diff --git a/.coveragerc b/.coveragerc
index 45e8572b9c..42c30db1b7 100644
--- a/.coveragerc
+++ b/.coveragerc
@@ -2,9 +2,7 @@
 [run]
 branch = True
 
-source=.tox/cover/lib/python2.7/site-packages/reddwarf
-# replace with previous line once the python path issue is resolved and the tox.ini is fixed accordingly
-# source=reddwarf
+source=reddwarf
 omit=*reddwarf/tests*,*reddwarf/openstack/common*
 
 [report]
diff --git a/setup.py b/setup.py
index 473034e4dc..5b42174482 100644
--- a/setup.py
+++ b/setup.py
@@ -54,5 +54,4 @@ setuptools.setup(name='reddwarf',
              'bin/reddwarf-manage',
              ],
     py_modules=[],
-    namespace_packages=['reddwarf'],
 )
diff --git a/tox.ini b/tox.ini
index 9fb071977a..c81ec16371 100644
--- a/tox.ini
+++ b/tox.ini
@@ -22,9 +22,7 @@ commands = pep8 --repeat --show-source --ignore=E125 --exclude=.venv,.tox,dist,d
 basepython = python2.7
 commands =
      coverage erase
-     coverage run -m subunit.run discover ./reddwarf/tests/unittests
-#   replace with above line once the python path issue is resolved
-#     python setup.py testr --coverage
+     python setup.py testr --coverage
      coverage run -a run_tests.py 
      coverage html 
      coverage report