diff --git a/.gitignore b/.gitignore
index 1740af6d..a50acc9c 100644
--- a/.gitignore
+++ b/.gitignore
@@ -6,8 +6,9 @@ ChangeLog
 *.log
 .tox
 .coverage
-oslo_config.egg-info/
+oslo.config.egg-info/
 build/
 doc/build/
 doc/source/api/
 dist/
+.testrepository/
diff --git a/.testr.conf b/.testr.conf
new file mode 100644
index 00000000..1641f86e
--- /dev/null
+++ b/.testr.conf
@@ -0,0 +1,4 @@
+[DEFAULT]
+test_command=OS_STDOUT_CAPTURE=1 OS_STDERR_CAPTURE=1 OS_TEST_TIMEOUT=60 ${PYTHON:-python} -m subunit.run discover -t ./ . $LISTOPT $IDOPTION
+test_id_option=--load-list $IDFILE
+test_list_option=--list
diff --git a/tests/utils.py b/tests/utils.py
index 625e7d44..e0b8d653 100644
--- a/tests/utils.py
+++ b/tests/utils.py
@@ -20,11 +20,15 @@
 
 """Common utilities used in testing"""
 
+import os
+
 import fixtures
 import mox
 import stubout
 import testtools
 
+TRUE_VALUES = ('true', '1', 'yes')
+
 
 class MoxStubout(fixtures.Fixture):
     """Deal with code around mox and stubout as a fixture."""
@@ -47,4 +51,20 @@ class BaseTestCase(testtools.TestCase):
         super(BaseTestCase, self).setUp()
         self.stubs = self.useFixture(MoxStubout()).stubs
         self.useFixture(fixtures.FakeLogger('oslo.config'))
-        self.useFixture(fixtures.Timeout(30, True))
+        test_timeout = os.environ.get('OS_TEST_TIMEOUT', 30)
+        try:
+            test_timeout = int(test_timeout)
+        except ValueError:
+            # If timeout value is invalid, fail hard.
+            print("OS_TEST_TIMEOUT set to invalid value"
+                  " defaulting to no timeout")
+            test_timeout = 0
+        if test_timeout > 0:
+            self.useFixture(fixtures.Timeout(test_timeout, gentle=True))
+
+        if os.environ.get('OS_STDOUT_CAPTURE') in TRUE_VALUES:
+            stdout = self.useFixture(fixtures.StringStream('stdout')).stream
+            self.useFixture(fixtures.MonkeyPatch('sys.stdout', stdout))
+        if os.environ.get('OS_STDERR_CAPTURE') in TRUE_VALUES:
+            stderr = self.useFixture(fixtures.StringStream('stderr')).stream
+            self.useFixture(fixtures.MonkeyPatch('sys.stderr', stderr))
diff --git a/tools/test-requires b/tools/test-requires
index 9d45c3b0..c020cbc2 100644
--- a/tools/test-requires
+++ b/tools/test-requires
@@ -1,8 +1,9 @@
+discover
 fixtures>=0.3.12
 mox
-nose
-nose-exclude
-testtools>=0.9.22
+python-subunit
+testrepository>=0.0.13
+testtools>=0.9.29
 
 # when we can require tox>= 1.4, this can go into tox.ini:
 #  [testenv:cover]
diff --git a/tox.ini b/tox.ini
index 751bd8f9..74c6792f 100644
--- a/tox.ini
+++ b/tox.ini
@@ -5,7 +5,7 @@ envlist = py26,py27,pep8,pylint
 setenv = VIRTUAL_ENV={envdir}
 deps = -r{toxinidir}/tools/pip-requires
        -r{toxinidir}/tools/test-requires
-commands = nosetests --with-doctest --exclude-dir=tests/testmods {posargs}
+commands = python setup.py testr --slowest --testr-args='{posargs}'
 
 [testenv:pep8]
 deps = pep8==1.3.3
@@ -17,7 +17,10 @@ commands = python ./tools/lint.py ./oslo
            python ./tools/lint.py ./tests
 
 [testenv:cover]
-setenv = NOSE_WITH_COVERAGE=1
+setenv = VIRTUAL_ENV={envdir}
+commands =
+  python setup.py testr --coverage
+
 
 [testenv:venv]
 commands = {posargs}