Merge pull request #220 from nirmata/217_feature

217 feature
2025-03-06 16:06:56 +00:00 · 2019-07-20 16:21:37 -07:00 · 2019-07-20 16:21:37 -07:00 · e9e7d8faff
commit e9e7d8faff
parent 4274e67834 b5fa02d16e
43 changed files with 1711 additions and 528 deletions
--- a/definitions/install.yaml
+++ b/definitions/install.yaml
@ -22,6 +22,12 @@ spec:
          required:
          - rules
          properties:
+          # default values to be handled by user
+            validationFailureAction:
+              type: string
+              enum: 
+              - block 
+              - report
            rules:
              type: array
              items:
--- a/definitions/install_debug.yaml
+++ b/definitions/install_debug.yaml
@ -22,6 +22,12 @@ spec:
          required:
          - rules
          properties:
+          # default values to be handled by user
+            validationFailureAction:
+              type: string
+              enum: 
+              - block 
+              - report
            rules:
              type: array
              items:
--- a/examples/cli/nginx.yaml
+++ b/examples/cli/nginx.yaml
@ -20,4 +20,4 @@ spec:
        image: nginx:1.7.9
        imagePullPolicy: Always
        ports:
-        - containerPort: 80
+        - containerPort: 80
--- a/examples/cli/policy_deployment.yaml
+++ b/examples/cli/policy_deployment.yaml
@ -35,4 +35,3 @@ spec :
                containers:
                - (image): "nginx*"
                  imagePullPolicy: Always
-
--- a/examples/demo/6_qos/policy_qos.yaml
+++ b/examples/demo/6_qos/policy_qos.yaml
@ -5,37 +5,37 @@ metadata:
 spec:
  validationFailureAction: "report"
  rules:
-  - name: check-cpu-memory-limits
-    resource:
-      kinds:
-      - Deployment
-    validate:
-      message: "Resource limits are required for CPU and memory"
-      pattern:
-        spec:
-          template:
-            spec:
-              containers:
-              # match all contianers
-              - (name): "*"
-                resources:
-                  limits:
-                    # cpu and memory are required
-                    memory: "?*"
-                    cpu: "?*"
-  # - name: add-memory-limit
-  #   resource:
-  #     kinds:
-  #     - Deployment
-  #   mutate:
-  #     overlay:
-  #       spec:
-  #         template:
-  #           spec:
-  #             containers:
-  #               # the wildcard * will match all containers in the list
-  #               - (name): "*"
-  #                 resources:
-  #                   limits:
-  #                     # add memory limit if it is not exist
-  #                     "+(memory)": "300Mi"
+    - name: add-memory-limit
+      resource:
+        kinds:
+        - Deployment
+      mutate:
+        overlay:
+          spec:
+            template:
+              spec:
+                containers:
+                  # the wildcard * will match all containers in the list
+                  - (name): "*"
+                    resources:
+                      limits:
+                        # add memory limit if it is not exist
+                        "+(memory)": "300Mi"  
+    - name: check-cpu-memory-limits
+      resource:
+        kinds:
+        - Deployment
+      validate:
+        message: "Resource limits are required for CPU and memory"
+        pattern:
+          spec:
+            template:
+              spec:
+                containers:
+                # match all contianers
+                - (name): "*"
+                  resources:
+                    limits:
+                      # cpu and memory are required
+                      memory: "?*"
+                      cpu: "?*"
--- a/examples/mutate/overlay/nginx.yaml
+++ b/examples/mutate/overlay/nginx.yaml
@ -22,4 +22,4 @@ spec:
        ports:
        - containerPort: 80
      - name: ghost
-        image: ghost:latest
+        image: ghost:latest
--- a/examples/mutate/overlay/policy_imagePullPolicy.yaml
+++ b/examples/mutate/overlay/policy_imagePullPolicy.yaml
@ -16,4 +16,4 @@ spec:
              containers:
                # if the image tag is latest, set the imagePullPolicy to Always
                - (image): "*:latest"
-                  imagePullPolicy: "IfNotPresent"
+                  imagePullPolicy: "IfNotPresent"
--- a/examples/mutate/patches/endpoints.yaml
+++ b/examples/mutate/patches/endpoints.yaml
@ -10,4 +10,4 @@ subsets:
  ports:
  - name: secure-connection
    port: 443
-    protocol: TCP
+    protocol: TCP
--- a/main.go
+++ b/main.go
@ -4,6 +4,7 @@ import (
 	"flag"

 	"github.com/golang/glog"
+	"github.com/nirmata/kyverno/pkg/annotations"
 	"github.com/nirmata/kyverno/pkg/config"
 	controller "github.com/nirmata/kyverno/pkg/controller"
 	client "github.com/nirmata/kyverno/pkg/dclient"
@ -24,7 +25,6 @@ var (

 func main() {
 	defer glog.Flush()
-
 	printVersionInfo()
 	clientConfig, err := createClientConfig(kubeconfig)
 	if err != nil {
@ -43,19 +43,20 @@ func main() {
 	kubeInformer := utils.NewKubeInformerFactory(clientConfig)
 	eventController := event.NewEventController(client, policyInformerFactory)
 	violationBuilder := violation.NewPolicyViolationBuilder(client, policyInformerFactory, eventController)
-
+	annotationsController := annotations.NewAnnotationControler(client)
 	policyController := controller.NewPolicyController(
 		client,
 		policyInformerFactory,
 		violationBuilder,
-		eventController)
+		eventController,
+		annotationsController)

 	genControler := gencontroller.NewGenController(client, eventController, policyInformerFactory, violationBuilder, kubeInformer.Core().V1().Namespaces())
 	tlsPair, err := initTLSPemPair(clientConfig, client)
 	if err != nil {
 		glog.Fatalf("Failed to initialize TLS key/certificate pair: %v\n", err)
 	}
-	server, err := webhooks.NewWebhookServer(client, tlsPair, policyInformerFactory, eventController, filterK8Kinds)
+	server, err := webhooks.NewWebhookServer(client, tlsPair, policyInformerFactory, eventController, violationBuilder, annotationsController, filterK8Kinds)
 	if err != nil {
 		glog.Fatalf("Unable to create webhook server: %v\n", err)
 	}
@ -67,23 +68,25 @@ func main() {

 	stopCh := signals.SetupSignalHandler()

+	if err = webhookRegistrationClient.Register(); err != nil {
+		glog.Fatalf("Failed registering Admission Webhooks: %v\n", err)
+	}
+
 	policyInformerFactory.Run(stopCh)
 	kubeInformer.Start(stopCh)
 	eventController.Run(stopCh)
 	genControler.Run(stopCh)
+	annotationsController.Run(stopCh)
 	if err = policyController.Run(stopCh); err != nil {
 		glog.Fatalf("Error running PolicyController: %v\n", err)
 	}

-	if err = webhookRegistrationClient.Register(); err != nil {
-		glog.Fatalf("Failed registering Admission Webhooks: %v\n", err)
-	}
-
 	server.RunAsync()
 	<-stopCh
 	server.Stop()
 	genControler.Stop()
 	eventController.Stop()
+	annotationsController.Stop()
 	policyController.Stop()
 }

--- a/pkg/annotations/annotations.go
+++ b/pkg/annotations/annotations.go
@ -0,0 +1,302 @@
+package annotations
+
+import (
+	"encoding/json"
+	"reflect"
+
+	"github.com/golang/glog"
+	pinfo "github.com/nirmata/kyverno/pkg/info"
+
+	"k8s.io/apimachinery/pkg/apis/meta/v1/unstructured"
+)
+
+//Policy information for annotations
+type Policy struct {
+	Status string `json:"status"`
+	// Key Type/Name
+	MutationRules   map[string]Rule `json:"mutationrules,omitempty"`
+	ValidationRules map[string]Rule `json:"validationrules,omitempty"`
+	GenerationRules map[string]Rule `json:"generationrules,omitempty"`
+}
+
+//Rule information for annotations
+type Rule struct {
+	Status  string `json:"status"`
+	Changes string `json:"changes,omitempty"` // TODO for mutation changes
+	Error   string `json:"error,omitempty"`
+}
+
+func (p *Policy) getOverAllStatus() string {
+	// mutation
+	for _, v := range p.MutationRules {
+		if v.Status == "Failure" {
+			return "Failure"
+		}
+	}
+	// validation
+	for _, v := range p.ValidationRules {
+		if v.Status == "Failure" {
+			return "Failure"
+		}
+	}
+	// generation
+	for _, v := range p.GenerationRules {
+		if v.Status == "Failure" {
+			return "Failure"
+		}
+	}
+	return "Success"
+}
+
+func getRules(rules []*pinfo.RuleInfo, ruleType pinfo.RuleType) map[string]Rule {
+	if len(rules) == 0 {
+		return nil
+	}
+	annrules := make(map[string]Rule, 0)
+	// var annrules map[string]Rule
+	for _, r := range rules {
+		if r.RuleType != ruleType {
+			continue
+		}
+
+		rule := Rule{Status: getStatus(r.IsSuccessful())}
+		if !r.IsSuccessful() {
+			rule.Error = r.GetErrorString()
+		}
+		annrules[r.Name] = rule
+	}
+	return annrules
+}
+
+func (p *Policy) updatePolicy(obj *Policy, ruleType pinfo.RuleType) bool {
+	updates := false
+	// Check Mutation rules
+	switch ruleType {
+	case pinfo.Mutation:
+		if p.compareMutationRules(obj.MutationRules) {
+			updates = true
+		}
+	case pinfo.Validation:
+		if p.compareValidationRules(obj.ValidationRules) {
+			updates = true
+		}
+	case pinfo.Generation:
+		if p.compareGenerationRules(obj.GenerationRules) {
+			updates = true
+		}
+		if p.Status != obj.Status {
+			updates = true
+		}
+	}
+	// check if any rules failed
+	p.Status = p.getOverAllStatus()
+	// If there are any updates then the annotation can be updated, can skip
+	return updates
+}
+
+func (p *Policy) compareMutationRules(rules map[string]Rule) bool {
+	// check if the rules have changed
+	if !reflect.DeepEqual(p.MutationRules, rules) {
+		p.MutationRules = rules
+		return true
+	}
+	return false
+}
+
+func (p *Policy) compareValidationRules(rules map[string]Rule) bool {
+	// check if the rules have changed
+	if !reflect.DeepEqual(p.ValidationRules, rules) {
+		p.ValidationRules = rules
+		return true
+	}
+	return false
+}
+
+func (p *Policy) compareGenerationRules(rules map[string]Rule) bool {
+	// check if the rules have changed
+	if !reflect.DeepEqual(p.GenerationRules, rules) {
+		p.GenerationRules = rules
+		return true
+	}
+	return false
+}
+
+func newAnnotationForPolicy(pi *pinfo.PolicyInfo) *Policy {
+	return &Policy{Status: getStatus(pi.IsSuccessful()),
+		MutationRules:   getRules(pi.Rules, pinfo.Mutation),
+		ValidationRules: getRules(pi.Rules, pinfo.Validation),
+		GenerationRules: getRules(pi.Rules, pinfo.Generation),
+	}
+}
+
+//AddPolicy will add policy annotation if not present or update if present
+// modifies obj
+// returns true, if there is any update -> caller need to update the obj
+// returns false, if there is no change -> caller can skip the update
+func AddPolicy(obj *unstructured.Unstructured, pi *pinfo.PolicyInfo, ruleType pinfo.RuleType) bool {
+	PolicyObj := newAnnotationForPolicy(pi)
+	// get annotation
+	ann := obj.GetAnnotations()
+	// check if policy already has annotation
+	cPolicy, ok := ann[BuildKey(pi.Name)]
+	if !ok {
+		PolicyByte, err := json.Marshal(PolicyObj)
+		if err != nil {
+			glog.Error(err)
+			return false
+		}
+		// insert policy information
+		ann[BuildKey(pi.Name)] = string(PolicyByte)
+		// set annotation back to unstr
+		obj.SetAnnotations(ann)
+		return true
+	}
+	cPolicyObj := Policy{}
+	err := json.Unmarshal([]byte(cPolicy), &cPolicyObj)
+	if err != nil {
+		return false
+	}
+	// update policy information inside the annotation
+	// 1> policy status
+	// 2> Mutation, Validation, Generation
+	if cPolicyObj.updatePolicy(PolicyObj, ruleType) {
+
+		cPolicyByte, err := json.Marshal(cPolicyObj)
+		if err != nil {
+			return false
+		}
+		// update policy information
+		ann[BuildKey(pi.Name)] = string(cPolicyByte)
+		// set annotation back to unstr
+		obj.SetAnnotations(ann)
+		return true
+	}
+	return false
+}
+
+//RemovePolicy to remove annotations
+// return true -> if there was an entry and we deleted it
+// return false -> if there is no entry, caller need not update
+func RemovePolicy(obj *unstructured.Unstructured, policy string) bool {
+	// get annotations
+	ann := obj.GetAnnotations()
+	if ann == nil {
+		return false
+	}
+	if _, ok := ann[BuildKey(policy)]; !ok {
+		return false
+	}
+	delete(ann, BuildKey(policy))
+	// set annotation back to unstr
+	obj.SetAnnotations(ann)
+	return true
+}
+
+//ParseAnnotationsFromObject extracts annotations from the JSON obj
+func ParseAnnotationsFromObject(bytes []byte) map[string]string {
+	var objectJSON map[string]interface{}
+	json.Unmarshal(bytes, &objectJSON)
+	meta, ok := objectJSON["metadata"].(map[string]interface{})
+	if !ok {
+		glog.Error("unable to parse")
+		return nil
+	}
+	ann, ok, err := unstructured.NestedStringMap(meta, "annotations")
+	if err != nil || !ok {
+		return nil
+	}
+	return ann
+}
+
+//AddPolicyJSONPatch generate JSON Patch to add policy informatino JSON patch
+func AddPolicyJSONPatch(ann map[string]string, pi *pinfo.PolicyInfo, ruleType pinfo.RuleType) (map[string]string, []byte, error) {
+	if ann == nil {
+		ann = make(map[string]string, 0)
+	}
+	PolicyObj := newAnnotationForPolicy(pi)
+	cPolicy, ok := ann[BuildKey(pi.Name)]
+	if !ok {
+		PolicyByte, err := json.Marshal(PolicyObj)
+		if err != nil {
+			return nil, nil, err
+		}
+		// insert policy information
+		ann[BuildKey(pi.Name)] = string(PolicyByte)
+		// create add JSON patch
+		jsonPatch, err := createAddJSONPatch(ann)
+
+		return ann, jsonPatch, err
+	}
+	cPolicyObj := Policy{}
+	err := json.Unmarshal([]byte(cPolicy), &cPolicyObj)
+	// update policy information inside the annotation
+	// 1> policy status
+	// 2> rule (name, status,changes,type)
+	update := cPolicyObj.updatePolicy(PolicyObj, ruleType)
+	if !update {
+		return nil, nil, err
+	}
+
+	cPolicyByte, err := json.Marshal(cPolicyObj)
+	if err != nil {
+		return nil, nil, err
+	}
+	// update policy information
+	ann[BuildKey(pi.Name)] = string(cPolicyByte)
+	// create update JSON patch
+	jsonPatch, err := createReplaceJSONPatch(ann)
+	return ann, jsonPatch, err
+}
+
+//RemovePolicyJSONPatch remove JSON patch
+func RemovePolicyJSONPatch(ann map[string]string, policy string) (map[string]string, []byte, error) {
+	if ann == nil {
+		return nil, nil, nil
+	}
+	delete(ann, policy)
+	if len(ann) == 0 {
+		jsonPatch, err := createRemoveJSONPatch(ann)
+		return nil, jsonPatch, err
+	}
+	jsonPatch, err := createReplaceJSONPatch(ann)
+	return ann, jsonPatch, err
+}
+
+type patchMapValue struct {
+	Op    string            `json:"op"`
+	Path  string            `json:"path"`
+	Value map[string]string `json:"value"`
+}
+
+func createRemoveJSONPatch(ann map[string]string) ([]byte, error) {
+	payload := []patchMapValue{{
+		Op:   "remove",
+		Path: "/metadata/annotations",
+	}}
+	return json.Marshal(payload)
+
+}
+
+func createAddJSONPatch(ann map[string]string) ([]byte, error) {
+	if ann == nil {
+		ann = make(map[string]string, 0)
+	}
+	payload := []patchMapValue{{
+		Op:    "add",
+		Path:  "/metadata/annotations",
+		Value: ann,
+	}}
+	return json.Marshal(payload)
+}
+
+func createReplaceJSONPatch(ann map[string]string) ([]byte, error) {
+	if ann == nil {
+		ann = make(map[string]string, 0)
+	}
+	payload := []patchMapValue{{
+		Op:    "replace",
+		Path:  "/metadata/annotations",
+		Value: ann,
+	}}
+	return json.Marshal(payload)
+}
--- a/pkg/annotations/annotations_test.go
+++ b/pkg/annotations/annotations_test.go
@ -0,0 +1,36 @@
+package annotations
+
+import (
+	"encoding/json"
+	"testing"
+
+	pinfo "github.com/nirmata/kyverno/pkg/info"
+)
+
+func TestAddPatch(t *testing.T) {
+	// Create
+	objRaw := []byte(`{"kind":"Deployment","apiVersion":"apps/v1","metadata":{"name":"nginx-deployment","namespace":"default","creationTimestamp":null,"labels":{"app":"nginx"}},"spec":{"replicas":1,"selector":{"matchLabels":{"app":"nginx"}},"template":{"metadata":{"creationTimestamp":null,"labels":{"app":"nginx"}},"spec":{"containers":[{"name":"nginx","image":"nginx:latest","ports":[{"containerPort":80,"protocol":"TCP"}],"resources":{},"terminationMessagePath":"/dev/termination-log","terminationMessagePolicy":"File","imagePullPolicy":"Always"},{"name":"ghost","image":"ghost:latest","resources":{},"terminationMessagePath":"/dev/termination-log","terminationMessagePolicy":"File","imagePullPolicy":"Always"}],"restartPolicy":"Always","terminationGracePeriodSeconds":30,"dnsPolicy":"ClusterFirst","securityContext":{},"schedulerName":"default-scheduler"}},"strategy":{"type":"RollingUpdate","rollingUpdate":{"maxUnavailable":"25%","maxSurge":"25%"}},"revisionHistoryLimit":10,"progressDeadlineSeconds":600},"status":{}}`)
+	piRaw := []byte(`{"Name":"set-image-pull-policy","RKind":"Deployment","RName":"nginx-deployment","RNamespace":"default","ValidationFailureAction":"","Rules":[{"Name":"nginx-deployment","Msgs":["Rule nginx-deployment: Overlay succesfully applied."],"RuleType":0}]}`)
+	ann := ParseAnnotationsFromObject(objRaw)
+	pi := pinfo.PolicyInfo{}
+	err := json.Unmarshal(piRaw, &pi)
+	if err != nil {
+		panic(err)
+	}
+	ann, _, err = AddPolicyJSONPatch(ann, &pi, pinfo.Mutation)
+	if err != nil {
+		panic(err)
+	}
+	// Update
+	piRaw = []byte(`{"Name":"set-image-pull-policy","RKind":"Deployment","RName":"nginx-deployment","RNamespace":"default","ValidationFailureAction":"","Rules":[{"Name":"nginx-deployment","Msgs":["Rule nginx-deployment1: Overlay succesfully applied."],"RuleType":0}]}`)
+	// ann = ParseAnnotationsFromObject(objRaw)
+	pi = pinfo.PolicyInfo{}
+	err = json.Unmarshal(piRaw, &pi)
+	if err != nil {
+		panic(err)
+	}
+	ann, _, err = AddPolicyJSONPatch(ann, &pi, pinfo.Mutation)
+	if err != nil {
+		panic(err)
+	}
+}
--- a/pkg/annotations/controller.go
+++ b/pkg/annotations/controller.go
@ -0,0 +1,115 @@
+package annotations
+
+import (
+	"fmt"
+	"time"
+
+	"github.com/golang/glog"
+	client "github.com/nirmata/kyverno/pkg/dclient"
+	utilruntime "k8s.io/apimachinery/pkg/util/runtime"
+	"k8s.io/apimachinery/pkg/util/wait"
+	"k8s.io/client-go/util/workqueue"
+)
+
+type controller struct {
+	client *client.Client
+	queue  workqueue.RateLimitingInterface
+}
+
+type Interface interface {
+	Add(rkind, rns, rname string, patch []byte)
+}
+
+type Controller interface {
+	Interface
+	Run(stopCh <-chan struct{})
+	Stop()
+}
+
+func NewAnnotationControler(client *client.Client) Controller {
+	return &controller{
+		client: client,
+		queue:  workqueue.NewNamedRateLimitingQueue(workqueue.DefaultControllerRateLimiter(), annotationQueueName),
+	}
+}
+
+func (c *controller) Add(rkind, rns, rname string, patch []byte) {
+	c.queue.Add(newInfo(rkind, rns, rname, patch))
+}
+
+func (c *controller) Run(stopCh <-chan struct{}) {
+	defer utilruntime.HandleCrash()
+	for i := 0; i < workerThreadCount; i++ {
+		go wait.Until(c.runWorker, time.Second, stopCh)
+	}
+	glog.Info("Started annotation controller workers")
+}
+
+func (c *controller) Stop() {
+	defer c.queue.ShutDown()
+	glog.Info("Shutting down annotation controller workers")
+}
+
+func (c *controller) runWorker() {
+	for c.processNextWorkItem() {
+	}
+}
+
+func (pc *controller) processNextWorkItem() bool {
+	obj, shutdown := pc.queue.Get()
+	if shutdown {
+		return false
+	}
+
+	err := func(obj interface{}) error {
+		defer pc.queue.Done(obj)
+		err := pc.syncHandler(obj)
+		pc.handleErr(err, obj)
+		return nil
+	}(obj)
+	if err != nil {
+		glog.Error(err)
+		return true
+	}
+	return true
+}
+func (pc *controller) handleErr(err error, key interface{}) {
+	if err == nil {
+		pc.queue.Forget(key)
+		return
+	}
+	// This controller retries if something goes wrong. After that, it stops trying.
+	if pc.queue.NumRequeues(key) < workQueueRetryLimit {
+		glog.Warningf("Error syncing events %v: %v", key, err)
+		// Re-enqueue the key rate limited. Based on the rate limiter on the
+		// queue and the re-enqueue history, the key will be processed later again.
+		pc.queue.AddRateLimited(key)
+		return
+	}
+	pc.queue.Forget(key)
+	glog.Error(err)
+	glog.Warningf("Dropping the key out of the queue: %v", err)
+}
+
+func (c *controller) syncHandler(obj interface{}) error {
+	var key info
+	var ok bool
+	if key, ok = obj.(info); !ok {
+		return fmt.Errorf("expected string in workqueue but got %#v", obj)
+	}
+
+	var err error
+	// check if the resource is created
+	_, err = c.client.GetResource(key.RKind, key.RNs, key.RName)
+	if err != nil {
+		glog.Errorf("Error creating annotation: unable to get resource %s/%s/%s, will retry: %s ", key.RKind, key.RNs, key.RName, err)
+		return err
+	}
+	// if it is patch the resource
+	_, err = c.client.PatchResource(key.RKind, key.RNs, key.RName, *key.Patch)
+	if err != nil {
+		glog.Errorf("Error creating annotation: unable to get resource %s/%s/%s, will retry: %s", key.RKind, key.RNs, key.RName, err)
+		return err
+	}
+	return nil
+}
--- a/pkg/annotations/info.go
+++ b/pkg/annotations/info.go
@ -0,0 +1,18 @@
+package annotations
+
+type info struct {
+	RKind string
+	RNs   string
+	RName string
+	//TODO:Hack as slice makes the struct unhasable
+	Patch *[]byte
+}
+
+func newInfo(rkind, rns, rname string, patch []byte) info {
+	return info{
+		RKind: rkind,
+		RNs:   rns,
+		RName: rname,
+		Patch: &patch,
+	}
+}
--- a/pkg/annotations/utils.go
+++ b/pkg/annotations/utils.go
@ -0,0 +1,16 @@
+package annotations
+
+const annotationQueueName = "annotation-queue"
+const workerThreadCount = 1
+const workQueueRetryLimit = 3
+
+func getStatus(status bool) string {
+	if status {
+		return "Success"
+	}
+	return "Failure"
+}
+
+func BuildKey(policyName string) string {
+	return "policies.kyverno.io." + policyName
+}
--- a/pkg/apis/policy/v1alpha1/types.go
+++ b/pkg/apis/policy/v1alpha1/types.go
@ -18,7 +18,8 @@ type Policy struct {

 // Spec describes policy behavior by its rules
 type Spec struct {
-	Rules []Rule `json:"rules"`
+	Rules                   []Rule `json:"rules"`
+	ValidationFailureAction string `json:"validationFailureAction"`
 }

 // Rule is set of mutation, validation and generation actions
@ -77,16 +78,24 @@ type CloneFrom struct {

 // Status contains violations for existing resources
 type Status struct {
-	Violations []Violation `json:"violations,omitempty"`
+	// Violations map[kind/namespace/resource]Violation
+	Violations map[string]Violation `json:"violations,omitempty"`
 }

 // Violation for the policy
 type Violation struct {
-	Kind      string `json:"kind,omitempty"`
-	Name      string `json:"name,omitempty"`
-	Namespace string `json:"namespace,omitempty"`
-	Reason    string `json:"reason,omitempty"`
-	Message   string `json:"message,omitempty"`
+	Kind      string       `json:"kind,omitempty"`
+	Name      string       `json:"name,omitempty"`
+	Namespace string       `json:"namespace,omitempty"`
+	Rules     []FailedRule `json:"rules"`
+	Reason    string       `json:"reason,omitempty"`
+}
+
+// FailedRule stored info and type of failed rules
+type FailedRule struct {
+	Name  string `json:"name"`
+	Type  string `json:"type"` //Mutation, Validation, Genertaion
+	Error string `json:"error"`
 }

 // +k8s:deepcopy-gen:interfaces=k8s.io/apimachinery/pkg/runtime.Object
--- a/pkg/apis/policy/v1alpha1/utils.go
+++ b/pkg/apis/policy/v1alpha1/utils.go
@ -104,3 +104,44 @@ func (in *Generation) DeepCopyInto(out *Generation) {
 		*out = *in
 	}
 }
+
+// return true -> if there were any removals
+// return false -> if it looks the same
+func (v *Violation) RemoveRulesOfType(ruleType string) bool {
+	removed := false
+	updatedRules := []FailedRule{}
+	for _, r := range v.Rules {
+		if r.Type == ruleType {
+			removed = true
+			continue
+		}
+		updatedRules = append(updatedRules, r)
+	}
+
+	if removed {
+		v.Rules = updatedRules
+		return true
+	}
+	return false
+}
+
+//IsEqual Check if violatiosn are equal
+func (v *Violation) IsEqual(nv Violation) bool {
+	// We do not need to compare resource info as it will be same
+	// Reason
+	if v.Reason != nv.Reason {
+		return false
+	}
+	// Rule
+	if len(v.Rules) != len(nv.Rules) {
+		return false
+	}
+	// assumes the rules will be in order, as the rule are proceeed in order
+	// if the rule order changes, it means the policy has changed.. as it will afffect the order in which mutation rules are applied
+	for i, r := range v.Rules {
+		if r != nv.Rules[i] {
+			return false
+		}
+	}
+	return true
+}
--- a/pkg/apis/policy/v1alpha1/zz_generated.deepcopy.go
+++ b/pkg/apis/policy/v1alpha1/zz_generated.deepcopy.go
@ -41,6 +41,22 @@ func (in *CloneFrom) DeepCopy() *CloneFrom {
 	return out
 }

+// DeepCopyInto is an autogenerated deepcopy function, copying the receiver, writing into out. in must be non-nil.
+func (in *FailedRule) DeepCopyInto(out *FailedRule) {
+	*out = *in
+	return
+}
+
+// DeepCopy is an autogenerated deepcopy function, copying the receiver, creating a new FailedRule.
+func (in *FailedRule) DeepCopy() *FailedRule {
+	if in == nil {
+		return nil
+	}
+	out := new(FailedRule)
+	in.DeepCopyInto(out)
+	return out
+}
+
 // DeepCopy is an autogenerated deepcopy function, copying the receiver, creating a new Generation.
 func (in *Generation) DeepCopy() *Generation {
 	if in == nil {
@ -135,6 +151,11 @@ func (in *ResourceDescription) DeepCopyInto(out *ResourceDescription) {
 		*out = new(string)
 		**out = **in
 	}
+	if in.Namespace != nil {
+		in, out := &in.Namespace, &out.Namespace
+		*out = new(string)
+		**out = **in
+	}
 	if in.Selector != nil {
 		in, out := &in.Selector, &out.Selector
 		*out = new(v1.LabelSelector)
@ -210,8 +231,10 @@ func (in *Status) DeepCopyInto(out *Status) {
 	*out = *in
 	if in.Violations != nil {
 		in, out := &in.Violations, &out.Violations
-		*out = make([]Violation, len(*in))
-		copy(*out, *in)
+		*out = make(map[string]Violation, len(*in))
+		for key, val := range *in {
+			(*out)[key] = *val.DeepCopy()
+		}
 	}
 	return
 }
@ -239,6 +262,11 @@ func (in *Validation) DeepCopy() *Validation {
 // DeepCopyInto is an autogenerated deepcopy function, copying the receiver, writing into out. in must be non-nil.
 func (in *Violation) DeepCopyInto(out *Violation) {
 	*out = *in
+	if in.Rules != nil {
+		in, out := &in.Rules, &out.Rules
+		*out = make([]FailedRule, len(*in))
+		copy(*out, *in)
+	}
 	return
 }

--- a/pkg/controller/cleanup.go
+++ b/pkg/controller/cleanup.go
@ -0,0 +1,77 @@
+package controller
+
+import (
+	"github.com/golang/glog"
+	"github.com/minio/minio/pkg/wildcard"
+	"github.com/nirmata/kyverno/pkg/annotations"
+	v1alpha1 "github.com/nirmata/kyverno/pkg/apis/policy/v1alpha1"
+	client "github.com/nirmata/kyverno/pkg/dclient"
+	"k8s.io/apimachinery/pkg/apis/meta/v1/unstructured"
+	"k8s.io/apimachinery/pkg/runtime"
+)
+
+func cleanAnnotations(client *client.Client, obj interface{}) {
+	// get the policy struct from interface
+	unstr, err := runtime.DefaultUnstructuredConverter.ToUnstructured(obj)
+	if err != nil {
+		glog.Error(err)
+		return
+	}
+	policy := v1alpha1.Policy{}
+	if err := runtime.DefaultUnstructuredConverter.FromUnstructured(unstr, &policy); err != nil {
+		glog.Error(err)
+		return
+	}
+	// Get the resources that apply to the policy
+	// key uid
+	resourceMap := map[string]unstructured.Unstructured{}
+	for _, rule := range policy.Spec.Rules {
+		for _, k := range rule.Kinds {
+			if k == "Namespace" {
+				continue
+			}
+			// kind -> resource
+			gvr := client.DiscoveryClient.GetGVRFromKind(k)
+			// label selectors
+			// namespace ? should it be default or allow policy to specify it
+			namespace := "default"
+			if rule.ResourceDescription.Namespace != nil {
+				namespace = *rule.ResourceDescription.Namespace
+			}
+			list, err := client.ListResource(k, namespace, rule.ResourceDescription.Selector)
+			if err != nil {
+				glog.Errorf("unable to list resource for %s with label selector %s", gvr.Resource, rule.Selector.String())
+				glog.Errorf("unable to apply policy %s rule %s. err: %s", policy.Name, rule.Name, err)
+				continue
+			}
+			for _, res := range list.Items {
+				name := rule.ResourceDescription.Name
+				if name != nil {
+					// wild card matching
+					if !wildcard.Match(*name, res.GetName()) {
+						continue
+					}
+				}
+				resourceMap[string(res.GetUID())] = res
+			}
+		}
+	}
+
+	// remove annotations for the resources
+	for _, obj := range resourceMap {
+		// get annotations
+		ann := obj.GetAnnotations()
+
+		_, patch, err := annotations.RemovePolicyJSONPatch(ann, annotations.BuildKey(policy.Name))
+		if err != nil {
+			glog.Error(err)
+			continue
+		}
+		// patch the resource
+		_, err = client.PatchResource(obj.GetKind(), obj.GetNamespace(), obj.GetName(), patch)
+		if err != nil {
+			glog.Error(err)
+			continue
+		}
+	}
+}
--- a/pkg/controller/controller.go
+++ b/pkg/controller/controller.go
@ -3,15 +3,17 @@ package controller
 import (
 	"fmt"
 	"reflect"
-	"strings"
 	"time"

+	jsonpatch "github.com/evanphx/json-patch"
+
+	"github.com/nirmata/kyverno/pkg/annotations"
 	"github.com/nirmata/kyverno/pkg/info"

 	"github.com/nirmata/kyverno/pkg/engine"

 	"github.com/golang/glog"
-	types "github.com/nirmata/kyverno/pkg/apis/policy/v1alpha1"
+	v1alpha1 "github.com/nirmata/kyverno/pkg/apis/policy/v1alpha1"
 	lister "github.com/nirmata/kyverno/pkg/client/listers/policy/v1alpha1"
 	client "github.com/nirmata/kyverno/pkg/dclient"
 	"github.com/nirmata/kyverno/pkg/event"
@ -27,27 +29,30 @@ import (

 //PolicyController to manage Policy CRD
 type PolicyController struct {
-	client           *client.Client
-	policyLister     lister.PolicyLister
-	policySynced     cache.InformerSynced
-	violationBuilder violation.Generator
-	eventController  event.Generator
-	queue            workqueue.RateLimitingInterface
+	client                *client.Client
+	policyLister          lister.PolicyLister
+	policySynced          cache.InformerSynced
+	violationBuilder      violation.Generator
+	eventController       event.Generator
+	annotationsController annotations.Controller
+	queue                 workqueue.RateLimitingInterface
 }

 // NewPolicyController from cmd args
 func NewPolicyController(client *client.Client,
 	policyInformer sharedinformer.PolicyInformer,
 	violationBuilder violation.Generator,
-	eventController event.Generator) *PolicyController {
+	eventController event.Generator,
+	annotationsController annotations.Controller) *PolicyController {

 	controller := &PolicyController{
-		client:           client,
-		policyLister:     policyInformer.GetLister(),
-		policySynced:     policyInformer.GetInfomer().HasSynced,
-		violationBuilder: violationBuilder,
-		eventController:  eventController,
-		queue:            workqueue.NewNamedRateLimitingQueue(workqueue.DefaultControllerRateLimiter(), policyWorkQueueName),
+		client:                client,
+		policyLister:          policyInformer.GetLister(),
+		policySynced:          policyInformer.GetInfomer().HasSynced,
+		violationBuilder:      violationBuilder,
+		eventController:       eventController,
+		annotationsController: annotationsController,
+		queue:                 workqueue.NewNamedRateLimitingQueue(workqueue.DefaultControllerRateLimiter(), policyWorkQueueName),
 	}

 	policyInformer.GetInfomer().AddEventHandler(cache.ResourceEventHandlerFuncs{
@ -63,13 +68,13 @@ func (pc *PolicyController) createPolicyHandler(resource interface{}) {
 }

 func (pc *PolicyController) updatePolicyHandler(oldResource, newResource interface{}) {
-	newPolicy := newResource.(*types.Policy)
-	oldPolicy := oldResource.(*types.Policy)
-	newPolicy.Status = types.Status{}
-	oldPolicy.Status = types.Status{}
+	newPolicy := newResource.(*v1alpha1.Policy)
+	oldPolicy := oldResource.(*v1alpha1.Policy)
+	newPolicy.Status = v1alpha1.Status{}
+	oldPolicy.Status = v1alpha1.Status{}
 	newPolicy.ResourceVersion = ""
 	oldPolicy.ResourceVersion = ""
-	if reflect.DeepEqual(newPolicy.ResourceVersion, oldPolicy.ResourceVersion) {
+	if reflect.DeepEqual(newPolicy, oldPolicy) {
 		return
 	}
 	pc.enqueuePolicy(newResource)
@ -82,6 +87,7 @@ func (pc *PolicyController) deletePolicyHandler(resource interface{}) {
 		glog.Error("error decoding object, invalid type")
 		return
 	}
+	cleanAnnotations(pc.client, resource)
 	glog.Infof("policy deleted: %s", object.GetName())
 }

@ -155,7 +161,7 @@ func (pc *PolicyController) handleErr(err error, key interface{}) {
 	}
 	pc.queue.Forget(key)
 	glog.Error(err)
-	glog.Warningf("Dropping the key %q out of the queue: %v", key, err)
+	glog.Warningf("Dropping the key out of the queue: %v", err)
 }

 func (pc *PolicyController) syncHandler(obj interface{}) error {
@ -169,8 +175,7 @@ func (pc *PolicyController) syncHandler(obj interface{}) error {
 		glog.Errorf("invalid policy key: %s", key)
 		return nil
 	}
-
-	// Get Policy resource with namespace/name
+	// Get Policy
 	policy, err := pc.policyLister.Get(name)
 	if err != nil {
 		if errors.IsNotFound(err) {
@ -179,40 +184,103 @@ func (pc *PolicyController) syncHandler(obj interface{}) error {
 		}
 		return err
 	}
-	// process policy on existing resource
-	// get the violations and pass to violation Builder
-	// get the events and pass to event Builder
-	//TODO: processPolicy
+
 	glog.Infof("process policy %s on existing resources", policy.GetName())
+	// Process policy on existing resources
 	policyInfos := engine.ProcessExisting(pc.client, policy)
-	events, violations := createEventsAndViolations(pc.eventController, policyInfos)
+
+	events, violations := pc.createEventsAndViolations(policyInfos)
+	// Events, Violations
 	pc.eventController.Add(events...)
 	err = pc.violationBuilder.Add(violations...)
 	if err != nil {
 		glog.Error(err)
 	}
+
+	// Annotations
+	pc.createAnnotations(policyInfos)
+
 	return nil
 }

-func createEventsAndViolations(eventController event.Generator, policyInfos []*info.PolicyInfo) ([]*event.Info, []*violation.Info) {
+func (pc *PolicyController) createAnnotations(policyInfos []*info.PolicyInfo) {
+	for _, pi := range policyInfos {
+		var patch []byte
+		//get resource
+		obj, err := pc.client.GetResource(pi.RKind, pi.RNamespace, pi.RName)
+		if err != nil {
+			glog.Error(err)
+			continue
+		}
+		// add annotation for policy application
+		ann := obj.GetAnnotations()
+		// Mutation rules
+		ann, mpatch, err := annotations.AddPolicyJSONPatch(ann, pi, info.Mutation)
+		if err != nil {
+			glog.Error(err)
+			continue
+		}
+		// Validation rules
+		ann, vpatch, err := annotations.AddPolicyJSONPatch(ann, pi, info.Validation)
+		if err != nil {
+			glog.Error(err)
+		}
+		if mpatch == nil && vpatch == nil {
+			//nothing to patch
+			continue
+		}
+		// merge the patches
+		if mpatch != nil && vpatch != nil {
+			patch, err = jsonpatch.MergePatch(mpatch, vpatch)
+			if err != nil {
+				glog.Error(err)
+				continue
+			}
+		}
+		if mpatch == nil {
+			patch = vpatch
+		} else {
+			patch = mpatch
+		}
+		//		add the anotation to the resource
+		_, err = pc.client.PatchResource(pi.RKind, pi.RNamespace, pi.RName, patch)
+		if err != nil {
+			glog.Error(err)
+			continue
+		}
+	}
+}
+
+func (pc *PolicyController) createEventsAndViolations(policyInfos []*info.PolicyInfo) ([]*event.Info, []*violation.Info) {
 	events := []*event.Info{}
 	violations := []*violation.Info{}
 	// Create events from the policyInfo
 	for _, policyInfo := range policyInfos {
-		fruleNames := []string{}
+		frules := []v1alpha1.FailedRule{}
 		sruleNames := []string{}

 		for _, rule := range policyInfo.Rules {
 			if !rule.IsSuccessful() {
 				e := &event.Info{}
-				fruleNames = append(fruleNames, rule.Name)
+				frule := v1alpha1.FailedRule{Name: rule.Name}
 				switch rule.RuleType {
 				case info.Mutation, info.Validation, info.Generation:
 					// Events
 					e = event.NewEvent(policyInfo.RKind, policyInfo.RNamespace, policyInfo.RName, event.PolicyViolation, event.FProcessRule, rule.Name, policyInfo.Name)
+					switch rule.RuleType {
+					case info.Mutation:
+						frule.Type = info.Mutation.String()
+					case info.Validation:
+						frule.Type = info.Validation.String()
+					case info.Generation:
+						frule.Type = info.Generation.String()
+					}
+					frule.Error = rule.GetErrorString()
 				default:
 					glog.Info("Unsupported Rule type")
 				}
+				frule.Error = rule.GetErrorString()
+				frules = append(frules, frule)
 				events = append(events, e)
 			} else {
 				sruleNames = append(sruleNames, rule.Name)
@ -220,22 +288,16 @@ func createEventsAndViolations(eventController event.Generator, policyInfos []*i
 		}

 		if !policyInfo.IsSuccessful() {
-			// Event
-			// list of failed rules : ruleNames
-			e := event.NewEvent("Policy", "", policyInfo.Name, event.PolicyViolation, event.FResourcePolcy, policyInfo.RNamespace+"/"+policyInfo.RName, strings.Join(fruleNames, ";"))
+			e := event.NewEvent("Policy", "", policyInfo.Name, event.PolicyViolation, event.FResourcePolcy, policyInfo.RNamespace+"/"+policyInfo.RName, concatFailedRules(frules))
 			events = append(events, e)
 			// Violation
-			v := violation.NewViolationFromEvent(e, policyInfo.Name, policyInfo.RKind, policyInfo.RName, policyInfo.RNamespace)
+			v := violation.BuldNewViolation(policyInfo.Name, policyInfo.RKind, policyInfo.RNamespace, policyInfo.RName, event.PolicyViolation.String(), policyInfo.GetFailedRules())
 			violations = append(violations, v)
+		} else {
+			// clean up violations
+			pc.violationBuilder.RemoveInactiveViolation(policyInfo.Name, policyInfo.RKind, policyInfo.RNamespace, policyInfo.RName, info.Mutation)
+			pc.violationBuilder.RemoveInactiveViolation(policyInfo.Name, policyInfo.RKind, policyInfo.RNamespace, policyInfo.RName, info.Validation)
 		}
-		// else {
-		// 	// Policy was processed succesfully
-		// 	e := event.NewEvent("Policy", "", policyInfo.Name, event.PolicyApplied, event.SPolicyApply, policyInfo.Name)
-		// 	events = append(events, e)
-		// 	// Policy applied succesfully on resource
-		// 	e = event.NewEvent(policyInfo.RKind, policyInfo.RNamespace, policyInfo.RName, event.PolicyApplied, event.SRuleApply, strings.Join(sruleNames, ";"), policyInfo.RName)
-		// 	events = append(events, e)
-		// }
 	}
 	return events, violations
 }
--- a/pkg/controller/controller_test.go
+++ b/pkg/controller/controller_test.go
@ -41,7 +41,8 @@ func (f *fixture) runControler(policyName string) {
 		f.Client,
 		policyInformerFactory,
 		violationBuilder,
-		eventController)
+		eventController,
+		nil)

 	stopCh := signals.SetupSignalHandler()
 	// start informer & controller
--- a/pkg/controller/utils.go
+++ b/pkg/controller/utils.go
@ -1,7 +1,21 @@
 package controller

+import (
+	"bytes"
+
+	v1alpha1 "github.com/nirmata/kyverno/pkg/apis/policy/v1alpha1"
+)
+
 const policyWorkQueueName = "policyworkqueue"

-const policyWorkQueueRetryLimit = 5
+const policyWorkQueueRetryLimit = 3

 const policyControllerWorkerCount = 2
+
+func concatFailedRules(frules []v1alpha1.FailedRule) string {
+	var buffer bytes.Buffer
+	for _, frule := range frules {
+		buffer.WriteString(frule.Name + ";")
+	}
+	return buffer.String()
+}
--- a/pkg/dclient/client.go
+++ b/pkg/dclient/client.go
@ -16,6 +16,7 @@ import (
 	"k8s.io/apimachinery/pkg/apis/meta/v1/unstructured"
 	"k8s.io/apimachinery/pkg/runtime"
 	"k8s.io/apimachinery/pkg/runtime/schema"
+	patchTypes "k8s.io/apimachinery/pkg/types"
 	"k8s.io/client-go/discovery"
 	"k8s.io/client-go/discovery/cached/memory"
 	"k8s.io/client-go/dynamic"
@ -40,7 +41,6 @@ func NewClient(config *rest.Config) (*Client, error) {
 	if err != nil {
 		return nil, err
 	}
-
 	kclient, err := kubernetes.NewForConfig(config)
 	if err != nil {
 		return nil, err
@ -110,6 +110,11 @@ func (c *Client) GetResource(kind string, namespace string, name string, subreso
 	return c.getResourceInterface(kind, namespace).Get(name, meta.GetOptions{}, subresources...)
 }

+//Patch
+func (c *Client) PatchResource(kind string, namespace string, name string, patch []byte) (*unstructured.Unstructured, error) {
+	return c.getResourceInterface(kind, namespace).Patch(name, patchTypes.JSONPatchType, patch, meta.PatchOptions{})
+}
+
 // ListResource returns the list of resources in unstructured/json format
 // Access items using []Items
 func (c *Client) ListResource(kind string, namespace string, lselector *meta.LabelSelector) (*unstructured.UnstructuredList, error) {
--- a/pkg/engine/engine.go
+++ b/pkg/engine/engine.go
@ -14,11 +14,11 @@ import (
 // Instead we expose them as standalone functions passing the required atrributes
 // The each function returns the changes that need to be applied on the resource
 // the caller is responsible to apply the changes to the resource
-
 // ProcessExisting checks for mutation and validation violations of existing resources
 func ProcessExisting(client *client.Client, policy *types.Policy) []*info.PolicyInfo {
 	glog.Infof("Applying policy %s on existing resources", policy.Name)
-	resources := []*resourceInfo{}
+	// key uid
+	resourceMap := map[string]*resourceInfo{}

 	for _, rule := range policy.Spec.Rules {
 		for _, k := range rule.Kinds {
@ -34,7 +34,7 @@ func ProcessExisting(client *client.Client, policy *types.Policy) []*info.Policy
 			if rule.ResourceDescription.Namespace != nil {
 				namespace = *rule.ResourceDescription.Namespace
 			}
-			list, err := client.ListResource(gvr.Resource, namespace, rule.ResourceDescription.Selector)
+			list, err := client.ListResource(k, namespace, rule.ResourceDescription.Selector)
 			if err != nil {
 				glog.Errorf("unable to list resource for %s with label selector %s", gvr.Resource, rule.Selector.String())
 				glog.Errorf("unable to apply policy %s rule %s. err: %s", policy.Name, rule.Name, err)
@ -52,18 +52,19 @@ func ProcessExisting(client *client.Client, policy *types.Policy) []*info.Policy
 				ri := &resourceInfo{resource: &res, gvk: &metav1.GroupVersionKind{Group: gvk.Group,
 					Version: gvk.Version,
 					Kind:    gvk.Kind}}
-				resources = append(resources, ri)
+
+				resourceMap[string(res.GetUID())] = ri

 			}
 		}
 	}
 	policyInfos := []*info.PolicyInfo{}
 	// for the filtered resource apply policy
-	for _, r := range resources {
+	for _, v := range resourceMap {

-		policyInfo, err := applyPolicy(client, policy, r)
+		policyInfo, err := applyPolicy(client, policy, v)
 		if err != nil {
-			glog.Errorf("unable to apply policy %s on resource %s/%s", policy.Name, r.resource.GetName(), r.resource.GetNamespace())
+			glog.Errorf("unable to apply policy %s on resource %s/%s", policy.Name, v.resource.GetName(), v.resource.GetNamespace())
 			glog.Error(err)
 			continue
 		}
@ -74,7 +75,7 @@ func ProcessExisting(client *client.Client, policy *types.Policy) []*info.Policy
 }

 func applyPolicy(client *client.Client, policy *types.Policy, res *resourceInfo) (*info.PolicyInfo, error) {
-	policyInfo := info.NewPolicyInfo(policy.Name, res.gvk.Kind, res.resource.GetName(), res.resource.GetNamespace())
+	policyInfo := info.NewPolicyInfo(policy.Name, res.gvk.Kind, res.resource.GetName(), res.resource.GetNamespace(), policy.Spec.ValidationFailureAction)
 	glog.Infof("Applying policy %s with %d rules\n", policy.ObjectMeta.Name, len(policy.Spec.Rules))
 	rawResource, err := res.resource.MarshalJSON()
 	if err != nil {
@ -99,6 +100,10 @@ func applyPolicy(client *client.Client, policy *types.Policy, res *resourceInfo)

 func mutation(p *types.Policy, rawResource []byte, gvk *metav1.GroupVersionKind) ([]*info.RuleInfo, error) {
 	patches, ruleInfos := Mutate(*p, rawResource, *gvk)
+	if len(ruleInfos) == 0 {
+		// no rules were processed
+		return nil, nil
+	}
 	// option 2: (original Resource + patch) compare with (original resource)
 	mergePatches := JoinPatches(patches)
 	// merge the patches
--- a/pkg/engine/mutation.go
+++ b/pkg/engine/mutation.go
@ -10,7 +10,7 @@ import (
 // Mutate performs mutation. Overlay first and then mutation patches
 func Mutate(policy kubepolicy.Policy, rawResource []byte, gvk metav1.GroupVersionKind) ([][]byte, []*info.RuleInfo) {
 	var allPatches [][]byte
-	var err error
+	patchedDocument := rawResource
 	ris := []*info.RuleInfo{}

 	for _, rule := range policy.Spec.Rules {
@ -29,38 +29,24 @@ func Mutate(policy kubepolicy.Policy, rawResource []byte, gvk metav1.GroupVersio
 			overlayPatches, err := ProcessOverlay(rule, rawResource, gvk)
 			if err != nil {
 				ri.Fail()
-				ri.Addf("Rule %s: Overlay application has failed, err %s.", rule.Name, err)
+				ri.Addf("overlay application has failed, err %v.", err)
 			} else {
-				// Apply the JSON patches from the rule to the resource
-				rawResource, err = ApplyPatches(rawResource, overlayPatches)
-				if err != nil {
-					ri.Fail()
-					ri.Addf("Unable to apply JSON patch to resource, err %s.", err)
-				} else {
-					ri.Addf("Rule %s: Overlay succesfully applied.", rule.Name)
-					allPatches = append(allPatches, overlayPatches...)
-				}
+				ri.Addf("Rule %s: Overlay succesfully applied.", rule.Name)
+				allPatches = append(allPatches, overlayPatches...)
 			}
 		}

 		// Process Patches
 		if len(rule.Mutation.Patches) != 0 {
-			rulePatches, errs := ProcessPatches(rule, rawResource)
+			rulePatches, errs := ProcessPatches(rule, patchedDocument)
 			if len(errs) > 0 {
 				ri.Fail()
 				for _, err := range errs {
-					ri.Addf("Rule %s: Patches application has failed, err %s.", rule.Name, err)
+					ri.Addf("patches application has failed, err %v.", err)
 				}
 			} else {
-				// Apply the JSON patches from the rule to the resource
-				rawResource, err = ApplyPatches(rawResource, rulePatches)
-				if err != nil {
-					ri.Fail()
-					ri.Addf("Unable to apply JSON patch to resource, err %s.", err)
-				} else {
-					ri.Addf("Rule %s: Patches succesfully applied.", rule.Name)
-					allPatches = append(allPatches, rulePatches...)
-				}
+				ri.Addf("Rule %s: Patches succesfully applied.", rule.Name)
+				allPatches = append(allPatches, rulePatches...)
 			}
 		}
 		ris = append(ris, ri)
--- a/pkg/engine/validation.go
+++ b/pkg/engine/validation.go
@ -41,7 +41,7 @@ func Validate(policy kubepolicy.Policy, rawResource []byte, gvk metav1.GroupVers
 		err := validateResourceWithPattern(resource, rule.Validation.Pattern)
 		if err != nil {
 			ri.Fail()
-			ri.Addf("Rule %s: Validation has failed, err %s.", rule.Name, err)
+			ri.Addf("validation has failed, err %v.", err)
 		} else {
 			ri.Addf("Rule %s: Validation succesfully.", rule.Name)

--- a/pkg/event/controller.go
+++ b/pkg/event/controller.go
@ -1,7 +1,6 @@
 package event

 import (
-	"fmt"
 	"time"

 	"github.com/golang/glog"
@ -42,13 +41,12 @@ type Controller interface {
 func NewEventController(client *client.Client,
 	shareInformer sharedinformer.PolicyInformer) Controller {

-	controller := &controller{
+	return &controller{
 		client:       client,
 		policyLister: shareInformer.GetLister(),
 		queue:        workqueue.NewNamedRateLimitingQueue(workqueue.DefaultControllerRateLimiter(), eventWorkQueueName),
 		recorder:     initRecorder(client),
 	}
-	return controller
 }

 func initRecorder(client *client.Client) record.EventRecorder {
@ -93,40 +91,58 @@ func (c *controller) Stop() {
 	defer c.queue.ShutDown()
 	glog.Info("Shutting down eventbuilder controller workers")
 }
+
 func (c *controller) runWorker() {
 	for c.processNextWorkItem() {
 	}
 }

+func (c *controller) handleErr(err error, key interface{}) {
+	if err == nil {
+		c.queue.Forget(key)
+		return
+	}
+	// This controller retries if something goes wrong. After that, it stops trying.
+	if c.queue.NumRequeues(key) < workQueueRetryLimit {
+		glog.Warningf("Error syncing events %v: %v", key, err)
+		// Re-enqueue the key rate limited. Based on the rate limiter on the
+		// queue and the re-enqueue history, the key will be processed later again.
+		c.queue.AddRateLimited(key)
+		return
+	}
+	c.queue.Forget(key)
+	glog.Error(err)
+	glog.Warningf("Dropping the key out of the queue: %v", err)
+}
+
 func (c *controller) processNextWorkItem() bool {
 	obj, shutdown := c.queue.Get()
 	if shutdown {
 		return false
 	}
+
 	err := func(obj interface{}) error {
 		defer c.queue.Done(obj)
 		var key Info
 		var ok bool
+
 		if key, ok = obj.(Info); !ok {
 			c.queue.Forget(obj)
 			glog.Warningf("Expecting type info by got %v\n", obj)
 			return nil
 		}
-		// Run the syncHandler, passing the resource and the policy
-		if err := c.SyncHandler(key); err != nil {
-			c.queue.AddRateLimited(key)
-			return fmt.Errorf("error syncing '%s' : %s, requeuing event creation request", key.Namespace+"/"+key.Name, err.Error())
-		}
+		err := c.syncHandler(key)
+		c.handleErr(err, obj)
 		return nil
 	}(obj)
-
 	if err != nil {
-		glog.Warning(err)
+		glog.Error(err)
+		return true
 	}
 	return true
 }

-func (c *controller) SyncHandler(key Info) error {
+func (c *controller) syncHandler(key Info) error {
 	var robj runtime.Object
 	var err error

--- a/pkg/event/util.go
+++ b/pkg/event/util.go
@ -6,6 +6,8 @@ const eventWorkQueueName = "policy-controller-events"

 const eventWorkerThreadCount = 1

+const workQueueRetryLimit = 1
+
 //Info defines the event details
 type Info struct {
 	Kind      string
--- a/pkg/gencontroller/generation.go
+++ b/pkg/gencontroller/generation.go
@ -59,7 +59,8 @@ func (c *Controller) processPolicy(ns *corev1.Namespace, p *v1alpha1.Policy) {
 	policyInfo := info.NewPolicyInfo(p.Name,
 		"Namespace",
 		ns.Name,
-		"") // Namespace has no namespace..WOW
+		"",
+		p.Spec.ValidationFailureAction) // Namespace has no namespace..WOW

 	ruleInfos := engine.GenerateNew(c.client, p, ns)
 	policyInfo.AddRuleInfos(ruleInfos)
@ -77,9 +78,7 @@ func (c *Controller) processPolicy(ns *corev1.Namespace, p *v1alpha1.Policy) {

 		if onViolation {
 			glog.Infof("Adding violation for generation rule of policy %s\n", policyInfo.Name)
-
-			v := violation.NewViolation(event.PolicyViolation, policyInfo.Name, policyInfo.RKind, policyInfo.RName,
-				policyInfo.RNamespace, msg)
+			v := violation.BuldNewViolation(policyInfo.Name, policyInfo.RKind, policyInfo.RNamespace, policyInfo.RName, event.PolicyViolation.String(), policyInfo.GetFailedRules())
 			c.violationBuilder.Add(v)
 		} else {
 			eventInfo = event.NewEvent(policyKind, "", policyInfo.Name, event.RequestBlocked,
--- a/pkg/info/info.go
+++ b/pkg/info/info.go
@ -3,6 +3,8 @@ package info
 import (
 	"fmt"
 	"strings"
+
+	v1alpha1 "github.com/nirmata/kyverno/pkg/apis/policy/v1alpha1"
 )

 //PolicyInfo defines policy information
@ -16,25 +18,68 @@ type PolicyInfo struct {
 	// Namespace is the ns of resource
 	// empty on non-namespaced resources
 	RNamespace string
-	Rules      []*RuleInfo
-	success    bool
+	//TODO: add check/enum for types
+	ValidationFailureAction string // BlockChanges, ReportViolation
+	Rules                   []*RuleInfo
+	success                 bool
 }

 //NewPolicyInfo returns a new policy info
-func NewPolicyInfo(policyName string, rKind string, rName string, rNamespace string) *PolicyInfo {
+func NewPolicyInfo(policyName, rKind, rName, rNamespace, validationFailureAction string) *PolicyInfo {
 	return &PolicyInfo{
-		Name:       policyName,
-		RKind:      rKind,
-		RName:      rName,
-		RNamespace: rNamespace,
-		success:    true, // fail to be set explicity
+		Name:                    policyName,
+		RKind:                   rKind,
+		RName:                   rName,
+		RNamespace:              rNamespace,
+		success:                 true, // fail to be set explicity
+		ValidationFailureAction: validationFailureAction,
 	}
 }

 //IsSuccessful checks if policy is succesful
 // the policy is set to fail, if any of the rules have failed
 func (pi *PolicyInfo) IsSuccessful() bool {
-	return pi.success
+	for _, r := range pi.Rules {
+		if !r.success {
+			pi.success = false
+			return false
+		}
+	}
+	pi.success = true
+	return true
+}
+
+// SuccessfulRules returns list of successful rule names
+func (pi *PolicyInfo) SuccessfulRules() []string {
+	var rules []string
+	for _, r := range pi.Rules {
+		if r.IsSuccessful() {
+			rules = append(rules, r.Name)
+		}
+	}
+	return rules
+}
+
+// FailedRules returns list of failed rule names
+func (pi *PolicyInfo) FailedRules() []string {
+	var rules []string
+	for _, r := range pi.Rules {
+		if !r.IsSuccessful() {
+			rules = append(rules, r.Name)
+		}
+	}
+	return rules
+}
+
+//GetFailedRules returns the failed rules with rule type
+func (pi *PolicyInfo) GetFailedRules() []v1alpha1.FailedRule {
+	var rules []v1alpha1.FailedRule
+	for _, r := range pi.Rules {
+		if !r.IsSuccessful() {
+			rules = append(rules, v1alpha1.FailedRule{Name: r.Name, Type: r.RuleType.String(), Error: r.GetErrorString()})
+		}
+	}
+	return rules
 }

 //ErrorRules returns error msgs from all rule
@ -73,12 +118,18 @@ type RuleInfo struct {
 }

 //ToString reule information
+//TODO: check if this is needed
 func (ri *RuleInfo) ToString() string {
 	str := "rulename: " + ri.Name
 	msgs := strings.Join(ri.Msgs, ";")
 	return strings.Join([]string{str, msgs}, ";")
 }

+//GetErrorString returns the error message for a rule
+func (ri *RuleInfo) GetErrorString() string {
+	return strings.Join(ri.Msgs, ";")
+}
+
 //NewRuleInfo creates a new RuleInfo
 func NewRuleInfo(ruleName string, ruleType RuleType) *RuleInfo {
 	return &RuleInfo{
@ -121,6 +172,9 @@ func RulesSuccesfuly(rules []*RuleInfo) bool {

 //AddRuleInfos sets the rule information
 func (pi *PolicyInfo) AddRuleInfos(rules []*RuleInfo) {
+	if rules == nil {
+		return
+	}
 	if !RulesSuccesfuly(rules) {
 		pi.success = false
 	}
--- a/pkg/kyverno/apply/apply.go
+++ b/pkg/kyverno/apply/apply.go
@ -103,7 +103,8 @@ func applyPolicyOnRaw(policy *kubepolicy.Policy, rawResource []byte, gvk *metav1
 	policyInfo := info.NewPolicyInfo(policy.Name,
 		gvk.Kind,
 		rname,
-		rns)
+		rns,
+		policy.Spec.ValidationFailureAction)

 	// Process Mutation
 	patches, ruleInfos := engine.Mutate(*policy, rawResource, *gvk)
--- a/pkg/kyverno/apply/util.go
+++ b/pkg/kyverno/apply/util.go
@ -80,7 +80,7 @@ func scanDir(dir string) ([]string, error) {

 	err := filepath.Walk(dir, func(path string, info os.FileInfo, err error) error {
 		if err != nil {
-			return fmt.Errorf("prevent panic by handling failure accessing a path %q: %v\n", dir, err)
+			return fmt.Errorf("prevent panic by handling failure accessing a path %q: %v", dir, err)
 		}

 		res = append(res, path)
--- a/pkg/testrunner/test.go
+++ b/pkg/testrunner/test.go
@ -173,7 +173,8 @@ func (t *test) applyPolicy(policy *pt.Policy,
 	policyInfo := info.NewPolicyInfo(policy.Name,
 		rkind,
 		rname,
-		rns)
+		rns,
+		policy.Spec.ValidationFailureAction)
 	// Apply Mutation Rules
 	patches, ruleInfos := engine.Mutate(*policy, rawResource, *tresource.gvk)
 	policyInfo.AddRuleInfos(ruleInfos)
--- a/pkg/violation/builder.go
+++ b/pkg/violation/builder.go
@ -2,24 +2,26 @@ package violation

 import (
 	"errors"
-	"reflect"

-	"github.com/golang/glog"
-	types "github.com/nirmata/kyverno/pkg/apis/policy/v1alpha1"
-	v1alpha1 "github.com/nirmata/kyverno/pkg/client/listers/policy/v1alpha1"
+	v1alpha1 "github.com/nirmata/kyverno/pkg/apis/policy/v1alpha1"
+	lister "github.com/nirmata/kyverno/pkg/client/listers/policy/v1alpha1"
 	client "github.com/nirmata/kyverno/pkg/dclient"
 	event "github.com/nirmata/kyverno/pkg/event"
+	"github.com/nirmata/kyverno/pkg/info"
 	"github.com/nirmata/kyverno/pkg/sharedinformer"
+	"k8s.io/apimachinery/pkg/runtime"
 )

 //Generator to generate policy violation
 type Generator interface {
 	Add(infos ...*Info) error
+	RemoveInactiveViolation(policy, rKind, rNs, rName string, ruleType info.RuleType) error
+	ResourceRemoval(policy, rKind, rNs, rName string) error
 }

 type builder struct {
 	client       *client.Client
-	policyLister v1alpha1.PolicyLister
+	policyLister lister.PolicyLister
 	eventBuilder event.Generator
 }

@ -27,7 +29,6 @@ type builder struct {
 type Builder interface {
 	Generator
 	processViolation(info *Info) error
-	isActive(kind string, rname string, rnamespace string) (bool, error)
 }

 //NewPolicyViolationBuilder returns new violation builder
@ -43,7 +44,24 @@ func NewPolicyViolationBuilder(client *client.Client,
 	return builder
 }

+//BuldNewViolation returns a new violation
+func BuldNewViolation(pName string, rKind string, rNs string, rName string, reason string, frules []v1alpha1.FailedRule) *Info {
+	return &Info{
+		Policy: pName,
+		Violation: v1alpha1.Violation{
+			Kind:      rKind,
+			Namespace: rNs,
+			Name:      rName,
+			Reason:    reason,
+			Rules:     frules,
+		},
+	}
+}
+
 func (b *builder) Add(infos ...*Info) error {
+	if infos == nil {
+		return nil
+	}
 	for _, info := range infos {
 		return b.processViolation(info)
 	}
@ -51,96 +69,203 @@ func (b *builder) Add(infos ...*Info) error {
 }

 func (b *builder) processViolation(info *Info) error {
-	currentViolations := []interface{}{}
 	statusMap := map[string]interface{}{}
-	var ok bool
-	//TODO: hack get from client
-	p1, err := b.client.GetResource("Policy", "", info.Policy, "status")
+	violationsMap := map[string]interface{}{}
+	violationMap := map[string]interface{}{}
+	var violations interface{}
+	var violation interface{}
+	// Get Policy
+	obj, err := b.client.GetResource("Policy", "", info.Policy, "status")
 	if err != nil {
 		return err
 	}
-	unstr := p1.UnstructuredContent()
-	// check if "status" field exists
+	unstr := obj.UnstructuredContent()
+	// get "status" subresource
 	status, ok := unstr["status"]
 	if ok {
+		// status exists
 		// status is already present then we append violations
 		if statusMap, ok = status.(map[string]interface{}); !ok {
 			return errors.New("Unable to parse status subresource")
 		}
-		violations, ok := statusMap["violations"]
+		// get policy violations
+		violations, ok = statusMap["violations"]
 		if !ok {
-			glog.Info("violation not present")
+			return nil
 		}
-		glog.Info(reflect.TypeOf(violations))
-		if currentViolations, ok = violations.([]interface{}); !ok {
-			return errors.New("Unable to parse violations")
+		violationsMap, ok = violations.(map[string]interface{})
+		if !ok {
+			return errors.New("Unable to get status.violations subresource")
 		}
-	}
-	newViolation := info.Violation
-	for _, violation := range currentViolations {
-		glog.Info(reflect.TypeOf(violation))
-		if v, ok := violation.(map[string]interface{}); ok {
-			if name, ok := v["name"].(string); ok {
-				if namespace, ok := v["namespace"].(string); ok {
-					ok, err := b.isActive(info.Kind, name, namespace)
-					if err != nil {
-						glog.Error(err)
-						continue
-					}
-					if !ok {
-						//TODO remove the violation as it corresponds to resource that does not exist
-						glog.Info("removed violation")
-					}
-				}
+		// check if the resource has a violation
+		violation, ok = violationsMap[info.getKey()]
+		if !ok {
+			// add resource violation
+			violationsMap[info.getKey()] = info.Violation
+			statusMap["violations"] = violationsMap
+			unstr["status"] = statusMap
+		} else {
+			violationMap, ok = violation.(map[string]interface{})
+			if !ok {
+				return errors.New("Unable to get status.violations.violation subresource")
 			}
+			// we check if the new violation updates are different from stored violation info
+			v := v1alpha1.Violation{}
+			err := runtime.DefaultUnstructuredConverter.FromUnstructured(violationMap, &v)
+			if err != nil {
+				return err
+			}
+			// compare v & info.Violation
+			if v.IsEqual(info.Violation) {
+				// no updates to violation
+				// do nothing
+				return nil
+			}
+			// update the violation
+			violationsMap[info.getKey()] = info.Violation
+			statusMap["violations"] = violationsMap
+			unstr["status"] = statusMap
 		}
+	} else {
+		violationsMap[info.getKey()] = info.Violation
+		statusMap["violations"] = violationsMap
+		unstr["status"] = statusMap
 	}
-	currentViolations = append(currentViolations, newViolation)
-	// update violations
-	// set the updated status
-	statusMap["violations"] = currentViolations
-	unstr["status"] = statusMap
-	p1.SetUnstructuredContent(unstr)
-	_, err = b.client.UpdateStatusResource("policies", "", p1, false)
+
+	obj.SetUnstructuredContent(unstr)
+	// update the status sub-resource for policy
+	_, err = b.client.UpdateStatusResource("Policy", "", obj, false)
 	if err != nil {
 		return err
 	}
 	return nil
 }

-func (b *builder) isActive(kind, rname, rnamespace string) (bool, error) {
-	// Generate Merge Patch
-	_, err := b.client.GetResource(b.client.DiscoveryClient.GetGVRFromKind(kind).Resource, rnamespace, rname)
+//RemoveInactiveViolation
+func (b *builder) RemoveInactiveViolation(policy, rKind, rNs, rName string, ruleType info.RuleType) error {
+	statusMap := map[string]interface{}{}
+	violationsMap := map[string]interface{}{}
+	violationMap := map[string]interface{}{}
+	var violations interface{}
+	var violation interface{}
+	// Get Policy
+	obj, err := b.client.GetResource("Policy", "", policy, "status")
 	if err != nil {
-		glog.Errorf("unable to get resource %s/%s ", rnamespace, rname)
-		return false, err
+		return err
 	}
-	return true, nil
+	unstr := obj.UnstructuredContent()
+	// get "status" subresource
+	status, ok := unstr["status"]
+	if !ok {
+		return nil
+	}
+	// status exists
+	// status is already present then we append violations
+	if statusMap, ok = status.(map[string]interface{}); !ok {
+		return errors.New("Unable to parse status subresource")
+	}
+	// get policy violations
+	violations, ok = statusMap["violations"]
+	if !ok {
+		return nil
+	}
+	violationsMap, ok = violations.(map[string]interface{})
+	if !ok {
+		return errors.New("Unable to get status.violations subresource")
+	}
+	// check if the resource has a violation
+	violation, ok = violationsMap[BuildKey(rKind, rNs, rName)]
+	if !ok {
+		// no violation for this resource
+		return nil
+	}
+	violationMap, ok = violation.(map[string]interface{})
+	if !ok {
+		return errors.New("Unable to get status.violations.violation subresource")
+	}
+	// check remove the rules of the given type
+	// this is called when the policy is applied succesfully, so we can remove the previous failed rules
+	// if all rules are to be removed, the deleted the violation
+	v := v1alpha1.Violation{}
+	err = runtime.DefaultUnstructuredConverter.FromUnstructured(violationMap, &v)
+	if err != nil {
+		return err
+	}
+	if !v.RemoveRulesOfType(ruleType.String()) {
+		// no rule of given type found,
+		// no need to remove rule
+		return nil
+	}
+	// if there are no faile rules remove the violation
+	if len(v.Rules) == 0 {
+		delete(violationsMap, BuildKey(rKind, rNs, rName))
+	} else {
+		// update the rules
+		violationsMap[BuildKey(rKind, rNs, rName)] = v
+	}
+	statusMap["violations"] = violationsMap
+	unstr["status"] = statusMap
+
+	obj.SetUnstructuredContent(unstr)
+	// update the status sub-resource for policy
+	_, err = b.client.UpdateStatusResource("Policy", "", obj, false)
+	if err != nil {
+		return err
+	}
+	return nil
 }

-//NewViolation return new policy violation
-func NewViolation(reason event.Reason, policyName, kind, rname, rnamespace, msg string) *Info {
-	return &Info{Policy: policyName,
-		Violation: types.Violation{
-			Kind:      kind,
-			Name:      rname,
-			Namespace: rnamespace,
-			Reason:    reason.String(),
-			Message:   msg,
-		},
+// ResourceRemoval on resources reoval we remove the policy violation in the policy
+func (b *builder) ResourceRemoval(policy, rKind, rNs, rName string) error {
+	statusMap := map[string]interface{}{}
+	violationsMap := map[string]interface{}{}
+	var violations interface{}
+	// Get Policy
+	obj, err := b.client.GetResource("Policy", "", policy, "status")
+	if err != nil {
+		return err
+	}
+	unstr := obj.UnstructuredContent()
+	// get "status" subresource
+	status, ok := unstr["status"]
+	if !ok {
+		return nil
+	}
+	// status exists
+	// status is already present then we append violations
+	if statusMap, ok = status.(map[string]interface{}); !ok {
+		return errors.New("Unable to parse status subresource")
+	}
+	// get policy violations
+	violations, ok = statusMap["violations"]
+	if !ok {
+		return nil
+	}
+	violationsMap, ok = violations.(map[string]interface{})
+	if !ok {
+		return errors.New("Unable to get status.violations subresource")
 	}
-}

-//NewViolationFromEvent returns violation info from event
-func NewViolationFromEvent(e *event.Info, pName, rKind, rName, rnamespace string) *Info {
-	return &Info{
-		Policy: pName,
-		Violation: types.Violation{
-			Kind:      rKind,
-			Name:      rName,
-			Namespace: rnamespace,
-			Reason:    e.Reason,
-			Message:   e.Message,
-		},
+	// check if the resource has a violation
+	_, ok = violationsMap[BuildKey(rKind, rNs, rName)]
+	if !ok {
+		// no violation for this resource
+		return nil
 	}
+	// remove the pair from the map
+	delete(violationsMap, BuildKey(rKind, rNs, rName))
+	if len(violationsMap) == 0 {
+		delete(statusMap, "violations")
+	} else {
+		statusMap["violations"] = violationsMap
+	}
+	unstr["status"] = statusMap
+
+	obj.SetUnstructuredContent(unstr)
+	// update the status sub-resource for policy
+	_, err = b.client.UpdateStatusResource("Policy", "", obj, false)
+	if err != nil {
+		return err
+	}
+	return nil
 }
--- a/pkg/violation/util.go
+++ b/pkg/violation/util.go
@ -11,8 +11,17 @@ const workqueueViolationName = "Policy-Violations"
 // Event Reason
 const violationEventResrouce = "Violation"

-//ViolationInfo describes the policyviolation details
+//Info describes the policyviolation details
 type Info struct {
 	Policy string
 	policytype.Violation
 }
+
+func (i Info) getKey() string {
+	return i.Kind + "/" + i.Namespace + "/" + i.Name
+}
+
+//BuildKey returns the key format
+func BuildKey(rKind, rNs, rName string) string {
+	return rKind + "/" + rNs + "/" + rName
+}
--- a/pkg/webhooks/deleteresource.go
+++ b/pkg/webhooks/deleteresource.go
@ -0,0 +1,40 @@
+package webhooks
+
+import (
+	"errors"
+
+	engine "github.com/nirmata/kyverno/pkg/engine"
+	v1beta1 "k8s.io/api/admission/v1beta1"
+	"k8s.io/apimachinery/pkg/labels"
+)
+
+func (ws *WebhookServer) removePolicyViolation(request *v1beta1.AdmissionRequest) error {
+	// Get the list of policies that apply on the resource
+	policies, err := ws.policyLister.List(labels.NewSelector())
+	if err != nil {
+		// Unable to connect to policy Lister to access policies
+		return errors.New("Unable to connect to policy controller to access policies. Clean Up of Policy Violations is not being done")
+	}
+	for _, policy := range policies {
+		// check if policy has a rule for the admission request kind
+		if !StringInSlice(request.Kind.Kind, getApplicableKindsForPolicy(policy)) {
+			continue
+		}
+		// get the details from the request
+		rname := request.Name
+		rns := request.Namespace
+		rkind := request.Kind.Kind
+		// check if the resource meets the policy Resource description
+		for _, rule := range policy.Spec.Rules {
+			ok := engine.ResourceMeetsDescription(request.Object.Raw, rule.ResourceDescription, request.Kind)
+			if ok {
+				// Check if the policy has a violation for this resource
+				err := ws.violationBuilder.ResourceRemoval(policy.Name, rkind, rns, rname)
+				if err != nil {
+					return err
+				}
+			}
+		}
+	}
+	return nil
+}
--- a/pkg/webhooks/mutation.go
+++ b/pkg/webhooks/mutation.go
@ -0,0 +1,113 @@
+package webhooks
+
+import (
+	jsonpatch "github.com/evanphx/json-patch"
+	"github.com/golang/glog"
+	engine "github.com/nirmata/kyverno/pkg/engine"
+	"github.com/nirmata/kyverno/pkg/info"
+	v1beta1 "k8s.io/api/admission/v1beta1"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/apimachinery/pkg/labels"
+)
+
+// HandleMutation handles mutating webhook admission request
+func (ws *WebhookServer) HandleMutation(request *v1beta1.AdmissionRequest) *v1beta1.AdmissionResponse {
+
+	policies, err := ws.policyLister.List(labels.NewSelector())
+	if err != nil {
+		// Unable to connect to policy Lister to access policies
+		glog.Error("Unable to connect to policy controller to access policies. Mutation Rules are NOT being applied")
+		glog.Warning(err)
+		return &v1beta1.AdmissionResponse{
+			Allowed: true,
+		}
+	}
+	rname := engine.ParseNameFromObject(request.Object.Raw)
+	rns := engine.ParseNamespaceFromObject(request.Object.Raw)
+	rkind := engine.ParseKindFromObject(request.Object.Raw)
+
+	var allPatches [][]byte
+	var annPatches []byte
+	policyInfos := []*info.PolicyInfo{}
+	for _, policy := range policies {
+		// check if policy has a rule for the admission request kind
+		if !StringInSlice(request.Kind.Kind, getApplicableKindsForPolicy(policy)) {
+			continue
+		}
+		//TODO: HACK Check if an update of annotations
+		if checkIfOnlyAnnotationsUpdate(request) {
+			return &v1beta1.AdmissionResponse{
+				Allowed: true,
+			}
+		}
+		policyInfo := info.NewPolicyInfo(policy.Name,
+			rkind,
+			rname,
+			rns,
+			policy.Spec.ValidationFailureAction)
+
+		glog.V(3).Infof("Handling mutation for Kind=%s, Namespace=%s Name=%s UID=%s patchOperation=%s",
+			request.Kind.Kind, rns, rname, request.UID, request.Operation)
+
+		glog.Infof("Applying policy %s with %d rules\n", policy.ObjectMeta.Name, len(policy.Spec.Rules))
+
+		policyPatches, ruleInfos := engine.Mutate(*policy, request.Object.Raw, request.Kind)
+
+		policyInfo.AddRuleInfos(ruleInfos)
+
+		if !policyInfo.IsSuccessful() {
+			glog.Infof("Failed to apply policy %s on resource %s/%s", policy.Name, rname, rns)
+			for _, r := range ruleInfos {
+				glog.Warningf("%s: %s\n", r.Name, r.Msgs)
+			}
+		} else {
+			// TODO
+			// // CleanUp Violations if exists
+			// err := ws.violationBuilder.RemoveInactiveViolation(policy.Name, request.Kind.Kind, rns, rname, info.Validation)
+			// if err != nil {
+			// 	glog.Info(err)
+			// }
+			allPatches = append(allPatches, policyPatches...)
+			glog.Infof("Mutation from policy %s has applied succesfully to %s %s/%s", policy.Name, request.Kind.Kind, rname, rns)
+		}
+		policyInfos = append(policyInfos, policyInfo)
+
+		annPatch := addAnnotationsToResource(request.Object.Raw, policyInfo, info.Mutation)
+		if annPatch != nil {
+			if annPatches == nil {
+				annPatches = annPatch
+			} else {
+				annPatches, err = jsonpatch.MergePatch(annPatches, annPatch)
+				if err != nil {
+					glog.Error(err)
+				}
+			}
+		}
+	}
+
+	if len(allPatches) > 0 {
+		eventsInfo, _ := newEventInfoFromPolicyInfo(policyInfos, (request.Operation == v1beta1.Update), info.Mutation)
+		ws.eventController.Add(eventsInfo...)
+	}
+	//	add annotations
+	if annPatches != nil {
+		// fmt.Println(string(annPatches))
+		ws.annotationsController.Add(rkind, rns, rname, annPatches)
+	}
+
+	ok, msg := isAdmSuccesful(policyInfos)
+	if ok {
+		patchType := v1beta1.PatchTypeJSONPatch
+		return &v1beta1.AdmissionResponse{
+			Allowed:   true,
+			Patch:     engine.JoinPatches(allPatches),
+			PatchType: &patchType,
+		}
+	}
+	return &v1beta1.AdmissionResponse{
+		Allowed: false,
+		Result: &metav1.Status{
+			Message: msg,
+		},
+	}
+}
--- a/pkg/webhooks/policyvalidation.go
+++ b/pkg/webhooks/policyvalidation.go
@ -0,0 +1,45 @@
+package webhooks
+
+import (
+	"encoding/json"
+	"fmt"
+
+	"github.com/golang/glog"
+	policyv1 "github.com/nirmata/kyverno/pkg/apis/policy/v1alpha1"
+	"github.com/nirmata/kyverno/pkg/utils"
+	v1beta1 "k8s.io/api/admission/v1beta1"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+)
+
+//HandlePolicyValidation performs the validation check on policy resource
+func (ws *WebhookServer) HandlePolicyValidation(request *v1beta1.AdmissionRequest) *v1beta1.AdmissionResponse {
+	return ws.validateUniqueRuleName(request.Object.Raw)
+}
+
+// Verify if the Rule names are unique within a policy
+func (ws *WebhookServer) validateUniqueRuleName(rawPolicy []byte) *v1beta1.AdmissionResponse {
+	var policy *policyv1.Policy
+	var ruleNames []string
+
+	json.Unmarshal(rawPolicy, &policy)
+
+	for _, rule := range policy.Spec.Rules {
+		if utils.Contains(ruleNames, rule.Name) {
+			msg := fmt.Sprintf(`The policy "%s" is invalid: duplicate rule name: "%s"`, policy.Name, rule.Name)
+			glog.Errorln(msg)
+
+			return &v1beta1.AdmissionResponse{
+				Allowed: false,
+				Result: &metav1.Status{
+					Message: msg,
+				},
+			}
+		}
+		ruleNames = append(ruleNames, rule.Name)
+	}
+
+	glog.V(3).Infof("Policy validation passed")
+	return &v1beta1.AdmissionResponse{
+		Allowed: true,
+	}
+}
--- a/pkg/webhooks/registration.go
+++ b/pkg/webhooks/registration.go
@ -139,7 +139,8 @@ func (wrc *WebhookRegistrationClient) constructMutatingWebhookConfig(configurati
 			constructWebhook(
 				config.MutatingWebhookName,
 				config.MutatingWebhookServicePath,
-				caData),
+				caData,
+				false),
 		},
 	}, nil
 }
@ -157,7 +158,8 @@ func (wrc *WebhookRegistrationClient) contructDebugMutatingWebhookConfig(caData
 			constructDebugWebhook(
 				config.MutatingWebhookName,
 				url,
-				caData),
+				caData,
+				false),
 		},
 	}
 }
@ -190,7 +192,8 @@ func (wrc *WebhookRegistrationClient) constructValidatingWebhookConfig(configura
 			constructWebhook(
 				config.ValidatingWebhookName,
 				config.ValidatingWebhookServicePath,
-				caData),
+				caData,
+				true),
 		},
 	}, nil
 }
@ -208,7 +211,8 @@ func (wrc *WebhookRegistrationClient) contructDebugValidatingWebhookConfig(caDat
 			constructDebugWebhook(
 				config.ValidatingWebhookName,
 				url,
-				caData),
+				caData,
+				true),
 		},
 	}
 }
@ -241,7 +245,8 @@ func (wrc *WebhookRegistrationClient) contructPolicyValidatingWebhookConfig() (*
 			constructWebhook(
 				config.PolicyValidatingWebhookName,
 				config.PolicyValidatingWebhookServicePath,
-				caData),
+				caData,
+				true),
 		},
 	}, nil
 }
@ -259,12 +264,13 @@ func (wrc *WebhookRegistrationClient) contructDebugPolicyValidatingWebhookConfig
 			constructDebugWebhook(
 				config.PolicyValidatingWebhookName,
 				url,
-				caData),
+				caData,
+				true),
 		},
 	}
 }

-func constructWebhook(name, servicePath string, caData []byte) admregapi.Webhook {
+func constructWebhook(name, servicePath string, caData []byte, validation bool) admregapi.Webhook {
 	resource := "*/*"
 	apiGroups := "*"
 	apiversions := "*"
@ -273,6 +279,15 @@ func constructWebhook(name, servicePath string, caData []byte) admregapi.Webhook
 		apiGroups = "kyverno.io"
 		apiversions = "v1alpha1"
 	}
+	operationtypes := []admregapi.OperationType{
+		admregapi.Create,
+		admregapi.Update,
+	}
+	// Add operation DELETE for validation
+	if validation {
+		operationtypes = append(operationtypes, admregapi.Delete)
+
+	}

 	return admregapi.Webhook{
 		Name: name,
@ -286,10 +301,7 @@ func constructWebhook(name, servicePath string, caData []byte) admregapi.Webhook
 		},
 		Rules: []admregapi.RuleWithOperations{
 			admregapi.RuleWithOperations{
-				Operations: []admregapi.OperationType{
-					admregapi.Create,
-					admregapi.Update,
-				},
+				Operations: operationtypes,
 				Rule: admregapi.Rule{
 					APIGroups: []string{
 						apiGroups,
@ -306,7 +318,7 @@ func constructWebhook(name, servicePath string, caData []byte) admregapi.Webhook
 	}
 }

-func constructDebugWebhook(name, url string, caData []byte) admregapi.Webhook {
+func constructDebugWebhook(name, url string, caData []byte, validation bool) admregapi.Webhook {
 	resource := "*/*"
 	apiGroups := "*"
 	apiversions := "*"
@ -316,6 +328,14 @@ func constructDebugWebhook(name, url string, caData []byte) admregapi.Webhook {
 		apiGroups = "kyverno.io"
 		apiversions = "v1alpha1"
 	}
+	operationtypes := []admregapi.OperationType{
+		admregapi.Create,
+		admregapi.Update,
+	}
+	// Add operation DELETE for validation
+	if validation {
+		operationtypes = append(operationtypes, admregapi.Delete)
+	}

 	return admregapi.Webhook{
 		Name: name,
@ -325,10 +345,7 @@ func constructDebugWebhook(name, url string, caData []byte) admregapi.Webhook {
 		},
 		Rules: []admregapi.RuleWithOperations{
 			admregapi.RuleWithOperations{
-				Operations: []admregapi.OperationType{
-					admregapi.Create,
-					admregapi.Update,
-				},
+				Operations: operationtypes,
 				Rule: admregapi.Rule{
 					APIGroups: []string{
 						apiGroups,
--- a/pkg/webhooks/report.go
+++ b/pkg/webhooks/report.go
@ -0,0 +1,77 @@
+package webhooks
+
+import (
+	"strings"
+
+	"github.com/nirmata/kyverno/pkg/annotations"
+	"github.com/nirmata/kyverno/pkg/violation"
+
+	"github.com/golang/glog"
+	"github.com/nirmata/kyverno/pkg/event"
+	"github.com/nirmata/kyverno/pkg/info"
+)
+
+//TODO: change validation from bool -> enum(validation, mutation)
+func newEventInfoFromPolicyInfo(policyInfoList []*info.PolicyInfo, onUpdate bool, ruleType info.RuleType) ([]*event.Info, []*violation.Info) {
+	var eventsInfo []*event.Info
+	var violations []*violation.Info
+	ok, msg := isAdmSuccesful(policyInfoList)
+	// Some policies failed to apply succesfully
+	if !ok {
+		for _, pi := range policyInfoList {
+			if pi.IsSuccessful() {
+				continue
+			}
+			rules := pi.FailedRules()
+			ruleNames := strings.Join(rules, ";")
+			if !onUpdate {
+				// CREATE
+				eventsInfo = append(eventsInfo,
+					event.NewEvent(policyKind, "", pi.Name, event.RequestBlocked, event.FPolicyApplyBlockCreate, pi.RName, ruleNames))
+
+				glog.V(3).Infof("Rule(s) %s of policy %s blocked resource creation, error: %s\n", ruleNames, pi.Name, msg)
+			} else {
+				// UPDATE
+				eventsInfo = append(eventsInfo,
+					event.NewEvent(pi.RKind, pi.RNamespace, pi.RName, event.RequestBlocked, event.FPolicyApplyBlockUpdate, ruleNames, pi.Name))
+				eventsInfo = append(eventsInfo,
+					event.NewEvent(policyKind, "", pi.Name, event.RequestBlocked, event.FPolicyBlockResourceUpdate, pi.RName, ruleNames))
+				glog.V(3).Infof("Request blocked events info has prepared for %s/%s and %s/%s\n", policyKind, pi.Name, pi.RKind, pi.RName)
+			}
+			// if report flag is set
+			if pi.ValidationFailureAction == ReportViolation && ruleType == info.Validation {
+				// Create Violations
+				v := violation.BuldNewViolation(pi.Name, pi.RKind, pi.RNamespace, pi.RName, event.PolicyViolation.String(), pi.GetFailedRules())
+				violations = append(violations, v)
+			}
+		}
+	} else {
+		if !onUpdate {
+			// All policies were applied succesfully
+			// CREATE
+			for _, pi := range policyInfoList {
+				rules := pi.SuccessfulRules()
+				ruleNames := strings.Join(rules, ";")
+				eventsInfo = append(eventsInfo,
+					event.NewEvent(pi.RKind, pi.RNamespace, pi.RName, event.PolicyApplied, event.SRulesApply, ruleNames, pi.Name))
+
+				glog.V(3).Infof("Success event info has prepared for %s/%s\n", pi.RKind, pi.RName)
+			}
+		}
+	}
+	return eventsInfo, violations
+}
+
+func addAnnotationsToResource(rawResource []byte, pi *info.PolicyInfo, ruleType info.RuleType) []byte {
+	if len(pi.Rules) == 0 {
+		return nil
+	}
+	// get annotations
+	ann := annotations.ParseAnnotationsFromObject(rawResource)
+	ann, patch, err := annotations.AddPolicyJSONPatch(ann, pi, ruleType)
+	if err != nil {
+		glog.Error(err)
+		return nil
+	}
+	return patch
+}
--- a/pkg/webhooks/server.go
+++ b/pkg/webhooks/server.go
@ -8,35 +8,30 @@ import (
 	"fmt"
 	"io/ioutil"
 	"net/http"
-	"strings"
 	"time"

 	"github.com/golang/glog"
-	policyv1 "github.com/nirmata/kyverno/pkg/apis/policy/v1alpha1"
+	"github.com/nirmata/kyverno/pkg/annotations"
 	"github.com/nirmata/kyverno/pkg/client/listers/policy/v1alpha1"
 	"github.com/nirmata/kyverno/pkg/config"
 	client "github.com/nirmata/kyverno/pkg/dclient"
-	engine "github.com/nirmata/kyverno/pkg/engine"
 	"github.com/nirmata/kyverno/pkg/event"
-	"github.com/nirmata/kyverno/pkg/info"
 	"github.com/nirmata/kyverno/pkg/sharedinformer"
 	tlsutils "github.com/nirmata/kyverno/pkg/tls"
-	"github.com/nirmata/kyverno/pkg/utils"
+	"github.com/nirmata/kyverno/pkg/violation"
 	v1beta1 "k8s.io/api/admission/v1beta1"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/apimachinery/pkg/labels"
 )

-const policyKind = "Policy"
-
 // WebhookServer contains configured TLS server with MutationWebhook.
 // MutationWebhook gets policies from policyController and takes control of the cluster with kubeclient.
 type WebhookServer struct {
-	server          http.Server
-	client          *client.Client
-	policyLister    v1alpha1.PolicyLister
-	eventController event.Generator
-	filterKinds     []string
+	server                http.Server
+	client                *client.Client
+	policyLister          v1alpha1.PolicyLister
+	eventController       event.Generator
+	violationBuilder      violation.Generator
+	annotationsController annotations.Controller
+	filterKinds           []string
 }

 // NewWebhookServer creates new instance of WebhookServer accordingly to given configuration
@ -46,6 +41,8 @@ func NewWebhookServer(
 	tlsPair *tlsutils.TlsPemPair,
 	shareInformer sharedinformer.PolicyInformer,
 	eventController event.Generator,
+	violationBuilder violation.Generator,
+	annotationsController annotations.Controller,
 	filterKinds []string) (*WebhookServer, error) {

 	if tlsPair == nil {
@ -60,10 +57,12 @@ func NewWebhookServer(
 	tlsConfig.Certificates = []tls.Certificate{pair}

 	ws := &WebhookServer{
-		client:          client,
-		policyLister:    shareInformer.GetLister(),
-		eventController: eventController,
-		filterKinds:     parseKinds(filterKinds),
+		client:                client,
+		policyLister:          shareInformer.GetLister(),
+		eventController:       eventController,
+		violationBuilder:      violationBuilder,
+		annotationsController: annotationsController,
+		filterKinds:           parseKinds(filterKinds),
 	}
 	mux := http.NewServeMux()
 	mux.HandleFunc(config.MutatingWebhookServicePath, ws.serve)
@ -94,14 +93,30 @@ func (ws *WebhookServer) serve(w http.ResponseWriter, r *http.Request) {

 	// Do not process the admission requests for kinds that are in filterKinds for filtering
 	if !StringInSlice(admissionReview.Request.Kind.Kind, ws.filterKinds) {
+		// if the resource is being deleted we need to clear any existing Policy Violations
+		// TODO: can report to the user that we clear the violation corresponding to this resource
+		if admissionReview.Request.Operation == v1beta1.Delete {
+			// Resource DELETE
+			err := ws.removePolicyViolation(admissionReview.Request)
+			if err != nil {
+				glog.Info(err)
+			}
+			admissionReview.Response = &v1beta1.AdmissionResponse{
+				Allowed: true,
+			}
+			admissionReview.Response.UID = admissionReview.Request.UID
+		} else {
+			// Resource CREATE
+			// Resource UPDATE
+			switch r.URL.Path {
+			case config.MutatingWebhookServicePath:
+				admissionReview.Response = ws.HandleMutation(admissionReview.Request)
+			case config.ValidatingWebhookServicePath:
+				admissionReview.Response = ws.HandleValidation(admissionReview.Request)
+			case config.PolicyValidatingWebhookServicePath:
+				admissionReview.Response = ws.HandlePolicyValidation(admissionReview.Request)
+			}

-		switch r.URL.Path {
-		case config.MutatingWebhookServicePath:
-			admissionReview.Response = ws.HandleMutation(admissionReview.Request)
-		case config.ValidatingWebhookServicePath:
-			admissionReview.Response = ws.HandleValidation(admissionReview.Request)
-		case config.PolicyValidatingWebhookServicePath:
-			admissionReview.Response = ws.HandlePolicyValidation(admissionReview.Request)
 		}
 	}

@ -140,169 +155,6 @@ func (ws *WebhookServer) Stop() {
 	}
 }

-// HandleMutation handles mutating webhook admission request
-func (ws *WebhookServer) HandleMutation(request *v1beta1.AdmissionRequest) *v1beta1.AdmissionResponse {
-
-	policies, err := ws.policyLister.List(labels.NewSelector())
-	if err != nil {
-		// Unable to connect to policy Lister to access policies
-		glog.Error("Unable to connect to policy controller to access policies. Mutation Rules are NOT being applied")
-		glog.Warning(err)
-		return &v1beta1.AdmissionResponse{
-			Allowed: true,
-		}
-	}
-
-	var allPatches [][]byte
-	policyInfos := []*info.PolicyInfo{}
-	for _, policy := range policies {
-		// check if policy has a rule for the admission request kind
-		if !StringInSlice(request.Kind.Kind, getApplicableKindsForPolicy(policy)) {
-			continue
-		}
-		rname := engine.ParseNameFromObject(request.Object.Raw)
-		rns := engine.ParseNamespaceFromObject(request.Object.Raw)
-		rkind := engine.ParseKindFromObject(request.Object.Raw)
-		policyInfo := info.NewPolicyInfo(policy.Name,
-			rkind,
-			rname,
-			rns)
-
-		glog.V(3).Infof("Handling mutation for Kind=%s, Namespace=%s Name=%s UID=%s patchOperation=%s",
-			request.Kind.Kind, rns, rname, request.UID, request.Operation)
-
-		glog.Infof("Applying policy %s with %d rules\n", policy.ObjectMeta.Name, len(policy.Spec.Rules))
-
-		policyPatches, ruleInfos := engine.Mutate(*policy, request.Object.Raw, request.Kind)
-
-		policyInfo.AddRuleInfos(ruleInfos)
-
-		if !policyInfo.IsSuccessful() {
-			glog.Infof("Failed to apply policy %s on resource %s/%s", policy.Name, rname, rns)
-			for _, r := range ruleInfos {
-				glog.Warning(r.Msgs)
-			}
-		} else if len(policyPatches) > 0 {
-			allPatches = append(allPatches, policyPatches...)
-			glog.Infof("Mutation from policy %s has applied succesfully to %s %s/%s", policy.Name, request.Kind.Kind, rname, rns)
-		}
-		policyInfos = append(policyInfos, policyInfo)
-	}
-
-	if len(allPatches) > 0 {
-		eventsInfo := newEventInfoFromPolicyInfo(policyInfos, (request.Operation == v1beta1.Update))
-		ws.eventController.Add(eventsInfo...)
-	}
-
-	ok, msg := isAdmSuccesful(policyInfos)
-	if ok {
-		patchType := v1beta1.PatchTypeJSONPatch
-		return &v1beta1.AdmissionResponse{
-			Allowed:   true,
-			Patch:     engine.JoinPatches(allPatches),
-			PatchType: &patchType,
-		}
-	}
-	return &v1beta1.AdmissionResponse{
-		Allowed: false,
-		Result: &metav1.Status{
-			Message: msg,
-		},
-	}
-}
-
-func isAdmSuccesful(policyInfos []*info.PolicyInfo) (bool, string) {
-	var admSuccess = true
-	var errMsgs []string
-	for _, pi := range policyInfos {
-		if !pi.IsSuccessful() {
-			admSuccess = false
-			errMsgs = append(errMsgs, fmt.Sprintf("\nPolicy %s failed with following rules", pi.Name))
-			// Get the error rules
-			errorRules := pi.ErrorRules()
-			errMsgs = append(errMsgs, errorRules)
-		}
-	}
-	return admSuccess, strings.Join(errMsgs, ";")
-}
-
-// HandleValidation handles validating webhook admission request
-// If there are no errors in validating rule we apply generation rules
-func (ws *WebhookServer) HandleValidation(request *v1beta1.AdmissionRequest) *v1beta1.AdmissionResponse {
-	policyInfos := []*info.PolicyInfo{}
-
-	policies, err := ws.policyLister.List(labels.NewSelector())
-	if err != nil {
-		// Unable to connect to policy Lister to access policies
-		glog.Error("Unable to connect to policy controller to access policies. Validation Rules are NOT being applied")
-		glog.Warning(err)
-		return &v1beta1.AdmissionResponse{
-			Allowed: true,
-		}
-	}
-
-	for _, policy := range policies {
-
-		if !StringInSlice(request.Kind.Kind, getApplicableKindsForPolicy(policy)) {
-			continue
-		}
-		rname := engine.ParseNameFromObject(request.Object.Raw)
-		rns := engine.ParseNamespaceFromObject(request.Object.Raw)
-		rkind := engine.ParseKindFromObject(request.Object.Raw)
-
-		policyInfo := info.NewPolicyInfo(policy.Name,
-			rkind,
-			rname,
-			rns)
-
-		glog.V(3).Infof("Handling validation for Kind=%s, Namespace=%s Name=%s UID=%s patchOperation=%s",
-			request.Kind.Kind, rns, rname, request.UID, request.Operation)
-
-		glog.Infof("Validating resource with policy %s with %d rules", policy.ObjectMeta.Name, len(policy.Spec.Rules))
-		ruleInfos, err := engine.Validate(*policy, request.Object.Raw, request.Kind)
-		if err != nil {
-			// This is not policy error
-			// but if unable to parse request raw resource
-			// TODO : create event ? dont think so
-			glog.Error(err)
-			continue
-		}
-		policyInfo.AddRuleInfos(ruleInfos)
-
-		if !policyInfo.IsSuccessful() {
-			glog.Infof("Failed to apply policy %s on resource %s/%s", policy.Name, rname, rns)
-			for _, r := range ruleInfos {
-				glog.Warning(r.Msgs)
-			}
-		} else if len(ruleInfos) > 0 {
-			glog.Infof("Validation from policy %s has applied succesfully to %s %s/%s", policy.Name, request.Kind.Kind, rname, rns)
-		}
-		policyInfos = append(policyInfos, policyInfo)
-	}
-
-	if len(policyInfos) > 0 && len(policyInfos[0].Rules) != 0 {
-		eventsInfo := newEventInfoFromPolicyInfo(policyInfos, (request.Operation == v1beta1.Update))
-		ws.eventController.Add(eventsInfo...)
-
-	}
-
-	// If Validation fails then reject the request
-	ok, msg := isAdmSuccesful(policyInfos)
-	if !ok {
-		return &v1beta1.AdmissionResponse{
-			Allowed: false,
-			Result: &metav1.Status{
-				Message: msg,
-			},
-		}
-	}
-
-	return &v1beta1.AdmissionResponse{
-		Allowed: true,
-	}
-	// Generation rules applied via generation controller
-}
-
 // bodyToAdmissionReview creates AdmissionReview object from request body
 // Answers to the http.ResponseWriter if request is not valid
 func (ws *WebhookServer) bodyToAdmissionReview(request *http.Request, writer http.ResponseWriter) *v1beta1.AdmissionReview {
@ -334,96 +186,3 @@ func (ws *WebhookServer) bodyToAdmissionReview(request *http.Request, writer htt

 	return admissionReview
 }
-
-//HandlePolicyValidation performs the validation check on policy resource
-func (ws *WebhookServer) HandlePolicyValidation(request *v1beta1.AdmissionRequest) *v1beta1.AdmissionResponse {
-	return ws.validateUniqueRuleName(request.Object.Raw)
-}
-
-func (ws *WebhookServer) validateUniqueRuleName(rawPolicy []byte) *v1beta1.AdmissionResponse {
-	var policy *policyv1.Policy
-	var ruleNames []string
-
-	json.Unmarshal(rawPolicy, &policy)
-
-	for _, rule := range policy.Spec.Rules {
-		if utils.Contains(ruleNames, rule.Name) {
-			msg := fmt.Sprintf(`The policy "%s" is invalid: duplicate rule name: "%s"`, policy.Name, rule.Name)
-			glog.Errorln(msg)
-
-			return &v1beta1.AdmissionResponse{
-				Allowed: false,
-				Result: &metav1.Status{
-					Message: msg,
-				},
-			}
-		}
-		ruleNames = append(ruleNames, rule.Name)
-	}
-
-	glog.V(3).Infof("Policy validation passed")
-	return &v1beta1.AdmissionResponse{
-		Allowed: true,
-	}
-}
-
-func newEventInfoFromPolicyInfo(policyInfoList []*info.PolicyInfo, onUpdate bool) []*event.Info {
-	var eventsInfo []*event.Info
-
-	ok, msg := isAdmSuccesful(policyInfoList)
-	// create events on operation UPDATE
-	if onUpdate {
-		if !ok {
-			for _, pi := range policyInfoList {
-				ruleNames := getRuleNames(*pi, false)
-				eventsInfo = append(eventsInfo,
-					event.NewEvent(pi.RKind, pi.RNamespace, pi.RName, event.RequestBlocked, event.FPolicyApplyBlockUpdate, ruleNames, pi.Name))
-
-				eventsInfo = append(eventsInfo,
-					event.NewEvent(policyKind, "", pi.Name, event.RequestBlocked, event.FPolicyBlockResourceUpdate, pi.RName, ruleNames))
-
-				glog.V(3).Infof("Request blocked events info has prepared for %s/%s and %s/%s\n", policyKind, pi.Name, pi.RKind, pi.RName)
-			}
-		}
-		return eventsInfo
-	}
-
-	// create events on operation CREATE
-	if ok {
-		for _, pi := range policyInfoList {
-			ruleNames := getRuleNames(*pi, true)
-
-			eventsInfo = append(eventsInfo,
-				event.NewEvent(pi.RKind, pi.RNamespace, pi.RName, event.PolicyApplied, event.SRulesApply, ruleNames, pi.Name))
-
-			glog.V(3).Infof("Success event info has prepared for %s/%s\n", pi.RKind, pi.RName)
-		}
-		return eventsInfo
-	}
-
-	for _, pi := range policyInfoList {
-		ruleNames := getRuleNames(*pi, false)
-
-		eventsInfo = append(eventsInfo,
-			event.NewEvent(policyKind, "", pi.Name, event.RequestBlocked, event.FPolicyApplyBlockCreate, pi.RName, ruleNames))
-
-		glog.V(3).Infof("Rule(s) %s of policy %s blocked resource creation, error: %s\n", ruleNames, pi.Name, msg)
-	}
-	return eventsInfo
-}
-
-func getRuleNames(policyInfo info.PolicyInfo, onSuccess bool) string {
-	var ruleNames []string
-	for _, rule := range policyInfo.Rules {
-		if onSuccess {
-			if rule.IsSuccessful() {
-				ruleNames = append(ruleNames, rule.Name)
-			}
-		} else {
-			if !rule.IsSuccessful() {
-				ruleNames = append(ruleNames, rule.Name)
-			}
-		}
-	}
-	return strings.Join(ruleNames, ",")
-}
--- a/pkg/webhooks/utils.go
+++ b/pkg/webhooks/utils.go
@ -1,11 +1,34 @@
 package webhooks

 import (
+	"fmt"
+	"reflect"
 	"strings"

+	"github.com/golang/glog"
 	"github.com/nirmata/kyverno/pkg/apis/policy/v1alpha1"
+	"github.com/nirmata/kyverno/pkg/info"
+	v1beta1 "k8s.io/api/admission/v1beta1"
+	"k8s.io/apimachinery/pkg/apis/meta/v1/unstructured"
 )

+const policyKind = "Policy"
+
+func isAdmSuccesful(policyInfos []*info.PolicyInfo) (bool, string) {
+	var admSuccess = true
+	var errMsgs []string
+	for _, pi := range policyInfos {
+		if !pi.IsSuccessful() {
+			admSuccess = false
+			errMsgs = append(errMsgs, fmt.Sprintf("\nPolicy %s failed with following rules", pi.Name))
+			// Get the error rules
+			errorRules := pi.ErrorRules()
+			errMsgs = append(errMsgs, errorRules)
+		}
+	}
+	return admSuccess, strings.Join(errMsgs, ";")
+}
+
 //StringInSlice checks if string is present in slice of strings
 func StringInSlice(kind string, list []string) bool {
 	for _, b := range list {
@ -63,3 +86,50 @@ func getApplicableKindsForPolicy(p *v1alpha1.Policy) []string {
 	}
 	return kinds
 }
+
+// Policy Reporting Modes
+const (
+	BlockChanges    = "block"
+	ReportViolation = "report"
+)
+
+// returns true -> if there is even one policy that blocks resource requst
+// returns false -> if all the policies are meant to report only, we dont block resource request
+func toBlock(pis []*info.PolicyInfo) bool {
+	for _, pi := range pis {
+		if pi.ValidationFailureAction != ReportViolation {
+			return true
+		}
+	}
+	return false
+}
+
+func checkIfOnlyAnnotationsUpdate(request *v1beta1.AdmissionRequest) bool {
+	// process only if its for existing resources
+	if request.Operation != v1beta1.Update {
+		return false
+	}
+	// updated resoruce
+	obj := request.Object
+	objUnstr := unstructured.Unstructured{}
+	err := objUnstr.UnmarshalJSON(obj.Raw)
+	if err != nil {
+		glog.Error(err)
+		return false
+	}
+	objUnstr.SetAnnotations(nil)
+	objUnstr.SetGeneration(0)
+	oldobj := request.OldObject
+	oldobjUnstr := unstructured.Unstructured{}
+	err = oldobjUnstr.UnmarshalJSON(oldobj.Raw)
+	if err != nil {
+		glog.Error(err)
+		return false
+	}
+	oldobjUnstr.SetAnnotations(nil)
+	oldobjUnstr.SetGeneration(0)
+	if reflect.DeepEqual(objUnstr, oldobjUnstr) {
+		return true
+	}
+	return false
+}
--- a/pkg/webhooks/validation.go
+++ b/pkg/webhooks/validation.go
@ -0,0 +1,126 @@
+package webhooks
+
+import (
+	jsonpatch "github.com/evanphx/json-patch"
+	"github.com/golang/glog"
+	engine "github.com/nirmata/kyverno/pkg/engine"
+	"github.com/nirmata/kyverno/pkg/info"
+	v1beta1 "k8s.io/api/admission/v1beta1"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/apimachinery/pkg/labels"
+)
+
+// HandleValidation handles validating webhook admission request
+// If there are no errors in validating rule we apply generation rules
+func (ws *WebhookServer) HandleValidation(request *v1beta1.AdmissionRequest) *v1beta1.AdmissionResponse {
+	policyInfos := []*info.PolicyInfo{}
+	policies, err := ws.policyLister.List(labels.NewSelector())
+	if err != nil {
+		// Unable to connect to policy Lister to access policies
+		glog.Error("Unable to connect to policy controller to access policies. Validation Rules are NOT being applied")
+		glog.Warning(err)
+		return &v1beta1.AdmissionResponse{
+			Allowed: true,
+		}
+	}
+
+	rname := engine.ParseNameFromObject(request.Object.Raw)
+	rns := engine.ParseNamespaceFromObject(request.Object.Raw)
+	rkind := engine.ParseKindFromObject(request.Object.Raw)
+
+	var annPatches []byte
+	for _, policy := range policies {
+
+		if !StringInSlice(request.Kind.Kind, getApplicableKindsForPolicy(policy)) {
+			continue
+		}
+		//TODO: HACK Check if an update of annotations
+		if checkIfOnlyAnnotationsUpdate(request) {
+			// allow the update of resource to add annotations
+			return &v1beta1.AdmissionResponse{
+				Allowed: true,
+			}
+		}
+
+		policyInfo := info.NewPolicyInfo(policy.Name,
+			rkind,
+			rname,
+			rns,
+			policy.Spec.ValidationFailureAction)
+
+		glog.V(3).Infof("Handling validation for Kind=%s, Namespace=%s Name=%s UID=%s patchOperation=%s",
+			request.Kind.Kind, rns, rname, request.UID, request.Operation)
+
+		glog.Infof("Validating resource %s/%s/%s with policy %s with %d rules", rkind, rns, rname, policy.ObjectMeta.Name, len(policy.Spec.Rules))
+		ruleInfos, err := engine.Validate(*policy, request.Object.Raw, request.Kind)
+		if err != nil {
+			// This is not policy error
+			// but if unable to parse request raw resource
+			// TODO : create event ? dont think so
+			glog.Error(err)
+			continue
+		}
+		policyInfo.AddRuleInfos(ruleInfos)
+
+		if !policyInfo.IsSuccessful() {
+			glog.Infof("Failed to apply policy %s on resource %s/%s", policy.Name, rname, rns)
+			for _, r := range ruleInfos {
+				glog.Warningf("%s: %s\n", r.Name, r.Msgs)
+			}
+		} else {
+			// CleanUp Violations if exists
+			err := ws.violationBuilder.RemoveInactiveViolation(policy.Name, request.Kind.Kind, rns, rname, info.Validation)
+			if err != nil {
+				glog.Info(err)
+			}
+
+			if len(ruleInfos) > 0 {
+				glog.Infof("Validation from policy %s has applied succesfully to %s %s/%s", policy.Name, request.Kind.Kind, rname, rns)
+			}
+		}
+		policyInfos = append(policyInfos, policyInfo)
+		// annotations
+		annPatch := addAnnotationsToResource(request.Object.Raw, policyInfo, info.Validation)
+		if annPatch != nil {
+			if annPatches == nil {
+				annPatches = annPatch
+			} else {
+				annPatches, err = jsonpatch.MergePatch(annPatches, annPatch)
+				if err != nil {
+					glog.Error(err)
+				}
+			}
+		}
+	}
+
+	if len(policyInfos) > 0 && len(policyInfos[0].Rules) != 0 {
+		eventsInfo, violations := newEventInfoFromPolicyInfo(policyInfos, (request.Operation == v1beta1.Update), info.Validation)
+		// If the validationFailureAction flag is set "report",
+		// then we dont block the request and report the violations
+		ws.violationBuilder.Add(violations...)
+		ws.eventController.Add(eventsInfo...)
+	}
+	//	add annotations
+	if annPatches != nil {
+		ws.annotationsController.Add(rkind, rns, rname, annPatches)
+	}
+	// If Validation fails then reject the request
+	ok, msg := isAdmSuccesful(policyInfos)
+	// violations are created if "report" flag is set
+	// and if there are any then we dont bock the resource creation
+	// Even if one the policy being applied
+
+	if !ok && toBlock(policyInfos) {
+		return &v1beta1.AdmissionResponse{
+			Allowed: false,
+			Result: &metav1.Status{
+				Message: msg,
+			},
+		}
+	}
+
+	return &v1beta1.AdmissionResponse{
+		Allowed: true,
+	}
+	// Generation rules applied via generation controller
+}
--- a/test/StatefulSet/policy-StatefulSet.yaml
+++ b/test/StatefulSet/policy-StatefulSet.yaml
@ -28,7 +28,7 @@ spec:
        message: "This SS is broken"
        pattern:
          spec:
-            replicas: ">20"
+            replicas: ">2"
            volumeClaimTemplates:
            - metadata:
                name: www