounter;
 
-  private final Optional<NodePermissioningController> nodePermissioningController;
   private final Optional<NodeLocalConfigPermissioningController> nodeWhitelistController;
+  private final Optional<NodePermissioningController> nodePermissioningController;
   private final Optional<Blockchain> blockchain;
   private OptionalLong blockAddedObserverId = OptionalLong.empty();
 
@@ -174,7 +174,8 @@ public NettyP2PNetwork(
       final PeerRequirement peerRequirement,
       final PeerBlacklist peerBlacklist,
       final MetricsSystem metricsSystem,
-      final Optional<NodeLocalConfigPermissioningController> nodeWhitelistController) {
+      final Optional<NodeLocalConfigPermissioningController> nodeWhitelistController,
+      final Optional<NodePermissioningController> nodePermissioningController) {
     this(
         vertx,
         keyPair,
@@ -184,7 +185,7 @@ public NettyP2PNetwork(
         peerBlacklist,
         metricsSystem,
         nodeWhitelistController,
-        null,
+        nodePermissioningController,
         null);
   }
 
@@ -215,12 +216,11 @@ public NettyP2PNetwork(
       final PeerBlacklist peerBlacklist,
       final MetricsSystem metricsSystem,
       final Optional<NodeLocalConfigPermissioningController> nodeLocalConfigPermissioningController,
-      final NodePermissioningController nodePermissioningController,
+      final Optional<NodePermissioningController> nodePermissioningController,
       final Blockchain blockchain) {
 
     connections = new PeerConnectionRegistry(metricsSystem);
     this.peerBlacklist = peerBlacklist;
-    this.nodePermissioningController = Optional.ofNullable(nodePermissioningController);
     this.peerMaintainConnectionList = new HashSet<>();
     peerDiscoveryAgent =
         new VertxPeerDiscoveryAgent(
@@ -229,7 +229,8 @@ public NettyP2PNetwork(
             config.getDiscovery(),
             peerRequirement,
             peerBlacklist,
-            nodeLocalConfigPermissioningController);
+            nodeLocalConfigPermissioningController,
+            nodePermissioningController);
 
     outboundMessagesCounter =
         metricsSystem.createLabelledCounter(
@@ -301,6 +302,7 @@ public NettyP2PNetwork(
     }
 
     this.nodeWhitelistController = nodeLocalConfigPermissioningController;
+    this.nodePermissioningController = nodePermissioningController;
     this.blockchain = Optional.ofNullable(blockchain);
   }
 
diff --git a/ethereum/p2p/src/test/java/tech/pegasys/pantheon/ethereum/p2p/NettyP2PNetworkTest.java b/ethereum/p2p/src/test/java/tech/pegasys/pantheon/ethereum/p2p/NettyP2PNetworkTest.java
index f69308d203..f532a296bf 100644
--- a/ethereum/p2p/src/test/java/tech/pegasys/pantheon/ethereum/p2p/NettyP2PNetworkTest.java
+++ b/ethereum/p2p/src/test/java/tech/pegasys/pantheon/ethereum/p2p/NettyP2PNetworkTest.java
@@ -120,6 +120,7 @@ public void handshaking() throws Exception {
                 () -> false,
                 new PeerBlacklist(),
                 new NoOpMetricsSystem(),
+                Optional.empty(),
                 Optional.empty());
         final P2PNetwork connector =
             new NettyP2PNetwork(
@@ -133,6 +134,7 @@ public void handshaking() throws Exception {
                 () -> false,
                 new PeerBlacklist(),
                 new NoOpMetricsSystem(),
+                Optional.empty(),
                 Optional.empty())) {
 
       final int listenPort = listener.getLocalPeerInfo().getPort();
@@ -174,6 +176,7 @@ public void preventMultipleConnections() throws Exception {
                 () -> true,
                 new PeerBlacklist(),
                 new NoOpMetricsSystem(),
+                Optional.empty(),
                 Optional.empty());
         final P2PNetwork connector =
             new NettyP2PNetwork(
@@ -187,6 +190,7 @@ public void preventMultipleConnections() throws Exception {
                 () -> true,
                 new PeerBlacklist(),
                 new NoOpMetricsSystem(),
+                Optional.empty(),
                 Optional.empty())) {
       final int listenPort = listener.getLocalPeerInfo().getPort();
       listener.start();
@@ -243,6 +247,7 @@ public void limitMaxPeers() throws Exception {
                 () -> true,
                 new PeerBlacklist(),
                 new NoOpMetricsSystem(),
+                Optional.empty(),
                 Optional.empty());
         final P2PNetwork connector1 =
             new NettyP2PNetwork(
@@ -256,6 +261,7 @@ public void limitMaxPeers() throws Exception {
                 () -> true,
                 new PeerBlacklist(),
                 new NoOpMetricsSystem(),
+                Optional.empty(),
                 Optional.empty());
         final P2PNetwork connector2 =
             new NettyP2PNetwork(
@@ -269,6 +275,7 @@ public void limitMaxPeers() throws Exception {
                 () -> true,
                 new PeerBlacklist(),
                 new NoOpMetricsSystem(),
+                Optional.empty(),
                 Optional.empty())) {
 
       final int listenPort = listener.getLocalPeerInfo().getPort();
@@ -324,6 +331,7 @@ public void rejectPeerWithNoSharedCaps() throws Exception {
                 () -> false,
                 new PeerBlacklist(),
                 new NoOpMetricsSystem(),
+                Optional.empty(),
                 Optional.empty());
         final P2PNetwork connector =
             new NettyP2PNetwork(
@@ -337,6 +345,7 @@ public void rejectPeerWithNoSharedCaps() throws Exception {
                 () -> false,
                 new PeerBlacklist(),
                 new NoOpMetricsSystem(),
+                Optional.empty(),
                 Optional.empty())) {
       final int listenPort = listener.getLocalPeerInfo().getPort();
       listener.start();
@@ -379,6 +388,7 @@ public void rejectIncomingConnectionFromBlacklistedPeer() throws Exception {
                 () -> false,
                 localBlacklist,
                 new NoOpMetricsSystem(),
+                Optional.empty(),
                 Optional.empty());
         final P2PNetwork remoteNetwork =
             new NettyP2PNetwork(
@@ -392,6 +402,7 @@ public void rejectIncomingConnectionFromBlacklistedPeer() throws Exception {
                 () -> false,
                 remoteBlacklist,
                 new NoOpMetricsSystem(),
+                Optional.empty(),
                 Optional.empty())) {
       final int localListenPort = localNetwork.getLocalPeerInfo().getPort();
       final int remoteListenPort = remoteNetwork.getLocalPeerInfo().getPort();
@@ -469,7 +480,8 @@ public void rejectIncomingConnectionFromNonWhitelistedPeer() throws Exception {
                 () -> false,
                 localBlacklist,
                 new NoOpMetricsSystem(),
-                Optional.of(localWhitelistController));
+                Optional.of(localWhitelistController),
+                Optional.empty());
         final P2PNetwork remoteNetwork =
             new NettyP2PNetwork(
                 vertx,
@@ -482,6 +494,7 @@ public void rejectIncomingConnectionFromNonWhitelistedPeer() throws Exception {
                 () -> false,
                 remoteBlacklist,
                 new NoOpMetricsSystem(),
+                Optional.empty(),
                 Optional.empty())) {
       final int localListenPort = localNetwork.getLocalPeerInfo().getPort();
       final Peer localPeer =
@@ -788,7 +801,7 @@ private NettyP2PNetwork mockNettyP2PNetwork() {
         new PeerBlacklist(),
         new NoOpMetricsSystem(),
         Optional.empty(),
-        nodePermissioningController,
+        Optional.of(nodePermissioningController),
         blockchain);
   }
 
diff --git a/ethereum/p2p/src/test/java/tech/pegasys/pantheon/ethereum/p2p/NetworkingServiceLifecycleTest.java b/ethereum/p2p/src/test/java/tech/pegasys/pantheon/ethereum/p2p/NetworkingServiceLifecycleTest.java
index 784e4d5eb6..9635009d77 100644
--- a/ethereum/p2p/src/test/java/tech/pegasys/pantheon/ethereum/p2p/NetworkingServiceLifecycleTest.java
+++ b/ethereum/p2p/src/test/java/tech/pegasys/pantheon/ethereum/p2p/NetworkingServiceLifecycleTest.java
@@ -58,6 +58,7 @@ public void createPeerDiscoveryAgent() {
             () -> true,
             new PeerBlacklist(),
             new NoOpMetricsSystem(),
+            Optional.empty(),
             Optional.empty())) {
       service.start();
       final int udpPort = service.getAdvertisedPeer().get().getEndpoint().getUdpPort();
@@ -88,6 +89,7 @@ public void createPeerDiscoveryAgent_NullHost() throws IOException {
             () -> true,
             new PeerBlacklist(),
             new NoOpMetricsSystem(),
+            Optional.empty(),
             Optional.empty())) {
       Assertions.fail("Expected Exception");
     }
@@ -108,6 +110,7 @@ public void createPeerDiscoveryAgent_InvalidHost() throws IOException {
             () -> true,
             new PeerBlacklist(),
             new NoOpMetricsSystem(),
+            Optional.empty(),
             Optional.empty())) {
       Assertions.fail("Expected Exception");
     }
@@ -128,6 +131,7 @@ public void createPeerDiscoveryAgent_InvalidPort() throws IOException {
             () -> true,
             new PeerBlacklist(),
             new NoOpMetricsSystem(),
+            Optional.empty(),
             Optional.empty())) {
       Assertions.fail("Expected Exception");
     }
@@ -144,6 +148,7 @@ public void createPeerDiscoveryAgent_NullKeyPair() throws IOException {
             () -> true,
             new PeerBlacklist(),
             new NoOpMetricsSystem(),
+            Optional.empty(),
             Optional.empty())) {
       Assertions.fail("Expected Exception");
     }
@@ -161,6 +166,7 @@ public void startStopPeerDiscoveryAgent() {
             () -> true,
             new PeerBlacklist(),
             new NoOpMetricsSystem(),
+            Optional.empty(),
             Optional.empty())) {
       service.start();
       service.stop();
@@ -180,6 +186,7 @@ public void startDiscoveryAgentBackToBack() {
                 () -> true,
                 new PeerBlacklist(),
                 new NoOpMetricsSystem(),
+                Optional.empty(),
                 Optional.empty());
         final NettyP2PNetwork service2 =
             new NettyP2PNetwork(
@@ -190,6 +197,7 @@ public void startDiscoveryAgentBackToBack() {
                 () -> true,
                 new PeerBlacklist(),
                 new NoOpMetricsSystem(),
+                Optional.empty(),
                 Optional.empty())) {
       service1.start();
       service1.stop();
@@ -210,6 +218,7 @@ public void startDiscoveryPortInUse() {
             () -> true,
             new PeerBlacklist(),
             new NoOpMetricsSystem(),
+            Optional.empty(),
             Optional.empty())) {
       service1.start();
       final NetworkingConfiguration config = configWithRandomPorts();
@@ -225,6 +234,7 @@ public void startDiscoveryPortInUse() {
               () -> true,
               new PeerBlacklist(),
               new NoOpMetricsSystem(),
+              Optional.empty(),
               Optional.empty())) {
         try {
           service2.start();
@@ -255,6 +265,7 @@ public void createPeerDiscoveryAgent_NoActivePeers() {
             () -> true,
             new PeerBlacklist(),
             new NoOpMetricsSystem(),
+            Optional.empty(),
             Optional.empty())) {
       assertTrue(agent.getDiscoveryPeers().isEmpty());
       assertEquals(0, agent.getPeers().size());
diff --git a/ethereum/p2p/src/test/java/tech/pegasys/pantheon/ethereum/p2p/NodePermissioningControllerTestHelper.java b/ethereum/p2p/src/test/java/tech/pegasys/pantheon/ethereum/p2p/NodePermissioningControllerTestHelper.java
new file mode 100644
index 0000000000..92221c98af
--- /dev/null
+++ b/ethereum/p2p/src/test/java/tech/pegasys/pantheon/ethereum/p2p/NodePermissioningControllerTestHelper.java
@@ -0,0 +1,93 @@
+/*
+ * Copyright 2018 ConsenSys AG.
+ *
+ * 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.
+ */
+package tech.pegasys.pantheon.ethereum.p2p;
+
+import static org.mockito.ArgumentMatchers.any;
+import static org.mockito.ArgumentMatchers.eq;
+import static org.mockito.Mockito.spy;
+import static org.mockito.Mockito.when;
+
+import tech.pegasys.pantheon.ethereum.p2p.peers.Peer;
+import tech.pegasys.pantheon.ethereum.permissioning.node.NodePermissioningController;
+import tech.pegasys.pantheon.util.enode.EnodeURL;
+
+import java.util.ArrayList;
+import java.util.Arrays;
+import java.util.Collection;
+import java.util.Optional;
+import java.util.stream.Collectors;
+
+public class NodePermissioningControllerTestHelper {
+
+  private final EnodeURL localNode;
+  private final Collection<EnodeURL> permittedNodes = new ArrayList<>();
+  private final Collection<EnodeURL> notPermittedNodes = new ArrayList<>();
+  private boolean allowAll = false;
+  private boolean denyAll = false;
+
+  public NodePermissioningControllerTestHelper(final Peer localPeer) {
+    this.localNode = new EnodeURL(localPeer.getEnodeURI());
+  }
+
+  public NodePermissioningControllerTestHelper withPermittedPeers(final Peer... peers) {
+    this.permittedNodes.addAll(
+        Arrays.stream(peers).map(p -> new EnodeURL(p.getEnodeURI())).collect(Collectors.toList()));
+    return this;
+  }
+
+  public NodePermissioningControllerTestHelper withForbiddenPeers(final Peer... peers) {
+    this.notPermittedNodes.addAll(
+        Arrays.stream(peers).map(p -> new EnodeURL(p.getEnodeURI())).collect(Collectors.toList()));
+    return this;
+  }
+
+  public NodePermissioningControllerTestHelper allowAll() {
+    this.allowAll = true;
+    return this;
+  }
+
+  public NodePermissioningControllerTestHelper denyAll() {
+    this.denyAll = true;
+    return this;
+  }
+
+  public NodePermissioningController build() {
+    final NodePermissioningController nodePermissioningController =
+        spy(new NodePermissioningController(Optional.empty(), new ArrayList<>()));
+
+    if (allowAll && denyAll) {
+      throw new IllegalArgumentException(
+          "Can't allow all nodes and deny all nodes in the same NodePermissioningController");
+    } else if (allowAll) {
+      when(nodePermissioningController.isPermitted(any(), any())).thenReturn(true);
+    } else if (denyAll) {
+      when(nodePermissioningController.isPermitted(any(), any())).thenReturn(false);
+    } else {
+      permittedNodes.forEach(
+          node -> {
+            when(nodePermissioningController.isPermitted(eq(localNode), eq(node))).thenReturn(true);
+            when(nodePermissioningController.isPermitted(eq(node), eq(localNode))).thenReturn(true);
+          });
+
+      notPermittedNodes.forEach(
+          node -> {
+            when(nodePermissioningController.isPermitted(eq(localNode), eq(node)))
+                .thenReturn(false);
+            when(nodePermissioningController.isPermitted(eq(node), eq(localNode)))
+                .thenReturn(false);
+          });
+    }
+
+    return nodePermissioningController;
+  }
+}
diff --git a/ethereum/p2p/src/test/java/tech/pegasys/pantheon/ethereum/p2p/discovery/PeerDiscoveryTestHelper.java b/ethereum/p2p/src/test/java/tech/pegasys/pantheon/ethereum/p2p/discovery/PeerDiscoveryTestHelper.java
index ca76f971c2..38892497a3 100644
--- a/ethereum/p2p/src/test/java/tech/pegasys/pantheon/ethereum/p2p/discovery/PeerDiscoveryTestHelper.java
+++ b/ethereum/p2p/src/test/java/tech/pegasys/pantheon/ethereum/p2p/discovery/PeerDiscoveryTestHelper.java
@@ -24,6 +24,7 @@
 import tech.pegasys.pantheon.ethereum.p2p.peers.Peer;
 import tech.pegasys.pantheon.ethereum.p2p.peers.PeerBlacklist;
 import tech.pegasys.pantheon.ethereum.permissioning.NodeLocalConfigPermissioningController;
+import tech.pegasys.pantheon.ethereum.permissioning.node.NodePermissioningController;
 import tech.pegasys.pantheon.util.bytes.BytesValue;
 
 import java.net.URI;
@@ -174,6 +175,7 @@ public static class AgentBuilder {
 
     private PeerBlacklist blacklist = new PeerBlacklist();
     private Optional<NodeLocalConfigPermissioningController> whitelist = Optional.empty();
+    private Optional<NodePermissioningController> nodePermissioningController = Optional.empty();
     private List<URI> bootstrapPeers = Collections.emptyList();
     private boolean active = true;
 
@@ -203,6 +205,11 @@ public AgentBuilder whiteList(
       return this;
     }
 
+    public AgentBuilder nodePermissioningController(final NodePermissioningController controller) {
+      this.nodePermissioningController = Optional.ofNullable(controller);
+      return this;
+    }
+
     public AgentBuilder blacklist(final PeerBlacklist blacklist) {
       this.blacklist = blacklist;
       return this;
@@ -220,7 +227,13 @@ public MockPeerDiscoveryAgent build() {
       config.setActive(active);
 
       return new MockPeerDiscoveryAgent(
-          SECP256K1.KeyPair.generate(), config, () -> true, blacklist, whitelist, agents);
+          SECP256K1.KeyPair.generate(),
+          config,
+          () -> true,
+          blacklist,
+          whitelist,
+          nodePermissioningController,
+          agents);
     }
   }
 }
diff --git a/ethereum/p2p/src/test/java/tech/pegasys/pantheon/ethereum/p2p/discovery/PeerDiscoveryTimestampsTest.java b/ethereum/p2p/src/test/java/tech/pegasys/pantheon/ethereum/p2p/discovery/PeerDiscoveryTimestampsTest.java
index 889670067a..b813eec1ec 100644
--- a/ethereum/p2p/src/test/java/tech/pegasys/pantheon/ethereum/p2p/discovery/PeerDiscoveryTimestampsTest.java
+++ b/ethereum/p2p/src/test/java/tech/pegasys/pantheon/ethereum/p2p/discovery/PeerDiscoveryTimestampsTest.java
@@ -64,6 +64,7 @@ public void lastSeenAndFirstDiscoveredTimestampsUpdatedOnMessage() {
             () -> true,
             new PeerBlacklist(),
             Optional.empty(),
+            Optional.empty(),
             new Subscribers<>(),
             new Subscribers<>());
     controller.start();
diff --git a/ethereum/p2p/src/test/java/tech/pegasys/pantheon/ethereum/p2p/discovery/internal/MockPeerDiscoveryAgent.java b/ethereum/p2p/src/test/java/tech/pegasys/pantheon/ethereum/p2p/discovery/internal/MockPeerDiscoveryAgent.java
index a394be814d..f991167628 100644
--- a/ethereum/p2p/src/test/java/tech/pegasys/pantheon/ethereum/p2p/discovery/internal/MockPeerDiscoveryAgent.java
+++ b/ethereum/p2p/src/test/java/tech/pegasys/pantheon/ethereum/p2p/discovery/internal/MockPeerDiscoveryAgent.java
@@ -19,6 +19,7 @@
 import tech.pegasys.pantheon.ethereum.p2p.discovery.internal.PeerDiscoveryController.AsyncExecutor;
 import tech.pegasys.pantheon.ethereum.p2p.peers.PeerBlacklist;
 import tech.pegasys.pantheon.ethereum.permissioning.NodeLocalConfigPermissioningController;
+import tech.pegasys.pantheon.ethereum.permissioning.node.NodePermissioningController;
 import tech.pegasys.pantheon.util.bytes.BytesValue;
 
 import java.net.InetSocketAddress;
@@ -41,8 +42,15 @@ public MockPeerDiscoveryAgent(
       final PeerRequirement peerRequirement,
       final PeerBlacklist peerBlacklist,
       final Optional<NodeLocalConfigPermissioningController> nodeWhitelistController,
+      final Optional<NodePermissioningController> nodePermissioningController,
       final Map<BytesValue, MockPeerDiscoveryAgent> agentNetwork) {
-    super(keyPair, config, peerRequirement, peerBlacklist, nodeWhitelistController);
+    super(
+        keyPair,
+        config,
+        peerRequirement,
+        peerBlacklist,
+        nodeWhitelistController,
+        nodePermissioningController);
     this.agentNetwork = agentNetwork;
   }
 
diff --git a/ethereum/p2p/src/test/java/tech/pegasys/pantheon/ethereum/p2p/discovery/internal/PeerDiscoveryControllerTest.java b/ethereum/p2p/src/test/java/tech/pegasys/pantheon/ethereum/p2p/discovery/internal/PeerDiscoveryControllerTest.java
index 975bfe3f4f..26b807d893 100644
--- a/ethereum/p2p/src/test/java/tech/pegasys/pantheon/ethereum/p2p/discovery/internal/PeerDiscoveryControllerTest.java
+++ b/ethereum/p2p/src/test/java/tech/pegasys/pantheon/ethereum/p2p/discovery/internal/PeerDiscoveryControllerTest.java
@@ -31,6 +31,7 @@
 
 import tech.pegasys.pantheon.crypto.SECP256K1;
 import tech.pegasys.pantheon.crypto.SECP256K1.KeyPair;
+import tech.pegasys.pantheon.ethereum.p2p.NodePermissioningControllerTestHelper;
 import tech.pegasys.pantheon.ethereum.p2p.discovery.DiscoveryPeer;
 import tech.pegasys.pantheon.ethereum.p2p.discovery.PeerDiscoveryEvent.PeerBondedEvent;
 import tech.pegasys.pantheon.ethereum.p2p.discovery.PeerDiscoveryEvent.PeerDroppedEvent;
@@ -42,6 +43,7 @@
 import tech.pegasys.pantheon.ethereum.p2p.peers.PeerBlacklist;
 import tech.pegasys.pantheon.ethereum.permissioning.LocalPermissioningConfiguration;
 import tech.pegasys.pantheon.ethereum.permissioning.NodeLocalConfigPermissioningController;
+import tech.pegasys.pantheon.ethereum.permissioning.node.NodePermissioningController;
 import tech.pegasys.pantheon.util.Subscribers;
 import tech.pegasys.pantheon.util.bytes.Bytes32;
 import tech.pegasys.pantheon.util.bytes.BytesValue;
@@ -986,87 +988,81 @@ public void shouldNotAddPeerInNeighborsPacketWithoutBonding() {
   }
 
   @Test
-  public void shouldNotBondWithNonWhitelistedPeer() throws IOException {
+  public void shouldNotBondWithNonPermittedPeer() {
     final List<DiscoveryPeer> peers = createPeersInLastBucket(localPeer, 3);
 
-    final DiscoveryPeer discoPeer = peers.get(0);
-    final DiscoveryPeer otherPeer = peers.get(1);
-    final DiscoveryPeer otherPeer2 = peers.get(2);
+    final DiscoveryPeer discoveryPeer = peers.get(0);
+    final DiscoveryPeer notPermittedPeer = peers.get(1);
+    final DiscoveryPeer permittedPeer = peers.get(2);
 
     final PeerBlacklist blacklist = new PeerBlacklist();
-    final LocalPermissioningConfiguration config = permissioningConfigurationWithTempFile();
-    final NodeLocalConfigPermissioningController nodeLocalConfigPermissioningController =
-        new NodeLocalConfigPermissioningController(config, Collections.emptyList(), selfEnode);
 
-    // Whitelist peers
-    nodeLocalConfigPermissioningController.addNodes(Arrays.asList(discoPeer.getEnodeURI()));
-    nodeLocalConfigPermissioningController.addNodes(Arrays.asList(otherPeer2.getEnodeURI()));
+    final NodePermissioningController nodePermissioningController =
+        new NodePermissioningControllerTestHelper(localPeer)
+            .withPermittedPeers(discoveryPeer, permittedPeer)
+            .withForbiddenPeers(notPermittedPeer)
+            .build();
 
     final OutboundMessageHandler outboundMessageHandler = mock(OutboundMessageHandler.class);
     controller =
         getControllerBuilder()
-            .peers(discoPeer)
+            .peers(discoveryPeer)
             .blacklist(blacklist)
-            .whitelist(nodeLocalConfigPermissioningController)
+            .nodePermissioningController(nodePermissioningController)
             .outboundMessageHandler(outboundMessageHandler)
             .build();
 
     final Endpoint localEndpoint = localPeer.getEndpoint();
 
-    // Setup ping to be sent to discoPeer
+    // Setup ping to be sent to discoveryPeer
     List<SECP256K1.KeyPair> keyPairs = PeerDiscoveryTestHelper.generateKeyPairs(1);
-    PingPacketData pingPacketData = PingPacketData.create(localEndpoint, discoPeer.getEndpoint());
+    PingPacketData pingPacketData =
+        PingPacketData.create(localEndpoint, discoveryPeer.getEndpoint());
     final Packet discoPeerPing = Packet.create(PacketType.PING, pingPacketData, keyPairs.get(0));
-    mockPacketCreation(PacketType.PING, discoPeer, discoPeerPing);
+    mockPacketCreation(PacketType.PING, discoveryPeer, discoPeerPing);
 
     controller.start();
     verify(outboundMessageHandler, times(1)).send(any(), matchPacketOfType(PacketType.PING));
 
     final Packet pongFromDiscoPeer =
-        MockPacketDataFactory.mockPongPacket(discoPeer, discoPeerPing.getHash());
-    controller.onMessage(pongFromDiscoPeer, discoPeer);
+        MockPacketDataFactory.mockPongPacket(discoveryPeer, discoPeerPing.getHash());
+    controller.onMessage(pongFromDiscoPeer, discoveryPeer);
 
     verify(outboundMessageHandler, times(1))
-        .send(eq(discoPeer), matchPacketOfType(PacketType.FIND_NEIGHBORS));
+        .send(eq(discoveryPeer), matchPacketOfType(PacketType.FIND_NEIGHBORS));
 
     // Setup ping to be sent to otherPeer after neighbors packet is received
     keyPairs = PeerDiscoveryTestHelper.generateKeyPairs(1);
-    pingPacketData = PingPacketData.create(localEndpoint, otherPeer.getEndpoint());
+    pingPacketData = PingPacketData.create(localEndpoint, notPermittedPeer.getEndpoint());
     final Packet pingPacket = Packet.create(PacketType.PING, pingPacketData, keyPairs.get(0));
-    mockPacketCreation(PacketType.PING, otherPeer, pingPacket);
+    mockPacketCreation(PacketType.PING, notPermittedPeer, pingPacket);
 
     // Setup ping to be sent to otherPeer2 after neighbors packet is received
     keyPairs = PeerDiscoveryTestHelper.generateKeyPairs(1);
-    pingPacketData = PingPacketData.create(localEndpoint, otherPeer2.getEndpoint());
+    pingPacketData = PingPacketData.create(localEndpoint, permittedPeer.getEndpoint());
     final Packet pingPacket2 = Packet.create(PacketType.PING, pingPacketData, keyPairs.get(0));
-    mockPacketCreation(PacketType.PING, otherPeer2, pingPacket2);
+    mockPacketCreation(PacketType.PING, permittedPeer, pingPacket2);
 
     final Packet neighborsPacket =
-        MockPacketDataFactory.mockNeighborsPacket(discoPeer, otherPeer, otherPeer2);
-    controller.onMessage(neighborsPacket, discoPeer);
+        MockPacketDataFactory.mockNeighborsPacket(discoveryPeer, notPermittedPeer, permittedPeer);
+    controller.onMessage(neighborsPacket, discoveryPeer);
 
-    verify(controller, times(0)).bond(otherPeer);
-    verify(controller, times(1)).bond(otherPeer2);
+    verify(controller, times(0)).bond(notPermittedPeer);
+    verify(controller, times(1)).bond(permittedPeer);
   }
 
   @Test
-  public void shouldNotRespondToPingFromNonWhitelistedDiscoveryPeer() throws IOException {
+  public void shouldNotRespondToPingFromNonWhitelistedDiscoveryPeer() {
     final List<DiscoveryPeer> peers = createPeersInLastBucket(localPeer, 3);
     final DiscoveryPeer discoPeer = peers.get(0);
 
-    final PeerBlacklist blacklist = new PeerBlacklist();
-
-    // don't add disco peer to whitelist
-    LocalPermissioningConfiguration config = permissioningConfigurationWithTempFile();
-    config.setNodeWhitelist(new ArrayList<>());
-    NodeLocalConfigPermissioningController nodeLocalConfigPermissioningController =
-        new NodeLocalConfigPermissioningController(config, Collections.emptyList(), selfEnode);
+    final NodePermissioningController nodePermissioningController =
+        new NodePermissioningControllerTestHelper(localPeer).withForbiddenPeers(discoPeer).build();
 
     controller =
         getControllerBuilder()
             .peers(discoPeer)
-            .blacklist(blacklist)
-            .whitelist(nodeLocalConfigPermissioningController)
+            .nodePermissioningController(nodePermissioningController)
             .build();
 
     final Packet pingPacket = mockPingPacket(peers.get(0), localPeer);
@@ -1229,6 +1225,7 @@ static class ControllerBuilder {
     private Collection<DiscoveryPeer> discoPeers = Collections.emptyList();
     private PeerBlacklist blacklist = new PeerBlacklist();
     private Optional<NodeLocalConfigPermissioningController> whitelist = Optional.empty();
+    private Optional<NodePermissioningController> nodePermissioningController = Optional.empty();
     private MockTimerUtil timerUtil = new MockTimerUtil();
     private KeyPair keypair;
     private DiscoveryPeer localPeer;
@@ -1262,6 +1259,11 @@ ControllerBuilder whitelist(final NodeLocalConfigPermissioningController whiteli
       return this;
     }
 
+    ControllerBuilder nodePermissioningController(final NodePermissioningController controller) {
+      this.nodePermissioningController = Optional.of(controller);
+      return this;
+    }
+
     ControllerBuilder timerUtil(final MockTimerUtil timerUtil) {
       this.timerUtil = timerUtil;
       return this;
@@ -1319,6 +1321,7 @@ PeerDiscoveryController build() {
               PEER_REQUIREMENT,
               blacklist,
               whitelist,
+              nodePermissioningController,
               peerBondedObservers,
               peerDroppedObservers));
     }
diff --git a/ethereum/p2p/src/test/java/tech/pegasys/pantheon/ethereum/p2p/discovery/internal/PeerDiscoveryTableRefreshTest.java b/ethereum/p2p/src/test/java/tech/pegasys/pantheon/ethereum/p2p/discovery/internal/PeerDiscoveryTableRefreshTest.java
index 06ab99c64e..8fbf72a646 100644
--- a/ethereum/p2p/src/test/java/tech/pegasys/pantheon/ethereum/p2p/discovery/internal/PeerDiscoveryTableRefreshTest.java
+++ b/ethereum/p2p/src/test/java/tech/pegasys/pantheon/ethereum/p2p/discovery/internal/PeerDiscoveryTableRefreshTest.java
@@ -65,6 +65,7 @@ public void tableRefreshSingleNode() {
                 () -> true,
                 new PeerBlacklist(),
                 Optional.empty(),
+                Optional.empty(),
                 new Subscribers<>(),
                 new Subscribers<>()));
     controller.start();
diff --git a/ethereum/p2p/src/test/java/tech/pegasys/pantheon/ethereum/p2p/discovery/internal/RecursivePeerRefreshStateTest.java b/ethereum/p2p/src/test/java/tech/pegasys/pantheon/ethereum/p2p/discovery/internal/RecursivePeerRefreshStateTest.java
index 12be9fcbe0..29d88a9025 100644
--- a/ethereum/p2p/src/test/java/tech/pegasys/pantheon/ethereum/p2p/discovery/internal/RecursivePeerRefreshStateTest.java
+++ b/ethereum/p2p/src/test/java/tech/pegasys/pantheon/ethereum/p2p/discovery/internal/RecursivePeerRefreshStateTest.java
@@ -16,11 +16,13 @@
 import static java.util.Collections.emptyList;
 import static java.util.Collections.singletonList;
 import static org.mockito.ArgumentMatchers.any;
+import static org.mockito.ArgumentMatchers.eq;
 import static org.mockito.Mockito.mock;
 import static org.mockito.Mockito.never;
 import static org.mockito.Mockito.times;
 import static org.mockito.Mockito.verify;
 import static org.mockito.Mockito.verifyNoMoreInteractions;
+import static org.mockito.Mockito.when;
 
 import tech.pegasys.pantheon.ethereum.p2p.discovery.DiscoveryPeer;
 import tech.pegasys.pantheon.ethereum.p2p.discovery.PeerDiscoveryStatus;
@@ -28,13 +30,12 @@
 import tech.pegasys.pantheon.ethereum.p2p.discovery.internal.RecursivePeerRefreshState.FindNeighbourDispatcher;
 import tech.pegasys.pantheon.ethereum.p2p.peers.PeerBlacklist;
 import tech.pegasys.pantheon.ethereum.permissioning.LocalPermissioningConfiguration;
-import tech.pegasys.pantheon.ethereum.permissioning.NodeLocalConfigPermissioningController;
+import tech.pegasys.pantheon.ethereum.permissioning.node.NodePermissioningController;
 import tech.pegasys.pantheon.util.bytes.BytesValue;
 import tech.pegasys.pantheon.util.enode.EnodeURL;
 
 import java.nio.file.Files;
 import java.nio.file.Path;
-import java.util.Arrays;
 import java.util.Collections;
 import java.util.List;
 import java.util.Optional;
@@ -51,6 +52,7 @@ public class RecursivePeerRefreshStateTest {
       "enode://5f8a80d14311c39f35f516fa664deaaaa13e85b2f7493f37f6144d86991ec012937307647bd3b9a82abe2974e1407241d54947bbb39763a4cac9f77166ad92a0@192.168.0.10:1111";
   private final EnodeURL selfEnode = new EnodeURL(selfEnodeString);
 
+  private final DiscoveryPeer localPeer = new DiscoveryPeer(createId(9), "127.0.0.9", 9, 9);
   private final DiscoveryPeer peer1 = new DiscoveryPeer(createId(1), "127.0.0.1", 1, 1);
   private final DiscoveryPeer peer2 = new DiscoveryPeer(createId(2), "127.0.0.2", 2, 2);
   private final DiscoveryPeer peer3 = new DiscoveryPeer(createId(3), "127.0.0.3", 3, 3);
@@ -63,7 +65,7 @@ public class RecursivePeerRefreshStateTest {
           bondingAgent,
           neighborFinder,
           timerUtil,
-          createId(999),
+          localPeer,
           new PeerTable(createId(999), 16),
           5,
           100);
@@ -180,7 +182,7 @@ public void shouldStopWhenMaximumNumberOfRoundsReached() {
             bondingAgent,
             neighborFinder,
             timerUtil,
-            createId(999),
+            localPeer,
             new PeerTable(createId(999), 16),
             5,
             1);
@@ -462,7 +464,7 @@ public void shouldNotBondWithNodesOnBlacklist() {
             bondingAgent,
             neighborFinder,
             timerUtil,
-            createId(999),
+            localPeer,
             new PeerTable(createId(999), 16),
             5,
             100);
@@ -481,7 +483,8 @@ public void shouldNotBondWithNodesOnBlacklist() {
   }
 
   @Test
-  public void shouldNotBondWithNodesRejectedByWhitelist() throws Exception {
+  public void shouldNotBondWithNodesNotPermitted() throws Exception {
+    final DiscoveryPeer localPeer = new DiscoveryPeer(createId(999), "127.0.0.9", 9, 9);
     final DiscoveryPeer peerA = new DiscoveryPeer(createId(1), "127.0.0.1", 1, 1);
     final DiscoveryPeer peerB = new DiscoveryPeer(createId(2), "127.0.0.2", 2, 2);
 
@@ -491,19 +494,21 @@ public void shouldNotBondWithNodesRejectedByWhitelist() throws Exception {
         LocalPermissioningConfiguration.createDefault();
     permissioningConfiguration.setConfigurationFilePath(tempFile.toAbsolutePath().toString());
 
-    final NodeLocalConfigPermissioningController peerWhitelist =
-        new NodeLocalConfigPermissioningController(
-            permissioningConfiguration, Collections.emptyList(), selfEnode);
-    peerWhitelist.addNodes(Arrays.asList(peerA.getEnodeURI()));
+    final NodePermissioningController nodeWhitelistController =
+        mock(NodePermissioningController.class);
+    when(nodeWhitelistController.isPermitted(any(), eq(new EnodeURL(peerA.getEnodeURI()))))
+        .thenReturn(true);
+    when(nodeWhitelistController.isPermitted(any(), eq(new EnodeURL(peerB.getEnodeURI()))))
+        .thenReturn(false);
 
     recursivePeerRefreshState =
         new RecursivePeerRefreshState(
             peerBlacklist,
-            Optional.of(peerWhitelist),
+            Optional.of(nodeWhitelistController),
             bondingAgent,
             neighborFinder,
             timerUtil,
-            createId(999),
+            localPeer,
             new PeerTable(createId(999), 16),
             5,
             100);
diff --git a/ethereum/permissioning/src/main/java/tech/pegasys/pantheon/ethereum/permissioning/PermissioningConfiguration.java b/ethereum/permissioning/src/main/java/tech/pegasys/pantheon/ethereum/permissioning/PermissioningConfiguration.java
index 89abe7dc8c..34efcfde9c 100644
--- a/ethereum/permissioning/src/main/java/tech/pegasys/pantheon/ethereum/permissioning/PermissioningConfiguration.java
+++ b/ethereum/permissioning/src/main/java/tech/pegasys/pantheon/ethereum/permissioning/PermissioningConfiguration.java
@@ -32,4 +32,8 @@ public Optional<LocalPermissioningConfiguration> getLocalConfig() {
   public Optional<SmartContractPermissioningConfiguration> getSmartContractConfig() {
     return smartContractConfig;
   }
+
+  public static PermissioningConfiguration createDefault() {
+    return new PermissioningConfiguration(Optional.empty(), Optional.empty());
+  }
 }
diff --git a/ethereum/permissioning/src/main/java/tech/pegasys/pantheon/ethereum/permissioning/node/NodePermissioningController.java b/ethereum/permissioning/src/main/java/tech/pegasys/pantheon/ethereum/permissioning/node/NodePermissioningController.java
index ce1bf9b87e..97fdf5790a 100644
--- a/ethereum/permissioning/src/main/java/tech/pegasys/pantheon/ethereum/permissioning/node/NodePermissioningController.java
+++ b/ethereum/permissioning/src/main/java/tech/pegasys/pantheon/ethereum/permissioning/node/NodePermissioningController.java
@@ -27,7 +27,7 @@ public class NodePermissioningController {
   private static final Logger LOG = LogManager.getLogger();
 
   private final Optional<SyncStatusNodePermissioningProvider> syncStatusNodePermissioningProvider;
-  private List<NodePermissioningProvider> providers;
+  private final List<NodePermissioningProvider> providers;
 
   public NodePermissioningController(
       final Optional<SyncStatusNodePermissioningProvider> syncStatusNodePermissioningProvider,
@@ -53,8 +53,11 @@ public boolean isPermitted(final EnodeURL sourceEnode, final EnodeURL destinatio
   }
 
   public void startPeerDiscoveryCallback(final Runnable peerDiscoveryCallback) {
-    syncStatusNodePermissioningProvider.ifPresent(
-        (p) -> p.setHasReachedSyncCallback(peerDiscoveryCallback));
+    if (syncStatusNodePermissioningProvider.isPresent()) {
+      syncStatusNodePermissioningProvider.get().setHasReachedSyncCallback(peerDiscoveryCallback);
+    } else {
+      peerDiscoveryCallback.run();
+    }
   }
 
   @VisibleForTesting
diff --git a/ethereum/permissioning/src/test/java/tech/pegasys/pantheon/ethereum/permissioning/node/NodePermissioningControllerTest.java b/ethereum/permissioning/src/test/java/tech/pegasys/pantheon/ethereum/permissioning/node/NodePermissioningControllerTest.java
index 09b2546ab2..ac147ef012 100644
--- a/ethereum/permissioning/src/test/java/tech/pegasys/pantheon/ethereum/permissioning/node/NodePermissioningControllerTest.java
+++ b/ethereum/permissioning/src/test/java/tech/pegasys/pantheon/ethereum/permissioning/node/NodePermissioningControllerTest.java
@@ -15,6 +15,7 @@
 import static org.assertj.core.api.Assertions.assertThat;
 import static org.mockito.ArgumentMatchers.any;
 import static org.mockito.ArgumentMatchers.eq;
+import static org.mockito.Mockito.mock;
 import static org.mockito.Mockito.verify;
 import static org.mockito.Mockito.when;
 
@@ -23,6 +24,7 @@
 import tech.pegasys.pantheon.util.enode.EnodeURL;
 
 import java.util.ArrayList;
+import java.util.Collections;
 import java.util.List;
 import java.util.Optional;
 
@@ -72,6 +74,16 @@ public void peerDiscoveryCallbackShouldBeDelegatedToSyncStatusNodePermissioningP
     verify(syncStatusNodePermissioningProvider).setHasReachedSyncCallback(any(Runnable.class));
   }
 
+  @Test
+  public void peerDiscoveryCallbackShouldRunWhenSyncStatusProviderDoesNotExist() {
+    final Runnable callback = mock(Runnable.class);
+
+    controller = new NodePermissioningController(Optional.empty(), Collections.emptyList());
+    controller.startPeerDiscoveryCallback(callback);
+
+    verify(callback).run();
+  }
+
   @Test
   public void whenNoSyncStatusProviderWeShouldDelegateToLocalConfigNodePermissioningProvider() {
     List<NodePermissioningProvider> providers = new ArrayList<>();
diff --git a/gradle/versions.gradle b/gradle/versions.gradle
index 8e6da7bff0..3ca1ba3428 100644
--- a/gradle/versions.gradle
+++ b/gradle/versions.gradle
@@ -25,13 +25,13 @@ dependencyManagement {
     dependency 'com.google.errorprone:error_prone_annotation:2.3.2'
     dependency 'com.google.errorprone:error_prone_test_helpers:2.3.2'
 
-    dependency 'com.google.guava:guava:27.0.1-jre'
+    dependency 'com.google.guava:guava:27.1-jre'
 
-    dependency 'com.squareup.okhttp3:okhttp:3.12.1'
+    dependency 'com.squareup.okhttp3:okhttp:3.13.1'
 
     dependency 'commons-cli:commons-cli:1.4'
 
-    dependency 'info.picocli:picocli:3.9.2'
+    dependency 'info.picocli:picocli:3.9.5'
 
     dependency 'io.pkts:pkts-core:3.0.4'
 
@@ -40,8 +40,9 @@ dependencyManagement {
     dependency "io.prometheus:simpleclient_hotspot:0.6.0"
     dependency "io.prometheus:simpleclient_pushgateway:0.6.0"
 
-    dependency 'io.reactivex.rxjava2:rxjava:2.2.6'
+    dependency 'io.reactivex.rxjava2:rxjava:2.2.7'
 
+    dependency 'io.vertx:vertx-auth-jwt:3.6.3'
     dependency 'io.vertx:vertx-codegen:3.6.3'
     dependency 'io.vertx:vertx-core:3.6.3'
     dependency 'io.vertx:vertx-unit:3.6.3'
@@ -55,26 +56,26 @@ dependencyManagement {
 
     dependency 'org.apache.commons:commons-text:1.6'
 
-    dependency 'org.apache.logging.log4j:log4j-api:2.11.1'
-    dependency 'org.apache.logging.log4j:log4j-core:2.11.1'
-    dependency 'org.apache.logging.log4j:log4j-slf4j-impl:2.11.1'
+    dependency 'org.apache.logging.log4j:log4j-api:2.11.2'
+    dependency 'org.apache.logging.log4j:log4j-core:2.11.2'
+    dependency 'org.apache.logging.log4j:log4j-slf4j-impl:2.11.2'
 
-    dependency 'org.assertj:assertj-core:3.11.1'
+    dependency 'org.assertj:assertj-core:3.12.1'
 
     dependency 'org.awaitility:awaitility:3.1.6'
 
-    dependency 'org.bouncycastle:bcprov-jdk15on:1.60'
+    dependency 'org.bouncycastle:bcprov-jdk15on:1.61'
 
-    dependency 'org.java-websocket:Java-WebSocket:1.3.9'
+    dependency 'org.java-websocket:Java-WebSocket:1.4.0'
 
-    dependency 'org.mockito:mockito-core:2.23.4'
+    dependency 'org.mockito:mockito-core:2.25.0'
 
     dependency 'org.openjdk.jmh:jmh-core:1.21'
     dependency 'org.openjdk.jmh:jmh-generator-annprocess:1.21'
 
     dependency 'org.rocksdb:rocksdbjni:5.17.2'
 
-    dependency 'org.springframework.security:spring-security-crypto:5.1.3.RELEASE'
+    dependency 'org.springframework.security:spring-security-crypto:5.1.4.RELEASE'
     
     dependency 'org.web3j:abi:4.1.1'
     dependency 'org.web3j:core:4.1.1'
diff --git a/gradle/wrapper/gradle-wrapper.properties b/gradle/wrapper/gradle-wrapper.properties
index caf54fa280..7919ae6e6b 100644
--- a/gradle/wrapper/gradle-wrapper.properties
+++ b/gradle/wrapper/gradle-wrapper.properties
@@ -2,4 +2,4 @@ distributionBase=GRADLE_USER_HOME
 distributionPath=wrapper/dists
 zipStoreBase=GRADLE_USER_HOME
 zipStorePath=wrapper/dists
-distributionUrl=https\://services.gradle.org/distributions/gradle-5.1.1-all.zip
+distributionUrl=https\://services.gradle.org/distributions/gradle-5.2.1-all.zip
diff --git a/pantheon/src/main/java/tech/pegasys/pantheon/RunnerBuilder.java b/pantheon/src/main/java/tech/pegasys/pantheon/RunnerBuilder.java
index b48943a795..4d6b9218f2 100644
--- a/pantheon/src/main/java/tech/pegasys/pantheon/RunnerBuilder.java
+++ b/pantheon/src/main/java/tech/pegasys/pantheon/RunnerBuilder.java
@@ -55,6 +55,10 @@
 import tech.pegasys.pantheon.ethereum.permissioning.AccountWhitelistController;
 import tech.pegasys.pantheon.ethereum.permissioning.LocalPermissioningConfiguration;
 import tech.pegasys.pantheon.ethereum.permissioning.NodeLocalConfigPermissioningController;
+import tech.pegasys.pantheon.ethereum.permissioning.NodePermissioningControllerFactory;
+import tech.pegasys.pantheon.ethereum.permissioning.PermissioningConfiguration;
+import tech.pegasys.pantheon.ethereum.permissioning.node.NodePermissioningController;
+import tech.pegasys.pantheon.ethereum.transaction.TransactionSimulator;
 import tech.pegasys.pantheon.ethereum.worldstate.WorldStateArchive;
 import tech.pegasys.pantheon.metrics.MetricsSystem;
 import tech.pegasys.pantheon.metrics.prometheus.MetricsConfiguration;
@@ -90,7 +94,7 @@ public class RunnerBuilder {
   private Collection<String> bannedNodeIds;
   private MetricsConfiguration metricsConfiguration;
   private MetricsSystem metricsSystem;
-  private Optional<LocalPermissioningConfiguration> permissioningConfiguration = Optional.empty();
+  private Optional<PermissioningConfiguration> permissioningConfiguration = Optional.empty();
 
   private EnodeURL getSelfEnode() {
     String nodeId = pantheonController.getLocalNodeKeyPair().getPublicKey().toString();
@@ -148,7 +152,7 @@ public RunnerBuilder webSocketConfiguration(final WebSocketConfiguration webSock
   }
 
   public RunnerBuilder permissioningConfiguration(
-      final LocalPermissioningConfiguration permissioningConfiguration) {
+      final PermissioningConfiguration permissioningConfiguration) {
     this.permissioningConfiguration = Optional.of(permissioningConfiguration);
     return this;
   }
@@ -224,16 +228,25 @@ public Runner build() {
         discoveryConfiguration.getBootstrapPeers().stream()
             .map(p -> new EnodeURL(p.getEnodeURI()))
             .collect(Collectors.toList());
+
+    final Optional<LocalPermissioningConfiguration> localPermissioningConfiguration =
+        permissioningConfiguration.flatMap(PermissioningConfiguration::getLocalConfig);
+
     final Optional<NodeLocalConfigPermissioningController> nodeWhitelistController =
-        permissioningConfiguration
-            .filter(LocalPermissioningConfiguration::isNodeWhitelistEnabled)
-            .map(
-                config ->
-                    new NodeLocalConfigPermissioningController(
-                        config, bootnodesAsEnodeURLs, getSelfEnode()));
+        localPermissioningConfiguration.map(
+            config ->
+                new NodeLocalConfigPermissioningController(
+                    config, bootnodesAsEnodeURLs, getSelfEnode()));
 
     final Synchronizer synchronizer = pantheonController.getSynchronizer();
 
+    final TransactionSimulator transactionSimulator =
+        new TransactionSimulator(
+            context.getBlockchain(), context.getWorldStateArchive(), protocolSchedule);
+
+    final Optional<NodePermissioningController> nodePermissioningController =
+        buildNodePermissioningController(bootnodesAsEnodeURLs, synchronizer, transactionSimulator);
+
     final NetworkRunner networkRunner =
         NetworkRunner.builder()
             .protocolManagers(protocolManagers)
@@ -249,7 +262,12 @@ public Runner build() {
                             synchronizer::hasSufficientPeers,
                             peerBlacklist,
                             metricsSystem,
-                            nodeWhitelistController)
+                            nodeWhitelistController,
+                            nodePermissioningController,
+                            // TODO this dependency on the Blockchain will be removed in PAN-2442
+                            nodePermissioningController.isPresent()
+                                ? context.getBlockchain()
+                                : null)
                     : caps -> new NoopP2PNetwork())
             .metricsSystem(metricsSystem)
             .build();
@@ -257,7 +275,7 @@ public Runner build() {
     final TransactionPool transactionPool = pantheonController.getTransactionPool();
     final MiningCoordinator miningCoordinator = pantheonController.getMiningCoordinator();
     final Optional<AccountWhitelistController> accountWhitelistController =
-        permissioningConfiguration
+        localPermissioningConfiguration
             .filter(LocalPermissioningConfiguration::isAccountWhitelistEnabled)
             .map(
                 configuration -> {
@@ -343,6 +361,21 @@ public Runner build() {
         dataDir);
   }
 
+  private Optional<NodePermissioningController> buildNodePermissioningController(
+      final List<EnodeURL> bootnodesAsEnodeURLs,
+      final Synchronizer synchronizer,
+      final TransactionSimulator transactionSimulator) {
+    return permissioningConfiguration.map(
+        config ->
+            new NodePermissioningControllerFactory()
+                .create(
+                    config,
+                    synchronizer,
+                    bootnodesAsEnodeURLs,
+                    getSelfEnode(),
+                    transactionSimulator));
+  }
+
   private FilterManager createFilterManager(
       final Vertx vertx, final ProtocolContext<?> context, final TransactionPool transactionPool) {
     final FilterManager filterManager =
diff --git a/pantheon/src/main/java/tech/pegasys/pantheon/cli/PantheonCommand.java b/pantheon/src/main/java/tech/pegasys/pantheon/cli/PantheonCommand.java
index 1ea10af439..e9b5810076 100644
--- a/pantheon/src/main/java/tech/pegasys/pantheon/cli/PantheonCommand.java
+++ b/pantheon/src/main/java/tech/pegasys/pantheon/cli/PantheonCommand.java
@@ -49,6 +49,7 @@
 import tech.pegasys.pantheon.ethereum.jsonrpc.RpcApis;
 import tech.pegasys.pantheon.ethereum.jsonrpc.websocket.WebSocketConfiguration;
 import tech.pegasys.pantheon.ethereum.permissioning.LocalPermissioningConfiguration;
+import tech.pegasys.pantheon.ethereum.permissioning.PermissioningConfiguration;
 import tech.pegasys.pantheon.ethereum.permissioning.PermissioningConfigurationBuilder;
 import tech.pegasys.pantheon.metrics.MetricCategory;
 import tech.pegasys.pantheon.metrics.MetricsSystem;
@@ -613,10 +614,12 @@ public void run() {
     try {
       final JsonRpcConfiguration jsonRpcConfiguration = jsonRpcConfiguration();
       final WebSocketConfiguration webSocketConfiguration = webSocketConfiguration();
-      final Optional<LocalPermissioningConfiguration> permissioningConfiguration =
+      final Optional<PermissioningConfiguration> permissioningConfiguration =
           permissioningConfiguration();
-      permissioningConfiguration.ifPresent(
-          p -> ensureAllBootnodesAreInWhitelist(ethNetworkConfig, p));
+
+      permissioningConfiguration
+          .flatMap(PermissioningConfiguration::getLocalConfig)
+          .ifPresent(p -> ensureAllBootnodesAreInWhitelist(ethNetworkConfig, p));
 
       synchronize(
           buildController(),
@@ -787,8 +790,7 @@ MetricsConfiguration metricsConfiguration() {
     return metricsConfiguration;
   }
 
-  private Optional<LocalPermissioningConfiguration> permissioningConfiguration() throws Exception {
-
+  private Optional<PermissioningConfiguration> permissioningConfiguration() throws Exception {
     if (!permissionsAccountsEnabled && !permissionsNodesEnabled) {
       if (rpcHttpApis.contains(RpcApis.PERM) || rpcWsApis.contains(RpcApis.PERM)) {
         logger.warn(
@@ -797,9 +799,14 @@ private Optional<LocalPermissioningConfiguration> permissioningConfiguration() t
       return Optional.empty();
     }
 
-    final LocalPermissioningConfiguration permissioningConfiguration =
+    final LocalPermissioningConfiguration localPermissioningConfiguration =
         PermissioningConfigurationBuilder.permissioningConfiguration(
             getPermissionsConfigFile(), permissionsNodesEnabled, permissionsAccountsEnabled);
+
+    final PermissioningConfiguration permissioningConfiguration =
+        new PermissioningConfiguration(
+            Optional.of(localPermissioningConfiguration), Optional.empty());
+
     return Optional.of(permissioningConfiguration);
   }
 
@@ -847,7 +854,7 @@ private void synchronize(
       final JsonRpcConfiguration jsonRpcConfiguration,
       final WebSocketConfiguration webSocketConfiguration,
       final MetricsConfiguration metricsConfiguration,
-      final Optional<LocalPermissioningConfiguration> permissioningConfiguration) {
+      final Optional<PermissioningConfiguration> permissioningConfiguration) {
 
     checkNotNull(runnerBuilder);
 
diff --git a/pantheon/src/main/java/tech/pegasys/pantheon/cli/PantheonControllerBuilder.java b/pantheon/src/main/java/tech/pegasys/pantheon/cli/PantheonControllerBuilder.java
index 02c7fe1122..8919c10a53 100644
--- a/pantheon/src/main/java/tech/pegasys/pantheon/cli/PantheonControllerBuilder.java
+++ b/pantheon/src/main/java/tech/pegasys/pantheon/cli/PantheonControllerBuilder.java
@@ -19,6 +19,7 @@
 import tech.pegasys.pantheon.controller.PantheonController;
 import tech.pegasys.pantheon.crypto.SECP256K1.KeyPair;
 import tech.pegasys.pantheon.ethereum.core.MiningParameters;
+import tech.pegasys.pantheon.ethereum.core.PendingTransactions;
 import tech.pegasys.pantheon.ethereum.core.PrivacyParameters;
 import tech.pegasys.pantheon.ethereum.eth.sync.SynchronizerConfiguration;
 import tech.pegasys.pantheon.ethereum.storage.StorageProvider;
@@ -40,7 +41,7 @@ public class PantheonControllerBuilder {
   private File nodePrivateKeyFile;
   private MetricsSystem metricsSystem;
   private PrivacyParameters privacyParameters;
-  private Integer maxPendingTransactions;
+  private Integer maxPendingTransactions = PendingTransactions.MAX_PENDING_TRANSACTIONS;
 
   public PantheonControllerBuilder synchronizerConfiguration(
       final SynchronizerConfiguration synchronizerConfiguration) {
diff --git a/pantheon/src/test/java/tech/pegasys/pantheon/RunnerTest.java b/pantheon/src/test/java/tech/pegasys/pantheon/RunnerTest.java
index 874c992444..a567d3e658 100644
--- a/pantheon/src/test/java/tech/pegasys/pantheon/RunnerTest.java
+++ b/pantheon/src/test/java/tech/pegasys/pantheon/RunnerTest.java
@@ -39,7 +39,6 @@
 import tech.pegasys.pantheon.ethereum.mainnet.ProtocolSchedule;
 import tech.pegasys.pantheon.ethereum.mainnet.ProtocolSpec;
 import tech.pegasys.pantheon.ethereum.p2p.peers.Peer;
-import tech.pegasys.pantheon.ethereum.permissioning.LocalPermissioningConfiguration;
 import tech.pegasys.pantheon.ethereum.storage.StorageProvider;
 import tech.pegasys.pantheon.ethereum.storage.keyvalue.RocksDbStorageProvider;
 import tech.pegasys.pantheon.metrics.MetricsSystem;
@@ -136,8 +135,6 @@ private void syncFromGenesis(final SyncMode mode) throws Exception {
     final JsonRpcConfiguration aheadJsonRpcConfiguration = jsonRpcConfiguration();
     final WebSocketConfiguration aheadWebSocketConfiguration = wsRpcConfiguration();
     final MetricsConfiguration aheadMetricsConfiguration = metricsConfiguration();
-    final LocalPermissioningConfiguration aheadPermissioningConfiguration =
-        permissioningConfiguration();
     final RunnerBuilder runnerBuilder =
         new RunnerBuilder()
             .vertx(Vertx.vertx())
@@ -157,7 +154,6 @@ private void syncFromGenesis(final SyncMode mode) throws Exception {
             .webSocketConfiguration(aheadWebSocketConfiguration)
             .metricsConfiguration(aheadMetricsConfiguration)
             .dataDir(dbAhead)
-            .permissioningConfiguration(aheadPermissioningConfiguration)
             .build();
     try {
 
@@ -305,10 +301,6 @@ private MetricsConfiguration metricsConfiguration() {
     return configuration;
   }
 
-  private LocalPermissioningConfiguration permissioningConfiguration() {
-    return LocalPermissioningConfiguration.createDefault();
-  }
-
   private static void setupState(
       final int count,
       final ProtocolSchedule<Void> protocolSchedule,
diff --git a/pantheon/src/test/java/tech/pegasys/pantheon/cli/CommandTestAbstract.java b/pantheon/src/test/java/tech/pegasys/pantheon/cli/CommandTestAbstract.java
index a4fd7f3858..3ab957c85d 100644
--- a/pantheon/src/test/java/tech/pegasys/pantheon/cli/CommandTestAbstract.java
+++ b/pantheon/src/test/java/tech/pegasys/pantheon/cli/CommandTestAbstract.java
@@ -26,7 +26,7 @@
 import tech.pegasys.pantheon.ethereum.eth.sync.SynchronizerConfiguration;
 import tech.pegasys.pantheon.ethereum.jsonrpc.JsonRpcConfiguration;
 import tech.pegasys.pantheon.ethereum.jsonrpc.websocket.WebSocketConfiguration;
-import tech.pegasys.pantheon.ethereum.permissioning.LocalPermissioningConfiguration;
+import tech.pegasys.pantheon.ethereum.permissioning.PermissioningConfiguration;
 import tech.pegasys.pantheon.metrics.prometheus.MetricsConfiguration;
 import tech.pegasys.pantheon.util.BlockImporter;
 
@@ -84,7 +84,7 @@ public abstract class CommandTestAbstract {
   @Captor ArgumentCaptor<WebSocketConfiguration> wsRpcConfigArgumentCaptor;
   @Captor ArgumentCaptor<MetricsConfiguration> metricsConfigArgumentCaptor;
 
-  @Captor ArgumentCaptor<LocalPermissioningConfiguration> permissioningConfigurationArgumentCaptor;
+  @Captor ArgumentCaptor<PermissioningConfiguration> permissioningConfigurationArgumentCaptor;
 
   @Rule public final TemporaryFolder temp = new TemporaryFolder();
 
diff --git a/pantheon/src/test/java/tech/pegasys/pantheon/cli/PantheonCommandTest.java b/pantheon/src/test/java/tech/pegasys/pantheon/cli/PantheonCommandTest.java
index 8c57011dcf..1f3aa9061b 100644
--- a/pantheon/src/test/java/tech/pegasys/pantheon/cli/PantheonCommandTest.java
+++ b/pantheon/src/test/java/tech/pegasys/pantheon/cli/PantheonCommandTest.java
@@ -45,6 +45,7 @@
 import tech.pegasys.pantheon.ethereum.jsonrpc.RpcApi;
 import tech.pegasys.pantheon.ethereum.jsonrpc.websocket.WebSocketConfiguration;
 import tech.pegasys.pantheon.ethereum.permissioning.LocalPermissioningConfiguration;
+import tech.pegasys.pantheon.ethereum.permissioning.PermissioningConfiguration;
 import tech.pegasys.pantheon.metrics.MetricCategory;
 import tech.pegasys.pantheon.metrics.prometheus.MetricsConfiguration;
 import tech.pegasys.pantheon.util.bytes.BytesValue;
@@ -359,18 +360,19 @@ public void permissionsTomlPathMustUseOption() throws IOException {
 
     parseCommand(
         "--permissions-accounts-enabled", "--permissions-config-file", permToml.toString());
-    final LocalPermissioningConfiguration permissioningConfiguration =
+    final LocalPermissioningConfiguration localPermissioningConfiguration =
         LocalPermissioningConfiguration.createDefault();
-    permissioningConfiguration.setConfigurationFilePath(permToml.toString());
-    permissioningConfiguration.setAccountWhitelist(
+    localPermissioningConfiguration.setConfigurationFilePath(permToml.toString());
+    localPermissioningConfiguration.setAccountWhitelist(
         Collections.singletonList("0x0000000000000000000000000000000000000009"));
 
     verify(mockRunnerBuilder)
         .permissioningConfiguration(permissioningConfigurationArgumentCaptor.capture());
     verify(mockRunnerBuilder).build();
 
-    assertThat(permissioningConfigurationArgumentCaptor.getValue())
-        .isEqualToComparingFieldByField(permissioningConfiguration);
+    PermissioningConfiguration config = permissioningConfigurationArgumentCaptor.getValue();
+    assertThat(config.getLocalConfig().get())
+        .isEqualToComparingFieldByField(localPermissioningConfiguration);
 
     assertThat(commandErrorOutput.toString()).isEmpty();
     assertThat(commandOutput.toString()).isEmpty();