diff --git a/.travis.yml b/.travis.yml
index 2e6ed46a2..061d4c739 100644
--- a/.travis.yml
+++ b/.travis.yml
@@ -15,6 +15,7 @@ env:
 install:
   - pip install $DJANGO
   - pip install defusedxml==0.3
+  - pip install pytest-django==2.6
   - "if [[ ${TRAVIS_PYTHON_VERSION::1} != '3' ]]; then pip install oauth2==1.5.211; fi"
   - "if [[ ${TRAVIS_PYTHON_VERSION::1} != '3' ]]; then pip install django-oauth-plus==2.2.1; fi"
   - "if [[ ${TRAVIS_PYTHON_VERSION::1} != '3' ]]; then pip install django-oauth2-provider==0.2.4; fi"
@@ -24,7 +25,7 @@ install:
   - export PYTHONPATH=.
 
 script:
-  - python rest_framework/runtests/runtests.py
+  - py.test
 
 matrix:
   exclude:
diff --git a/CONTRIBUTING.md b/CONTRIBUTING.md
index a7aa6fc40..ff6018b82 100644
--- a/CONTRIBUTING.md
+++ b/CONTRIBUTING.md
@@ -65,7 +65,7 @@ To run the tests, clone the repository, and then:
     pip install -r optionals.txt
 
     # Run the tests
-    rest_framework/runtests/runtests.py
+    py.test
 
 You can also use the excellent [`tox`][tox] testing tool to run the tests against all supported versions of Python and Django.  Install `tox` globally, and then simply run:
 
diff --git a/conftest.py b/conftest.py
new file mode 100644
index 000000000..7cfc77f2a
--- /dev/null
+++ b/conftest.py
@@ -0,0 +1,85 @@
+def pytest_configure():
+    from django.conf import settings
+
+    settings.configure(
+        DEBUG_PROPAGATE_EXCEPTIONS=True,
+        DATABASES={'default': {'ENGINE': 'django.db.backends.sqlite3',
+                               'NAME': ':memory:'}},
+        SECRET_KEY='not very secret in tests',
+        USE_I18N=True,
+        USE_L10N=True,
+        STATIC_URL='/static/',
+        ROOT_URLCONF='tests.urls',
+        TEMPLATE_LOADERS=(
+            'django.template.loaders.filesystem.Loader',
+            'django.template.loaders.app_directories.Loader',
+        ),
+        MIDDLEWARE_CLASSES=(
+            'django.middleware.common.CommonMiddleware',
+            'django.contrib.sessions.middleware.SessionMiddleware',
+            'django.middleware.csrf.CsrfViewMiddleware',
+            'django.contrib.auth.middleware.AuthenticationMiddleware',
+            'django.contrib.messages.middleware.MessageMiddleware',
+        ),
+        INSTALLED_APPS=(
+            'django.contrib.auth',
+            'django.contrib.contenttypes',
+            'django.contrib.sessions',
+            'django.contrib.sites',
+            'django.contrib.messages',
+
+            'rest_framework',
+            'rest_framework.authtoken',
+            'tests',
+            'tests.accounts',
+            'tests.records',
+            'tests.users',
+        ),
+        PASSWORD_HASHERS=(
+            'django.contrib.auth.hashers.SHA1PasswordHasher',
+            'django.contrib.auth.hashers.PBKDF2PasswordHasher',
+            'django.contrib.auth.hashers.PBKDF2SHA1PasswordHasher',
+            'django.contrib.auth.hashers.BCryptPasswordHasher',
+            'django.contrib.auth.hashers.MD5PasswordHasher',
+            'django.contrib.auth.hashers.CryptPasswordHasher',
+        ),
+    )
+
+    try:
+        import oauth_provider
+        import oauth2
+    except ImportError:
+        pass
+    else:
+        settings.INSTALLED_APPS += (
+            'oauth_provider',
+        )
+
+    try:
+        import provider
+    except ImportError:
+        pass
+    else:
+        settings.INSTALLED_APPS += (
+            'provider',
+            'provider.oauth2',
+        )
+
+    # guardian is optional
+    try:
+        import guardian
+    except ImportError:
+        pass
+    else:
+        settings.ANONYMOUS_USER_ID = -1
+        settings.AUTHENTICATION_BACKENDS = (
+            'django.contrib.auth.backends.ModelBackend', # default
+            'guardian.backends.ObjectPermissionBackend',
+        )
+        settings.INSTALLED_APPS += (
+            'guardian',
+        )
+
+    # Force Django to load all models
+    from django.db.models import get_models
+    get_models()
diff --git a/docs/index.md b/docs/index.md
index 2a4ad8859..9ad647ac9 100644
--- a/docs/index.md
+++ b/docs/index.md
@@ -206,19 +206,9 @@ General guides to using REST framework.
 
 ## Development
 
-If you want to work on REST framework itself, clone the repository, then...
-
-Build the docs:
-
-    ./mkdocs.py
-
-Run the tests:
-
-    ./rest_framework/runtests/runtests.py
-
-To run the tests against all supported configurations, first install [the tox testing tool][tox] globally, using `pip install tox`, then simply run `tox`:
-
-    tox
+See the [Contribution guidelines][contributing] for information on how to clone
+the repository, run the test suite and contribute changes back to REST
+Framework.
 
 ## Support
 
diff --git a/docs/topics/contributing.md b/docs/topics/contributing.md
index 5a5d1a80b..09cc00b3c 100644
--- a/docs/topics/contributing.md
+++ b/docs/topics/contributing.md
@@ -65,7 +65,7 @@ To run the tests, clone the repository, and then:
     pip install -r optionals.txt
 
     # Run the tests
-    rest_framework/runtests/runtests.py
+    py.test
 
 You can also use the excellent `[tox][tox]` testing tool to run the tests against all supported versions of Python and Django.  Install `tox` globally, and then simply run:
 
diff --git a/pytest.ini b/pytest.ini
new file mode 100644
index 000000000..bbd083ac1
--- /dev/null
+++ b/pytest.ini
@@ -0,0 +1,2 @@
+[pytest]
+addopts = --tb=short
diff --git a/requirements.txt b/requirements.txt
index 730c1d07a..360acb14d 100644
--- a/requirements.txt
+++ b/requirements.txt
@@ -1 +1,3 @@
+-e .
 Django>=1.3
+pytest-django==2.6
diff --git a/rest_framework/runtests/runcoverage.py b/rest_framework/runtests/runcoverage.py
deleted file mode 100755
index ce11b213e..000000000
--- a/rest_framework/runtests/runcoverage.py
+++ /dev/null
@@ -1,78 +0,0 @@
-#!/usr/bin/env python
-"""
-Useful tool to run the test suite for rest_framework and generate a coverage report.
-"""
-
-# http://ericholscher.com/blog/2009/jun/29/enable-setuppy-test-your-django-apps/
-# http://www.travisswicegood.com/2010/01/17/django-virtualenv-pip-and-fabric/
-# http://code.djangoproject.com/svn/django/trunk/tests/runtests.py
-import os
-import sys
-
-# fix sys path so we don't need to setup PYTHONPATH
-sys.path.append(os.path.join(os.path.dirname(__file__), "../.."))
-os.environ['DJANGO_SETTINGS_MODULE'] = 'rest_framework.runtests.settings'
-
-from coverage import coverage
-
-
-def main():
-    """Run the tests for rest_framework and generate a coverage report."""
-
-    cov = coverage()
-    cov.erase()
-    cov.start()
-
-    from django.conf import settings
-    from django.test.utils import get_runner
-    TestRunner = get_runner(settings)
-
-    if hasattr(TestRunner, 'func_name'):
-        # Pre 1.2 test runners were just functions,
-        # and did not support the 'failfast' option.
-        import warnings
-        warnings.warn(
-            'Function-based test runners are deprecated. Test runners should be classes with a run_tests() method.',
-            DeprecationWarning
-        )
-        failures = TestRunner(['tests'])
-    else:
-        test_runner = TestRunner()
-        failures = test_runner.run_tests(['tests'])
-    cov.stop()
-
-    # Discover the list of all modules that we should test coverage for
-    import rest_framework
-
-    project_dir = os.path.dirname(rest_framework.__file__)
-    cov_files = []
-
-    for (path, dirs, files) in os.walk(project_dir):
-        # Drop tests and runtests directories from the test coverage report
-        if os.path.basename(path) in ['tests', 'runtests', 'migrations']:
-            continue
-
-        # Drop the compat and six modules from coverage, since we're not interested in the coverage
-        # of modules which are specifically for resolving environment dependant imports.
-        # (Because we'll end up getting different coverage reports for it for each environment)
-        if 'compat.py' in files:
-            files.remove('compat.py')
-
-        if 'six.py' in files:
-            files.remove('six.py')
-
-        # Same applies to template tags module.
-        # This module has to include branching on Django versions,
-        # so it's never possible for it to have full coverage.
-        if 'rest_framework.py' in files:
-            files.remove('rest_framework.py')
-
-        cov_files.extend([os.path.join(path, file) for file in files if file.endswith('.py')])
-
-    cov.report(cov_files)
-    if '--html' in sys.argv:
-        cov.html_report(cov_files, directory='coverage')
-    sys.exit(failures)
-
-if __name__ == '__main__':
-    main()
diff --git a/rest_framework/runtests/runtests.py b/rest_framework/runtests/runtests.py
deleted file mode 100755
index da36d23fc..000000000
--- a/rest_framework/runtests/runtests.py
+++ /dev/null
@@ -1,48 +0,0 @@
-#!/usr/bin/env python
-
-# http://ericholscher.com/blog/2009/jun/29/enable-setuppy-test-your-django-apps/
-# http://www.travisswicegood.com/2010/01/17/django-virtualenv-pip-and-fabric/
-# http://code.djangoproject.com/svn/django/trunk/tests/runtests.py
-import os
-import sys
-
-# fix sys path so we don't need to setup PYTHONPATH
-sys.path.append(os.path.join(os.path.dirname(__file__), "../.."))
-os.environ['DJANGO_SETTINGS_MODULE'] = 'rest_framework.runtests.settings'
-
-import django
-from django.conf import settings
-from django.test.utils import get_runner
-
-
-def usage():
-    return """
-    Usage: python runtests.py [UnitTestClass].[method]
-
-    You can pass the Class name of the `UnitTestClass` you want to test.
-
-    Append a method name if you only want to test a specific method of that class.
-    """
-
-
-def main():
-    TestRunner = get_runner(settings)
-
-    test_runner = TestRunner()
-    if len(sys.argv) == 2:
-        test_case = '.' + sys.argv[1]
-    elif len(sys.argv) == 1:
-        test_case = ''
-    else:
-        print(usage())
-        sys.exit(1)
-    test_module_name = 'rest_framework.tests'
-    if django.VERSION[0] == 1 and django.VERSION[1] < 6:
-        test_module_name = 'tests'
-
-    failures = test_runner.run_tests([test_module_name + test_case])
-
-    sys.exit(failures)
-
-if __name__ == '__main__':
-    main()
diff --git a/rest_framework/runtests/urls.py b/rest_framework/runtests/urls.py
deleted file mode 100644
index ed5baeae6..000000000
--- a/rest_framework/runtests/urls.py
+++ /dev/null
@@ -1,7 +0,0 @@
-"""
-Blank URLConf just to keep runtests.py happy.
-"""
-from rest_framework.compat import patterns
-
-urlpatterns = patterns('',
-)
diff --git a/rest_framework/tests/tests.py b/rest_framework/tests/tests.py
deleted file mode 100644
index 554ebd1ad..000000000
--- a/rest_framework/tests/tests.py
+++ /dev/null
@@ -1,16 +0,0 @@
-"""
-Force import of all modules in this package in order to get the standard test
-runner to pick up the tests.  Yowzers.
-"""
-from __future__ import unicode_literals
-import os
-import django
-
-modules = [filename.rsplit('.', 1)[0]
-           for filename in os.listdir(os.path.dirname(__file__))
-           if filename.endswith('.py') and not filename.startswith('_')]
-__test__ = dict()
-
-if django.VERSION < (1, 6):
-    for module in modules:
-        exec("from rest_framework.tests.%s import *" % module)
diff --git a/rest_framework/tests/users/__init__.py b/rest_framework/tests/users/__init__.py
deleted file mode 100644
index e69de29bb..000000000
diff --git a/setup.py b/setup.py
index 78cdb6289..2c56cd758 100755
--- a/setup.py
+++ b/setup.py
@@ -2,11 +2,26 @@
 # -*- coding: utf-8 -*-
 
 from setuptools import setup
+from setuptools.command.test import test as TestCommand
 import re
 import os
 import sys
 
 
+# This command has been borrowed from
+# https://github.com/getsentry/sentry/blob/master/setup.py
+class PyTest(TestCommand):
+    def finalize_options(self):
+        TestCommand.finalize_options(self)
+        self.test_args = ['tests']
+        self.test_suite = True
+
+    def run_tests(self):
+        import pytest
+        errno = pytest.main(self.test_args)
+        sys.exit(errno)
+
+
 def get_version(package):
     """
     Return package version as listed in `__version__` in `init.py`.
@@ -62,7 +77,7 @@ setup(
     author_email='tom@tomchristie.com',  # SEE NOTE BELOW (*)
     packages=get_packages('rest_framework'),
     package_data=get_package_data('rest_framework'),
-    test_suite='rest_framework.runtests.runtests.main',
+    cmdclass={'test': PyTest},
     install_requires=[],
     classifiers=[
         'Development Status :: 5 - Production/Stable',
diff --git a/rest_framework/runtests/__init__.py b/tests/__init__.py
similarity index 100%
rename from rest_framework/runtests/__init__.py
rename to tests/__init__.py
diff --git a/rest_framework/tests/__init__.py b/tests/accounts/__init__.py
similarity index 100%
rename from rest_framework/tests/__init__.py
rename to tests/accounts/__init__.py
diff --git a/rest_framework/tests/accounts/models.py b/tests/accounts/models.py
similarity index 81%
rename from rest_framework/tests/accounts/models.py
rename to tests/accounts/models.py
index 525e601ba..3bf4a0c3c 100644
--- a/rest_framework/tests/accounts/models.py
+++ b/tests/accounts/models.py
@@ -1,6 +1,6 @@
 from django.db import models
 
-from rest_framework.tests.users.models import User
+from tests.users.models import User
 
 
 class Account(models.Model):
diff --git a/rest_framework/tests/accounts/serializers.py b/tests/accounts/serializers.py
similarity index 58%
rename from rest_framework/tests/accounts/serializers.py
rename to tests/accounts/serializers.py
index a27b9ca6f..57a91b92c 100644
--- a/rest_framework/tests/accounts/serializers.py
+++ b/tests/accounts/serializers.py
@@ -1,7 +1,7 @@
 from rest_framework import serializers
 
-from rest_framework.tests.accounts.models import Account
-from rest_framework.tests.users.serializers import UserSerializer
+from tests.accounts.models import Account
+from tests.users.serializers import UserSerializer
 
 
 class AccountSerializer(serializers.ModelSerializer):
diff --git a/rest_framework/tests/description.py b/tests/description.py
similarity index 100%
rename from rest_framework/tests/description.py
rename to tests/description.py
diff --git a/rest_framework/tests/accounts/__init__.py b/tests/extras/__init__.py
similarity index 100%
rename from rest_framework/tests/accounts/__init__.py
rename to tests/extras/__init__.py
diff --git a/rest_framework/tests/extras/bad_import.py b/tests/extras/bad_import.py
similarity index 100%
rename from rest_framework/tests/extras/bad_import.py
rename to tests/extras/bad_import.py
diff --git a/rest_framework/tests/models.py b/tests/models.py
similarity index 100%
rename from rest_framework/tests/models.py
rename to tests/models.py
diff --git a/rest_framework/tests/extras/__init__.py b/tests/records/__init__.py
similarity index 100%
rename from rest_framework/tests/extras/__init__.py
rename to tests/records/__init__.py
diff --git a/rest_framework/tests/records/models.py b/tests/records/models.py
similarity index 100%
rename from rest_framework/tests/records/models.py
rename to tests/records/models.py
diff --git a/rest_framework/tests/serializers.py b/tests/serializers.py
similarity index 71%
rename from rest_framework/tests/serializers.py
rename to tests/serializers.py
index cc943c7d0..f2f85b6ea 100644
--- a/rest_framework/tests/serializers.py
+++ b/tests/serializers.py
@@ -1,6 +1,6 @@
 from rest_framework import serializers
 
-from rest_framework.tests.models import NullableForeignKeySource
+from tests.models import NullableForeignKeySource
 
 
 class NullableFKSourceSerializer(serializers.ModelSerializer):
diff --git a/rest_framework/runtests/settings.py b/tests/settings.py
similarity index 96%
rename from rest_framework/runtests/settings.py
rename to tests/settings.py
index 3fc0eb2f4..75f7c54b3 100644
--- a/rest_framework/runtests/settings.py
+++ b/tests/settings.py
@@ -79,7 +79,7 @@ MIDDLEWARE_CLASSES = (
     'django.contrib.messages.middleware.MessageMiddleware',
 )
 
-ROOT_URLCONF = 'urls'
+ROOT_URLCONF = 'tests.urls'
 
 TEMPLATE_DIRS = (
     # Put strings here, like "/home/html/django_templates" or "C:/www/django/templates".
@@ -99,10 +99,10 @@ INSTALLED_APPS = (
     # 'django.contrib.admindocs',
     'rest_framework',
     'rest_framework.authtoken',
-    'rest_framework.tests',
-    'rest_framework.tests.accounts',
-    'rest_framework.tests.records',
-    'rest_framework.tests.users',
+    'tests',
+    'tests.accounts',
+    'tests.records',
+    'tests.users',
 )
 
 # OAuth is optional and won't work if there is no oauth_provider & oauth2
diff --git a/rest_framework/tests/test_authentication.py b/tests/test_authentication.py
similarity index 99%
rename from rest_framework/tests/test_authentication.py
rename to tests/test_authentication.py
index f072b81b7..4ecfef44f 100644
--- a/rest_framework/tests/test_authentication.py
+++ b/tests/test_authentication.py
@@ -64,7 +64,7 @@ if oauth2_provider is not None:
 
 class BasicAuthTests(TestCase):
     """Basic authentication"""
-    urls = 'rest_framework.tests.test_authentication'
+    urls = 'tests.test_authentication'
 
     def setUp(self):
         self.csrf_client = APIClient(enforce_csrf_checks=True)
@@ -103,7 +103,7 @@ class BasicAuthTests(TestCase):
 
 class SessionAuthTests(TestCase):
     """User session authentication"""
-    urls = 'rest_framework.tests.test_authentication'
+    urls = 'tests.test_authentication'
 
     def setUp(self):
         self.csrf_client = APIClient(enforce_csrf_checks=True)
@@ -150,7 +150,7 @@ class SessionAuthTests(TestCase):
 
 class TokenAuthTests(TestCase):
     """Token authentication"""
-    urls = 'rest_framework.tests.test_authentication'
+    urls = 'tests.test_authentication'
 
     def setUp(self):
         self.csrf_client = APIClient(enforce_csrf_checks=True)
@@ -244,7 +244,7 @@ class IncorrectCredentialsTests(TestCase):
 
 class OAuthTests(TestCase):
     """OAuth 1.0a authentication"""
-    urls = 'rest_framework.tests.test_authentication'
+    urls = 'tests.test_authentication'
 
     def setUp(self):
         # these imports are here because oauth is optional and hiding them in try..except block or compat
@@ -474,7 +474,7 @@ class OAuthTests(TestCase):
 
 class OAuth2Tests(TestCase):
     """OAuth 2.0 authentication"""
-    urls = 'rest_framework.tests.test_authentication'
+    urls = 'tests.test_authentication'
 
     def setUp(self):
         self.csrf_client = APIClient(enforce_csrf_checks=True)
diff --git a/rest_framework/tests/test_breadcrumbs.py b/tests/test_breadcrumbs.py
similarity index 98%
rename from rest_framework/tests/test_breadcrumbs.py
rename to tests/test_breadcrumbs.py
index 41ddf2cea..78edc6032 100644
--- a/rest_framework/tests/test_breadcrumbs.py
+++ b/tests/test_breadcrumbs.py
@@ -36,7 +36,7 @@ urlpatterns = patterns('',
 class BreadcrumbTests(TestCase):
     """Tests the breadcrumb functionality used by the HTML renderer."""
 
-    urls = 'rest_framework.tests.test_breadcrumbs'
+    urls = 'tests.test_breadcrumbs'
 
     def test_root_breadcrumbs(self):
         url = '/'
diff --git a/rest_framework/tests/test_decorators.py b/tests/test_decorators.py
similarity index 100%
rename from rest_framework/tests/test_decorators.py
rename to tests/test_decorators.py
diff --git a/rest_framework/tests/test_description.py b/tests/test_description.py
similarity index 94%
rename from rest_framework/tests/test_description.py
rename to tests/test_description.py
index 4c03c1ded..1e481f06c 100644
--- a/rest_framework/tests/test_description.py
+++ b/tests/test_description.py
@@ -4,8 +4,8 @@ from __future__ import unicode_literals
 from django.test import TestCase
 from rest_framework.compat import apply_markdown, smart_text
 from rest_framework.views import APIView
-from rest_framework.tests.description import ViewWithNonASCIICharactersInDocstring
-from rest_framework.tests.description import UTF8_TEST_DOCSTRING
+from .description import ViewWithNonASCIICharactersInDocstring
+from .description import UTF8_TEST_DOCSTRING
 
 # We check that docstrings get nicely un-indented.
 DESCRIPTION = """an example docstring
diff --git a/rest_framework/tests/test_fields.py b/tests/test_fields.py
similarity index 99%
rename from rest_framework/tests/test_fields.py
rename to tests/test_fields.py
index e127feef9..e65a2fb39 100644
--- a/rest_framework/tests/test_fields.py
+++ b/tests/test_fields.py
@@ -11,7 +11,7 @@ from django.db import models
 from django.test import TestCase
 from django.utils.datastructures import SortedDict
 from rest_framework import serializers
-from rest_framework.tests.models import RESTFrameworkModel
+from tests.models import RESTFrameworkModel
 
 
 class TimestampedModel(models.Model):
diff --git a/rest_framework/tests/test_files.py b/tests/test_files.py
similarity index 100%
rename from rest_framework/tests/test_files.py
rename to tests/test_files.py
diff --git a/rest_framework/tests/test_filters.py b/tests/test_filters.py
similarity index 99%
rename from rest_framework/tests/test_filters.py
rename to tests/test_filters.py
index 181881865..d9d8042e2 100644
--- a/rest_framework/tests/test_filters.py
+++ b/tests/test_filters.py
@@ -8,7 +8,7 @@ from django.utils import unittest
 from rest_framework import generics, serializers, status, filters
 from rest_framework.compat import django_filters, patterns, url
 from rest_framework.test import APIRequestFactory
-from rest_framework.tests.models import BasicModel
+from tests.models import BasicModel
 
 factory = APIRequestFactory()
 
@@ -243,7 +243,7 @@ class IntegrationTestDetailFiltering(CommonFilteringTestCase):
     """
     Integration tests for filtered detail views.
     """
-    urls = 'rest_framework.tests.test_filters'
+    urls = 'tests.test_filters'
 
     def _get_url(self, item):
         return reverse('detail-view', kwargs=dict(pk=item.pk))
@@ -612,4 +612,4 @@ class SensitiveOrderingFilterTests(TestCase):
                     {'id': 2, username_field: 'userB'}, # PassC
                     {'id': 3, username_field: 'userC'}, # PassA
                 ]
-            )
\ No newline at end of file
+            )
diff --git a/rest_framework/tests/test_genericrelations.py b/tests/test_genericrelations.py
similarity index 100%
rename from rest_framework/tests/test_genericrelations.py
rename to tests/test_genericrelations.py
diff --git a/rest_framework/tests/test_generics.py b/tests/test_generics.py
similarity index 99%
rename from rest_framework/tests/test_generics.py
rename to tests/test_generics.py
index 996bd5b0e..4389994af 100644
--- a/rest_framework/tests/test_generics.py
+++ b/tests/test_generics.py
@@ -4,7 +4,7 @@ from django.shortcuts import get_object_or_404
 from django.test import TestCase
 from rest_framework import generics, renderers, serializers, status
 from rest_framework.test import APIRequestFactory
-from rest_framework.tests.models import BasicModel, Comment, SlugBasedModel
+from tests.models import BasicModel, Comment, SlugBasedModel
 from rest_framework.compat import six
 
 factory = APIRequestFactory()
diff --git a/rest_framework/tests/test_htmlrenderer.py b/tests/test_htmlrenderer.py
similarity index 97%
rename from rest_framework/tests/test_htmlrenderer.py
rename to tests/test_htmlrenderer.py
index 8957a43c7..c748fbdbb 100644
--- a/rest_framework/tests/test_htmlrenderer.py
+++ b/tests/test_htmlrenderer.py
@@ -42,7 +42,7 @@ urlpatterns = patterns('',
 
 
 class TemplateHTMLRendererTests(TestCase):
-    urls = 'rest_framework.tests.test_htmlrenderer'
+    urls = 'tests.test_htmlrenderer'
 
     def setUp(self):
         """
@@ -82,7 +82,7 @@ class TemplateHTMLRendererTests(TestCase):
 
 
 class TemplateHTMLRendererExceptionTests(TestCase):
-    urls = 'rest_framework.tests.test_htmlrenderer'
+    urls = 'tests.test_htmlrenderer'
 
     def setUp(self):
         """
diff --git a/rest_framework/tests/test_hyperlinkedserializers.py b/tests/test_hyperlinkedserializers.py
similarity index 95%
rename from rest_framework/tests/test_hyperlinkedserializers.py
rename to tests/test_hyperlinkedserializers.py
index 83d460435..eee179cae 100644
--- a/rest_framework/tests/test_hyperlinkedserializers.py
+++ b/tests/test_hyperlinkedserializers.py
@@ -5,7 +5,7 @@ from rest_framework import generics, status, serializers
 from rest_framework.compat import patterns, url
 from rest_framework.settings import api_settings
 from rest_framework.test import APIRequestFactory
-from rest_framework.tests.models import (
+from tests.models import (
     Anchor, BasicModel, ManyToManyModel, BlogPost, BlogPostComment,
     Album, Photo, OptionalRelationModel
 )
@@ -110,7 +110,7 @@ urlpatterns = patterns('',
 
 
 class TestBasicHyperlinkedView(TestCase):
-    urls = 'rest_framework.tests.test_hyperlinkedserializers'
+    urls = 'tests.test_hyperlinkedserializers'
 
     def setUp(self):
         """
@@ -147,7 +147,7 @@ class TestBasicHyperlinkedView(TestCase):
 
 
 class TestManyToManyHyperlinkedView(TestCase):
-    urls = 'rest_framework.tests.test_hyperlinkedserializers'
+    urls = 'tests.test_hyperlinkedserializers'
 
     def setUp(self):
         """
@@ -195,7 +195,7 @@ class TestManyToManyHyperlinkedView(TestCase):
 
 
 class TestHyperlinkedIdentityFieldLookup(TestCase):
-    urls = 'rest_framework.tests.test_hyperlinkedserializers'
+    urls = 'tests.test_hyperlinkedserializers'
 
     def setUp(self):
         """
@@ -225,7 +225,7 @@ class TestHyperlinkedIdentityFieldLookup(TestCase):
 
 
 class TestCreateWithForeignKeys(TestCase):
-    urls = 'rest_framework.tests.test_hyperlinkedserializers'
+    urls = 'tests.test_hyperlinkedserializers'
 
     def setUp(self):
         """
@@ -250,7 +250,7 @@ class TestCreateWithForeignKeys(TestCase):
 
 
 class TestCreateWithForeignKeysAndCustomSlug(TestCase):
-    urls = 'rest_framework.tests.test_hyperlinkedserializers'
+    urls = 'tests.test_hyperlinkedserializers'
 
     def setUp(self):
         """
@@ -275,7 +275,7 @@ class TestCreateWithForeignKeysAndCustomSlug(TestCase):
 
 
 class TestOptionalRelationHyperlinkedView(TestCase):
-    urls = 'rest_framework.tests.test_hyperlinkedserializers'
+    urls = 'tests.test_hyperlinkedserializers'
 
     def setUp(self):
         """
@@ -335,7 +335,7 @@ class TestOverriddenURLField(TestCase):
 
 
 class TestURLFieldNameBySettings(TestCase):
-    urls = 'rest_framework.tests.test_hyperlinkedserializers'
+    urls = 'tests.test_hyperlinkedserializers'
 
     def setUp(self):
         self.saved_url_field_name = api_settings.URL_FIELD_NAME
@@ -360,7 +360,7 @@ class TestURLFieldNameBySettings(TestCase):
 
 
 class TestURLFieldNameByOptions(TestCase):
-    urls = 'rest_framework.tests.test_hyperlinkedserializers'
+    urls = 'tests.test_hyperlinkedserializers'
 
     def setUp(self):
         class Serializer(serializers.HyperlinkedModelSerializer):
diff --git a/rest_framework/tests/test_multitable_inheritance.py b/tests/test_multitable_inheritance.py
similarity index 97%
rename from rest_framework/tests/test_multitable_inheritance.py
rename to tests/test_multitable_inheritance.py
index 00c153276..ce1bf3ea3 100644
--- a/rest_framework/tests/test_multitable_inheritance.py
+++ b/tests/test_multitable_inheritance.py
@@ -2,7 +2,7 @@ from __future__ import unicode_literals
 from django.db import models
 from django.test import TestCase
 from rest_framework import serializers
-from rest_framework.tests.models import RESTFrameworkModel
+from tests.models import RESTFrameworkModel
 
 
 # Models
diff --git a/rest_framework/tests/test_negotiation.py b/tests/test_negotiation.py
similarity index 100%
rename from rest_framework/tests/test_negotiation.py
rename to tests/test_negotiation.py
diff --git a/rest_framework/tests/test_nullable_fields.py b/tests/test_nullable_fields.py
similarity index 76%
rename from rest_framework/tests/test_nullable_fields.py
rename to tests/test_nullable_fields.py
index 6ee55c005..33a9685f3 100644
--- a/rest_framework/tests/test_nullable_fields.py
+++ b/tests/test_nullable_fields.py
@@ -2,9 +2,9 @@ from django.core.urlresolvers import reverse
 
 from rest_framework.compat import patterns, url
 from rest_framework.test import APITestCase
-from rest_framework.tests.models import NullableForeignKeySource
-from rest_framework.tests.serializers import NullableFKSourceSerializer
-from rest_framework.tests.views import NullableFKSourceDetail
+from tests.models import NullableForeignKeySource
+from tests.serializers import NullableFKSourceSerializer
+from tests.views import NullableFKSourceDetail
 
 
 urlpatterns = patterns(
@@ -18,7 +18,7 @@ class NullableForeignKeyTests(APITestCase):
     DRF should be able to handle nullable foreign keys when a test
     Client POST/PUT request is made with its own serialized object.
     """
-    urls = 'rest_framework.tests.test_nullable_fields'
+    urls = 'tests.test_nullable_fields'
 
     def test_updating_object_with_null_fk(self):
         obj = NullableForeignKeySource(name='example', target=None)
diff --git a/rest_framework/tests/test_pagination.py b/tests/test_pagination.py
similarity index 99%
rename from rest_framework/tests/test_pagination.py
rename to tests/test_pagination.py
index cadb515fa..65fa9dcd1 100644
--- a/rest_framework/tests/test_pagination.py
+++ b/tests/test_pagination.py
@@ -8,7 +8,7 @@ from django.utils import unittest
 from rest_framework import generics, status, pagination, filters, serializers
 from rest_framework.compat import django_filters
 from rest_framework.test import APIRequestFactory
-from rest_framework.tests.models import BasicModel
+from tests.models import BasicModel
 
 factory = APIRequestFactory()
 
diff --git a/rest_framework/tests/test_parsers.py b/tests/test_parsers.py
similarity index 100%
rename from rest_framework/tests/test_parsers.py
rename to tests/test_parsers.py
diff --git a/rest_framework/tests/test_permissions.py b/tests/test_permissions.py
similarity index 98%
rename from rest_framework/tests/test_permissions.py
rename to tests/test_permissions.py
index 6e3a63034..a2cb0c362 100644
--- a/rest_framework/tests/test_permissions.py
+++ b/tests/test_permissions.py
@@ -7,7 +7,7 @@ from rest_framework import generics, status, permissions, authentication, HTTP_H
 from rest_framework.compat import guardian, get_model_name
 from rest_framework.filters import DjangoObjectPermissionsFilter
 from rest_framework.test import APIRequestFactory
-from rest_framework.tests.models import BasicModel
+from tests.models import BasicModel
 import base64
 
 factory = APIRequestFactory()
@@ -187,8 +187,7 @@ class ObjectPermissionsIntegrationTests(TestCase):
     """
     Integration tests for the object level permissions API.
     """
-    @classmethod
-    def setUpClass(cls):
+    def setUp(self):
         from guardian.shortcuts import assign_perm
 
         # create users
@@ -215,21 +214,13 @@ class ObjectPermissionsIntegrationTests(TestCase):
             assign_perm(perm, everyone)
         everyone.user_set.add(*users.values())
 
-        cls.perms = perms
-        cls.users = users
-
-    def setUp(self):
-        from guardian.shortcuts import assign_perm
-        perms = self.perms
-        users = self.users
-
         # appropriate object level permissions
         readers = Group.objects.create(name='readers')
         writers = Group.objects.create(name='writers')
         deleters = Group.objects.create(name='deleters')
 
         model = BasicPermModel.objects.create(text='foo')
-        
+
         assign_perm(perms['view'], readers, model)
         assign_perm(perms['change'], writers, model)
         assign_perm(perms['delete'], deleters, model)
diff --git a/rest_framework/tests/test_relations.py b/tests/test_relations.py
similarity index 97%
rename from rest_framework/tests/test_relations.py
rename to tests/test_relations.py
index f52e0e1e5..bfc8d487e 100644
--- a/rest_framework/tests/test_relations.py
+++ b/tests/test_relations.py
@@ -5,7 +5,7 @@ from __future__ import unicode_literals
 from django.db import models
 from django.test import TestCase
 from rest_framework import serializers
-from rest_framework.tests.models import BlogPost
+from tests.models import BlogPost
 
 
 class NullModel(models.Model):
@@ -105,7 +105,7 @@ class RelatedFieldSourceTests(TestCase):
         Check that the exception message are correct if the source field
         doesn't exist.
         """
-        from rest_framework.tests.models import ManyToManySource
+        from tests.models import ManyToManySource
         class Meta:
             model = ManyToManySource
         attrs = {
diff --git a/rest_framework/tests/test_relations_hyperlink.py b/tests/test_relations_hyperlink.py
similarity index 98%
rename from rest_framework/tests/test_relations_hyperlink.py
rename to tests/test_relations_hyperlink.py
index 3c4d39af6..98f68d29f 100644
--- a/rest_framework/tests/test_relations_hyperlink.py
+++ b/tests/test_relations_hyperlink.py
@@ -3,7 +3,7 @@ from django.test import TestCase
 from rest_framework import serializers
 from rest_framework.compat import patterns, url
 from rest_framework.test import APIRequestFactory
-from rest_framework.tests.models import (
+from tests.models import (
     BlogPost,
     ManyToManyTarget, ManyToManySource, ForeignKeyTarget, ForeignKeySource,
     NullableForeignKeySource, OneToOneTarget, NullableOneToOneSource
@@ -71,7 +71,7 @@ class NullableOneToOneTargetSerializer(serializers.HyperlinkedModelSerializer):
 # TODO: Add test that .data cannot be accessed prior to .is_valid
 
 class HyperlinkedManyToManyTests(TestCase):
-    urls = 'rest_framework.tests.test_relations_hyperlink'
+    urls = 'tests.test_relations_hyperlink'
 
     def setUp(self):
         for idx in range(1, 4):
@@ -179,7 +179,7 @@ class HyperlinkedManyToManyTests(TestCase):
 
 
 class HyperlinkedForeignKeyTests(TestCase):
-    urls = 'rest_framework.tests.test_relations_hyperlink'
+    urls = 'tests.test_relations_hyperlink'
 
     def setUp(self):
         target = ForeignKeyTarget(name='target-1')
@@ -307,7 +307,7 @@ class HyperlinkedForeignKeyTests(TestCase):
 
 
 class HyperlinkedNullableForeignKeyTests(TestCase):
-    urls = 'rest_framework.tests.test_relations_hyperlink'
+    urls = 'tests.test_relations_hyperlink'
 
     def setUp(self):
         target = ForeignKeyTarget(name='target-1')
@@ -435,7 +435,7 @@ class HyperlinkedNullableForeignKeyTests(TestCase):
 
 
 class HyperlinkedNullableOneToOneTests(TestCase):
-    urls = 'rest_framework.tests.test_relations_hyperlink'
+    urls = 'tests.test_relations_hyperlink'
 
     def setUp(self):
         target = OneToOneTarget(name='target-1')
@@ -458,7 +458,7 @@ class HyperlinkedNullableOneToOneTests(TestCase):
 # Regression tests for #694 (`source` attribute on related fields)
 
 class HyperlinkedRelatedFieldSourceTests(TestCase):
-    urls = 'rest_framework.tests.test_relations_hyperlink'
+    urls = 'tests.test_relations_hyperlink'
 
     def test_related_manager_source(self):
         """
diff --git a/rest_framework/tests/test_relations_nested.py b/tests/test_relations_nested.py
similarity index 100%
rename from rest_framework/tests/test_relations_nested.py
rename to tests/test_relations_nested.py
diff --git a/rest_framework/tests/test_relations_pk.py b/tests/test_relations_pk.py
similarity index 99%
rename from rest_framework/tests/test_relations_pk.py
rename to tests/test_relations_pk.py
index 3815afdd8..ff59b250a 100644
--- a/rest_framework/tests/test_relations_pk.py
+++ b/tests/test_relations_pk.py
@@ -2,7 +2,7 @@ from __future__ import unicode_literals
 from django.db import models
 from django.test import TestCase
 from rest_framework import serializers
-from rest_framework.tests.models import (
+from tests.models import (
     BlogPost, ManyToManyTarget, ManyToManySource, ForeignKeyTarget, ForeignKeySource,
     NullableForeignKeySource, OneToOneTarget, NullableOneToOneSource,
 )
diff --git a/rest_framework/tests/test_relations_slug.py b/tests/test_relations_slug.py
similarity index 99%
rename from rest_framework/tests/test_relations_slug.py
rename to tests/test_relations_slug.py
index 435c821cf..97ebf23a1 100644
--- a/rest_framework/tests/test_relations_slug.py
+++ b/tests/test_relations_slug.py
@@ -1,6 +1,6 @@
 from django.test import TestCase
 from rest_framework import serializers
-from rest_framework.tests.models import NullableForeignKeySource, ForeignKeySource, ForeignKeyTarget
+from tests.models import NullableForeignKeySource, ForeignKeySource, ForeignKeyTarget
 
 
 class ForeignKeyTargetSerializer(serializers.ModelSerializer):
diff --git a/rest_framework/tests/test_renderers.py b/tests/test_renderers.py
similarity index 99%
rename from rest_framework/tests/test_renderers.py
rename to tests/test_renderers.py
index 0f3432c99..b41cff397 100644
--- a/rest_framework/tests/test_renderers.py
+++ b/tests/test_renderers.py
@@ -152,7 +152,7 @@ class RendererEndToEndTests(TestCase):
     End-to-end testing of renderers using an RendererMixin on a generic view.
     """
 
-    urls = 'rest_framework.tests.test_renderers'
+    urls = 'tests.test_renderers'
 
     def test_default_renderer_serializes_content(self):
         """If the Accept header is not set the default renderer should serialize the response."""
@@ -387,7 +387,7 @@ class JSONPRendererTests(TestCase):
     Tests specific to the JSONP Renderer
     """
 
-    urls = 'rest_framework.tests.test_renderers'
+    urls = 'tests.test_renderers'
 
     def test_without_callback_with_json_renderer(self):
         """
@@ -571,7 +571,7 @@ class CacheRenderTest(TestCase):
     Tests specific to caching responses
     """
 
-    urls = 'rest_framework.tests.test_renderers'
+    urls = 'tests.test_renderers'
 
     cache_key = 'just_a_cache_key'
 
diff --git a/rest_framework/tests/test_request.py b/tests/test_request.py
similarity index 99%
rename from rest_framework/tests/test_request.py
rename to tests/test_request.py
index c0b50f330..0a9355f0b 100644
--- a/rest_framework/tests/test_request.py
+++ b/tests/test_request.py
@@ -278,7 +278,7 @@ urlpatterns = patterns('',
 
 
 class TestContentParsingWithAuthentication(TestCase):
-    urls = 'rest_framework.tests.test_request'
+    urls = 'tests.test_request'
 
     def setUp(self):
         self.csrf_client = APIClient(enforce_csrf_checks=True)
diff --git a/rest_framework/tests/test_response.py b/tests/test_response.py
similarity index 97%
rename from rest_framework/tests/test_response.py
rename to tests/test_response.py
index eea3c6418..41c0f49d8 100644
--- a/rest_framework/tests/test_response.py
+++ b/tests/test_response.py
@@ -1,6 +1,6 @@
 from __future__ import unicode_literals
 from django.test import TestCase
-from rest_framework.tests.models import BasicModel, BasicModelSerializer
+from tests.models import BasicModel, BasicModelSerializer
 from rest_framework.compat import patterns, url, include
 from rest_framework.response import Response
 from rest_framework.views import APIView
@@ -118,7 +118,7 @@ class RendererIntegrationTests(TestCase):
     End-to-end testing of renderers using an ResponseMixin on a generic view.
     """
 
-    urls = 'rest_framework.tests.test_response'
+    urls = 'tests.test_response'
 
     def test_default_renderer_serializes_content(self):
         """If the Accept header is not set the default renderer should serialize the response."""
@@ -198,7 +198,7 @@ class Issue122Tests(TestCase):
     """
     Tests that covers #122.
     """
-    urls = 'rest_framework.tests.test_response'
+    urls = 'tests.test_response'
 
     def test_only_html_renderer(self):
         """
@@ -218,7 +218,7 @@ class Issue467Tests(TestCase):
     Tests for #467
     """
 
-    urls = 'rest_framework.tests.test_response'
+    urls = 'tests.test_response'
 
     def test_form_has_label_and_help_text(self):
         resp = self.client.get('/html_new_model')
@@ -232,7 +232,7 @@ class Issue807Tests(TestCase):
     Covers #807
     """
 
-    urls = 'rest_framework.tests.test_response'
+    urls = 'tests.test_response'
 
     def test_does_not_append_charset_by_default(self):
         """
diff --git a/rest_framework/tests/test_reverse.py b/tests/test_reverse.py
similarity index 93%
rename from rest_framework/tests/test_reverse.py
rename to tests/test_reverse.py
index 690a30b11..3d14a28f5 100644
--- a/rest_framework/tests/test_reverse.py
+++ b/tests/test_reverse.py
@@ -19,7 +19,7 @@ class ReverseTests(TestCase):
     """
     Tests for fully qualified URLs when using `reverse`.
     """
-    urls = 'rest_framework.tests.test_reverse'
+    urls = 'tests.test_reverse'
 
     def test_reversed_urls_are_fully_qualified(self):
         request = factory.get('/view')
diff --git a/rest_framework/tests/test_routers.py b/tests/test_routers.py
similarity index 98%
rename from rest_framework/tests/test_routers.py
rename to tests/test_routers.py
index e723f7d45..084c0e277 100644
--- a/rest_framework/tests/test_routers.py
+++ b/tests/test_routers.py
@@ -72,7 +72,7 @@ class TestCustomLookupFields(TestCase):
     """
     Ensure that custom lookup fields are correctly routed.
     """
-    urls = 'rest_framework.tests.test_routers'
+    urls = 'tests.test_routers'
 
     def setUp(self):
         class NoteSerializer(serializers.HyperlinkedModelSerializer):
@@ -91,7 +91,7 @@ class TestCustomLookupFields(TestCase):
         self.router = SimpleRouter()
         self.router.register(r'notes', NoteViewSet)
 
-        from rest_framework.tests import test_routers
+        from tests import test_routers
         urls = getattr(test_routers, 'urlpatterns')
         urls += patterns('',
             url(r'^', include(self.router.urls)),
diff --git a/rest_framework/tests/test_serializer.py b/tests/test_serializer.py
similarity index 99%
rename from rest_framework/tests/test_serializer.py
rename to tests/test_serializer.py
index 6b1e333e4..18484afeb 100644
--- a/rest_framework/tests/test_serializer.py
+++ b/tests/test_serializer.py
@@ -6,10 +6,10 @@ from django.test import TestCase
 from django.utils.datastructures import MultiValueDict
 from django.utils.translation import ugettext_lazy as _
 from rest_framework import serializers, fields, relations
-from rest_framework.tests.models import (HasPositiveIntegerAsChoice, Album, ActionItem, Anchor, BasicModel,
+from tests.models import (HasPositiveIntegerAsChoice, Album, ActionItem, Anchor, BasicModel,
     BlankFieldModel, BlogPost, BlogPostComment, Book, CallableDefaultValueModel, DefaultValueModel,
     ManyToManyModel, Person, ReadOnlyManyToManyModel, Photo, RESTFrameworkModel)
-from rest_framework.tests.models import BasicModelSerializer
+from tests.models import BasicModelSerializer
 import datetime
 import pickle
 
@@ -1034,7 +1034,7 @@ class RelatedTraversalTest(TestCase):
         """
         If a component of the dotted.source is None, return None for the field.
         """
-        from rest_framework.tests.models import NullableForeignKeySource
+        from tests.models import NullableForeignKeySource
         instance = NullableForeignKeySource.objects.create(name='Source with null FK')
 
         class NullableSourceSerializer(serializers.Serializer):
diff --git a/rest_framework/tests/test_serializer_bulk_update.py b/tests/test_serializer_bulk_update.py
similarity index 100%
rename from rest_framework/tests/test_serializer_bulk_update.py
rename to tests/test_serializer_bulk_update.py
diff --git a/rest_framework/tests/test_serializer_empty.py b/tests/test_serializer_empty.py
similarity index 100%
rename from rest_framework/tests/test_serializer_empty.py
rename to tests/test_serializer_empty.py
diff --git a/rest_framework/tests/test_serializer_import.py b/tests/test_serializer_import.py
similarity index 90%
rename from rest_framework/tests/test_serializer_import.py
rename to tests/test_serializer_import.py
index 9f30a7ffa..3b8ff4b3c 100644
--- a/rest_framework/tests/test_serializer_import.py
+++ b/tests/test_serializer_import.py
@@ -1,7 +1,7 @@
 from django.test import TestCase
 
 from rest_framework import serializers
-from rest_framework.tests.accounts.serializers import AccountSerializer
+from tests.accounts.serializers import AccountSerializer
 
 
 class ImportingModelSerializerTests(TestCase):
diff --git a/rest_framework/tests/test_serializer_nested.py b/tests/test_serializer_nested.py
similarity index 100%
rename from rest_framework/tests/test_serializer_nested.py
rename to tests/test_serializer_nested.py
diff --git a/rest_framework/tests/test_serializers.py b/tests/test_serializers.py
similarity index 94%
rename from rest_framework/tests/test_serializers.py
rename to tests/test_serializers.py
index 082a400ca..675477833 100644
--- a/rest_framework/tests/test_serializers.py
+++ b/tests/test_serializers.py
@@ -2,7 +2,7 @@ from django.db import models
 from django.test import TestCase
 
 from rest_framework.serializers import _resolve_model
-from rest_framework.tests.models import BasicModel
+from tests.models import BasicModel
 
 
 class ResolveModelTests(TestCase):
diff --git a/rest_framework/tests/test_settings.py b/tests/test_settings.py
similarity index 83%
rename from rest_framework/tests/test_settings.py
rename to tests/test_settings.py
index 857375c21..e29fc34aa 100644
--- a/rest_framework/tests/test_settings.py
+++ b/tests/test_settings.py
@@ -10,13 +10,13 @@ class TestSettings(TestCase):
 
     def test_non_import_errors(self):
         """Make sure other errors aren't suppressed."""
-        settings = APISettings({'DEFAULT_MODEL_SERIALIZER_CLASS': 'rest_framework.tests.extras.bad_import.ModelSerializer'}, DEFAULTS, IMPORT_STRINGS)
+        settings = APISettings({'DEFAULT_MODEL_SERIALIZER_CLASS': 'tests.extras.bad_import.ModelSerializer'}, DEFAULTS, IMPORT_STRINGS)
         with self.assertRaises(ValueError):
             settings.DEFAULT_MODEL_SERIALIZER_CLASS
 
     def test_import_error_message_maintained(self):
         """Make sure real import errors are captured and raised sensibly."""
-        settings = APISettings({'DEFAULT_MODEL_SERIALIZER_CLASS': 'rest_framework.tests.extras.not_here.ModelSerializer'}, DEFAULTS, IMPORT_STRINGS)
+        settings = APISettings({'DEFAULT_MODEL_SERIALIZER_CLASS': 'tests.extras.not_here.ModelSerializer'}, DEFAULTS, IMPORT_STRINGS)
         with self.assertRaises(ImportError) as cm:
             settings.DEFAULT_MODEL_SERIALIZER_CLASS
         self.assertTrue('ImportError' in str(cm.exception))
diff --git a/rest_framework/tests/test_status.py b/tests/test_status.py
similarity index 100%
rename from rest_framework/tests/test_status.py
rename to tests/test_status.py
diff --git a/rest_framework/tests/test_templatetags.py b/tests/test_templatetags.py
similarity index 100%
rename from rest_framework/tests/test_templatetags.py
rename to tests/test_templatetags.py
diff --git a/rest_framework/tests/test_testing.py b/tests/test_testing.py
similarity index 99%
rename from rest_framework/tests/test_testing.py
rename to tests/test_testing.py
index 71bd8b552..8c6086a29 100644
--- a/rest_framework/tests/test_testing.py
+++ b/tests/test_testing.py
@@ -35,7 +35,7 @@ urlpatterns = patterns('',
 
 
 class TestAPITestClient(TestCase):
-    urls = 'rest_framework.tests.test_testing'
+    urls = 'tests.test_testing'
 
     def setUp(self):
         self.client = APIClient()
diff --git a/rest_framework/tests/test_throttling.py b/tests/test_throttling.py
similarity index 100%
rename from rest_framework/tests/test_throttling.py
rename to tests/test_throttling.py
diff --git a/rest_framework/tests/test_urlpatterns.py b/tests/test_urlpatterns.py
similarity index 100%
rename from rest_framework/tests/test_urlpatterns.py
rename to tests/test_urlpatterns.py
diff --git a/rest_framework/tests/test_validation.py b/tests/test_validation.py
similarity index 100%
rename from rest_framework/tests/test_validation.py
rename to tests/test_validation.py
diff --git a/rest_framework/tests/test_views.py b/tests/test_views.py
similarity index 100%
rename from rest_framework/tests/test_views.py
rename to tests/test_views.py
diff --git a/rest_framework/tests/test_write_only_fields.py b/tests/test_write_only_fields.py
similarity index 100%
rename from rest_framework/tests/test_write_only_fields.py
rename to tests/test_write_only_fields.py
diff --git a/tests/urls.py b/tests/urls.py
new file mode 100644
index 000000000..62cad3395
--- /dev/null
+++ b/tests/urls.py
@@ -0,0 +1,6 @@
+"""
+Blank URLConf just to keep the test suite happy
+"""
+from rest_framework.compat import patterns
+
+urlpatterns = patterns('')
diff --git a/rest_framework/tests/records/__init__.py b/tests/users/__init__.py
similarity index 100%
rename from rest_framework/tests/records/__init__.py
rename to tests/users/__init__.py
diff --git a/rest_framework/tests/users/models.py b/tests/users/models.py
similarity index 100%
rename from rest_framework/tests/users/models.py
rename to tests/users/models.py
diff --git a/rest_framework/tests/users/serializers.py b/tests/users/serializers.py
similarity index 71%
rename from rest_framework/tests/users/serializers.py
rename to tests/users/serializers.py
index da4965540..4893ddb34 100644
--- a/rest_framework/tests/users/serializers.py
+++ b/tests/users/serializers.py
@@ -1,6 +1,6 @@
 from rest_framework import serializers
 
-from rest_framework.tests.users.models import User
+from tests.users.models import User
 
 
 class UserSerializer(serializers.ModelSerializer):
diff --git a/rest_framework/tests/views.py b/tests/views.py
similarity index 59%
rename from rest_framework/tests/views.py
rename to tests/views.py
index 3917b74a9..55935e924 100644
--- a/rest_framework/tests/views.py
+++ b/tests/views.py
@@ -1,6 +1,6 @@
 from rest_framework import generics
-from rest_framework.tests.models import NullableForeignKeySource
-from rest_framework.tests.serializers import NullableFKSourceSerializer
+from .models import NullableForeignKeySource
+from .serializers import NullableFKSourceSerializer
 
 
 class NullableFKSourceDetail(generics.RetrieveUpdateDestroyAPIView):
diff --git a/tox.ini b/tox.ini
index 77766d20b..2fe39f120 100644
--- a/tox.ini
+++ b/tox.ini
@@ -3,19 +3,21 @@ downloadcache = {toxworkdir}/cache/
 envlist = py3.3-django1.6,py3.2-django1.6,py2.7-django1.6,py2.6-django1.6,py3.3-django1.5,py3.2-django1.5,py2.7-django1.5,py2.6-django1.5,py2.7-django1.4,py2.6-django1.4,py2.7-django1.3,py2.6-django1.3
 
 [testenv]
-commands = {envpython} rest_framework/runtests/runtests.py
+commands = py.test -q
 
 [testenv:py3.3-django1.6]
 basepython = python3.3
 deps = Django==1.6
        django-filter==0.6a1
        defusedxml==0.3
+       pytest-django==2.6
 
 [testenv:py3.2-django1.6]
 basepython = python3.2
 deps = Django==1.6
        django-filter==0.6a1
        defusedxml==0.3
+       pytest-django==2.6
 
 [testenv:py2.7-django1.6]
 basepython = python2.7
@@ -26,6 +28,7 @@ deps = Django==1.6
        oauth2==1.5.211
        django-oauth2-provider==0.2.4
        django-guardian==1.1.1
+       pytest-django==2.6
 
 [testenv:py2.6-django1.6]
 basepython = python2.6
@@ -36,18 +39,21 @@ deps = Django==1.6
        oauth2==1.5.211
        django-oauth2-provider==0.2.4
        django-guardian==1.1.1
+       pytest-django==2.6
 
 [testenv:py3.3-django1.5]
 basepython = python3.3
 deps = django==1.5.5
        django-filter==0.6a1
        defusedxml==0.3
+       pytest-django==2.6
 
 [testenv:py3.2-django1.5]
 basepython = python3.2
 deps = django==1.5.5
        django-filter==0.6a1
        defusedxml==0.3
+       pytest-django==2.6
 
 [testenv:py2.7-django1.5]
 basepython = python2.7
@@ -58,6 +64,7 @@ deps = django==1.5.5
        oauth2==1.5.211
        django-oauth2-provider==0.2.3
        django-guardian==1.1.1
+       pytest-django==2.6
 
 [testenv:py2.6-django1.5]
 basepython = python2.6
@@ -68,6 +75,7 @@ deps = django==1.5.5
        oauth2==1.5.211
        django-oauth2-provider==0.2.3
        django-guardian==1.1.1
+       pytest-django==2.6
 
 [testenv:py2.7-django1.4]
 basepython = python2.7
@@ -78,6 +86,7 @@ deps = django==1.4.10
        oauth2==1.5.211
        django-oauth2-provider==0.2.3
        django-guardian==1.1.1
+       pytest-django==2.6
 
 [testenv:py2.6-django1.4]
 basepython = python2.6
@@ -88,6 +97,7 @@ deps = django==1.4.10
        oauth2==1.5.211
        django-oauth2-provider==0.2.3
        django-guardian==1.1.1
+       pytest-django==2.6
 
 [testenv:py2.7-django1.3]
 basepython = python2.7
@@ -98,6 +108,7 @@ deps = django==1.3.5
        oauth2==1.5.211
        django-oauth2-provider==0.2.3
        django-guardian==1.1.1
+       pytest-django==2.6
 
 [testenv:py2.6-django1.3]
 basepython = python2.6
@@ -108,3 +119,4 @@ deps = django==1.3.5
        oauth2==1.5.211
        django-oauth2-provider==0.2.3
        django-guardian==1.1.1
+       pytest-django==2.6