diff --git a/README.md b/README.md
index 367b33cfc..280d4f1bf 100644
--- a/README.md
+++ b/README.md
@@ -51,6 +51,9 @@ runner.run(collection, {
     // Globals (a "VariableScope" from the SDK)
     globals: new sdk.VariableScope(),
 
+    // Locals (a "variableScope" from the SDK) local variables will be initialised by this.
+    locals: new sdk.VariableScope(),
+
     // Execute a folder/request using id/name or path
     entrypoint: {
         // execute a folder/request using id or name
diff --git a/test/integration/inherited-entities/pm-variables.test.js b/test/integration/inherited-entities/pm-variables.test.js
index e66cca8c9..9c6416731 100644
--- a/test/integration/inherited-entities/pm-variables.test.js
+++ b/test/integration/inherited-entities/pm-variables.test.js
@@ -4,6 +4,12 @@ var _ = require('lodash'),
 describe('pm.variables', function () {
     var testRun,
         runOptions = {
+            locals: {
+                values: [
+                    { key: 'key-1', value: 'local-value-1', name: 'key-1', enabled: true },
+                    { key: 'key-7', value: 'local-value-7', name: 'key-7', enabled: true }
+                ]
+            },
             data: [{
                 'key-4': 'data-value-4'
             }],
@@ -95,10 +101,11 @@ describe('pm.variables', function () {
 
             consoleLogs.forEach(function (consoleLog) {
                 expect(consoleLog).to.eql({
-                    'key-1': 'global-value-1',
+                    'key-1': 'local-value-1',
                     'key-2': 'coll-value-2',
                     'key-3': 'env-value-3',
                     'key-4': 'data-value-4',
+                    'key-7': 'local-value-7',
                     'vault:key5': 'global-value-5',
                     'vault:key6': 'vault-value-6'
                 });
@@ -107,14 +114,14 @@ describe('pm.variables', function () {
 
         it('should be honoured in request URL', function () {
             var url = testRun.request.getCall(0).args[3].url.toString(),
-                expectedParam = 'global-value-1:coll-value-2:env-value-3:data-value-4:global-value-5';
+                expectedParam = 'local-value-1:coll-value-2:env-value-3:data-value-4:global-value-5';
 
             expect(url).to.equal('https://postman-echo.com/get?param=' + expectedParam);
         });
 
         it('should be honoured in auth', function () {
             var response = testRun.response.getCall(0).args[2],
-                expectedToken = 'global-value-1:coll-value-2:env-value-3:data-value-4:global-value-5';
+                expectedToken = 'local-value-1:coll-value-2:env-value-3:data-value-4:global-value-5';
 
             expect(response.json()).to.deep.nested.include({
                 'headers.authorization': 'Bearer ' + expectedToken
@@ -234,6 +241,7 @@ describe('pm.variables', function () {
                     'key-2': 'modified-1',
                     'key-3': 'env-value-3',
                     'key-4': 'data-value-4',
+                    'key-7': 'local-value-7',
                     'vault:key5': 'global-value-5',
                     'vault:key6': 'vault-value-6'
                 }
@@ -246,6 +254,7 @@ describe('pm.variables', function () {
                     'key-2': 'modified-2',
                     'key-3': 'modified-2',
                     'key-4': 'data-value-4',
+                    'key-7': 'local-value-7',
                     'vault:key5': 'global-value-5',
                     'vault:key6': 'vault-value-6'
                 }
@@ -258,6 +267,7 @@ describe('pm.variables', function () {
                     'key-2': 'modified-2',
                     'key-3': 'modified-3',
                     'key-4': 'modified-3',
+                    'key-7': 'local-value-7',
                     'vault:key5': 'global-value-5',
                     'vault:key6': 'vault-value-6'
                 }
@@ -270,6 +280,7 @@ describe('pm.variables', function () {
                     'key-2': 'modified-2',
                     'key-3': 'modified-3',
                     'key-4': 'modified-4',
+                    'key-7': 'local-value-7',
                     'vault:key5': 'global-value-5',
                     'vault:key6': 'vault-value-6'
                 }
@@ -282,6 +293,7 @@ describe('pm.variables', function () {
                     'key-2': 'modified-1',
                     'key-3': 'modified-3',
                     'key-4': 'modified-4',
+                    'key-7': 'local-value-7',
                     'vault:key5': 'global-value-5',
                     'vault:key6': 'vault-value-6'
                 }
@@ -294,6 +306,7 @@ describe('pm.variables', function () {
                     'key-2': 'modified-1',
                     'key-3': 'modified-3',
                     'key-4': 'modified-3',
+                    'key-7': 'local-value-7',
                     'vault:key5': 'global-value-5',
                     'vault:key6': 'vault-value-6'
                 }
@@ -361,6 +374,7 @@ describe('pm.variables', function () {
                     'key-2': 'coll-value-2',
                     'key-3': 'env-value-3',
                     'key-4': 'data-value-4',
+                    'key-7': 'local-value-7',
                     'vault:key5': 'global-value-5',
                     'vault:key6': 'vault-value-6'
                 }