diff --git a/.coveragerc b/.coveragerc
index 894c36896..1b214f324 100644
--- a/.coveragerc
+++ b/.coveragerc
@@ -1,4 +1,5 @@
 [run]
+branch = True
 omit = etc/*,setup.py,*egg*,.tox/*,barbican/tests/*,*barbican/openstack/*
 
 [report]
diff --git a/.testr.conf b/.testr.conf
new file mode 100644
index 000000000..0d13a20e0
--- /dev/null
+++ b/.testr.conf
@@ -0,0 +1,5 @@
+[DEFAULT]
+test_command=${PYTHON:-python} -m subunit.run discover -t . $LISTOPT $IDOPTION
+
+test_id_option=--load-list $IDFILE
+test_list_option=--list
diff --git a/setup.cfg b/setup.cfg
index 58856f2ac..9ab142818 100644
--- a/setup.cfg
+++ b/setup.cfg
@@ -33,7 +33,7 @@ barbican.test.crypto.plugin =
     test_crypto = barbican.tests.crypto.test_plugin:TestCryptoPlugin
 
 [build_sphinx]
-all_files = 1 
+all_files = 1
 build-dir = doc/build
 source-dir = doc/source
 
@@ -57,21 +57,9 @@ tag_svn_revision = 0
 #mapping_file = babel.cfg
 #output_file = barbican/locale/barbican.pot
 
-[nosetests]
-where=barbican
-nocapture=1
-cover-erase=1
-#-with-xunit=1
-#-all-modules=1
-#-traverse-namespace=1
-#with-coverage=1
-cover-package=barbican
-#cover-inclusive=1
-cover-branches=1
-
 # TBD: OpenStack stuff...
 # NOTE(jkoelker) To run the test suite under nose install the following
-#                coverage http://pypi.python.org/pypi/coverage 
+#                coverage http://pypi.python.org/pypi/coverage
 #                tissue http://pypi.python.org/pypi/tissue (pep8 checker)
 #                openstack-nose https://github.com/jkoelker/openstack-nose
 #verbosity=2
diff --git a/test-requirements.txt b/test-requirements.txt
index 3e529ab56..492886de0 100644
--- a/test-requirements.txt
+++ b/test-requirements.txt
@@ -1,4 +1,4 @@
+coverage>=3.6
 hacking>=0.8.0,<0.9
 mock>=1.0
-nose
-nosexcover
+testrepository>=0.0.17
diff --git a/tox.ini b/tox.ini
index 52ac63208..26df856f1 100644
--- a/tox.ini
+++ b/tox.ini
@@ -10,7 +10,9 @@ deps = -r{toxinidir}/requirements.txt
        -r{toxinidir}/test-requirements.txt
 
 [testenv:py27]
-commands = nosetests {posargs:--with-xcoverage --all-modules --traverse-namespace --with-xunit --cover-package=barbican}
+commands = python setup.py testr --coverage
+    coverage combine
+    coverage report -m
 
 [testenv:coverage]
 commands = coverage html {posargs:--include="*barbican*"}