diff --git a/proxy/src/bind.rs b/proxy/src/bind.rs
index 539d4fe14..4d91c17e1 100644
--- a/proxy/src/bind.rs
+++ b/proxy/src/bind.rs
@@ -15,6 +15,7 @@ use control;
 use ctx;
 use telemetry;
 use transport;
+use ::timeout::Timeout;
 
 const DEFAULT_TIMEOUT_MS: u64 = 300;
 
@@ -120,6 +121,7 @@ impl<C, B> Bind<C, B> {
     // pub fn sensors(&self) -> &telemetry::Sensors {
     //     &self.sensors
     // }
+
 }
 
 impl<B> Bind<Arc<ctx::Proxy>, B>
@@ -132,9 +134,9 @@ where
 
         // Map a socket address to an HTTP/2.0 connection.
         let connect = {
-            let c = transport::TimeoutConnect::new(
+            let c = Timeout::new(
                 transport::Connect::new(*addr, &self.executor),
-                self.connect_timeout,
+                self.connect_timeout, 
                 &self.executor,
             );
 
diff --git a/proxy/src/config.rs b/proxy/src/config.rs
index 1b836b186..914d829a2 100644
--- a/proxy/src/config.rs
+++ b/proxy/src/config.rs
@@ -40,8 +40,11 @@ pub struct Config {
     /// Event queue capacity.
     pub event_buffer_capacity: usize,
 
-    /// Interval after which to flush metrics
+    /// Interval after which to flush metrics.
     pub metrics_flush_interval: Duration,
+
+    /// Timeout after which to cancel telemetry reports.
+    pub report_timeout: Duration,
 }
 
 /// Configuration settings for binding a listener.
@@ -100,6 +103,7 @@ pub enum UrlError {
 // Environment variables to look at when loading the configuration
 const ENV_EVENT_BUFFER_CAPACITY: &str = "CONDUIT_PROXY_EVENT_BUFFER_CAPACITY";
 const ENV_METRICS_FLUSH_INTERVAL_SECS: &str = "CONDUIT_PROXY_METRICS_FLUSH_INTERVAL_SECS";
+const ENV_REPORT_TIMEOUT_SECS: &str = "CONDUIT_PROXY_REPORT_TIMEOUT_SECS";
 const ENV_PRIVATE_LISTENER: &str = "CONDUIT_PROXY_PRIVATE_LISTENER";
 const ENV_PRIVATE_FORWARD: &str = "CONDUIT_PROXY_PRIVATE_FORWARD";
 const ENV_PUBLIC_LISTENER: &str = "CONDUIT_PROXY_PUBLIC_LISTENER";
@@ -118,6 +122,7 @@ const ENV_RESOLV_CONF: &str = "CONDUIT_RESOLV_CONF";
 // Default values for various configuration fields
 const DEFAULT_EVENT_BUFFER_CAPACITY: usize = 10_000; // FIXME
 const DEFAULT_METRICS_FLUSH_INTERVAL_SECS: u64 = 10;
+const DEFAULT_REPORT_TIMEOUT_SECS: u64 = 10; // TODO: is this a reasonable default?
 const DEFAULT_PRIVATE_LISTENER: &str = "tcp://127.0.0.1:4140";
 const DEFAULT_PUBLIC_LISTENER: &str = "tcp://0.0.0.0:4143";
 const DEFAULT_CONTROL_LISTENER: &str = "tcp://0.0.0.0:4190";
@@ -134,7 +139,13 @@ impl Config {
 
         let metrics_flush_interval = Duration::from_secs(
             env_var_parse(ENV_METRICS_FLUSH_INTERVAL_SECS, parse_number)?
-                .unwrap_or(DEFAULT_METRICS_FLUSH_INTERVAL_SECS));
+                .unwrap_or(DEFAULT_METRICS_FLUSH_INTERVAL_SECS)
+        );
+
+        let report_timeout = Duration::from_secs(
+            env_var_parse(ENV_REPORT_TIMEOUT_SECS, parse_number)?
+                .unwrap_or(DEFAULT_REPORT_TIMEOUT_SECS)
+        );
 
         Ok(Config {
             private_listener: Listener {
@@ -166,6 +177,7 @@ impl Config {
 
             event_buffer_capacity,
             metrics_flush_interval,
+            report_timeout,
         })
     }
 }
diff --git a/proxy/src/control/mod.rs b/proxy/src/control/mod.rs
index 8f692f3b2..6fe87fd46 100644
--- a/proxy/src/control/mod.rs
+++ b/proxy/src/control/mod.rs
@@ -5,14 +5,20 @@ use bytes::Bytes;
 use futures::{future, Async, Future, Poll, Stream};
 use h2;
 use http;
-use tokio_core::reactor::{Handle, Timeout};
+use tokio_core::reactor::{
+    Handle, 
+    // TODO: would rather just have Backoff in a separate file so this
+    //       renaming import is not necessary.
+    Timeout as ReactorTimeout
+};
 use tower::Service;
 use tower_h2;
 use tower_reconnect::Reconnect;
 use url::HostAndPort;
 
 use dns;
-use transport::{LookupAddressAndConnect, TimeoutConnect};
+use transport::LookupAddressAndConnect;
+use timeout::Timeout;
 
 mod codec;
 pub mod discovery;
@@ -64,6 +70,7 @@ impl Background {
         events: S,
         host_and_port: HostAndPort,
         dns_config: dns::Config,
+        report_timeout: Duration,
         executor: &Handle,
     ) -> Box<Future<Item = (), Error = ()>>
     where
@@ -77,11 +84,12 @@ impl Background {
                 http::uri::Authority::from_shared(format!("{}", host_and_port).into()).unwrap();
 
             let dns_resolver = dns::Resolver::new(dns_config, executor);
-            let connect = TimeoutConnect::new(
+            let connect = Timeout::new(
                 LookupAddressAndConnect::new(host_and_port, dns_resolver, executor),
                 Duration::from_secs(3),
                 executor,
             );
+
             let h2_client = tower_h2::client::Client::new(
                 connect,
                 h2::client::Builder::default(),
@@ -95,7 +103,7 @@ impl Background {
         };
 
         let mut disco = self.disco.work();
-        let mut telemetry = Telemetry::new(events);
+        let mut telemetry = Telemetry::new(events, report_timeout, executor);
 
         let fut = future::poll_fn(move || {
             trace!("poll rpc services");
@@ -114,7 +122,7 @@ impl Background {
 //TODO: move to tower-backoff
 struct Backoff<S> {
     inner: S,
-    timer: Timeout,
+    timer: ReactorTimeout,
     waiting: bool,
     wait_dur: Duration,
 }
@@ -123,7 +131,7 @@ impl<S> Backoff<S> {
     fn new(inner: S, wait_dur: Duration, handle: &Handle) -> Self {
         Backoff {
             inner,
-            timer: Timeout::new(wait_dur, handle).unwrap(),
+            timer: ReactorTimeout::new(wait_dur, handle).unwrap(),
             waiting: false,
             wait_dur,
         }
diff --git a/proxy/src/control/telemetry.rs b/proxy/src/control/telemetry.rs
index 5d1123ca0..bff954b8a 100644
--- a/proxy/src/control/telemetry.rs
+++ b/proxy/src/control/telemetry.rs
@@ -1,13 +1,15 @@
-use std::time::Instant;
+use std::time::{Duration, Instant};
 
 use futures::{Async, Future, Stream};
 use tower::Service;
 use tower_grpc;
+use tokio_core::reactor::Handle;
 
 use super::codec::Protobuf;
 use super::pb::proxy::telemetry::{ReportRequest, ReportResponse};
 use super::pb::proxy::telemetry::client::Telemetry as TelemetrySvc;
 use super::pb::proxy::telemetry::client::telemetry_methods::Report as ReportRpc;
+use ::timeout::{Timeout, TimeoutFuture};
 
 pub type ClientBody = tower_grpc::client::codec::EncodingBody<
     Protobuf<ReportRequest, ReportResponse>,
@@ -16,7 +18,7 @@ pub type ClientBody = tower_grpc::client::codec::EncodingBody<
 
 type TelemetryStream<F> = tower_grpc::client::BodyFuture<
     tower_grpc::client::Unary<
-        tower_grpc::client::ResponseFuture<Protobuf<ReportRequest, ReportResponse>, F>,
+        tower_grpc::client::ResponseFuture<Protobuf<ReportRequest, ReportResponse>, TimeoutFuture<F>>,
         Protobuf<ReportRequest, ReportResponse>,
     >,
 >;
@@ -25,6 +27,8 @@ type TelemetryStream<F> = tower_grpc::client::BodyFuture<
 pub struct Telemetry<T, F> {
     reports: T,
     in_flight: Option<(Instant, TelemetryStream<F>)>,
+    report_timeout: Duration,
+    handle: Handle,
 }
 
 impl<T, F> Telemetry<T, F>
@@ -34,10 +38,12 @@ where
     F: Future<Item = ::http::Response<::tower_h2::RecvBody>>,
     F::Error: ::std::fmt::Debug,
 {
-    pub fn new(reports: T) -> Self {
+    pub fn new(reports: T, report_timeout: Duration, handle: &Handle) -> Self {
         Telemetry {
             reports,
             in_flight: None,
+            report_timeout,
+            handle: handle.clone(),
         }
     }
 
@@ -50,6 +56,7 @@ where
             Future = F,
         >,
     {
+        let client = Timeout::new(client, self.report_timeout, &self.handle);
         let grpc = tower_grpc::Client::new(Protobuf::new(), client);
         let mut rpc = ReportRpc::new(grpc);
 
@@ -60,8 +67,9 @@ where
             if let Some((t0, mut fut)) = self.in_flight.take() {
                 match fut.poll() {
                     Ok(Async::NotReady) => {
+                        // TODO: can we just move this logging logic to `Timeout`?
                         trace!("report in flight to controller for {:?}", t0.elapsed());
-                        self.in_flight = Some((t0, fut));
+                        self.in_flight = Some((t0, fut))
                     }
                     Ok(Async::Ready(_)) => {
                         trace!("report sent to controller in {:?}", t0.elapsed())
diff --git a/proxy/src/lib.rs b/proxy/src/lib.rs
index f38b00f41..0f003d9cf 100644
--- a/proxy/src/lib.rs
+++ b/proxy/src/lib.rs
@@ -69,6 +69,7 @@ mod map_err;
 mod outbound;
 mod telemetry;
 mod transport;
+pub mod timeout;
 mod tower_fn; // TODO: move to tower-fn
 
 use bind::Bind;
@@ -242,8 +243,13 @@ impl Main {
                         .make_control(&taps, &executor)
                         .expect("bad news in telemetry town");
 
-                    let client =
-                        control_bg.bind(telemetry, control_host_and_port, dns_config, &executor);
+                    let client = control_bg.bind(
+                        telemetry, 
+                        control_host_and_port, 
+                        dns_config,
+                        config.report_timeout,
+                        &executor
+                    );
 
                     let fut = client.join(server.map_err(|_| {})).map(|_| {});
                     executor.spawn(::logging::context_future("controller-client", fut));
diff --git a/proxy/src/timeout.rs b/proxy/src/timeout.rs
new file mode 100644
index 000000000..254b2e07f
--- /dev/null
+++ b/proxy/src/timeout.rs
@@ -0,0 +1,179 @@
+// #![deny(missing_docs)]
+use futures::{Async, Future, Poll};
+
+use std::error::Error;
+use std::fmt;
+use std::time::Duration;
+
+use tokio_connect::Connect;
+use tokio_core::reactor::{Timeout as ReactorTimeout, Handle};
+use tower::Service;
+
+
+/// A timeout that wraps an underlying operation.
+#[derive(Debug, Clone)]
+pub struct Timeout<U> {
+    inner: U,
+    duration: Duration,
+    handle: Handle,
+}
+
+/// An error representing that an operation timed out.
+#[derive(Debug)]
+pub enum TimeoutError<E> {
+    /// Indicates the underlying operation timed out.
+    Timeout(Duration),
+    /// Indicates that the underlying operation failed.
+    Error(E),
+}
+
+/// A `Future` wrapped with a `Timeout`.
+pub struct TimeoutFuture<F> {
+    inner: F,
+    duration: Duration,
+    timeout: ReactorTimeout,
+}
+
+//===== impl Timeout =====
+
+impl<U> Timeout<U> {
+
+    /// Construct a new `Timeout` wrapping `inner`.
+    pub fn new(inner: U, duration: Duration, handle: &Handle) -> Self {
+        Timeout { 
+            inner,
+            duration,
+            handle: handle.clone(),
+        }
+    }
+
+}
+
+impl<S, T, E> Service for Timeout<S> 
+where
+    S: Service<Response=T, Error=E>,
+    // E: Error,
+{
+    type Request = S::Request;
+    type Response = T; 
+    type Error = TimeoutError<E>;
+    type Future = TimeoutFuture<S::Future>;
+
+    fn poll_ready(&mut self) -> Poll<(), Self::Error> {
+        self.inner.poll_ready().map_err(Self::Error::from)
+    }
+
+    fn call(&mut self, req: Self::Request) -> Self::Future {
+        let duration = self.duration;
+        // TODO: should this panic or wrap the error?
+        let timeout = ReactorTimeout::new(duration, &self.handle)
+            .expect("failed to create timeout!");
+        let inner = self.inner.call(req);
+        TimeoutFuture {
+            inner,
+            duration,
+            timeout,
+        }
+    }
+}
+
+
+impl<C> Connect for Timeout<C>
+where
+    C: Connect,
+    // C::Error: Error,
+{
+    type Connected = C::Connected;
+    type Error = TimeoutError<C::Error>;
+    type Future = TimeoutFuture<C::Future>;
+
+    fn connect(&self) -> Self::Future {
+        let duration = self.duration;
+        // TODO: should this panic or wrap the error?
+        let timeout = ReactorTimeout::new(duration, &self.handle)
+            .expect("failed to create timeout!");
+        let inner = self.inner.connect();
+        TimeoutFuture {
+            inner,
+            duration,
+            timeout,
+        }
+    }
+}
+
+
+//===== impl TimeoutError =====
+
+impl<E> From<E> for TimeoutError<E> {
+    #[inline] fn from(error: E) -> Self {
+        TimeoutError::Error(error)
+    }
+}
+
+impl<E> fmt::Display for TimeoutError<E>
+where
+    E: fmt::Display
+{
+    fn fmt(&self, f: &mut fmt::Formatter) -> fmt::Result {
+        match *self {
+            TimeoutError::Timeout(ref duration) => 
+                // TODO: format the duration nicer.
+                write!(f, "operation timed out after {:?}", duration),
+            TimeoutError::Error(ref err) =>
+                write!(f, "inner operation failed: {}", err),
+        }
+    }
+}
+
+impl<E> Error for TimeoutError<E> 
+where 
+    E: Error
+{ 
+    fn cause(&self) -> Option<&Error> {
+        match *self {
+            TimeoutError::Error(ref err) => Some(err),
+            _ => None,
+        }
+    }
+
+    fn description(&self) -> &str {
+        match *self {
+            TimeoutError::Timeout(_) => "operation timed out",
+            TimeoutError::Error(ref err) => err.description(),
+        }
+    }
+}
+
+//===== impl TimeoutFuture =====
+
+impl<F> Future for TimeoutFuture<F>
+where
+    F: Future,
+    // F::Error: Error,
+{
+    type Item = F::Item;
+    type Error = TimeoutError<F::Error>;
+    fn poll(&mut self) -> Poll<Self::Item, Self::Error> {
+        if let Async::Ready(item) = self.inner.poll().map_err(TimeoutError::from)? {
+            Ok(Async::Ready(item))
+        } else if let Async::Ready(_) = self.timeout.poll().expect("timer failed") {
+            Err(TimeoutError::Timeout(self.duration))
+        } else {
+            Ok(Async::NotReady)
+        } 
+    }
+}
+
+// We have to provide a custom implementation of Debug, because
+// tokio_core::reactor::Timeout is not Debug.
+impl<F> fmt::Debug for TimeoutFuture<F>
+where
+    F: fmt::Debug
+{
+    fn fmt(&self, fmt: &mut fmt::Formatter) -> fmt::Result {
+        fmt.debug_struct("TimeoutFuture")
+           .field("inner", &self.inner)
+           .field("duration", &self.duration)
+           .finish()
+    }
+}
\ No newline at end of file
diff --git a/proxy/src/transport/connect.rs b/proxy/src/transport/connect.rs
index 884747900..82c800f0a 100644
--- a/proxy/src/transport/connect.rs
+++ b/proxy/src/transport/connect.rs
@@ -1,14 +1,14 @@
 use futures::{Async, Future, Poll};
 use tokio_connect;
 use tokio_core::net::{TcpStream, TcpStreamNew};
-use tokio_core::reactor::{Handle, Timeout};
+use tokio_core::reactor::Handle;
 use url;
 
 use std::io;
 use std::net::{IpAddr, SocketAddr};
-use std::time::Duration;
 
 use dns;
+use ::timeout;
 
 #[must_use = "futures do nothing unless polled"]
 pub struct TcpStreamNewNoDelay(TcpStreamNew);
@@ -26,24 +26,8 @@ pub struct LookupAddressAndConnect {
     handle: Handle,
 }
 
-#[derive(Debug, Clone)]
-pub struct TimeoutConnect<C> {
-    connect: C,
-    timeout: Duration,
-    handle: Handle,
-}
-
-pub struct TimeoutConnectFuture<F> {
-    connect: F,
-    duration: Duration,
-    timeout: Timeout,
-}
-
-#[derive(Debug)]
-pub enum TimeoutError<E> {
-    Timeout(Duration),
-    Connect(E),
-}
+pub type TimeoutConnect<C> = timeout::Timeout<C>;
+pub type TimeoutError<E> = timeout::TimeoutError<E>;
 
 // ===== impl TcpStreamNewNoDelay =====
 
@@ -126,51 +110,4 @@ impl tokio_connect::Connect for LookupAddressAndConnect {
             });
         Box::new(c)
     }
-}
-
-// ===== impl TimeoutConnect =====
-
-impl<C: tokio_connect::Connect> TimeoutConnect<C> {
-    /// Returns a `Connect` to `addr` and `handle`.
-    pub fn new(connect: C, timeout: Duration, handle: &Handle) -> Self {
-        Self {
-            connect,
-            timeout,
-            handle: handle.clone(),
-        }
-    }
-}
-
-impl<C: tokio_connect::Connect> tokio_connect::Connect for TimeoutConnect<C> {
-    type Connected = C::Connected;
-    type Error = TimeoutError<C::Error>;
-    type Future = TimeoutConnectFuture<C::Future>;
-
-    fn connect(&self) -> Self::Future {
-        let connect = self.connect.connect();
-        let duration = self.timeout;
-        let timeout = Timeout::new(duration, &self.handle).unwrap();
-        TimeoutConnectFuture {
-            connect,
-            duration,
-            timeout,
-        }
-    }
-}
-
-impl<F: Future> Future for TimeoutConnectFuture<F> {
-    type Item = F::Item;
-    type Error = TimeoutError<F::Error>;
-
-    fn poll(&mut self) -> Poll<Self::Item, Self::Error> {
-        if let Async::Ready(tcp) = self.connect.poll().map_err(TimeoutError::Connect)? {
-            return Ok(Async::Ready(tcp));
-        }
-
-        if let Async::Ready(_) = self.timeout.poll().expect("timer failed") {
-            return Err(TimeoutError::Timeout(self.duration));
-        }
-
-        Ok(Async::NotReady)
-    }
-}
+}
\ No newline at end of file