diff --git a/core/txpool/localpool/blockchain_test.go b/core/txpool/localpool/blockchain_test.go
new file mode 100644
index 0000000000..9ce3126345
--- /dev/null
+++ b/core/txpool/localpool/blockchain_test.go
@@ -0,0 +1,39 @@
+package localpool
+
+import (
+	"errors"
+
+	"github.com/ethereum/go-ethereum/common"
+	"github.com/ethereum/go-ethereum/core/state"
+	"github.com/ethereum/go-ethereum/core/types"
+	"github.com/ethereum/go-ethereum/params"
+)
+
+type MockBC struct {
+	currentBlock *types.Header
+	dbs          map[common.Hash]*state.StateDB
+}
+
+func (m *MockBC) Config() *params.ChainConfig {
+	return params.AllDevChainProtocolChanges
+}
+
+func (m *MockBC) CurrentBlock() *types.Header {
+	return m.currentBlock
+}
+
+func (m *MockBC) GetBlock(hash common.Hash, number uint64) *types.Block {
+	return nil
+}
+
+func (m *MockBC) StateAt(root common.Hash) (*state.StateDB, error) {
+	state, ok := m.dbs[root]
+	if !ok {
+		return nil, errors.New("not found")
+	}
+	return state, nil
+}
+
+func (m *MockBC) SetState(root common.Hash, db *state.StateDB) {
+	m.dbs[root] = db
+}
diff --git a/core/txpool/localpool/localpool.go b/core/txpool/localpool/localpool.go
index 73e71dee77..b7772292a8 100644
--- a/core/txpool/localpool/localpool.go
+++ b/core/txpool/localpool/localpool.go
@@ -87,7 +87,7 @@ func (l *LocalPool) Init(gasTip *big.Int, head *types.Header, reserve txpool.Add
 	l.reserver = reserve
 	// TODO load transactions.rlp
 	l.Reset(nil, head)
-	return errors.New("not implemented")
+	return nil
 }
 
 func (l *LocalPool) Close() error {
@@ -149,7 +149,7 @@ func (l *LocalPool) Add(txs []*types.Transaction, local bool, sync bool) []error
 	}
 	// notify all listeners about successfully added txs
 	l.txFeed.Send(core.NewTxsEvent{Txs: successfulTxs})
-	return nil
+	return errs
 }
 
 func (l *LocalPool) add(tx *types.Transaction) error {
diff --git a/core/txpool/localpool/localpool_test.go b/core/txpool/localpool/localpool_test.go
index 2bacb0f0f6..804d788805 100644
--- a/core/txpool/localpool/localpool_test.go
+++ b/core/txpool/localpool/localpool_test.go
@@ -1,6 +1,17 @@
 package localpool
 
-import "errors"
+import (
+	"errors"
+	"math/big"
+	"testing"
+
+	"github.com/ethereum/go-ethereum/common"
+	"github.com/ethereum/go-ethereum/core/rawdb"
+	"github.com/ethereum/go-ethereum/core/state"
+	"github.com/ethereum/go-ethereum/core/types"
+	"github.com/ethereum/go-ethereum/crypto"
+	"github.com/ethereum/go-ethereum/params"
+)
 
 func (l *LocalPool) verifyConsistency() error {
 	for _, list := range l.allAccounts {
@@ -25,3 +36,112 @@ func (l *LocalPool) verifyConsistency() error {
 	}
 	return nil
 }
+
+func TestReset(t *testing.T) {
+	// Generate a faucet
+	key, err := crypto.GenerateKey()
+	if err != nil {
+		t.Fatal(err)
+	}
+	addr := crypto.PubkeyToAddress(key.PublicKey)
+	// Setup a mock blockchain
+	bc := &MockBC{
+		currentBlock: &types.Header{Root: common.Hash{}},
+		dbs:          make(map[common.Hash]*state.StateDB),
+	}
+	initialDB, err := state.New(common.Hash{}, state.NewDatabase(rawdb.NewMemoryDatabase()), nil)
+	if err != nil {
+		t.Fatal(err)
+	}
+	initialDB.CreateAccount(addr)
+	initialDB.SetBalance(addr, big.NewInt(1_000_000_000_000_000_000))
+	bc.SetState(common.Hash{}, initialDB)
+	// Setup the txpool
+	pool, err := NewLocalPool(bc, types.LatestSigner(params.AllDevChainProtocolChanges))
+	if err != nil {
+		t.Fatal(err)
+	}
+	if err := pool.Init(nil, &types.Header{Root: common.Hash{}, GasLimit: 200_000}, func(addr common.Address, reserve bool) error { return nil }); err != nil {
+		t.Fatal(err)
+	}
+	// Queue transactions
+	// TODO there might be an off-by-one error here
+	for i := 1; i < 100; i++ {
+		tx := types.NewTransaction(uint64(i), common.Address{}, new(big.Int), 100000, big.NewInt(1234), nil)
+		signer := types.LatestSigner(params.AllDevChainProtocolChanges)
+		signed, err := types.SignTx(tx, signer, key)
+		if err != nil {
+			t.Fatal(err)
+		}
+		if errs := pool.Add([]*types.Transaction{signed}, true, false); errs[0] != nil {
+			t.Fatal(errs[0])
+		}
+	}
+	// Verify integrity
+	if err := pool.verifyConsistency(); err != nil {
+		t.Fatal(err)
+	}
+	pending, queued := pool.ContentFrom(addr)
+	if len(pending) != 99 || len(queued) != 0 {
+		t.Fatal(len(pending), len(queued))
+	}
+	// Reset the pool
+	newDB := initialDB.Copy()
+	newDB.SetNonce(addr, uint64(100+1))
+	bc.SetState(common.Hash{1}, newDB)
+	pool.Reset(nil, &types.Header{Root: common.Hash{1}})
+	// Verify post state
+	if err := pool.verifyConsistency(); err != nil {
+		t.Fatal(err)
+	}
+	pending, queued = pool.ContentFrom(addr)
+	if len(pending) != 0 || len(queued) != 0 {
+		t.Fatal(pending, queued)
+	}
+}
+
+func BenchmarkReorg(b *testing.B) {
+	// Generate a faucet
+	key, err := crypto.GenerateKey()
+	if err != nil {
+		b.Fatal(err)
+	}
+	addr := crypto.PubkeyToAddress(key.PublicKey)
+	// Setup a mock blockchain
+	bc := &MockBC{
+		currentBlock: &types.Header{Root: common.Hash{}},
+		dbs:          make(map[common.Hash]*state.StateDB),
+	}
+	initialDB, err := state.New(common.Hash{}, state.NewDatabase(rawdb.NewMemoryDatabase()), nil)
+	if err != nil {
+		b.Fatal(err)
+	}
+	initialDB.CreateAccount(addr)
+	initialDB.SetBalance(addr, big.NewInt(1_000_000_000_000_000_000))
+	bc.SetState(common.Hash{}, initialDB)
+	// Setup the txpool
+	pool, err := NewLocalPool(bc, types.LatestSigner(params.AllDevChainProtocolChanges))
+	if err != nil {
+		b.Fatal(err)
+	}
+	if err := pool.Init(nil, &types.Header{Root: common.Hash{}, GasLimit: 200_000}, func(addr common.Address, reserve bool) error { return nil }); err != nil {
+		b.Fatal(err)
+	}
+	// Queue transactions
+	for i := 0; i < b.N; i++ {
+		tx := types.NewTransaction(uint64(i), common.Address{}, new(big.Int), 100000, big.NewInt(1234), nil)
+		signer := types.LatestSigner(params.AllDevChainProtocolChanges)
+		signed, err := types.SignTx(tx, signer, key)
+		if err != nil {
+			b.Fatal(err)
+		}
+		if errs := pool.Add([]*types.Transaction{signed}, true, false); errs[0] != nil {
+			b.Fatal(errs[0])
+		}
+	}
+	newDB := initialDB.Copy()
+	newDB.SetNonce(addr, uint64(b.N+1))
+	bc.SetState(common.Hash{1}, newDB)
+	b.ResetTimer()
+	pool.Reset(nil, &types.Header{Root: common.Hash{1}})
+}