diff --git a/hooks/post_gen_project.py b/hooks/post_gen_project.py
index 9c3d946c1..5655b61f9 100644
--- a/hooks/post_gen_project.py
+++ b/hooks/post_gen_project.py
@@ -293,6 +293,7 @@ def set_flags_in_settings_files():
 def remove_envs_and_associated_files():
     shutil.rmtree(".envs")
     os.remove("merge_production_dotenvs_in_dotenv.py")
+    shutil.rmtree("tests")
 
 
 def remove_celery_compose_dirs():
diff --git a/{{cookiecutter.project_slug}}/merge_production_dotenvs_in_dotenv.py b/{{cookiecutter.project_slug}}/merge_production_dotenvs_in_dotenv.py
index e47705fbc..c3cee35a3 100644
--- a/{{cookiecutter.project_slug}}/merge_production_dotenvs_in_dotenv.py
+++ b/{{cookiecutter.project_slug}}/merge_production_dotenvs_in_dotenv.py
@@ -2,8 +2,6 @@ import os
 from collections.abc import Sequence
 from pathlib import Path
 
-import pytest
-
 BASE_DIR = Path(__file__).parent.resolve()
 PRODUCTION_DOTENVS_DIR = BASE_DIR / ".envs" / ".production"
 PRODUCTION_DOTENV_FILES = [
@@ -30,55 +28,5 @@ def main():
     merge(DOTENV_FILE, PRODUCTION_DOTENV_FILES)
 
 
-@pytest.mark.parametrize(
-    ("input_contents", "append_linesep", "expected_output"),
-    [
-        # No line separator
-        ([], False, ""),
-        ([""], False, ""),
-        (["\n"], False, "\n"),
-        (["TEST=1"], False, "TEST=1"),
-        (["THIS=2", "THAT='example'"], False, "THIS=2THAT='example'"),
-        (["ONE=1\n", "TWO=2"], False, "ONE=1\nTWO=2"),
-        (["A=0", "B=1", "C=2"], False, "A=0B=1C=2"),
-        # With line separator
-        (
-            [],
-            True,
-            "",
-        ),
-        (
-            [""],
-            True,
-            "\n",
-        ),
-        (
-            ["JANE=doe"],
-            True,
-            "JANE=doe\n",
-        ),
-        (["SEP=true", "AR=ator"], True, "SEP=true\nAR=ator\n"),
-        (["X=x\n", "Y=y", "Z=z\n"], True, "X=x\n\nY=y\nZ=z\n\n"),
-    ],
-)
-def test_merge(
-    tmp_path: Path,
-    input_contents: list[str],
-    append_linesep: bool,
-    expected_output: str,
-):
-    output_file = tmp_path / ".env"
-
-    files_to_merge = []
-    for num, input_content in enumerate(input_contents, start=1):
-        merge_file = tmp_path / f".service{num}"
-        merge_file.write_text(input_content)
-        files_to_merge.append(merge_file)
-
-    merge(output_file, files_to_merge, append_linesep)
-
-    assert output_file.read_text() == expected_output
-
-
 if __name__ == "__main__":
     main()
diff --git a/{{cookiecutter.project_slug}}/tests/test_merge_production_dotenvs_in_dotenv.py b/{{cookiecutter.project_slug}}/tests/test_merge_production_dotenvs_in_dotenv.py
new file mode 100644
index 000000000..faf7357f6
--- /dev/null
+++ b/{{cookiecutter.project_slug}}/tests/test_merge_production_dotenvs_in_dotenv.py
@@ -0,0 +1,43 @@
+from pathlib import Path
+
+import pytest
+
+from merge_production_dotenvs_in_dotenv import merge
+
+
+@pytest.mark.parametrize(
+    ("input_contents", "append_linesep", "expected_output"),
+    [
+        # No line separator
+        ([], False, ""),
+        ([""], False, ""),
+        (["\n"], False, "\n"),
+        (["TEST=1"], False, "TEST=1"),
+        (["THIS=2", "THAT='example'"], False, "THIS=2THAT='example'"),
+        (["ONE=1\n", "TWO=2"], False, "ONE=1\nTWO=2"),
+        (["A=0", "B=1", "C=2"], False, "A=0B=1C=2"),
+        # With line separator
+        ([], True, ""),
+        ([""], True, "\n"),
+        (["JANE=doe"], True, "JANE=doe\n"),
+        (["SEP=true", "AR=ator"], True, "SEP=true\nAR=ator\n"),
+        (["X=x\n", "Y=y", "Z=z\n"], True, "X=x\n\nY=y\nZ=z\n\n"),
+    ],
+)
+def test_merge(
+    tmp_path: Path,
+    input_contents: list[str],
+    append_linesep: bool,
+    expected_output: str,
+):
+    output_file = tmp_path / ".env"
+
+    files_to_merge = []
+    for num, input_content in enumerate(input_contents, start=1):
+        merge_file = tmp_path / f".service{num}"
+        merge_file.write_text(input_content)
+        files_to_merge.append(merge_file)
+
+    merge(output_file, files_to_merge, append_linesep)
+
+    assert output_file.read_text() == expected_output