diff --git a/celigo/core.py b/celigo/core.py
index fe7a7c6..e1060d3 100644
--- a/celigo/core.py
+++ b/celigo/core.py
@@ -19,14 +19,11 @@ class BackupCeligo(object):
     """
     def __init__(self,
                  data_dir,
-                 api_key,
                  headers=None,
                  base_url=None,):
         """
         :param data_dir: The directory to read and store JSON files
             for imports and configurations.
-        :param api_key: String of api key to add to the header for
-            the api calls.
         :param headers: Single level dict of headers to add the the
             api call session.
         :param base_url: Url for the base of the api to call to.
@@ -35,7 +32,9 @@ class BackupCeligo(object):
         if not base_url:
             base_url = DEFAULT_BASE_URL
 
-        self.api_key = api_key
+        self.api_key = os.environ.get("CELIGO_API_KEY", None)
+        if not self.api_key:
+            raise Exception("Please set CELIGO_API_KEY environment variable")
         self.data_dir = data_dir
         self.base_url = base_url
         self.imports_cache = {}
diff --git a/tests.py b/tests.py
index ea69f42..17b9efb 100644
--- a/tests.py
+++ b/tests.py
@@ -13,22 +13,34 @@ class CeligoTest(unittest.TestCase):
 
     def setUp(self):
         self.FAKE_API_KEY = 'fake'
+        os.environ['CELIGO_API_KEY'] = self.FAKE_API_KEY
 
     def test_needs_all_params(self):
         """
-        Test that we need to pass in both an api key and a data directory.
+        Test that we need to pass in a data directory.
         """
-        with pytest.raises(TypeError):
+        with self.assertRaises(TypeError):
             celigo.BackupCeligo()
         data_dir = "fakedir"
-        celigo.BackupCeligo(data_dir, self.FAKE_API_KEY)
+        celigo.BackupCeligo(data_dir)
+
+    def test_needs_api_key_env(self):
+        """
+        Test that we need to pass in a data directory.
+        """
+        data_dir = "fakedir"
+        os.environ['CELIGO_API_KEY'] = ''
+        with self.assertRaises(Exception):
+            celigo.BackupCeligo(data_dir)
+        os.environ['CELIGO_API_KEY'] = self.FAKE_API_KEY
+        celigo.BackupCeligo(data_dir)
 
     def test_ensure_directories(self):
         """
             Test that the ensure_directories_exist works properly.
         """
         tempdir = tempfile.mkdtemp('celigo_testing')
-        bc = celigo.BackupCeligo(tempdir, self.FAKE_API_KEY)
+        bc = celigo.BackupCeligo(tempdir)
         imports_dir = os.path.join(tempdir, "imports")
         connections_dir = os.path.join(tempdir, "connections")
         # Check that the directories don't exist already.
@@ -56,4 +68,4 @@ class CeligoTest(unittest.TestCase):
     def test_fake_requests(self, rqm):
         rqm.get(celigo.DEFAULT_BASE_URL, text='resp')
         tempdir = tempfile.mkdtemp('celigo_testing')
-        bc = celigo.BackupCeligo(tempdir, self.FAKE_API_KEY)
+        bc = celigo.BackupCeligo(tempdir)