diff --git a/.travis.yml b/.travis.yml
index 935fae559..263a93a44 100644
--- a/.travis.yml
+++ b/.travis.yml
@@ -17,5 +17,5 @@ install:
 before-script:
   - pep8 --exclude=migrations --ignore="E501,E255,E261,W191,E101" .
 script:
-  - python rest_framework/runtests/runtests.py
-  - python rest_framework/runtests/runcoverage.py
\ No newline at end of file
+  - python rest_framework/tools/tools.py
+  - python rest_framework/tools/runcoverage.py
\ No newline at end of file
diff --git a/development.txt b/development.txt
index 206d2f860..8a8391615 100644
--- a/development.txt
+++ b/development.txt
@@ -1,4 +1,5 @@
 autopep8>=0.8.5
-pep>=1.4.1
+pep8>=1.4.1
 coverage>=3.6
 django-discover-runner>=0.2.2
+tox
\ No newline at end of file
diff --git a/rest_framework/runtests/__init__.py b/rest_framework/tools/__init__.py
similarity index 100%
rename from rest_framework/runtests/__init__.py
rename to rest_framework/tools/__init__.py
diff --git a/rest_framework/tools/preparedevenv.py b/rest_framework/tools/preparedevenv.py
new file mode 100644
index 000000000..0d7ea9861
--- /dev/null
+++ b/rest_framework/tools/preparedevenv.py
@@ -0,0 +1,69 @@
+"""
+This script prepares all the required components in order to start developing django-rest-framework.
+Installs virtualenv to the global site packages if it does not exist.
+Installs all the necessary dependencies into a virtualenv at the specified path.
+
+usage: ./preparedevenv.py [path-to-virtual-env]
+"""
+
+import subprocess
+import os
+import sys
+
+def install(home):
+    print("Installing dependencies into virtualenv at %s" % home)
+
+    requirements_path = os.path.abspath(os.path.dirname(__file__))
+    os.chdir(home)
+    pip = './Scripts/pip-script.py'
+    python = './Scripts/python'
+    execfile('./Scripts/activate_this.py')
+    subprocess.call(
+        [python, pip, 'install', '-r', os.path.join(requirements_path, "../..", 'requirements.txt'), '-M'])
+    subprocess.call(
+        [python, pip, 'install', '-r', os.path.join(requirements_path, "../..", 'optionals.txt'), '-M'])
+    subprocess.call(
+        [python, pip, 'install', '-r', os.path.join(requirements_path, "../..", 'development.txt'), '-M'])
+
+
+def after_install(home):
+    install(home)
+
+try:
+    import pip
+except ImportError:
+    print("pip in not installed. Aborting...")
+    exit(1)
+
+def install_virtualenv():
+    subprocess.call(['pip', 'install', 'virtualenv'])
+
+
+def install_tox():
+    subprocess.call(['pip', 'install', 'tox'])
+
+try:
+    import virtualenv
+except ImportError:
+    try:
+        install_virtualenv()
+    except:
+        print("virtualenv installation has failed. Aborting...")
+        exit(1)
+
+install_tox()
+
+from virtualenv import create_environment
+
+if len(sys.argv) < 2:
+    print("usage: ./preparedevenv.py [path-to-virtual-env]")
+    exit(1)
+
+path = sys.argv[1]
+if not os.path.isdir(path):
+    print("Creating virtualenv at %s" % path)
+    create_environment(path, use_distribute=True, clear=True)
+else:
+    print("virtualenv at path %s seems to exist. Attempting to install dependencies." % path)
+
+after_install(path)
\ No newline at end of file
diff --git a/rest_framework/runtests/runautopep8.py b/rest_framework/tools/runautopep8.py
similarity index 100%
rename from rest_framework/runtests/runautopep8.py
rename to rest_framework/tools/runautopep8.py
diff --git a/rest_framework/runtests/runcoverage.py b/rest_framework/tools/runcoverage.py
old mode 100755
new mode 100644
similarity index 100%
rename from rest_framework/runtests/runcoverage.py
rename to rest_framework/tools/runcoverage.py
diff --git a/rest_framework/runtests/runtests.py b/rest_framework/tools/runtests.py
old mode 100755
new mode 100644
similarity index 91%
rename from rest_framework/runtests/runtests.py
rename to rest_framework/tools/runtests.py
index 36228eb53..6ba913900
--- a/rest_framework/runtests/runtests.py
+++ b/rest_framework/tools/runtests.py
@@ -8,5 +8,5 @@ os.environ.setdefault(
 
 from django.core.management import execute_from_command_line
 
-sys.argv.append('test')
+sys.argv.append(1, 'test')
 execute_from_command_line(sys.argv)