diff --git a/libraries/AP_Proximity/AP_Proximity.cpp b/libraries/AP_Proximity/AP_Proximity.cpp
index 572bcec3b9..f5a11db804 100644
--- a/libraries/AP_Proximity/AP_Proximity.cpp
+++ b/libraries/AP_Proximity/AP_Proximity.cpp
@@ -15,6 +15,7 @@
 
 #include "AP_Proximity.h"
 #include "AP_Proximity_LightWareSF40C.h"
+#include "AP_Proximity_SITL.h"
 
 extern const AP_HAL::HAL &hal;
 
@@ -167,6 +168,13 @@ void AP_Proximity::detect_instance(uint8_t instance)
             return;
         }
     }
+#if CONFIG_HAL_BOARD == HAL_BOARD_SITL
+    if (type == Proximity_Type_SITL) {
+        state[instance].instance = instance;
+        drivers[instance] = new AP_Proximity_SITL(*this, state[instance]);
+        return;
+    }
+#endif
 }
 
 // get distance in meters in a particular direction in degrees (0 is forward, clockwise)
diff --git a/libraries/AP_Proximity/AP_Proximity.h b/libraries/AP_Proximity/AP_Proximity.h
index c31e2677c4..7984051226 100644
--- a/libraries/AP_Proximity/AP_Proximity.h
+++ b/libraries/AP_Proximity/AP_Proximity.h
@@ -37,6 +37,7 @@ public:
     enum Proximity_Type {
         Proximity_Type_None  = 0,
         Proximity_Type_SF40C = 1,
+        Proximity_Type_SITL  = 10,
     };
 
     enum Proximity_Status {
diff --git a/libraries/AP_Proximity/AP_Proximity_SITL.cpp b/libraries/AP_Proximity/AP_Proximity_SITL.cpp
new file mode 100644
index 0000000000..6c6d9f059d
--- /dev/null
+++ b/libraries/AP_Proximity/AP_Proximity_SITL.cpp
@@ -0,0 +1,105 @@
+/*
+   This program is free software: you can redistribute it and/or modify
+   it under the terms of the GNU General Public License as published by
+   the Free Software Foundation, either version 3 of the License, or
+   (at your option) any later version.
+
+   This program is distributed in the hope that it will be useful,
+   but WITHOUT ANY WARRANTY; without even the implied warranty of
+   MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+   GNU General Public License for more details.
+
+   You should have received a copy of the GNU General Public License
+   along with this program.  If not, see <http://www.gnu.org/licenses/>.
+ */
+
+
+#include <AP_HAL/AP_HAL.h>
+#if CONFIG_HAL_BOARD == HAL_BOARD_SITL
+#include <AP_Param/AP_Param.h>
+#include "AP_Proximity_SITL.h"
+#include <stdio.h>
+
+extern const AP_HAL::HAL& hal;
+
+#define PROXIMITY_MAX_RANGE 200
+#define PROXIMITY_ACCURACY 0.1
+
+/* 
+   The constructor also initialises the proximity sensor. 
+*/
+AP_Proximity_SITL::AP_Proximity_SITL(AP_Proximity &_frontend,
+                                     AP_Proximity::Proximity_State &_state):
+    AP_Proximity_Backend(_frontend, _state)
+{
+    sitl = (SITL::SITL *)AP_Param::find_object("SIM_");
+    ap_var_type ptype;
+    fence_count = (AP_Int8 *)AP_Param::find("FENCE_TOTAL", &ptype);
+    if (fence_count == nullptr || ptype != AP_PARAM_INT8) {
+        AP_HAL::panic("Proximity_SITL: Failed to find FENCE_TOTAL");
+    }
+}
+
+// get distance in meters in a particular direction in degrees (0 is forward, angles increase in the clockwise direction)
+bool AP_Proximity_SITL::get_horizontal_distance(float angle_deg, float &distance) const
+{
+    if (!fence_loader.boundary_valid(fence_count->get(), fence, true)) {
+        return false;
+    }
+
+    // convert to earth frame
+    angle_deg = wrap_360(sitl->state.yawDeg + angle_deg);
+
+    /*
+      simple bisection search to find distance. Not really efficient,
+      but we can afford the CPU in SITL
+     */
+    float min_dist = 0, max_dist = PROXIMITY_MAX_RANGE;
+    while (max_dist - min_dist > PROXIMITY_ACCURACY) {
+        float test_dist = (max_dist+min_dist)*0.5f;
+        Location loc = current_loc;
+        location_update(loc, angle_deg, test_dist);
+        Vector2l vecloc(loc.lat, loc.lng);
+        if (fence_loader.boundary_breached(vecloc, fence_count->get(), fence, true)) {
+            max_dist = test_dist;
+        } else {
+            min_dist = test_dist;
+        }
+    }
+    distance = min_dist;
+    return true;
+}
+
+// update the state of the sensor
+void AP_Proximity_SITL::update(void)
+{
+    load_fence();
+    current_loc.lat = sitl->state.latitude * 1.0e7;
+    current_loc.lng = sitl->state.longitude * 1.0e7;
+    current_loc.alt = sitl->state.altitude * 1.0e2;
+    if (fence && fence_loader.boundary_valid(fence_count->get(), fence, true)) {
+        set_status(AP_Proximity::Proximity_Good);
+    } else {
+        set_status(AP_Proximity::Proximity_NoData);        
+    }
+}
+
+void AP_Proximity_SITL::load_fence(void)
+{
+    uint32_t now = AP_HAL::millis();
+    if (now - last_load_ms < 1000) {
+        return;
+    }
+    last_load_ms = now;
+    
+    if (fence == nullptr) {
+        fence = (Vector2l *)fence_loader.create_point_array(sizeof(Vector2l));
+    }
+    if (fence == nullptr) {
+        return;
+    }
+    for (uint8_t i=0; i<fence_count->get(); i++) {
+        fence_loader.load_point_from_eeprom(i, fence[i]);
+    }
+}
+#endif // CONFIG_HAL_BOARD
diff --git a/libraries/AP_Proximity/AP_Proximity_SITL.h b/libraries/AP_Proximity/AP_Proximity_SITL.h
new file mode 100644
index 0000000000..c21c42aedf
--- /dev/null
+++ b/libraries/AP_Proximity/AP_Proximity_SITL.h
@@ -0,0 +1,33 @@
+#pragma once
+
+#include "AP_Proximity.h"
+#include "AP_Proximity_Backend.h"
+#if CONFIG_HAL_BOARD == HAL_BOARD_SITL
+#include <SITL/SITL.h>
+#include <AC_Fence/AC_PolyFence_loader.h>
+
+class AP_Proximity_SITL : public AP_Proximity_Backend
+{
+
+public:
+    // constructor
+    AP_Proximity_SITL(AP_Proximity &_frontend, AP_Proximity::Proximity_State &_state);
+
+    // get distance in meters in a particular direction in degrees (0 is forward, clockwise)
+    // returns true on successful read and places distance in distance
+    bool get_horizontal_distance(float angle_deg, float &distance) const override;
+
+    // update state
+    void update(void) override;
+
+private:
+    SITL::SITL *sitl;
+    Vector2l *fence;
+    AP_Int8 *fence_count;
+    uint32_t last_load_ms;
+    AC_PolyFence_loader fence_loader;
+    Location current_loc;
+    
+    void load_fence(void);
+};
+#endif // CONFIG_HAL_BOARD