doc: Adding testing guidelines

DEVELOPMENT_GUIDE.md

@@ -154,6 +154,39 @@ conventions are best practices that we have learnt over time.
 -   Do not catch the broader `Exception`, unless you have a really
     strong reason to do. You must explain the reason in great detail in
     comments.
+
+
+Testing
+-------
+
+We need thorough test coverage to ensure the code change works today, 
+and continues to work in future. When you make a code change, use the 
+following framework to decide the kinds of tests to write:
+
+- When you adds/removed/modifies code paths (aka branches/arcs), 
+  write **unit tests** with goal of making sure the flow works. Focus
+  on verifying the flow and use mocks to isolate from as many 
+  external dependencies as you can. "External dependencies" 
+  includes system calls, libraries, other classes/methods you wrote
+  but logically outside of the system-under-test.
+
+  > Aim to test with complete isolation
+
+- When your code uses external dependencies, write **functional tests** 
+  to verify some flows by including as many external dependencies as 
+  possible. Focus on verifying the flows that directly use the dependencies.
+
+  > Aim to test one or more logically related components. Includes docker, 
+  file system, API server, but might still mock some things like AWS API 
+  calls. 
+
+- When your code adds/removes/modifies a customer facing behavior,
+  write **integration tests**. Focus on verifying the customer experience
+  works as expected.
+
+  > Aim to test how a customer will use the feature/command. Includes 
+  calling AWS APIs, spinning up Docker containers, mutating files etc.
+
 
 Design Document
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