diff --git a/moto/ec2/exceptions.py b/moto/ec2/exceptions.py
index 682253897..fed04ecbb 100644
--- a/moto/ec2/exceptions.py
+++ b/moto/ec2/exceptions.py
@@ -37,6 +37,22 @@ class InvalidVPCIdError(EC2ClientError):
             .format(vpc_id))
 
 
+class InvalidVPCPeeringConnectionIdError(EC2ClientError):
+    def __init__(self, vpc_peering_connection_id):
+        super(InvalidVPCPeeringConnectionIdError, self).__init__(
+            "InvalidVpcPeeringConnectionId.NotFound",
+            "VpcPeeringConnectionID {0} does not exist."
+            .format(vpc_peering_connection_id))
+
+
+class InvalidVPCPeeringConnectionStateTransitionError(EC2ClientError):
+    def __init__(self, vpc_peering_connection_id):
+        super(InvalidVPCPeeringConnectionStateTransitionError, self).__init__(
+            "InvalidStateTransition",
+            "VpcPeeringConnectionID {0} is not in the correct state for the request."
+            .format(vpc_peering_connection_id))
+
+
 class InvalidParameterValueError(EC2ClientError):
     def __init__(self, parameter_value):
         super(InvalidParameterValueError, self).__init__(
diff --git a/moto/ec2/models.py b/moto/ec2/models.py
index c25f49e28..b91bc8d57 100644
--- a/moto/ec2/models.py
+++ b/moto/ec2/models.py
@@ -12,7 +12,9 @@ from .exceptions import (
     InvalidInternetGatewayIDError,
     GatewayNotAttachedError,
     ResourceAlreadyAssociatedError,
-    InvalidVPCIdError
+    InvalidVPCIdError,
+    InvalidVPCPeeringConnectionIdError,
+    InvalidVPCPeeringConnectionStateTransitionError
 )
 from .utils import (
     random_ami_id,
@@ -32,6 +34,7 @@ from .utils import (
     random_subnet_id,
     random_volume_id,
     random_vpc_id,
+    random_vpc_peering_connection_id,
 )
 
 
@@ -712,6 +715,89 @@ class VPCBackend(object):
         return vpc
 
 
+class VPCPeeringConnectionStatus(object):
+    def __init__(self, code='initiating-request', message=''):
+        self.code = code
+        self.message = message
+
+    def initiating(self):
+        self.code = 'initiating-request'
+        self.message = 'Initiating Request to {accepter ID}'
+
+    def pending(self):
+        self.code = 'pending-acceptance'
+        self.message = 'Pending Acceptance by {accepter ID}'
+
+    def accept(self):
+        self.code = 'active'
+        self.message = 'Active'
+
+    def reject(self):
+        self.code = 'rejected'
+        self.message = 'Inactive'
+
+
+class VPCPeeringConnection(TaggedEC2Instance):
+    def __init__(self, vpc_pcx_id, vpc, peer_vpc):
+        self.id = vpc_pcx_id
+        self.vpc = vpc
+        self.peer_vpc = peer_vpc
+        self._status = VPCPeeringConnectionStatus()
+
+    @classmethod
+    def create_from_cloudformation_json(cls, resource_name, cloudformation_json):
+        properties = cloudformation_json['Properties']
+
+        vpc = self.get_vpc(properties['VpcId'])
+        peer_vpc = self.get_vpc(properties['PeerVpcId'])
+
+        vpc_pcx = ec2_backend.create_vpc_peering_connection(vpc, peer_vpc)
+
+        return vpc_pcx
+
+    @property
+    def physical_resource_id(self):
+        return self.id
+
+
+class VPCPeeringConnectionBackend(object):
+    def __init__(self):
+        self.vpc_pcxs = {}
+        super(VPCPeeringConnectionBackend, self).__init__()
+
+    def create_vpc_peering_connection(self, vpc, peer_vpc):
+        vpc_pcx_id = random_vpc_peering_connection_id()
+        vpc_pcx = VPCPeeringConnection(vpc_pcx_id, vpc, peer_vpc)
+        vpc_pcx._status.pending()
+        self.vpc_pcxs[vpc_pcx_id] = vpc_pcx
+        return vpc_pcx
+
+    def get_all_vpc_peering_connections(self):
+        return self.vpc_pcxs.values()
+
+    def get_vpc_peering_connection(self, vpc_pcx_id):
+        if vpc_pcx_id not in self.vpc_pcxs:
+            raise InvalidVPCPeeringConnectionIdError(vpc_pcx_id)
+        return self.vpc_pcxs.get(vpc_pcx_id)
+
+    def delete_vpc_peering_connection(self, vpc_pcx_id):
+        return self.vpc_pcxs.pop(vpc_pcx_id, None)
+
+    def accept_vpc_peering_connection(self, vpc_pcx_id):
+        vpc_pcx = self.get_vpc_peering_connection(vpc_pcx_id)
+        if vpc_pcx._status.code != 'pending-acceptance':
+            raise InvalidVPCPeeringConnectionStateTransitionError(vpc_pcx.id)
+        vpc_pcx._status.accept()
+        return vpc_pcx
+
+    def reject_vpc_peering_connection(self, vpc_pcx_id):
+        vpc_pcx = self.get_vpc_peering_connection(vpc_pcx_id)
+        if vpc_pcx._status.code != 'pending-acceptance':
+            raise InvalidVPCPeeringConnectionStateTransitionError(vpc_pcx.id)
+        vpc_pcx._status.reject()
+        return vpc_pcx
+
+
 class Subnet(TaggedEC2Instance):
     def __init__(self, subnet_id, vpc_id, cidr_block):
         self.id = subnet_id
@@ -1168,6 +1254,7 @@ class DHCPOptionsSetBackend(object):
 class EC2Backend(BaseBackend, InstanceBackend, TagBackend, AmiBackend,
                  RegionsAndZonesBackend, SecurityGroupBackend, EBSBackend,
                  VPCBackend, SubnetBackend, SubnetRouteTableAssociationBackend,
+                 VPCPeeringConnectionBackend,
                  RouteTableBackend, RouteBackend, InternetGatewayBackend,
                  VPCGatewayAttachmentBackend, SpotRequestBackend,
                  ElasticAddressBackend, KeyPairBackend, DHCPOptionsSetBackend):
diff --git a/moto/ec2/responses/__init__.py b/moto/ec2/responses/__init__.py
index cebff3eba..fa487293f 100644
--- a/moto/ec2/responses/__init__.py
+++ b/moto/ec2/responses/__init__.py
@@ -24,6 +24,7 @@ from .virtual_private_gateways import VirtualPrivateGateways
 from .vm_export import VMExport
 from .vm_import import VMImport
 from .vpcs import VPCs
+from .vpc_peering_connections import VPCPeeringConnections
 from .vpn_connections import VPNConnections
 from .windows import Windows
 
@@ -55,6 +56,7 @@ class EC2Response(
     VMExport,
     VMImport,
     VPCs,
+    VPCPeeringConnections,
     VPNConnections,
     Windows,
 ):
diff --git a/moto/ec2/responses/vpc_peering_connections.py b/moto/ec2/responses/vpc_peering_connections.py
new file mode 100644
index 000000000..786332672
--- /dev/null
+++ b/moto/ec2/responses/vpc_peering_connections.py
@@ -0,0 +1,137 @@
+from jinja2 import Template
+
+from moto.core.responses import BaseResponse
+from moto.ec2.models import ec2_backend
+
+
+class VPCPeeringConnections(BaseResponse):
+    def create_vpc_peering_connection(self):
+        vpc = ec2_backend.get_vpc(self.querystring.get('VpcId')[0])
+        peer_vpc = ec2_backend.get_vpc(self.querystring.get('PeerVpcId')[0])
+        vpc_pcx = ec2_backend.create_vpc_peering_connection(vpc, peer_vpc)
+        template = Template(CREATE_VPC_PEERING_CONNECTION_RESPONSE)
+        return template.render(vpc_pcx=vpc_pcx)
+
+    def delete_vpc_peering_connection(self):
+        vpc_pcx_id = self.querystring.get('VpcPeeringConnectionId')[0]
+        vpc_pcx = ec2_backend.delete_vpc_peering_connection(vpc_pcx_id)
+        if vpc_pcx:
+            template = Template(DELETE_VPC_PEERING_CONNECTION_RESPONSE)
+            return template.render(vpc_pcx=vpc_pcx)
+        else:
+            return "", dict(status=404)
+
+    def describe_vpc_peering_connections(self):
+        vpc_pcxs = ec2_backend.get_all_vpc_peering_connections()
+        template = Template(DESCRIBE_VPC_PEERING_CONNECTIONS_RESPONSE)
+        return template.render(vpc_pcxs=vpc_pcxs)
+
+    def accept_vpc_peering_connection(self):
+        vpc_pcx_id = self.querystring.get('VpcPeeringConnectionId')[0]
+        vpc_pcx = ec2_backend.accept_vpc_peering_connection(vpc_pcx_id)
+        if vpc_pcx:
+            template = Template(ACCEPT_VPC_PEERING_CONNECTION_RESPONSE)
+            return template.render(vpc_pcx=vpc_pcx)
+        else:
+            return "", dict(status=404)
+
+    def reject_vpc_peering_connection(self):
+        vpc_pcx_id = self.querystring.get('VpcPeeringConnectionId')[0]
+        vpc_pcx = ec2_backend.reject_vpc_peering_connection(vpc_pcx_id)
+        if vpc_pcx:
+            template = Template(REJECT_VPC_PEERING_CONNECTION_RESPONSE)
+            return template.render()
+        else:
+            return "", dict(status=404)
+
+
+CREATE_VPC_PEERING_CONNECTION_RESPONSE = """
+<CreateVpcPeeringConnectionResponse xmlns="http://ec2.amazonaws.com/doc/2014-06-15/">
+  <requestId>7a62c49f-347e-4fc4-9331-6e8eEXAMPLE</requestId>
+  <vpcPeeringConnection>
+    <vpcPeeringConnectionId>{{ vpc_pcx.id }}</vpcPeeringConnectionId>
+    <requesterVpcInfo>
+      <ownerId>777788889999</ownerId>
+      <vpcId>{{ vpc_pcx.vpc.id }}</vpcId>
+      <cidrBlock>{{ vpc_pcx.vpc.cidr_block }}</cidrBlock>
+    </requesterVpcInfo>
+    <accepterVpcInfo>
+      <ownerId>123456789012</ownerId>
+      <vpcId>{{ vpc_pcx.peer_vpc.id }}</vpcId>
+    </accepterVpcInfo>
+    <status>
+      <code>initiating-request</code>
+      <message>Initiating request to {accepter ID}.</message>
+    </status>
+    <expirationTime>2014-02-18T14:37:25.000Z</expirationTime>
+    <tagSet/>
+  </vpcPeeringConnection>
+</CreateVpcPeeringConnectionResponse>
+"""
+
+DESCRIBE_VPC_PEERING_CONNECTIONS_RESPONSE = """
+<DescribeVpcPeeringConnectionsResponse xmlns="http://ec2.amazonaws.com/doc/2014-06-15/">
+  <requestId>7a62c49f-347e-4fc4-9331-6e8eEXAMPLE</requestId>
+  <vpcPeeringConnectionSet>
+    {% for vpc_pcx in vpc_pcxs %}
+      <item>
+        <vpcPeeringConnectionId>{{ vpc_pcx.id }}</vpcPeeringConnectionId>
+        <requesterVpcInfo>
+          <ownerId>777788889999</ownerId>
+          <vpcId>{{ vpc_pcx.vpc.id }}</vpcId>
+          <cidrBlock>{{ vpc_pcx.vpc.cidr_block }}</cidrBlock>
+        </requesterVpcInfo>
+        <accepterVpcInfo>
+          <ownerId>111122223333</ownerId>
+          <vpcId>{{ vpc_pcx.peer_vpc.id }}</vpcId>
+        </accepterVpcInfo>
+        <status>
+          <code>{{ vpc_pcx._status.code }}</code>
+          <message>{{ vpc_pcx._status.message }}</message>
+        </status>
+        <expirationTime>2014-02-17T16:00:50.000Z</expirationTime>
+        <tagSet/>
+      </item>
+    {% endfor %}
+  </vpcPeeringConnectionSet>
+</DescribeVpcPeeringConnectionsResponse>
+"""
+
+DELETE_VPC_PEERING_CONNECTION_RESPONSE = """
+<DeleteVpcPeeringConnectionResponse xmlns="http://ec2.amazonaws.com/doc/2014-06-15/">
+  <requestId>7a62c49f-347e-4fc4-9331-6e8eEXAMPLE</requestId>
+  <return>true</return>
+</DeleteVpcPeeringConnectionResponse>
+"""
+
+ACCEPT_VPC_PEERING_CONNECTION_RESPONSE = """
+<AcceptVpcPeeringConnectionResponse xmlns="http://ec2.amazonaws.com/doc/2014-06-15/">
+  <requestId>7a62c49f-347e-4fc4-9331-6e8eEXAMPLE</requestId>
+  <vpcPeeringConnection>
+    <vpcPeeringConnectionId>{{ vpc_pcx.id }}</vpcPeeringConnectionId>
+    <requesterVpcInfo>
+      <ownerId>123456789012</ownerId>
+      <vpcId>{{ vpc_pcx.vpc.id }}</vpcId>
+      <cidrBlock>{{ vpc_pcx.vpc.cidr_block }}</cidrBlock>
+    </requesterVpcInfo>
+    <accepterVpcInfo>
+      <ownerId>777788889999</ownerId>
+      <vpcId>{{ vpc_pcx.peer_vpc.id }}</vpcId>
+      <cidrBlock>{{ vpc_pcx.peer_vpc.cidr_block }}</cidrBlock>
+    </accepterVpcInfo>
+    <status>
+      <code>{{ vpc_pcx._status.code }}</code>
+      <message>{{ vpc_pcx._status.message }}</message>
+    </status>
+    <tagSet/>
+  </vpcPeeringConnection>
+</AcceptVpcPeeringConnectionResponse>
+"""
+
+REJECT_VPC_PEERING_CONNECTION_RESPONSE = """
+<RejectVpcPeeringConnectionResponse xmlns="http://ec2.amazonaws.com/doc/2014-06-15/">
+  <requestId>7a62c49f-347e-4fc4-9331-6e8eEXAMPLE</requestId>
+  <return>true</return>
+</RejectVpcPeeringConnectionResponse>
+"""
+
diff --git a/moto/ec2/utils.py b/moto/ec2/utils.py
index 516f3bec8..77dce0d1e 100644
--- a/moto/ec2/utils.py
+++ b/moto/ec2/utils.py
@@ -46,6 +46,10 @@ def random_vpc_id():
     return random_id(prefix='vpc')
 
 
+def random_vpc_peering_connection_id():
+    return random_id(prefix='pcx')
+
+
 def random_eip_association_id():
     return random_id(prefix='eipassoc')
 
diff --git a/tests/test_ec2/test_vpc_peering.py b/tests/test_ec2/test_vpc_peering.py
new file mode 100644
index 000000000..79c2fd3d5
--- /dev/null
+++ b/tests/test_ec2/test_vpc_peering.py
@@ -0,0 +1,76 @@
+import boto
+from boto.exception import EC2ResponseError
+import sure  # noqa
+
+from moto import mock_ec2
+
+
+@mock_ec2
+def test_vpc_peering_connections():
+    conn = boto.connect_vpc('the_key', 'the_secret')
+    vpc = conn.create_vpc("10.0.0.0/16")
+    peer_vpc = conn.create_vpc("11.0.0.0/16")
+
+    vpc_pcx = conn.create_vpc_peering_connection(vpc.id, peer_vpc.id)
+    vpc_pcx._status.code.should.equal('initiating-request')
+
+    return vpc_pcx
+
+
+@mock_ec2
+def test_vpc_peering_connections_get_all():
+    conn = boto.connect_vpc('the_key', 'the_secret')
+    vpc_pcx = test_vpc_peering_connections()
+    vpc_pcx._status.code.should.equal('initiating-request')
+
+    all_vpc_pcxs = conn.get_all_vpc_peering_connections()
+    all_vpc_pcxs.should.have.length_of(1)
+    all_vpc_pcxs[0]._status.code.should.equal('pending-acceptance')
+
+
+@mock_ec2
+def test_vpc_peering_connections_accept():
+    conn = boto.connect_vpc('the_key', 'the_secret')
+    vpc_pcx = test_vpc_peering_connections()
+
+    vpc_pcx = conn.accept_vpc_peering_connection(vpc_pcx.id)
+    vpc_pcx._status.code.should.equal('active')
+
+    conn.reject_vpc_peering_connection.when.called_with(
+        vpc_pcx.id).should.throw(EC2ResponseError)
+
+    all_vpc_pcxs = conn.get_all_vpc_peering_connections()
+    all_vpc_pcxs.should.have.length_of(1)
+    all_vpc_pcxs[0]._status.code.should.equal('active')
+
+
+@mock_ec2
+def test_vpc_peering_connections_reject():
+    conn = boto.connect_vpc('the_key', 'the_secret')
+    vpc_pcx = test_vpc_peering_connections()
+
+    verdict = conn.reject_vpc_peering_connection(vpc_pcx.id)
+    verdict.should.equal(True)
+
+    conn.accept_vpc_peering_connection.when.called_with(
+        vpc_pcx.id).should.throw(EC2ResponseError)
+
+    all_vpc_pcxs = conn.get_all_vpc_peering_connections()
+    all_vpc_pcxs.should.have.length_of(1)
+    all_vpc_pcxs[0]._status.code.should.equal('rejected')
+
+
+@mock_ec2
+def test_vpc_peering_connections_delete():
+    conn = boto.connect_vpc('the_key', 'the_secret')
+    vpc_pcx = test_vpc_peering_connections()
+
+    verdict = vpc_pcx.delete()
+    verdict.should.equal(True)
+
+    all_vpc_pcxs = conn.get_all_vpc_peering_connections()
+    all_vpc_pcxs.should.have.length_of(0)
+
+    conn.delete_vpc_peering_connection.when.called_with(
+        "pcx-1234abcd").should.throw(EC2ResponseError)
+