diff --git a/.gitignore b/.gitignore
index 5659ad88a..92ed3d3ef 100644
--- a/.gitignore
+++ b/.gitignore
@@ -1,17 +1,5 @@
-.coverage
-coverage.xml
-cover/*
 doc/source/developer/api/
-*~
-.testrepository
-*.sw?
-#*#
 *.pyc
-.tox
-*.egg
-*.egg-info
-*.eggs
-dist
 *.qcow2
 *.raw
 *.initrd
@@ -19,9 +7,30 @@ dist
 /*-manifests
 /*.d
 !/.zuul.d
-build
-AUTHORS
-ChangeLog
-bin/diskimage_builder
 *.bak
 *.orig
+
+# Packages
+*.egg*
+*.egg-info
+dist
+build
+eggs
+bin/diskimage_builder
+
+# Unit test / coverage reports
+cover/
+.coverage*
+coverage.xml
+!.coveragerc
+.tox
+.stestr/
+.venv
+
+# pbr generates these
+AUTHORS
+ChangeLog
+
+# Editors
+*~
+*.sw?
\ No newline at end of file
diff --git a/.stestr.conf b/.stestr.conf
new file mode 100644
index 000000000..064acef8e
--- /dev/null
+++ b/.stestr.conf
@@ -0,0 +1,4 @@
+[DEFAULT]
+test_path=./diskimage_builder/
+group_regex=diskimage_builder.(tests|elements|block_device)
+top_dir=./
diff --git a/.testr.conf b/.testr.conf
deleted file mode 100644
index f2d50751c..000000000
--- a/.testr.conf
+++ /dev/null
@@ -1,10 +0,0 @@
-[DEFAULT]
-test_command=OS_STDOUT_CAPTURE=${OS_STDOUT_CAPTURE:-1} \
-             OS_STDERR_CAPTURE=${OS_STDERR_CAPTURE:-1} \
-             OS_LOG_CAPTURE=${OS_LOG_CAPTURE:-1} \
-             OS_TEST_TIMEOUT=${OS_TEST_TIMEOUT:-60} \
-             OS_DEBUG=${OS_DEBUG:-1} \
-             ${PYTHON:-python} -m subunit.run discover . $LISTOPT $IDOPTION
-test_id_option=--load-list $IDFILE
-test_list_option=--list
-
diff --git a/lower-constraints.txt b/lower-constraints.txt
index 86f834a7f..ebfc4b397 100644
--- a/lower-constraints.txt
+++ b/lower-constraints.txt
@@ -39,7 +39,7 @@ snowballstemmer==1.2.1
 Sphinx==1.6.2
 sphinxcontrib-websupport==1.0.1
 stevedore==1.20.0
-testrepository==0.0.18
+stestr==2.0.0
 testtools==2.2.0
 traceback2==1.4.0
 unittest2==1.1.0
diff --git a/test-requirements.txt b/test-requirements.txt
index a719c94f5..6ffd7c437 100644
--- a/test-requirements.txt
+++ b/test-requirements.txt
@@ -7,7 +7,7 @@ pylint>=1.7.1 #GPLv2
 fixtures>=3.0.0 # Apache-2.0/BSD
 mock>=2.0.0 # BSD
 oslotest>=3.2.0 # Apache-2.0
-testrepository>=0.0.18 # Apache-2.0/BSD
+stestr>=2.0.0 # Apache-2.0
 testtools>=2.2.0 # MIT
 
 coverage!=4.4,>=4.0 # Apache-2.0
diff --git a/tox.ini b/tox.ini
index 66b74c778..09e157139 100644
--- a/tox.ini
+++ b/tox.ini
@@ -1,6 +1,6 @@
 [tox]
-envlist = pep8,pylint,py35,py36,py37,py38
-minversion = 3.2.1
+envlist = pep8,pylint,py3
+minversion = 3.18.0
 skipsdist = True
 ignore_basepython_conflict = True
 
@@ -11,8 +11,7 @@ deps=
       -c{env:TOX_CONSTRAINTS_FILE:https://releases.openstack.org/constraints/upper/master}
       -r{toxinidir}/requirements.txt
       -r{toxinidir}/test-requirements.txt
-commands=
-    python setup.py test --slowest --testr-args='{posargs}'
+commands= stestr run --slowest {posargs}
 passenv=
     DUMP_CONFIG_GRAPH
 
@@ -36,11 +35,18 @@ envdir = {toxworkdir}/venv
 commands = {toxinidir}/tests/run_functests.sh {posargs}
 
 [testenv:cover]
-# NOTE: this is "setup.py test" (*not* testr) which is a pbr wrapper
-# around testr.  This understands --coverage-package-name which we
-# need due to underscore issues.
 basepython = python3
-commands = python setup.py test --coverage --coverage-package-name diskimage_builder --testr-args='{posargs}'
+allowlist_externals = find
+setenv =
+  PYTHON=coverage run --source diskimage_builder --parallel-mode
+commands =
+  coverage erase
+  find . -type f -name "*.pyc" -delete
+  stestr run {posargs}
+  coverage combine
+  coverage html -d cover
+  coverage xml -o cover/coverage.xml
+  coverage report
 
 [testenv:docs]
 deps=
@@ -48,7 +54,7 @@ deps=
       -r{toxinidir}/test-requirements.txt
       -r{toxinidir}/doc/requirements.txt
 basepython = python3
-whitelist_externals =
+allowlist_externals =
   rm
 commands =
   rm -rf doc/build