diff --git a/doc/source/contributor/inventory.rst b/doc/source/contributor/inventory.rst
index 58f0521190..e545f3d0e6 100644
--- a/doc/source/contributor/inventory.rst
+++ b/doc/source/contributor/inventory.rst
@@ -31,6 +31,9 @@ The command can also be run manually as follows:
 
 This invocation is useful when testing changes to the dynamic inventory script.
 
+.. note:: When running the ``dynamic_inventory.py`` script on a local
+          development machine, use ``python dynamic_inventory.py`` instead.
+
 Inputs
 ^^^^^^
 
diff --git a/osa_toolkit/filesystem.py b/osa_toolkit/filesystem.py
index b7742db70b..099e57d2b2 100644
--- a/osa_toolkit/filesystem.py
+++ b/osa_toolkit/filesystem.py
@@ -21,10 +21,10 @@ import datetime
 import json
 import logging
 import os
+from osa_toolkit import dictutils as du
 import tarfile
 import yaml
 
-import dictutils as du
 
 logger = logging.getLogger('osa-inventory')
 
diff --git a/osa_toolkit/generate.py b/osa_toolkit/generate.py
index 5bb966f405..c3cef7601d 100755
--- a/osa_toolkit/generate.py
+++ b/osa_toolkit/generate.py
@@ -15,15 +15,15 @@
 #
 # (c) 2014, Kevin Carter <kevin.carter@rackspace.com>
 
-import ip
 import json
 import logging
 import netaddr
+from osa_toolkit import dictutils as du
+from osa_toolkit import filesystem as filesys
+from osa_toolkit import ip
 import uuid
 import warnings
 
-import dictutils as du
-import filesystem as filesys
 
 logger = logging.getLogger('osa-inventory')
 
diff --git a/playbooks/inventory/dynamic_inventory.py b/playbooks/inventory/dynamic_inventory.py
index 5eee369411..c5eb545aee 100755
--- a/playbooks/inventory/dynamic_inventory.py
+++ b/playbooks/inventory/dynamic_inventory.py
@@ -1,4 +1,4 @@
-#!/usr/bin/env python
+#!/opt/ansible-runtime/bin/python
 # Copyright 2014, Rackspace US, Inc.
 #
 # Licensed under the Apache License, Version 2.0 (the "License");
@@ -19,11 +19,13 @@ import argparse
 import os
 import sys
 
-current_path = os.path.abspath(os.path.dirname(os.path.realpath(__file__)))
-lib_path = os.path.join(current_path, '..', '..', 'osa_toolkit')
-sys.path.append(lib_path)
-
-import generate
+try:
+    from osa_toolkit import generate
+except ImportError:
+    current_path = os.path.abspath(os.path.dirname(os.path.realpath(__file__)))
+    lib_path = os.path.join(current_path, '..', '..', 'osa_toolkit')
+    sys.path.append(lib_path)
+    from osa_toolkit import generate
 
 
 # Function kept in order to use relative pathing for the env.d directory
diff --git a/releasenotes/notes/inventory-python-imports-c967b20e64b43758.yaml b/releasenotes/notes/inventory-python-imports-c967b20e64b43758.yaml
new file mode 100644
index 0000000000..495c949163
--- /dev/null
+++ b/releasenotes/notes/inventory-python-imports-c967b20e64b43758.yaml
@@ -0,0 +1,6 @@
+---
+other:
+  - The inventory generation code has been switched to use standard Python
+    packaging tools. For most, this should not be a visible change. However,
+    running the dynamic inventory script on a local development environment
+    should now be called via ``python dynamic_inventory.py``.
diff --git a/scripts/bootstrap-ansible.sh b/scripts/bootstrap-ansible.sh
index ae4f2e5bf1..ff98ad8083 100755
--- a/scripts/bootstrap-ansible.sh
+++ b/scripts/bootstrap-ansible.sh
@@ -80,6 +80,7 @@ esac
 PIP_OPTS=""
 if [ -n "$HTTPS_PROXY" ]; then
   PIP_OPTS="--proxy $HTTPS_PROXY"
+
 elif [ -n "$HTTP_PROXY" ]; then
   PIP_OPTS="--proxy $HTTP_PROXY"
 fi
@@ -141,6 +142,9 @@ PIP_OPTS+=" --constraint ${UPPER_CONSTRAINTS_FILE}"
 ${PIP_COMMAND} install ${PIP_OPTS} -r requirements.txt ${ANSIBLE_PACKAGE} \
   || ${PIP_COMMAND} install --isolated ${PIP_OPTS} -r requirements.txt ${ANSIBLE_PACKAGE}
 
+# Install our osa_toolkit code from the current checkout
+$PIP_COMMAND install -e .
+
 # Ensure that Ansible binaries run from the venv
 pushd /opt/ansible-runtime/bin
   for ansible_bin in $(ls -1 ansible*); do
diff --git a/scripts/gen-config.py b/scripts/gen-config.py
index dab9d06b09..f2aea94e05 100755
--- a/scripts/gen-config.py
+++ b/scripts/gen-config.py
@@ -19,11 +19,7 @@ import argparse
 import os
 import sys
 
-cwd = os.path.abspath(os.path.dirname(__file__))
-import_path = os.path.join(cwd, '..', 'osa_toolkit')
-sys.path.append(import_path)
-
-import tools
+from osa_toolki import tools
 
 
 def args(arg_list):
@@ -58,6 +54,7 @@ def args(arg_list):
 
 if __name__ == "__main__":
     script_args = args(sys.argv[1:])
+
     config = tools.make_example_config(
         script_args['base'],
         script_args['conf_dir']
diff --git a/scripts/inventory-manage.py b/scripts/inventory-manage.py
index 9caa571ee0..be70a25f2e 100755
--- a/scripts/inventory-manage.py
+++ b/scripts/inventory-manage.py
@@ -23,14 +23,8 @@
 # to manage.py in order to facilitate importing of the python code
 
 # This file remains for backwards compatibility
-import os
-import sys
 
-cwd = os.path.abspath(os.path.dirname(__file__))
-import_path = os.path.join(cwd, '..', 'osa_toolkit')
-sys.path.append(import_path)
-
-import manage
+from osa_toolkit import manage
 
 if __name__ == "__main__":
     manage.main()
diff --git a/tests/test_dictutils.py b/tests/test_dictutils.py
index 7568ab1b6e..0fb5a30017 100644
--- a/tests/test_dictutils.py
+++ b/tests/test_dictutils.py
@@ -12,16 +12,9 @@
 # License for the specific language governing permissions and limitations
 # under the License.
 
-import os
-from os import path
-import sys
 import unittest
 
-LIB_DIR = 'osa_toolkit'
-
-sys.path.append(path.join(os.getcwd(), LIB_DIR))
-
-import dictutils as du
+from osa_toolkit import dictutils as du
 
 
 class TestMergeDictUnit(unittest.TestCase):
diff --git a/tests/test_filesystem.py b/tests/test_filesystem.py
index 6a656fa511..71e3cea429 100644
--- a/tests/test_filesystem.py
+++ b/tests/test_filesystem.py
@@ -24,12 +24,10 @@ from test_inventory import get_inventory
 from test_inventory import make_config
 
 INV_DIR = 'playbooks/inventory'
-LIB_DIR = 'osa_toolkit'
 
-sys.path.append(path.join(os.getcwd(), LIB_DIR))
 sys.path.append(path.join(os.getcwd(), INV_DIR))
 
-import filesystem as fs
+from osa_toolkit import filesystem as fs
 
 TARGET_DIR = path.join(os.getcwd(), 'tests', 'inventory')
 USER_CONFIG_FILE = path.join(TARGET_DIR, 'openstack_user_config.yml')
@@ -50,14 +48,14 @@ class TestMultipleRuns(unittest.TestCase):
     def test_creating_backup_file(self):
         inventory_file_path = os.path.join(TARGET_DIR,
                                            'openstack_inventory.json')
-        get_backup_name_path = 'filesystem._get_backup_name'
+        get_backup_name_path = 'osa_toolkit.filesystem._get_backup_name'
         backup_name = 'openstack_inventory.json-20160531_171804.json'
 
         tar_file = mock.MagicMock()
         tar_file.__enter__.return_value = tar_file
 
         # run make backup with faked tarfiles and date
-        with mock.patch('filesystem.tarfile.open') as tar_open:
+        with mock.patch('osa_toolkit.filesystem.tarfile.open') as tar_open:
             tar_open.return_value = tar_file
             with mock.patch(get_backup_name_path) as backup_mock:
                 backup_mock.return_value = backup_name
diff --git a/tests/test_inventory.py b/tests/test_inventory.py
index 2aa50bd25b..03ef66a636 100644
--- a/tests/test_inventory.py
+++ b/tests/test_inventory.py
@@ -26,16 +26,14 @@ import warnings
 import yaml
 
 INV_DIR = 'playbooks/inventory'
-LIB_DIR = 'osa_toolkit'
 
-sys.path.append(path.join(os.getcwd(), LIB_DIR))
 sys.path.append(path.join(os.getcwd(), INV_DIR))
 
-import dictutils
+from osa_toolkit import dictutils
 import dynamic_inventory
-import filesystem as fs
-import generate as di
-import tools
+from osa_toolkit import filesystem as fs
+from osa_toolkit import generate as di
+from osa_toolkit import tools
 
 TARGET_DIR = path.join(os.getcwd(), 'tests', 'inventory')
 BASE_ENV_DIR = INV_DIR
@@ -483,8 +481,8 @@ class TestIps(unittest.TestCase):
         self.longMessage = True
         self.env = fs.load_environment(BASE_ENV_DIR, {})
 
-    @mock.patch('filesystem.load_environment')
-    @mock.patch('filesystem.load_user_configuration')
+    @mock.patch('osa_toolkit.filesystem.load_environment')
+    @mock.patch('osa_toolkit.filesystem.load_user_configuration')
     def test_duplicates(self, mock_load_config, mock_load_env):
         """Test that no duplicate IPs are made on any network."""
 
@@ -1182,8 +1180,8 @@ class TestNetworkEntry(unittest.TestCase):
 
 
 class TestDebugLogging(unittest.TestCase):
-    @mock.patch('generate.logging')
-    @mock.patch('generate.logger')
+    @mock.patch('osa_toolkit.generate.logging')
+    @mock.patch('osa_toolkit.generate.logger')
     def test_logging_enabled(self, mock_logger, mock_logging):
         # Shadow the real value so tests don't complain about it
         mock_logging.DEBUG = 10
@@ -1194,8 +1192,8 @@ class TestDebugLogging(unittest.TestCase):
         self.assertTrue(mock_logger.info.called)
         self.assertTrue(mock_logger.debug.called)
 
-    @mock.patch('generate.logging')
-    @mock.patch('generate.logger')
+    @mock.patch('osa_toolkit.generate.logging')
+    @mock.patch('osa_toolkit.generate.logger')
     def test_logging_disabled(self, mock_logger, mock_logging):
         get_inventory(extra_args={"debug": False})
 
@@ -1239,7 +1237,7 @@ class TestLxcHosts(TestConfigCheckBase):
         inventory['lxc_hosts']['hosts'].append('compute1')
         faked_path = INV_DIR
 
-        with mock.patch('filesystem.load_inventory') as inv_mock:
+        with mock.patch('osa_toolkit.filesystem.load_inventory') as inv_mock:
             inv_mock.return_value = (inventory, faked_path)
             new_inventory = get_inventory()
         # host should no longer be in lxc_hosts
@@ -1255,7 +1253,7 @@ class TestLxcHosts(TestConfigCheckBase):
         self.assertNotIn('lxc_hosts', inventory.keys())
 
         faked_path = INV_DIR
-        with mock.patch('filesystem.load_inventory') as inv_mock:
+        with mock.patch('osa_toolkit.filesystem.load_inventory') as inv_mock:
             inv_mock.return_value = (inventory, faked_path)
             new_inventory = get_inventory()
 
@@ -1372,7 +1370,7 @@ class TestInventoryGroupConstraints(unittest.TestCase):
             'load_user_configuration': mock.DEFAULT
         }
 
-        with mock.patch.multiple('filesystem', **kwargs) as mocks:
+        with mock.patch.multiple('osa_toolkit.filesystem', **kwargs) as mocks:
             mocks['load_environment'].return_value = env
             mocks['load_user_configuration'].return_value = config
 
diff --git a/tests/test_ip.py b/tests/test_ip.py
index b80011c743..7b60fa6ee1 100644
--- a/tests/test_ip.py
+++ b/tests/test_ip.py
@@ -12,16 +12,9 @@
 # License for the specific language governing permissions and limitations
 # under the License.
 
-import os
-from os import path
-import sys
 import unittest
 
-LIB_DIR = path.join(os.getcwd(), 'osa_toolkit')
-
-sys.path.append(LIB_DIR)
-
-import ip
+from osa_toolkit import ip
 
 
 class TestIPManager(unittest.TestCase):
diff --git a/tests/test_manage.py b/tests/test_manage.py
index aaeea1232f..584b618b77 100644
--- a/tests/test_manage.py
+++ b/tests/test_manage.py
@@ -14,16 +14,12 @@
 
 import os
 from os import path
-import sys
 import test_inventory
 import unittest
 
-MANAGE_DIR = path.join(os.getcwd(), 'osa_toolkit')
 TARGET_DIR = path.join(os.getcwd(), 'tests', 'inventory')
 
-sys.path.append(MANAGE_DIR)
-
-import manage as mi
+from osa_toolkit import manage as mi
 
 
 def setUpModule():