diff --git a/.testr.conf b/.testr.conf
index 86458110..f83adfd5 100644
--- a/.testr.conf
+++ b/.testr.conf
@@ -4,7 +4,7 @@ test_command=OS_STDOUT_CAPTURE=${OS_STDOUT_CAPTURE:-1} \
              OS_LOG_CAPTURE=${OS_LOG_CAPTURE:-1} \
              OS_DEBUG=${OS_DEBUG:-1} \
              OS_TEST_TIMEOUT=${OS_TEST_TIMEOUT:-160} \
-             ${PYTHON:-python} -m subunit.run discover -t ./ ./designate/tests $LISTOPT $IDOPTION
+             ${PYTHON:-python} -m subunit.run discover -t ./ ${OS_TEST_PATH:-./designate/tests} $LISTOPT $IDOPTION
 
 test_id_option=--load-list $IDFILE
 test_list_option=--list
diff --git a/contrib/devstack/run_tempest_tests.sh b/contrib/devstack/run_tempest_tests.sh
index 2f7cabf6..c6cd1e6c 100755
--- a/contrib/devstack/run_tempest_tests.sh
+++ b/contrib/devstack/run_tempest_tests.sh
@@ -1,4 +1,4 @@
-#!/bin/bash
+#!/bin/bash -e
 #
 # Licensed under the Apache License, Version 2.0 (the "License"); you may
 # not use this file except in compliance with the License. You may obtain
@@ -26,19 +26,7 @@ echo "Successfully contacted the Designate API"
 DESIGNATE_DIR=${DESIGNATE_DIR:-/opt/stack/new/designate}
 TEMPEST_DIR=${TEMPEST_DIR:-/opt/stack/new/tempest}
 
-# Install tempest
-pip install -e $TEMPEST_DIR
 
+pushd $DESIGNATE_DIR
 export TEMPEST_CONFIG=$TEMPEST_DIR/etc/tempest.conf
-
-pushd $DESIGNATE_DIR/functionaltests
-
-# run the tests in parallel
-testr init
-testr run --parallel --subunit | subunit-trace --no-failure-debug -f
-retval=$?
-testr slowest
-
-popd
-
-exit $retval
+tox -e functional
diff --git a/functionaltests/.testr.conf b/functionaltests/.testr.conf
deleted file mode 100644
index c31512a3..00000000
--- a/functionaltests/.testr.conf
+++ /dev/null
@@ -1,4 +0,0 @@
-[DEFAULT]
-test_command=python -m subunit.run discover ./api $LISTOPT $IDOPTION
-test_id_option=--load-list $IDFILE
-test_list_option=--list
diff --git a/functionaltests/common/config.py b/functionaltests/common/config.py
index 56c88cae..dac9ca3d 100644
--- a/functionaltests/common/config.py
+++ b/functionaltests/common/config.py
@@ -61,7 +61,8 @@ cfg.CONF.register_opts([
 
 
 def find_config_file():
-    return os.environ.get('TEMPEST_CONFIG', 'tempest.conf')
+    return os.environ.get(
+        'TEMPEST_CONFIG', '/opt/stack/tempest/etc/tempest.conf')
 
 
 def read_config():
diff --git a/tox.ini b/tox.ini
index d19d173a..130a069f 100644
--- a/tox.ini
+++ b/tox.ini
@@ -11,8 +11,6 @@ usedevelop = True
 install_command = pip install {opts} {packages}
 deps = -r{toxinidir}/requirements.txt
        -r{toxinidir}/test-requirements.txt
-# Note the hash seed is set to 0 until designate can be tested with a
-# random hash seed successfully.
 setenv =
   PYTHONDONTWRITEBYTECODE=1
 whitelist_externals = sh
@@ -64,6 +62,12 @@ deps = pip-check-reqs
        -r{toxinidir}/requirements.txt
 commands=pip-missing-reqs -d --ignore-file=designate/tests/* designate
 
+[testenv:functional]
+usedevelop = False
+setenv = VIRTUAL_ENV={envdir}
+         OS_TEST_PATH=functionaltests/
+passenv = TEMPEST_CONFIG
+
 [testenv:venv]
 commands = {posargs}