diff --git a/.coveragerc b/.coveragerc
index 57179f02..d8e98bbb 100644
--- a/.coveragerc
+++ b/.coveragerc
@@ -1,8 +1,7 @@
 [run]
 branch = True
-source = nova_lxd
-omit = nova_lxd/tests/*
+source = nova.virt.lxd
+omit = nova/tests/*
 
 [report]
 ignore_errors = True
-precision = 2
diff --git a/.gitignore b/.gitignore
index 10412da9..7aff60eb 100644
--- a/.gitignore
+++ b/.gitignore
@@ -53,3 +53,5 @@ ChangeLog
 *~
 .*.swp
 .*sw?
+
+cover
diff --git a/tox.ini b/tox.ini
index 43f8cef1..d63c9b29 100644
--- a/tox.ini
+++ b/tox.ini
@@ -1,31 +1,45 @@
 [tox]
-minversion = 1.6
-# Python 3 tests MUST run first, due to this bug:
-# https://bugs.launchpad.net/testrepository/+bug/1229445
-envlist = py3,py27,pep8
+minversion = 2.0
+envlist = py{35,27},pep8
 skipsdist = True
 
 [testenv]
 usedevelop = True
 install_command = pip install -c{env:UPPER_CONSTRAINTS_FILE:https://git.openstack.org/cgit/openstack/requirements/plain/upper-constraints.txt} {opts} {packages}
 setenv =
-   VIRTUAL_ENV={envdir}
-   EVENTLET_NO_GREENDNS=yes
-   PYTHONDONTWRITEBYTECODE=1
+  VIRTUAL_ENV={envdir}
+  EVENTLET_NO_GREENDNS=yes
+  PYTHONDONTWRITEBYTECODE=1
+  LANGUAGE=en_US
+  LC_ALL=en_US.utf-8
 deps = -r{toxinidir}/requirements.txt
        -r{toxinidir}/test-requirements.txt
        -egit+https://github.com/openstack/nova.git#egg=nova
-commands = ostestr {posargs}
+whitelist_externals =
+  bash
+  find
+  rm
+  env
+commands =
+  find . -type f -name "*.pyc" -delete
+  rm -Rf .testrepository/times.dbm
+passenv = http_proxy HTTP_PROXY https_proxy HTTPS_PROXY no_proxy NO_PROXY OS_DEBUG GENERATE_HASHES
 
 [testenv:py27]
-commands = /bin/cp -r {toxinidir}/nova/virt/lxd/ {toxinidir}/.tox/py27/src/nova/nova/virt/
-           python setup.py testr --slowest --testr-args='{posargs}'
+commands =
+  {[testenv]commands}
+  /bin/cp -r {toxinidir}/nova/virt/lxd/ {toxinidir}/.tox/py27/src/nova/nova/virt/
+  ostestr '{posargs}'
 
-[testenv:py34]
-commands = /bin/cp -r {toxinidir}/nova/virt/lxd/ {toxinidir}/.tox/py34/src/nova/nova/virt/
-           python setup.py testr --slowest --testr-args='{posargs}'
+[testenv:py35]
+commands =
+  {[testenv]commands}
+  /bin/cp -r {toxinidir}/nova/virt/lxd/ {toxinidir}/.tox/py35/src/nova/nova/virt/
+  ostestr '{posargs}'
 
 [testenv:pep8]
+basepython = python2.7
+deps = {[testenv]deps}
 commands = flake8 {toxinidir}/nova
 
 [testenv:venv]
@@ -34,12 +48,11 @@ commands = {posargs}
 [testenv:cover]
 # Also do not run test_coverage_ext tests while gathering coverage as those
 # tests conflict with coverage.
-commands = 
-	coverage erase
-	python setup.py testr --coverage --coverage-package-name=nova_lxd \
-	--testr-args='{posargs}'
-	coverage combine
-	coverage html --include='nova_lxd/*' -d covhtml -i
+commands =
+  coverage erase
+  find . -type f -name "*.pyc" -delete
+  python setup.py testr --coverage --testr-args='{posargs}'
+  coverage report
 
 [testenv:docs]
 commands = python setup.py build_sphinx