diff --git a/spec/models/validations/setup_validations_spec.rb b/spec/models/validations/setup_validations_spec.rb
index 7fc4dd982..aebe2803d 100644
--- a/spec/models/validations/setup_validations_spec.rb
+++ b/spec/models/validations/setup_validations_spec.rb
@@ -649,6 +649,85 @@ RSpec.describe Validations::SetupValidations do
     end
   end
 
+  describe "validate_tenancy" do
+    context "with a scheme with no locations active on the start date & no location set" do
+      let(:scheme) { create(:scheme) }
+      let(:location) { create(:location, scheme:) }
+
+      before do
+        location_deactivation_period = build(:location_deactivation_period, deactivation_date: Time.zone.local(2022, 6, 4), location:)
+        location_deactivation_period.save!(validate: false)
+        location.reload
+      end
+
+      it "produces error when scheme does not have any active locations on the tenancy start date" do
+        record.startdate = Time.zone.local(2022, 7, 5)
+        record.scheme = scheme
+        setup_validator.validate_tenancy(record)
+        expect(record.errors["startdate"]).to include(match I18n.t("validations.setup.startdate.scheme.locations_inactive.startdate", name: scheme.service_name))
+      end
+
+      it "produces no error when scheme has active locations on the tenancy start date" do
+        record.startdate = Time.zone.local(2022, 6, 1)
+        record.scheme = scheme
+        setup_validator.validate_tenancy(record)
+        expect(record.errors["startdate"]).to be_empty
+      end
+    end
+
+    context "with a scheme with no locations active on the start date & location also set" do
+      let(:scheme) { create(:scheme) }
+      let(:location) { create(:location, scheme:) }
+
+      before do
+        location_deactivation_period = build(:location_deactivation_period, deactivation_date: Time.zone.local(2022, 6, 4), location:)
+        location_deactivation_period.save!(validate: false)
+        location.reload
+      end
+
+      it "produces error when scheme does not have any active locations on the tenancy start date" do
+        record.startdate = Time.zone.local(2022, 7, 5)
+        record.scheme = scheme
+        record.location = location
+        setup_validator.validate_tenancy(record)
+        expect(record.errors["startdate"]).to include(match I18n.t("validations.setup.startdate.scheme.locations_inactive.startdate", name: scheme.service_name))
+      end
+
+      it "produces no error when scheme has active locations on the tenancy start date" do
+        record.startdate = Time.zone.local(2022, 6, 1)
+        record.scheme = scheme
+        record.location = location
+        setup_validator.validate_tenancy(record)
+        expect(record.errors["startdate"]).to be_empty
+      end
+    end
+
+    context "with the chosen location inactive on the start date" do
+      let(:scheme) { create(:scheme) }
+      let(:location) { create(:location, scheme:) }
+
+      before do
+        location_deactivation_period = build(:location_deactivation_period, deactivation_date: Time.zone.local(2022, 6, 4), location:)
+        location_deactivation_period.save!(validate: false)
+        location.reload
+      end
+
+      it "produces the location error when the chosen location is inactive on the tenancy start date" do
+        record.startdate = Time.zone.local(2022, 7, 5)
+        record.location = location
+        setup_validator.validate_tenancy(record)
+        expect(record.errors["startdate"]).to include(match I18n.t("validations.setup.startdate.location.deactivated.startdate", postcode: location.postcode))
+      end
+
+      it "produces no error when the chosen location is active on the tenancy start date" do
+        record.startdate = Time.zone.local(2022, 6, 1)
+        record.location = location
+        setup_validator.validate_tenancy(record)
+        expect(record.errors["startdate"]).to be_empty
+      end
+    end
+  end
+
   describe "#validate_organisation" do
     let(:user) { create(:user) }
     let(:other_organisation) { create(:organisation, name: "other org") }