diff --git a/.gitignore b/.gitignore
index 341cafe..cb3f83e 100644
--- a/.gitignore
+++ b/.gitignore
@@ -7,4 +7,7 @@ dist
 example/example.db
 docs/_build
 .tox/
-*.egg/
\ No newline at end of file
+*.egg/
+pep8.txt
+coverage.xml
+.coverage
\ No newline at end of file
diff --git a/dbtemplates/__init__.py b/dbtemplates/__init__.py
index 458270e..e16f115 100644
--- a/dbtemplates/__init__.py
+++ b/dbtemplates/__init__.py
@@ -1,2 +1,2 @@
 # following PEP 386, versiontools will pick it up
-__version__ = (1, 2, 1, "final", 0)
\ No newline at end of file
+__version__ = (1, 2, 1, "final", 0)
diff --git a/dbtemplates/test_settings.py b/dbtemplates/test_settings.py
new file mode 100644
index 0000000..4b46789
--- /dev/null
+++ b/dbtemplates/test_settings.py
@@ -0,0 +1,18 @@
+DBTEMPLATES_CACHE_BACKEND = 'dummy://'
+
+DATABASE_ENGINE = 'sqlite3'
+
+SITE_ID = 1
+
+INSTALLED_APPS = [
+    'django.contrib.contenttypes',
+    'django.contrib.sites',
+    'django.contrib.admin',
+    'dbtemplates',
+]
+
+TEMPLATE_LOADERS = (
+    'django.template.loaders.filesystem.Loader',
+    'django.template.loaders.app_directories.Loader',
+    'dbtemplates.loader.Loader',
+)
diff --git a/runtests.py b/runtests.py
deleted file mode 100644
index 68b0b6c..0000000
--- a/runtests.py
+++ /dev/null
@@ -1,37 +0,0 @@
-#!/usr/bin/env python
-import os
-import sys
-
-from django.conf import settings
-
-if not settings.configured:
-    settings.configure(
-        DBTEMPLATES_CACHE_BACKEND = 'dummy://',
-        DATABASE_ENGINE='sqlite3',
-        SITE_ID=1,
-        INSTALLED_APPS=[
-            'django.contrib.contenttypes',
-            'django.contrib.sites',
-            'django.contrib.admin',
-            'dbtemplates',
-        ],
-        TEMPLATE_LOADERS = (
-            'django.template.loaders.filesystem.Loader',
-            'django.template.loaders.app_directories.Loader',
-            'dbtemplates.loader.Loader',
-        )
-    )
-
-from django.test.simple import run_tests
-
-
-def runtests(*test_args):
-    if not test_args:
-        test_args = ['dbtemplates']
-    sys.path.insert(0, os.path.join(os.path.dirname(__file__), 'dbtemplates'))
-    failures = run_tests(test_args, verbosity=1, interactive=True)
-    sys.exit(failures)
-
-
-if __name__ == '__main__':
-    runtests(*sys.argv[1:])
diff --git a/setup.py b/setup.py
index 00e15f7..be12e1f 100644
--- a/setup.py
+++ b/setup.py
@@ -1,10 +1,14 @@
+import codecs
+from os import path
 from setuptools import setup, find_packages
 
+read = lambda filepath: codecs.open(filepath, 'r', 'utf-8').read()
+
 setup(
     name='django-dbtemplates',
-    version=__import__('dbtemplates').__version__,
+    version=':versiontools:dbtemplates:',
     description='Template loader for templates stored in the database',
-    long_description=open('README.rst').read(),
+    long_description=read(path.join(path.dirname(__file__), 'README.rst')),
     author='Jannis Leidel',
     author_email='jannis@leidel.info',
     url='http://django-dbtemplates.readthedocs.org/',
diff --git a/tox.ini b/tox.ini
index 5ab7af1..66f3dc6 100644
--- a/tox.ini
+++ b/tox.ini
@@ -1,41 +1,51 @@
 [tox]
-downloadcache = .tox/_download/
-distribute = False
+distribute = false
 envlist =
     py25-1.2.X, py26-1.2.X, py27-1.2.X,
     py25-1.3.X, py26-1.3.X, py27-1.3.X
 
 [testenv]
+downloadcache = {toxworkdir}/_download/
 commands =
-    python runtests.py
+    {envbindir}/coverage erase
+    {envbindir}/coverage run --branch --source=dbtemplates {envbindir}/django-admin.py test {posargs:dbtemplates} --settings=dbtemplates.test_settings
+    {envbindir}/coverage report --omit=*test*
+    {envbindir}/coverage html --omit=*test* -d {envtmpdir}
+    echo "Type the following to open the coverage report: python -m webbrowser -t file://{envtmpdir}/index.html"
 
 [testenv:py25-1.2.X]
 basepython = python2.5
 deps =
+    coverage
     django==1.2.5
 
 [testenv:py26-1.2.X]
 basepython = python2.6
 deps =
+    coverage
     django==1.2.5
 
 [testenv:py27-1.2.X]
 basepython = python2.7
 deps =
+    coverage
     django==1.2.5
 
 
 [testenv:py25-1.3.X]
 basepython = python2.5
 deps =
+    coverage
     django==1.3
 
 [testenv:py26-1.3.X]
 basepython = python2.6
 deps =
+    coverage
     django==1.3
 
 [testenv:py27-1.3.X]
 basepython = python2.7
 deps =
+    coverage
     django==1.3