diff --git a/tools/pip-requires b/tools/pip-requires
index b46b3754bc..2ce121a18a 100644
--- a/tools/pip-requires
+++ b/tools/pip-requires
@@ -3,13 +3,10 @@ eventlet
 kombu==1.5.1
 routes
 WebOb
-mox
 PasteDeploy
 paste
 sqlalchemy-migrate
 netaddr
-sphinx
-webtest
 factory_boy
 httplib2
 lxml
diff --git a/tools/test-requires b/tools/test-requires
index 71009cae8d..c9580d656d 100644
--- a/tools/test-requires
+++ b/tools/test-requires
@@ -1,9 +1,11 @@
 # Packages needed for dev testing
-distribute>=0.6.24
+distribute>=0.6.28
 
 coverage
+mox
 nose
 nosexcover
 openstack.nose_plugin
-pep8
+pep8=1.3.3
 pylint
+webtest
diff --git a/tox.ini b/tox.ini
index c16b0d636a..62fd10aece 100644
--- a/tox.ini
+++ b/tox.ini
@@ -1,32 +1,30 @@
-# If you get compilation errors with one or more deps in Linux, try this:
-# $ sudo apt-get install python2.6-dev
-
-# To run a specific environment in tox, use the "-e" cmd line flag.
-# For example, to run pep8, use:
-# tox -e pep8
-
 [tox]
-envlist = py26
+envlist = py26,py27,pep8
 
-[testenv:py26]
-deps =
-    eventlet
-    factory_boy
-    httplib2
-    iso8601
-    kombu==1.5.1
-    lxml
-    mox
-    netaddr
-    paste
-    PasteDeploy
-    pep8==1.3.3
-    python-novaclient
-    routes
-    sphinx
-    SQLAlchemy
-    sqlalchemy-migrate
-    WebOb
-    webtest
-commands =
-    {envbindir}/pep8 {toxinidir}/reddwarf --exclude=.tox,.venv
+[testenv]
+setenv = VIRTUAL_ENV={envdir}
+         NOSE_WITH_OPENSTACK=1
+         NOSE_OPENSTACK_COLOR=1
+         NOSE_OPENSTACK_RED=0.05
+         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
+       setuptools_git>=0.4
+commands = nosetests {posargs}
+
+[tox:jenkins]
+sitepackages = True
+downloadcache = ~/cache/pip
+
+[testenv:pep8]
+deps = pep8
+       setuptools_git>=0.4
+commands = pep8 --repeat --show-source --ignore=E125 --exclude=.venv,.tox,dist,doc,openstack,*egg reddwarf
+
+[testenv:cover]
+setenv = NOSE_WITH_COVERAGE=1
+
+[testenv:venv]
+commands = {posargs}