diff --git a/cmd/kyverno/main.go b/cmd/kyverno/main.go
index 4e4669d9f7..9b96618b91 100644
--- a/cmd/kyverno/main.go
+++ b/cmd/kyverno/main.go
@@ -5,6 +5,8 @@ import (
 	"flag"
 	"time"
 
+	"github.com/nirmata/kyverno/pkg/openapi"
+
 	"k8s.io/client-go/discovery"
 
 	"github.com/golang/glog"
@@ -212,7 +214,7 @@ func main() {
 		glog.Fatalf("OpenApiDoc request failed: %v\n", err)
 	}
 
-	if err := policy.UseCustomOpenApiDocument(openApiDoc); err != nil {
+	if err := openapi.UseCustomOpenApiDocument(openApiDoc); err != nil {
 		glog.Fatalf("Could not set custom OpenApi document: %v\n", err)
 	}
 
diff --git a/pkg/engine/policy/utils.go b/pkg/engine/policy/utils.go
deleted file mode 100644
index 52d83d0df4..0000000000
--- a/pkg/engine/policy/utils.go
+++ /dev/null
@@ -1,11 +0,0 @@
-package policy
-
-//Contains Check if strint is contained in a list of string
-func containString(list []string, element string) bool {
-	for _, e := range list {
-		if e == element {
-			return true
-		}
-	}
-	return false
-}
diff --git a/pkg/policy/validation.go b/pkg/openapi/validation.go
similarity index 74%
rename from pkg/policy/validation.go
rename to pkg/openapi/validation.go
index 310be7c74f..7f49b91bef 100644
--- a/pkg/policy/validation.go
+++ b/pkg/openapi/validation.go
@@ -1,4 +1,4 @@
-package policy
+package openapi
 
 import (
 	"fmt"
@@ -24,7 +24,7 @@ import (
 	"gopkg.in/yaml.v2"
 )
 
-var validationGlobalState struct {
+var openApiGlobalState struct {
 	document             *openapi_v2.Document
 	definitions          map[string]*openapi_v2.Schema
 	kindToDefinitionName map[string]string
@@ -46,31 +46,31 @@ func UseCustomOpenApiDocument(customDoc []byte) error {
 		return err
 	}
 
-	validationGlobalState.document, err = openapi_v2.NewDocument(spec, compiler.NewContext("$root", nil))
+	openApiGlobalState.document, err = openapi_v2.NewDocument(spec, compiler.NewContext("$root", nil))
 	if err != nil {
 		return err
 	}
 
-	validationGlobalState.definitions = make(map[string]*openapi_v2.Schema)
-	validationGlobalState.kindToDefinitionName = make(map[string]string)
-	for _, definition := range validationGlobalState.document.GetDefinitions().AdditionalProperties {
-		validationGlobalState.definitions[definition.GetName()] = definition.GetValue()
+	openApiGlobalState.definitions = make(map[string]*openapi_v2.Schema)
+	openApiGlobalState.kindToDefinitionName = make(map[string]string)
+	for _, definition := range openApiGlobalState.document.GetDefinitions().AdditionalProperties {
+		openApiGlobalState.definitions[definition.GetName()] = definition.GetValue()
 		path := strings.Split(definition.GetName(), ".")
-		validationGlobalState.kindToDefinitionName[path[len(path)-1]] = definition.GetName()
+		openApiGlobalState.kindToDefinitionName[path[len(path)-1]] = definition.GetName()
 	}
 
-	validationGlobalState.models, err = proto.NewOpenAPIData(validationGlobalState.document)
+	openApiGlobalState.models, err = proto.NewOpenAPIData(openApiGlobalState.document)
 	if err != nil {
 		return err
 	}
 
-	validationGlobalState.isSet = true
+	openApiGlobalState.isSet = true
 
 	return nil
 }
 
 func ValidatePolicyMutation(policy v1.ClusterPolicy) error {
-	if !validationGlobalState.isSet {
+	if !openApiGlobalState.isSet {
 		glog.V(4).Info("Cannot Validate policy: Validation global state not set")
 		return nil
 	}
@@ -89,7 +89,7 @@ func ValidatePolicyMutation(policy v1.ClusterPolicy) error {
 		newPolicy := policy
 		newPolicy.Spec.Rules = rules
 
-		resource, _ := generateEmptyResource(validationGlobalState.definitions[validationGlobalState.kindToDefinitionName[kind]]).(map[string]interface{})
+		resource, _ := generateEmptyResource(openApiGlobalState.definitions[openApiGlobalState.kindToDefinitionName[kind]]).(map[string]interface{})
 		newResource := unstructured.Unstructured{Object: resource}
 		newResource.SetKind(kind)
 		policyContext := engine.PolicyContext{
@@ -117,14 +117,14 @@ func ValidatePolicyMutation(policy v1.ClusterPolicy) error {
 }
 
 func ValidateResource(patchedResource interface{}, kind string) error {
-	if !validationGlobalState.isSet {
+	if !openApiGlobalState.isSet {
 		glog.V(4).Info("Cannot Validate resource: Validation global state not set")
 		return nil
 	}
 
-	kind = validationGlobalState.kindToDefinitionName[kind]
+	kind = openApiGlobalState.kindToDefinitionName[kind]
 
-	schema := validationGlobalState.models.LookupModel(kind)
+	schema := openApiGlobalState.models.LookupModel(kind)
 	if schema == nil {
 		return fmt.Errorf("pre-validation: couldn't find model %s", kind)
 	}
@@ -142,27 +142,27 @@ func ValidateResource(patchedResource interface{}, kind string) error {
 }
 
 func setValidationGlobalState() error {
-	if !validationGlobalState.isSet {
+	if !openApiGlobalState.isSet {
 		var err error
-		validationGlobalState.document, err = getSchemaDocument()
+		openApiGlobalState.document, err = getSchemaDocument()
 		if err != nil {
 			return err
 		}
 
-		validationGlobalState.definitions = make(map[string]*openapi_v2.Schema)
-		validationGlobalState.kindToDefinitionName = make(map[string]string)
-		for _, definition := range validationGlobalState.document.GetDefinitions().AdditionalProperties {
-			validationGlobalState.definitions[definition.GetName()] = definition.GetValue()
+		openApiGlobalState.definitions = make(map[string]*openapi_v2.Schema)
+		openApiGlobalState.kindToDefinitionName = make(map[string]string)
+		for _, definition := range openApiGlobalState.document.GetDefinitions().AdditionalProperties {
+			openApiGlobalState.definitions[definition.GetName()] = definition.GetValue()
 			path := strings.Split(definition.GetName(), ".")
-			validationGlobalState.kindToDefinitionName[path[len(path)-1]] = definition.GetName()
+			openApiGlobalState.kindToDefinitionName[path[len(path)-1]] = definition.GetName()
 		}
 
-		validationGlobalState.models, err = proto.NewOpenAPIData(validationGlobalState.document)
+		openApiGlobalState.models, err = proto.NewOpenAPIData(openApiGlobalState.document)
 		if err != nil {
 			return err
 		}
 
-		validationGlobalState.isSet = true
+		openApiGlobalState.isSet = true
 	}
 	return nil
 }
@@ -182,7 +182,7 @@ func generateEmptyResource(kindSchema *openapi_v2.Schema) interface{} {
 	types := kindSchema.GetType().GetValue()
 
 	if kindSchema.GetXRef() != "" {
-		return generateEmptyResource(validationGlobalState.definitions[strings.TrimPrefix(kindSchema.GetXRef(), "#/definitions/")])
+		return generateEmptyResource(openApiGlobalState.definitions[strings.TrimPrefix(kindSchema.GetXRef(), "#/definitions/")])
 	}
 
 	if len(types) != 1 {
diff --git a/pkg/policy/validation_test.go b/pkg/openapi/validation_test.go
similarity index 99%
rename from pkg/policy/validation_test.go
rename to pkg/openapi/validation_test.go
index b42aea0cbf..4c6c8ac2a6 100644
--- a/pkg/policy/validation_test.go
+++ b/pkg/openapi/validation_test.go
@@ -1,4 +1,4 @@
-package policy
+package openapi
 
 import (
 	"encoding/json"
diff --git a/pkg/engine/policy/background.go b/pkg/policy/background.go
similarity index 100%
rename from pkg/engine/policy/background.go
rename to pkg/policy/background.go
diff --git a/pkg/policy/controller.go b/pkg/policy/controller.go
index 1dbca0611a..ad1c654d32 100644
--- a/pkg/policy/controller.go
+++ b/pkg/policy/controller.go
@@ -13,7 +13,6 @@ import (
 	kyvernolister "github.com/nirmata/kyverno/pkg/client/listers/kyverno/v1"
 	"github.com/nirmata/kyverno/pkg/config"
 	client "github.com/nirmata/kyverno/pkg/dclient"
-	"github.com/nirmata/kyverno/pkg/engine/policy"
 	"github.com/nirmata/kyverno/pkg/event"
 	"github.com/nirmata/kyverno/pkg/policystore"
 	"github.com/nirmata/kyverno/pkg/policyviolation"
@@ -164,7 +163,7 @@ func (pc *PolicyController) addPolicy(obj interface{}) {
 	// TODO: code might seem vague, awaiting resolution of issue https://github.com/nirmata/kyverno/issues/598
 	if p.Spec.Background == nil {
 		// if userInfo is not defined in policy we process the policy
-		if err := policy.ContainsUserInfo(*p); err != nil {
+		if err := ContainsUserInfo(*p); err != nil {
 			return
 		}
 	} else {
@@ -173,7 +172,7 @@ func (pc *PolicyController) addPolicy(obj interface{}) {
 		}
 		// If userInfo is used then skip the policy
 		// ideally this should be handled by background flag only
-		if err := policy.ContainsUserInfo(*p); err != nil {
+		if err := ContainsUserInfo(*p); err != nil {
 			// contains userInfo used in policy
 			return
 		}
@@ -196,7 +195,7 @@ func (pc *PolicyController) updatePolicy(old, cur interface{}) {
 	// TODO: code might seem vague, awaiting resolution of issue https://github.com/nirmata/kyverno/issues/598
 	if curP.Spec.Background == nil {
 		// if userInfo is not defined in policy we process the policy
-		if err := policy.ContainsUserInfo(*curP); err != nil {
+		if err := ContainsUserInfo(*curP); err != nil {
 			return
 		}
 	} else {
@@ -205,7 +204,7 @@ func (pc *PolicyController) updatePolicy(old, cur interface{}) {
 		}
 		// If userInfo is used then skip the policy
 		// ideally this should be handled by background flag only
-		if err := policy.ContainsUserInfo(*curP); err != nil {
+		if err := ContainsUserInfo(*curP); err != nil {
 			// contains userInfo used in policy
 			return
 		}
diff --git a/pkg/policy/utils.go b/pkg/policy/utils.go
index 45c3150983..52d83d0df4 100644
--- a/pkg/policy/utils.go
+++ b/pkg/policy/utils.go
@@ -1,17 +1,11 @@
 package policy
 
-import kyverno "github.com/nirmata/kyverno/pkg/api/kyverno/v1"
-
-// reEvaulatePolicy checks if the policy needs to be re-evaulated
-// during re-evaulation we remove all the old policy violations and re-create new ones
-// - Rule count changes
-// - Rule resource description changes
-// - Rule operation changes
-// - Rule name changed
-func reEvaulatePolicy(curP, oldP *kyverno.ClusterPolicy) bool {
-	// count of rules changed
-	if len(curP.Spec.Rules) != len(curP.Spec.Rules) {
-
+//Contains Check if strint is contained in a list of string
+func containString(list []string, element string) bool {
+	for _, e := range list {
+		if e == element {
+			return true
+		}
 	}
-	return true
+	return false
 }
diff --git a/pkg/engine/policy/validate.go b/pkg/policy/validate.go
similarity index 98%
rename from pkg/engine/policy/validate.go
rename to pkg/policy/validate.go
index b6e4fd6b28..f74fcf9669 100644
--- a/pkg/engine/policy/validate.go
+++ b/pkg/policy/validate.go
@@ -8,6 +8,8 @@ import (
 	"strconv"
 	"strings"
 
+	"github.com/nirmata/kyverno/pkg/openapi"
+
 	kyverno "github.com/nirmata/kyverno/pkg/api/kyverno/v1"
 	"github.com/nirmata/kyverno/pkg/engine/anchor"
 	rbacv1 "k8s.io/api/rbac/v1"
@@ -70,6 +72,11 @@ func Validate(p kyverno.ClusterPolicy) error {
 			}
 		}
 	}
+
+	if err := openapi.ValidatePolicyMutation(p); err != nil {
+		return fmt.Errorf("Failed to validate policy: %v", err)
+	}
+
 	return nil
 }
 
diff --git a/pkg/engine/policy/validate_test.go b/pkg/policy/validate_test.go
similarity index 100%
rename from pkg/engine/policy/validate_test.go
rename to pkg/policy/validate_test.go
diff --git a/pkg/webhooks/mutation.go b/pkg/webhooks/mutation.go
index c8c949e606..90bedb1519 100644
--- a/pkg/webhooks/mutation.go
+++ b/pkg/webhooks/mutation.go
@@ -9,6 +9,7 @@ import (
 	"github.com/nirmata/kyverno/pkg/engine/context"
 	"github.com/nirmata/kyverno/pkg/engine/response"
 	engineutils "github.com/nirmata/kyverno/pkg/engine/utils"
+	"github.com/nirmata/kyverno/pkg/openapi"
 	policyctr "github.com/nirmata/kyverno/pkg/policy"
 	"github.com/nirmata/kyverno/pkg/policyviolation"
 	"github.com/nirmata/kyverno/pkg/utils"
@@ -90,7 +91,7 @@ func (ws *WebhookServer) HandleMutation(request *v1beta1.AdmissionRequest, resou
 			glog.V(4).Infof("Failed to apply policy %s on resource %s/%s\n", policy.Name, resource.GetNamespace(), resource.GetName())
 			continue
 		}
-		err := policyctr.ValidateResource(engineResponse.PatchedResource.UnstructuredContent(), engineResponse.PatchedResource.GetKind())
+		err := openapi.ValidateResource(engineResponse.PatchedResource.UnstructuredContent(), engineResponse.PatchedResource.GetKind())
 		if err != nil {
 			glog.V(4).Infoln(err)
 			continue
diff --git a/pkg/webhooks/policyvalidation.go b/pkg/webhooks/policyvalidation.go
index 222bcd19b5..1e3991be50 100644
--- a/pkg/webhooks/policyvalidation.go
+++ b/pkg/webhooks/policyvalidation.go
@@ -4,11 +4,9 @@ import (
 	"encoding/json"
 	"fmt"
 
-	policy2 "github.com/nirmata/kyverno/pkg/policy"
-
 	"github.com/golang/glog"
 	kyverno "github.com/nirmata/kyverno/pkg/api/kyverno/v1"
-	policyvalidate "github.com/nirmata/kyverno/pkg/engine/policy"
+	policyvalidate "github.com/nirmata/kyverno/pkg/policy"
 	v1beta1 "k8s.io/api/admission/v1beta1"
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 )
@@ -37,16 +35,6 @@ func (ws *WebhookServer) handlePolicyValidation(request *v1beta1.AdmissionReques
 			},
 		}
 	}
-
-	if err := policy2.ValidatePolicyMutation(*policy); err != nil {
-		admissionResp = &v1beta1.AdmissionResponse{
-			Allowed: false,
-			Result: &metav1.Status{
-				Message: err.Error(),
-			},
-		}
-	}
-
 	if admissionResp.Allowed {
 		// if the policy contains mutating & validation rules and it config does not exist we create one
 		// queue the request