diff --git a/tools/pip-requires b/requirements.txt
similarity index 100%
rename from tools/pip-requires
rename to requirements.txt
diff --git a/setup.py b/setup.py
index 726cd9c6..c0a24eab 100644
--- a/setup.py
+++ b/setup.py
@@ -1,24 +1,21 @@
-# Copyright 2011 OpenStack Foundation
+#!/usr/bin/env python
+# Copyright (c) 2013 Hewlett-Packard Development Company, L.P.
 #
 # Licensed under the Apache License, Version 2.0 (the "License");
 # you may not use this file except in compliance with the License.
 # You may obtain a copy of the License at
 #
-# http://www.apache.org/licenses/LICENSE-2.0
+#    http://www.apache.org/licenses/LICENSE-2.0
 #
 # Unless required by applicable law or agreed to in writing, software
 # distributed under the License is distributed on an "AS IS" BASIS,
-# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or
+# implied.
 # See the License for the specific language governing permissions and
 # limitations under the License.
 
 import setuptools
 
-
 setuptools.setup(
-    setup_requires=[
-        'd2to1>=0.2.10,<0.3',
-        'pbr>=0.5,<0.6'
-    ],
-    d2to1=True
-)
+    setup_requires=['pbr'],
+    pbr=True)
diff --git a/tools/test-requires b/test-requirements.txt
similarity index 100%
rename from tools/test-requires
rename to test-requirements.txt
diff --git a/tools/install_venv.py b/tools/install_venv.py
index 19984b3b..80df201d 100644
--- a/tools/install_venv.py
+++ b/tools/install_venv.py
@@ -55,8 +55,8 @@ Also, make test will automatically use the virtualenv.
 def main(argv):
     root = os.path.dirname(os.path.dirname(os.path.realpath(__file__)))
     venv = os.path.join(root, '.venv')
-    pip_requires = os.path.join(root, 'tools', 'pip-requires')
-    test_requires = os.path.join(root, 'tools', 'test-requires')
+    pip_requires = os.path.join(root, 'requirements.txt')
+    test_requires = os.path.join(root, 'test-requirements.txt')
     py_version = "python%s.%s" % (sys.version_info[0], sys.version_info[1])
     project = 'Taskflow'
     install = install_venv.InstallVenv(root, venv, pip_requires, test_requires,
diff --git a/tox.ini b/tox.ini
index ee1dfb58..117f86b6 100644
--- a/tox.ini
+++ b/tox.ini
@@ -1,8 +1,11 @@
 [tox]
+minversion = 1.6
+skipsdist = True
 envlist = py26,py27,py33,pep8
 
 [testenv]
-sitepackages = True
+usedevelop = True
+install_command = pip install {opts} {packages}
 setenv = VIRTUAL_ENV={envdir}
          LANG=en_US.UTF-8
          LANGUAGE=en_US:en
@@ -13,22 +16,20 @@ setenv = VIRTUAL_ENV={envdir}
          NOSE_OPENSTACK_YELLOW=0.025
          NOSE_OPENSTACK_SHOW_ELAPSED=1
          NOSE_OPENSTACK_STDOUT=1
-deps = -r{toxinidir}/tools/pip-requires
-       -r{toxinidir}/tools/test-requires
+deps = -r{toxinidir}/requirements.txt
+       -r{toxinidir}/test-requirements.txt
 commands = nosetests {posargs}
 
 [tox:jenkins]
-sitepackages = True
 downloadcache = ~/cache/pip
 
 [testenv:pep8]
-sitepackages = False
 commands =
   flake8 {posargs}
 
 [testenv:pylint]
 setenv = VIRTUAL_ENV={envdir}
-deps = -r{toxinidir}/tools/pip-requires
+deps = -r{toxinidir}/requirements.txt
        pylint==0.26.0
 commands = pylint