diff --git a/lib/puppet/indirector/hiera.rb b/lib/puppet/indirector/hiera.rb
index 2e2905eb5..1a43d6e5f 100644
--- a/lib/puppet/indirector/hiera.rb
+++ b/lib/puppet/indirector/hiera.rb
@@ -1,26 +1,40 @@
 require 'puppet/indirector/terminus'
 
 class Puppet::Indirector::Hiera < Puppet::Indirector::Terminus
   def initialize(*args)
     if ! Puppet.features.hiera?
       raise "Hiera terminus not supported without hiera library"
     end
     super
   end
 
   def find(request)
     facts = Puppet::Node::Facts.indirection.find(request.options[:host]).values
     hiera.lookup(request.key, nil, facts, nil, nil)
   end
 
   private
 
+  def self.hiera_config
+    hiera_config = Puppet.settings[:hiera_config]
+    config = {}
+
+    if File.exist?(hiera_config)
+      config = Hiera::Config.load(hiera_config)
+    else
+      Puppet.warning "Config file #{hiera_config} not found, using Hiera defaults"
+    end
+
+    config[:logger] = 'puppet'
+    config
+  end
+
   def self.hiera
-    @hiera || Hiera.new(:config => Puppet.settings[:hiera_config])
+    @hiera ||= Hiera.new(:config => hiera_config)
   end
 
   def hiera
     self.class.hiera
   end
 end
 
diff --git a/spec/unit/indirector/hiera_spec.rb b/spec/unit/indirector/hiera_spec.rb
index e114c31b4..1b605dc30 100644
--- a/spec/unit/indirector/hiera_spec.rb
+++ b/spec/unit/indirector/hiera_spec.rb
@@ -1,94 +1,153 @@
 require 'spec_helper'
 require 'puppet/indirector/hiera'
 
 describe Puppet::Indirector::Hiera do
   include PuppetSpec::Files
 
+  def write_hiera_config(config_file, datadir)
+    File.open(config_file, 'w') do |f|
+      f.write("---
+        :yaml:
+          :datadir: #{datadir}
+        :hierarchy: ['global']
+        :logger: 'noop'
+        :backends: ['yaml']
+      ")
+    end
+  end
+
   before do
-    Puppet.settings[:hiera_config] = {}
+    Puppet.settings[:hiera_config] = hiera_config_file
+    write_hiera_config(hiera_config_file, datadir)
+
     Puppet::Indirector::Terminus.stubs(:register_terminus_class)
     Puppet::Indirector::Indirection.stubs(:instance).returns(indirection)
 
     module Testing; end
     @hiera_class = class Testing::Hiera < Puppet::Indirector::Hiera
       self
     end
   end
 
   let(:model)   { mock('model') }
   let(:options) { {:host => 'foo' } }
 
   let(:request_integer) do
     stub('request', :key => "integer", :options => options)
   end
 
   let(:request_string) do
     stub('request', :key => "string", :options => options)
   end
 
   let(:request_array) do
     stub('request', :key => "array", :options => options)
   end
 
   let(:request_hash) do
     stub('request', :key => "hash", :options => options)
   end
 
   let(:indirection) do
     stub('indirection', :name => :none, :register_terminus_type => nil,
       :model => model)
   end
 
   let(:facts) do
     { 'fqdn' => 'agent.testing.com' }
   end
   let(:facter_obj) { stub(:values => facts) }
 
+  let(:hiera_config_file) do
+    tmpfile("hiera.yaml")
+  end
+
+  let(:datadir) { my_fixture_dir }
+
   it "should be the default data_binding terminus" do
     Puppet.settings[:data_binding_terminus].should == 'hiera'
   end
 
   it "should raise an error if we don't have the hiera feature" do
     Puppet.features.expects(:hiera?).returns(false)
     lambda { @hiera_class.new }.should raise_error RuntimeError,
       "Hiera terminus not supported without hiera library"
   end
 
-  describe "the behavior of the find method", :if => Puppet.features.hiera? do
-    before do
-      Puppet.settings[:hiera_config] = {
+  describe "the behavior of the hiera_config method", :if => Puppet.features.hiera? do
+    let(:default_hiera_config) do
+      {
+        :logger    => "puppet",
+        :backends  => ["yaml"],
         :yaml      => { :datadir => datadir },
-        :hierarchy => ['global'],
-        :logger    => 'noop'
+        :hierarchy => ["global"]
       }
+    end
+
+    it "should load the hiera config file by delegating to Hiera" do
+      Hiera::Config.expects(:load).with(hiera_config_file).returns({})
+      @hiera_class.hiera_config
+    end
+
+    it "should override the logger and set it to puppet" do
+      @hiera_class.hiera_config[:logger].should == "puppet"
+    end
+
+    it "should return a hiera configuration hash" do
+      results = @hiera_class.hiera_config
+      results.should == default_hiera_config
+      results.should be_a_kind_of Hash
+    end
+
+    context "when the Hiera configuration file does not exist" do
+      before do
+        Puppet.settings[:hiera_config] = '/doesnotexists'
+      end
+
+      it "should log a warning" do
+        Puppet.expects(:warning).with(
+          "Config file /doesnotexists not found, using Hiera defaults")
+        @hiera_class.hiera_config
+      end
+
+      it "should only configure the logger and set it to puppet" do
+        Puppet.expects(:warning).with(
+          "Config file /doesnotexists not found, using Hiera defaults")
+        @hiera_class.hiera_config.should == { :logger => 'puppet' }
+      end
+    end
+  end
+
+  describe "the behavior of the find method", :if => Puppet.features.hiera? do
+    before do
       Puppet::Node::Facts.indirection.expects(:find).with('foo').
         returns(facter_obj)
     end
 
-    let(:datadir)     { my_fixture_dir }
     let(:data_binder) { @hiera_class.new }
 
     it "support looking up an integer" do
       data_binder.find(request_integer).should == 3000
     end
 
     it "should support looking up a string" do
       data_binder.find(request_string).should == 'apache'
     end
 
     it "should support looking up an array" do
       data_binder.find(request_array).should == [
         '0.ntp.puppetlabs.com',
         '1.ntp.puppetlabs.com',
       ]
     end
 
     it "should support looking up a hash" do
       data_binder.find(request_hash).should == {
         'user'  => 'Hightower',
         'group' => 'admin',
         'mode'  => '0644'
       }
     end
   end
 end
+