diff --git a/.gitignore b/.gitignore
index 6dc19a6eb0..cd78247219 100644
--- a/.gitignore
+++ b/.gitignore
@@ -2,6 +2,9 @@
 *.swp
 vendor
 .ksl-venv
+.venv
+.tox
+keystone.egg-info/
 run_tests.log
 .coverage
 covhtml
diff --git a/run_tests.sh b/run_tests.sh
index 825d9501b1..c55a0cd9e5 100755
--- a/run_tests.sh
+++ b/run_tests.sh
@@ -40,7 +40,7 @@ function process_option {
   esac
 }
 
-venv=.ksl-venv
+venv=.venv
 with_venv=tools/with_venv.sh
 always_venv=0
 never_venv=0
@@ -89,7 +89,6 @@ function run_pep8 {
   srcfiles+=" keystone"
   # Just run PEP8 in current environment
   ${wrapper} pep8 --repeat --show-pep8 --show-source \
-    --ignore=E202,E111 \
     --exclude=vcsversion.py ${srcfiles} | tee pep8.txt
 }
 
diff --git a/tools/install_venv.py b/tools/install_venv.py
index c2489f29e1..11f682b63d 100644
--- a/tools/install_venv.py
+++ b/tools/install_venv.py
@@ -28,8 +28,8 @@ import sys
 
 
 ROOT = os.path.dirname(os.path.dirname(os.path.realpath(__file__)))
-VENV = os.path.join(ROOT, '.ksl-venv')
-PIP_REQUIRES = os.path.join(ROOT, 'tools', 'pip-requires-test')
+VENV = os.path.join(ROOT, '.venv')
+PIP_REQUIRES = os.path.join(ROOT, 'tools', 'pip-requires')
 PY_VERSION = "python%s.%s" % (sys.version_info[0], sys.version_info[1])
 
 
diff --git a/tools/pip-requires b/tools/pip-requires
index c075d369ee..94ab44ba2c 100644
--- a/tools/pip-requires
+++ b/tools/pip-requires
@@ -1,3 +1,4 @@
+# keystonelight dependencies
 pam==0.1.4
 WebOb==0.9.8
 eventlet==0.9.12
@@ -9,4 +10,24 @@ sqlalchemy
 sqlalchemy-migrate
 py-bcrypt
 
--e git+https://github.com/openstack/python-keystoneclient.git#egg=python-keystoneclient
+# for python-novaclient
+prettytable
+
+# Optional backend: Memcache
+python-memcached # increases performance of token validation calls
+
+# Development
+Sphinx>=1.1.2 # required to build documentation
+coverage # computes code coverage percentages
+
+# Testing
+nose # for test discovery and console feedback
+nosexcover
+unittest2 # backport of unittest lib in python 2.7
+webtest # test wsgi apps without starting an http server
+pylint # static code analysis
+pep8==0.6.1 # checks for PEP8 code style compliance
+mox # mock object framework
+
+-e git+https://review.openstack.org/p/openstack/python-keystoneclient.git#egg=python-keystoneclient
+-e git+https://review.openstack.org/p/openstack-dev/openstack-nose.git#egg=openstack.nose_plugin
diff --git a/tools/with_venv.sh b/tools/with_venv.sh
index 0ed2ef7268..c8d2940fc7 100755
--- a/tools/with_venv.sh
+++ b/tools/with_venv.sh
@@ -1,4 +1,4 @@
 #!/bin/bash
 TOOLS=`dirname $0`
-VENV=$TOOLS/../.ksl-venv
+VENV=$TOOLS/../.venv
 source $VENV/bin/activate && $@
diff --git a/tox.ini b/tox.ini
new file mode 100644
index 0000000000..e9a2fb389b
--- /dev/null
+++ b/tox.ini
@@ -0,0 +1,26 @@
+[tox]
+envlist = py26,py27,pep8
+
+[testenv]
+deps = -r{toxinidir}/tools/pip-requires
+commands = nosetests
+
+[testenv:pep8]
+commands = pep8 --exclude=vcsversion.py,*.pyc --repeat --show-source bin keystone setup.py
+
+[testenv:hudson]
+downloadcache = ~/cache/pip
+
+[testenv:jenkins26]
+basepython = python2.6
+deps = file://{toxinidir}/.cache.bundle
+
+[testenv:jenkins27]
+basepython = python2.7
+deps = file://{toxinidir}/.cache.bundle
+
+[testenv:jenkinspep8]
+deps = file://{toxinidir}/.cache.bundle
+commands = pep8 --exclude=vcsversion.py,*.pyc --repeat --show-source bin keystone setup.py
+
+