diff --git a/pytest.ini b/pytest.ini
index 03ca1389..52506f47 100644
--- a/pytest.ini
+++ b/pytest.ini
@@ -1,4 +1,3 @@
 [pytest]
 addopts = -v --tb=short
-python_paths = .
 norecursedirs = .tox .git */migrations/* */static/* docs venv */{{cookiecutter.project_slug}}/*
diff --git a/requirements.txt b/requirements.txt
index c878932c..7dbf7225 100644
--- a/requirements.txt
+++ b/requirements.txt
@@ -13,7 +13,7 @@ pre-commit==2.17.0
 # Testing
 # ------------------------------------------------------------------------------
 tox==3.24.5
-pytest==6.2.5
+pytest==7.0.0
 pytest-cookies==0.6.1
 pytest-instafail==0.4.2
 pyyaml==6.0
diff --git a/tests/test_cookiecutter_generation.py b/tests/test_cookiecutter_generation.py
index ada1809f..fc3ecf81 100755
--- a/tests/test_cookiecutter_generation.py
+++ b/tests/test_cookiecutter_generation.py
@@ -153,10 +153,10 @@ def test_project_generation(cookies, context, context_override):
     result = cookies.bake(extra_context={**context, **context_override})
     assert result.exit_code == 0
     assert result.exception is None
-    assert result.project.basename == context["project_slug"]
-    assert result.project.isdir()
+    assert result.project_path.name == context["project_slug"]
+    assert result.project_path.is_dir()
 
-    paths = build_files_list(str(result.project))
+    paths = build_files_list(str(result.project_path))
     assert paths
     check_paths(paths)
 
@@ -167,7 +167,7 @@ def test_flake8_passes(cookies, context_override):
     result = cookies.bake(extra_context=context_override)
 
     try:
-        sh.flake8(_cwd=str(result.project))
+        sh.flake8(_cwd=str(result.project_path))
     except sh.ErrorReturnCode as e:
         pytest.fail(e.stdout.decode())
 
@@ -184,7 +184,7 @@ def test_black_passes(cookies, context_override):
             "--exclude",
             "migrations",
             ".",
-            _cwd=str(result.project),
+            _cwd=str(result.project_path),
         )
     except sh.ErrorReturnCode as e:
         pytest.fail(e.stdout.decode())
@@ -203,10 +203,10 @@ def test_travis_invokes_pytest(cookies, context, use_docker, expected_test_scrip
 
     assert result.exit_code == 0
     assert result.exception is None
-    assert result.project.basename == context["project_slug"]
-    assert result.project.isdir()
+    assert result.project_path.name == context["project_slug"]
+    assert result.project_path.is_dir()
 
-    with open(f"{result.project}/.travis.yml", "r") as travis_yml:
+    with open(f"{result.project_path}/.travis.yml", "r") as travis_yml:
         try:
             yml = yaml.safe_load(travis_yml)["jobs"]["include"]
             assert yml[0]["script"] == ["flake8"]
@@ -230,10 +230,10 @@ def test_gitlab_invokes_flake8_and_pytest(
 
     assert result.exit_code == 0
     assert result.exception is None
-    assert result.project.basename == context["project_slug"]
-    assert result.project.isdir()
+    assert result.project_path.name == context["project_slug"]
+    assert result.project_path.is_dir()
 
-    with open(f"{result.project}/.gitlab-ci.yml", "r") as gitlab_yml:
+    with open(f"{result.project_path}/.gitlab-ci.yml", "r") as gitlab_yml:
         try:
             gitlab_config = yaml.safe_load(gitlab_yml)
             assert gitlab_config["flake8"]["script"] == ["flake8"]
@@ -257,10 +257,10 @@ def test_github_invokes_linter_and_pytest(
 
     assert result.exit_code == 0
     assert result.exception is None
-    assert result.project.basename == context["project_slug"]
-    assert result.project.isdir()
+    assert result.project_path.name == context["project_slug"]
+    assert result.project_path.is_dir()
 
-    with open(f"{result.project}/.github/workflows/ci.yml", "r") as github_yml:
+    with open(f"{result.project_path}/.github/workflows/ci.yml", "r") as github_yml:
         try:
             github_config = yaml.safe_load(github_yml)
             linter_present = False
@@ -311,6 +311,6 @@ def test_pycharm_docs_removed(cookies, context, use_pycharm, pycharm_docs_exist)
     context.update({"use_pycharm": use_pycharm})
     result = cookies.bake(extra_context=context)
 
-    with open(f"{result.project}/docs/index.rst", "r") as f:
+    with open(f"{result.project_path}/docs/index.rst", "r") as f:
         has_pycharm_docs = "pycharm/configuration" in f.read()
         assert has_pycharm_docs is pycharm_docs_exist
diff --git a/{{cookiecutter.project_slug}}/requirements/local.txt b/{{cookiecutter.project_slug}}/requirements/local.txt
index deb7e0bd..3c0d7264 100644
--- a/{{cookiecutter.project_slug}}/requirements/local.txt
+++ b/{{cookiecutter.project_slug}}/requirements/local.txt
@@ -15,7 +15,7 @@ watchgod==0.7  # https://github.com/samuelcolvin/watchgod
 # ------------------------------------------------------------------------------
 mypy==0.931  # https://github.com/python/mypy
 django-stubs==1.9.0  # https://github.com/typeddjango/django-stubs
-pytest==6.2.5  # https://github.com/pytest-dev/pytest
+pytest==7.0.0  # https://github.com/pytest-dev/pytest
 pytest-sugar==0.9.4  # https://github.com/Frozenball/pytest-sugar
 {%- if cookiecutter.use_drf == "y" %}
 djangorestframework-stubs==1.4.0  # https://github.com/typeddjango/djangorestframework-stubs