diff --git a/.coveragerc b/.coveragerc
index e4d5bca95d3..ef421af6875 100644
--- a/.coveragerc
+++ b/.coveragerc
@@ -247,6 +247,9 @@ omit =
     homeassistant/components/volvooncall.py
     homeassistant/components/*/volvooncall.py
 
+    homeassistant/components/waterfurnace.py
+    homeassistant/components/*/waterfurnace.py
+
     homeassistant/components/*/webostv.py
 
     homeassistant/components/wemo.py
diff --git a/homeassistant/components/sensor/waterfurnace.py b/homeassistant/components/sensor/waterfurnace.py
new file mode 100644
index 00000000000..7d8c71f8d51
--- /dev/null
+++ b/homeassistant/components/sensor/waterfurnace.py
@@ -0,0 +1,114 @@
+"""
+Support for Waterfurnace.
+
+For more details about this platform, please refer to the documentation at
+https://home-assistant.io/components/sensor.waterfurnace/
+"""
+import asyncio
+
+from homeassistant.components.sensor import ENTITY_ID_FORMAT
+from homeassistant.components.waterfurnace import (
+    DOMAIN as WF_DOMAIN, UPDATE_TOPIC
+)
+from homeassistant.const import TEMP_FAHRENHEIT
+from homeassistant.core import callback
+from homeassistant.helpers.entity import Entity
+from homeassistant.util import slugify
+
+
+class WFSensorConfig(object):
+    """Water Furnace Sensor configuration."""
+
+    def __init__(self, friendly_name, field, icon="mdi:guage",
+                 unit_of_measurement=None):
+        """Initialize configuration."""
+        self.friendly_name = friendly_name
+        self.field = field
+        self.icon = icon
+        self.unit_of_measurement = unit_of_measurement
+
+
+SENSORS = [
+    WFSensorConfig("Furnace Mode", "mode"),
+    WFSensorConfig("Total Power", "totalunitpower", "mdi:flash", "W"),
+    WFSensorConfig("Active Setpoint", "tstatactivesetpoint",
+                   "mdi:thermometer", TEMP_FAHRENHEIT),
+    WFSensorConfig("Leaving Air", "leavingairtemp",
+                   "mdi:thermometer", TEMP_FAHRENHEIT),
+    WFSensorConfig("Room Temp", "tstatroomtemp",
+                   "mdi:thermometer", TEMP_FAHRENHEIT),
+    WFSensorConfig("Loop Temp", "enteringwatertemp",
+                   "mdi:thermometer", TEMP_FAHRENHEIT),
+    WFSensorConfig("Humidity Set Point", "tstathumidsetpoint",
+                   "mdi:water-percent", "%"),
+    WFSensorConfig("Humidity", "tstatrelativehumidity",
+                   "mdi:water-percent", "%"),
+]
+
+
+def setup_platform(hass, config, add_devices, discovery_info=None):
+    """Set up the Waterfurnace sensor."""
+    if discovery_info is None:
+        return
+
+    sensors = []
+    client = hass.data[WF_DOMAIN]
+    for sconfig in SENSORS:
+        sensors.append(WaterFurnaceSensor(client, sconfig))
+
+    add_devices(sensors)
+
+
+class WaterFurnaceSensor(Entity):
+    """Implementing the Waterfurnace sensor."""
+
+    def __init__(self, client, config):
+        """Initialize the sensor."""
+        self.client = client
+        self._name = config.friendly_name
+        self._attr = config.field
+        self._state = None
+        self._icon = config.icon
+        self._unit_of_measurement = config.unit_of_measurement
+
+        # This ensures that the sensors are isolated per waterfurnace unit
+        self.entity_id = ENTITY_ID_FORMAT.format(
+            'wf_{}_{}'.format(slugify(self.client.unit), slugify(self._attr)))
+
+    @property
+    def name(self):
+        """Return the name of the sensor."""
+        return self._name
+
+    @property
+    def state(self):
+        """Return the state of the sensor."""
+        return self._state
+
+    @property
+    def icon(self):
+        """Return icon."""
+        return self._icon
+
+    @property
+    def unit_of_measurement(self):
+        """Return the units of measurement."""
+        return self._unit_of_measurement
+
+    @property
+    def should_poll(self):
+        """Return the polling state."""
+        return False
+
+    @asyncio.coroutine
+    def async_added_to_hass(self):
+        """Register callbacks."""
+        self.hass.helpers.dispatcher.async_dispatcher_connect(
+            UPDATE_TOPIC, self.async_update_callback)
+
+    @callback
+    def async_update_callback(self):
+        """Update state."""
+        if self.client.data is not None:
+            self._state = getattr(self.client.data, self._attr, None)
+            self.async_schedule_update_ha_state()
diff --git a/homeassistant/components/waterfurnace.py b/homeassistant/components/waterfurnace.py
new file mode 100644
index 00000000000..18e6cff020c
--- /dev/null
+++ b/homeassistant/components/waterfurnace.py
@@ -0,0 +1,136 @@
+"""
+Support for Waterfurnace component.
+
+For more details about this platform, please refer to the documentation at
+https://home-assistant.io/components/waterfurnace/
+"""
+from datetime import timedelta
+import logging
+import time
+import threading
+
+import voluptuous as vol
+
+from homeassistant.const import (
+    CONF_USERNAME, CONF_PASSWORD, EVENT_HOMEASSISTANT_STOP
+)
+from homeassistant.core import callback
+from homeassistant.helpers import config_validation as cv
+from homeassistant.helpers import discovery
+
+REQUIREMENTS = ["waterfurnace==0.2.0"]
+
+_LOGGER = logging.getLogger(__name__)
+
+DOMAIN = "waterfurnace"
+UPDATE_TOPIC = DOMAIN + "_update"
+CONF_UNIT = "unit"
+SCAN_INTERVAL = timedelta(seconds=10)
+
+CONFIG_SCHEMA = vol.Schema({
+    DOMAIN: vol.Schema({
+        vol.Required(CONF_PASSWORD): cv.string,
+        vol.Required(CONF_USERNAME): cv.string,
+        vol.Required(CONF_UNIT): cv.string,
+    }),
+}, extra=vol.ALLOW_EXTRA)
+
+
+def setup(hass, base_config):
+    """Setup waterfurnace platform."""
+    import waterfurnace.waterfurnace as wf
+    config = base_config.get(DOMAIN)
+
+    username = config.get(CONF_USERNAME)
+    password = config.get(CONF_PASSWORD)
+    unit = config.get(CONF_UNIT)
+
+    wfconn = wf.WaterFurnace(username, password, unit)
+    # NOTE(sdague): login will throw an exception if this doesn't
+    # work, which will abort the setup.
+    try:
+        wfconn.login()
+    except wf.WFCredentialError:
+        _LOGGER.error("Invalid credentials for waterfurnace login.")
+        return False
+
+    hass.data[DOMAIN] = WaterFurnaceData(hass, wfconn)
+    hass.data[DOMAIN].start()
+
+    discovery.load_platform(hass, 'sensor', DOMAIN, {}, config)
+    return True
+
+
+class WaterFurnaceData(threading.Thread):
+    """WaterFurnace Data collector.
+
+    This is implemented as a dedicated thread polling a websocket in a
+    tight loop. The websocket will shut itself from the server side if
+    a packet is not sent at least every 30 seconds. The reading is
+    cheap, the login is less cheap, so keeping this open and polling
+    on a very regular cadence is actually the least io intensive thing
+    to do.
+    """
+
+    def __init__(self, hass, client):
+        """Initialize the data object."""
+        super().__init__()
+        self.hass = hass
+        self.client = client
+        self.unit = client.unit
+        self.data = None
+        self._shutdown = False
+
+    def run(self):
+        """Thread run loop."""
+        @callback
+        def register():
+            """Connect to hass for shutdown."""
+            def shutdown(event):
+                """Shutdown the thread."""
+                _LOGGER.debug("Signaled to shutdown.")
+                self._shutdown = True
+                self.join()
+
+            self.hass.bus.async_listen_once(EVENT_HOMEASSISTANT_STOP, shutdown)
+
+        self.hass.add_job(register)
+
+        # This does a tight loop in sending read calls to the
+        # websocket. That's a blocking call, which returns pretty
+        # quickly (1 second). It's important that we do this
+        # frequently though, because if we don't call the websocket at
+        # least every 30 seconds the server side closes the
+        # connection.
+        while True:
+            if self._shutdown:
+                _LOGGER.debug("Graceful shutdown")
+                return
+
+            try:
+                self.data = self.client.read()
+
+            except ConnectionError:
+                # attempt to log back in if there was a session expiration.
+                try:
+                    self.client.login()
+                except Exception:  # pylint: disable=broad-except
+                    # nested exception handling, something really bad
+                    # happened during the login, which means we're not
+                    # in a recoverable state. Stop the thread so we
+                    # don't do just keep poking at the service.
+                    _LOGGER.error(
+                        "Failed to refresh login credentials. Thread stopped.")
+                    return
+                else:
+                    _LOGGER.error(
+                        "Lost our connection to websocket, trying again")
+                    time.sleep(SCAN_INTERVAL.seconds)
+
+            except Exception:  # pylint: disable=broad-except
+                _LOGGER.exception("Error updating waterfurnace data.")
+                time.sleep(SCAN_INTERVAL.seconds)
+
+            else:
+                self.hass.helpers.dispatcher.dispatcher_send(UPDATE_TOPIC)
+                time.sleep(SCAN_INTERVAL.seconds)
diff --git a/requirements_all.txt b/requirements_all.txt
index c88f87528ce..1c1f46db3c9 100644
--- a/requirements_all.txt
+++ b/requirements_all.txt
@@ -1195,6 +1195,9 @@ waqiasync==1.0.0
 # homeassistant.components.cloud
 warrant==0.6.1
 
+# homeassistant.components.waterfurnace
+waterfurnace==0.2.0
+
 # homeassistant.components.media_player.gpmdp
 websocket-client==0.37.0