diff --git a/.gitignore b/.gitignore
index 146119deb5f9..cbe7b6c36208 100644
--- a/.gitignore
+++ b/.gitignore
@@ -16,3 +16,5 @@ lib
 testing/resources/test-env.sh
 testing/resources/service-account.json
 secrets.tar
+.cache
+junit.xml
diff --git a/appengine/bigquery/main.py b/appengine/bigquery/main.py
index fe825622d6bc..1c035272ce7a 100644
--- a/appengine/bigquery/main.py
+++ b/appengine/bigquery/main.py
@@ -11,6 +11,7 @@
 # WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
 # See the License for the specific language governing permissions and
 # limitations under the License.
+
 # [START all]
 
 """
diff --git a/bigquery/__init__.py b/bigquery/__init__.py
deleted file mode 100644
index e69de29bb2d1..000000000000
diff --git a/bigquery/api/__init__.py b/bigquery/api/__init__.py
deleted file mode 100644
index e69de29bb2d1..000000000000
diff --git a/bigquery/api/async_query_test.py b/bigquery/api/async_query_test.py
index 575d90326df3..005b1b0d7f4f 100644
--- a/bigquery/api/async_query_test.py
+++ b/bigquery/api/async_query_test.py
@@ -10,13 +10,12 @@
 # WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
 # See the License for the specific language governing permissions and
 # limitations under the License.
-#
+
 import json
 
+from async_query import main
 import testing
 
-from .async_query import main
-
 
 class TestAsyncQuery(testing.CloudTest):
 
diff --git a/bigquery/api/export_data_to_cloud_storage_test.py b/bigquery/api/export_data_to_cloud_storage_test.py
index 135b2bf075d5..77820bb2792c 100644
--- a/bigquery/api/export_data_to_cloud_storage_test.py
+++ b/bigquery/api/export_data_to_cloud_storage_test.py
@@ -10,16 +10,13 @@
 # WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
 # See the License for the specific language governing permissions and
 # limitations under the License.
-#
 
-"""Tests for export_table_to_gcs."""
-from nose.plugins.attrib import attr
+from export_data_to_cloud_storage import main
+import pytest
 from testing import CloudTest
 
-from .export_data_to_cloud_storage import main
-
 
-@attr('slow')
+@pytest.mark.slow
 class TestExportTableToGCS(CloudTest):
     dataset_id = 'test_dataset'
     table_id = 'test_table'
diff --git a/bigquery/api/getting_started_test.py b/bigquery/api/getting_started_test.py
index 4d32f4d44cbc..74114db8f5e8 100644
--- a/bigquery/api/getting_started_test.py
+++ b/bigquery/api/getting_started_test.py
@@ -10,13 +10,12 @@
 # WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
 # See the License for the specific language governing permissions and
 # limitations under the License.
-#
+
 import re
 
+from getting_started import main
 import testing
 
-from .getting_started import main
-
 
 class TestGettingStarted(testing.CloudTest):
     def test_main(self):
diff --git a/bigquery/api/list_datasets_projects_test.py b/bigquery/api/list_datasets_projects_test.py
index 2dd92a8d6b9b..09d4ad52d51a 100644
--- a/bigquery/api/list_datasets_projects_test.py
+++ b/bigquery/api/list_datasets_projects_test.py
@@ -10,13 +10,12 @@
 # WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
 # See the License for the specific language governing permissions and
 # limitations under the License.
-#
+
 import re
 
+from list_datasets_projects import main
 import testing
 
-from .list_datasets_projects import main
-
 
 class TestListDatasetsProjects(testing.CloudTest):
 
diff --git a/bigquery/api/load_data_by_post_test.py b/bigquery/api/load_data_by_post_test.py
index 08286e144b1e..d88c7fcf0e7a 100644
--- a/bigquery/api/load_data_by_post_test.py
+++ b/bigquery/api/load_data_by_post_test.py
@@ -13,13 +13,12 @@
 
 import re
 
-from nose.plugins.attrib import attr
+from load_data_by_post import load_data
+import pytest
 import testing
 
-from .load_data_by_post import load_data
 
-
-@attr('slow')
+@pytest.mark.slow
 class TestLoadDataByPost(testing.CloudTest):
     dataset_id = 'ephemeral_test_dataset'
     table_id = 'load_data_by_post'
diff --git a/bigquery/api/load_data_from_csv_test.py b/bigquery/api/load_data_from_csv_test.py
index fd64fdeca9a2..3bb989a6fceb 100644
--- a/bigquery/api/load_data_from_csv_test.py
+++ b/bigquery/api/load_data_from_csv_test.py
@@ -11,13 +11,13 @@
 # See the License for the specific language governing permissions and
 # limitations under the License.
 
-from nose.plugins.attrib import attr
-from testing import CloudTest
 
-from .load_data_from_csv import main
+from load_data_from_csv import main
+import pytest
+from testing import CloudTest
 
 
-@attr('slow')
+@pytest.mark.slow
 class TestLoadDataFromCSV(CloudTest):
     dataset_id = 'test_dataset'
     table_id = 'test_import_table'
diff --git a/bigquery/api/streaming_test.py b/bigquery/api/streaming_test.py
index 29160231e2fe..44751e47727d 100644
--- a/bigquery/api/streaming_test.py
+++ b/bigquery/api/streaming_test.py
@@ -10,14 +10,12 @@
 # WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
 # See the License for the specific language governing permissions and
 # limitations under the License.
-#
-"""Tests for export_table_to_gcs."""
+
 import json
 
+import streaming
 from testing import capture_stdout, CloudTest
 
-from . import streaming
-
 
 class TestStreaming(CloudTest):
     dataset_id = 'test_dataset'
diff --git a/bigquery/api/sync_query_test.py b/bigquery/api/sync_query_test.py
index 975095990424..c39f6af0abc4 100644
--- a/bigquery/api/sync_query_test.py
+++ b/bigquery/api/sync_query_test.py
@@ -10,13 +10,12 @@
 # WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
 # See the License for the specific language governing permissions and
 # limitations under the License.
-#
+
 import json
 
+from sync_query import main
 from testing import capture_stdout, CloudTest
 
-from .sync_query import main
-
 
 class TestSyncQuery(CloudTest):
 
diff --git a/blog/__init__.py b/blog/__init__.py
deleted file mode 100644
index e69de29bb2d1..000000000000
diff --git a/blog/introduction_to_data_models_in_cloud_datastore/__init__.py b/blog/introduction_to_data_models_in_cloud_datastore/__init__.py
deleted file mode 100644
index e69de29bb2d1..000000000000
diff --git a/blog/introduction_to_data_models_in_cloud_datastore/blog_test.py b/blog/introduction_to_data_models_in_cloud_datastore/blog_test.py
index 3475b212b440..6da23560cf07 100644
--- a/blog/introduction_to_data_models_in_cloud_datastore/blog_test.py
+++ b/blog/introduction_to_data_models_in_cloud_datastore/blog_test.py
@@ -10,14 +10,13 @@
 # WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
 # See the License for the specific language governing permissions and
 # limitations under the License.
-#
-from nose.plugins.attrib import attr
-from testing import CloudTest
 
-from .blog import main
+from blog import main
+import pytest
+from testing import CloudTest
 
 
-@attr('slow')
+@pytest.mark.slow
 class BlogTestCase(CloudTest):
     """Simple test case that ensures the blog code doesn't throw any errors."""
 
diff --git a/blog/introduction_to_data_models_in_cloud_datastore/wiki_test.py b/blog/introduction_to_data_models_in_cloud_datastore/wiki_test.py
index 17cfe5396120..4ad37a2ba269 100644
--- a/blog/introduction_to_data_models_in_cloud_datastore/wiki_test.py
+++ b/blog/introduction_to_data_models_in_cloud_datastore/wiki_test.py
@@ -10,14 +10,14 @@
 # WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
 # See the License for the specific language governing permissions and
 # limitations under the License.
-#
-from nose.plugins.attrib import attr
-from testing import CloudTest
 
-from .wiki import main
+
+import pytest
+from testing import CloudTest
+from wiki import main
 
 
-@attr('slow')
+@pytest.mark.slow
 class WikiTestCase(CloudTest):
     """Simple test case that ensures the wiki code doesn't throw any errors."""
 
diff --git a/cloud_logging/__init__.py b/cloud_logging/__init__.py
deleted file mode 100644
index e69de29bb2d1..000000000000
diff --git a/cloud_logging/api/__init__.py b/cloud_logging/api/__init__.py
deleted file mode 100644
index e69de29bb2d1..000000000000
diff --git a/cloud_logging/api/list_logs_test.py b/cloud_logging/api/list_logs_test.py
index 0f5d7d598b07..fc7feb727835 100644
--- a/cloud_logging/api/list_logs_test.py
+++ b/cloud_logging/api/list_logs_test.py
@@ -14,10 +14,9 @@
 import re
 import unittest
 
+import list_logs
 import testing
 
-from . import list_logs
-
 
 class TestListLogs(testing.CloudTest):
 
diff --git a/compute/__init__.py b/compute/__init__.py
deleted file mode 100644
index e69de29bb2d1..000000000000
diff --git a/compute/api/__init__.py b/compute/api/__init__.py
deleted file mode 100644
index e69de29bb2d1..000000000000
diff --git a/compute/api/create_instance_test.py b/compute/api/create_instance_test.py
index 9bf852d78870..beb7c93f85b4 100644
--- a/compute/api/create_instance_test.py
+++ b/compute/api/create_instance_test.py
@@ -13,13 +13,12 @@
 
 import re
 
-from nose.plugins.attrib import attr
+from create_instance import main
+import pytest
 import testing
 
-from .create_instance import main
 
-
-@attr('slow')
+@pytest.mark.slow
 class TestComputeGettingStarted(testing.CloudTest):
 
     def test_main(self):
diff --git a/compute/autoscaler/__init__.py b/compute/autoscaler/__init__.py
deleted file mode 100644
index e69de29bb2d1..000000000000
diff --git a/compute/autoscaler/demo/__init__.py b/compute/autoscaler/demo/__init__.py
deleted file mode 100644
index e69de29bb2d1..000000000000
diff --git a/compute/autoscaler/demo/frontend.py b/compute/autoscaler/demo/frontend.py
index e464e9af7856..c0d1ae600301 100644
--- a/compute/autoscaler/demo/frontend.py
+++ b/compute/autoscaler/demo/frontend.py
@@ -10,7 +10,7 @@
 # WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
 # See the License for the specific language governing permissions and
 # limitations under the License.
-#
+
 """A simple web server which responds to HTTP GET requests by consuming CPU.
 This binary runs in a GCE VM. It serves HTTP requests on port 80. Every request
 with path '/service' consumes 1 core-second of CPU time, with the timeout of
diff --git a/compute/autoscaler/demo/frontend_test.py b/compute/autoscaler/demo/frontend_test.py
index 6ef175faea08..dc9deb3bad4a 100644
--- a/compute/autoscaler/demo/frontend_test.py
+++ b/compute/autoscaler/demo/frontend_test.py
@@ -11,11 +11,10 @@
 # WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
 # See the License for the specific language governing permissions and
 # limitations under the License.
-#
 
 import unittest
 
-from . import frontend
+import frontend
 
 
 class FakeTime(object):
diff --git a/container_engine/django_tutorial/Dockerfile b/container_engine/django_tutorial/Dockerfile
index 5d223d0bac17..220f232cb718 100644
--- a/container_engine/django_tutorial/Dockerfile
+++ b/container_engine/django_tutorial/Dockerfile
@@ -10,7 +10,7 @@
 # WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
 # See the License for the specific language governing permissions and
 # limitations under the License.
-#
+
 # [START docker]
 
 # The Google App Engine python runtime is Debian Jessie with Python installed
diff --git a/datastore/__init__.py b/datastore/__init__.py
deleted file mode 100644
index e69de29bb2d1..000000000000
diff --git a/datastore/api/__init__.py b/datastore/api/__init__.py
deleted file mode 100644
index e69de29bb2d1..000000000000
diff --git a/datastore/api/snippets_test.py b/datastore/api/snippets_test.py
index 24b45e3575d9..973c18fb1a2d 100644
--- a/datastore/api/snippets_test.py
+++ b/datastore/api/snippets_test.py
@@ -10,15 +10,14 @@
 # WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
 # See the License for the specific language governing permissions and
 # limitations under the License.
-#
+
 from functools import wraps
 import time
 
 from gcloud import datastore
+import snippets
 from testing import CloudTest, mark_flaky
 
-from . import snippets
-
 
 def eventually_consistent(f):
     @wraps(f)
diff --git a/datastore/api/tasks_test.py b/datastore/api/tasks_test.py
index 58452f899b17..528a40702e50 100644
--- a/datastore/api/tasks_test.py
+++ b/datastore/api/tasks_test.py
@@ -12,10 +12,9 @@
 # limitations under the License.
 
 from gcloud import datastore
+import tasks
 from testing import CloudTest, mark_flaky
 
-from . import tasks
-
 
 @mark_flaky
 class DatastoreTasksTest(CloudTest):
diff --git a/managed_vms/__init__.py b/managed_vms/__init__.py
deleted file mode 100644
index e69de29bb2d1..000000000000
diff --git a/managed_vms/analytics/__init__.py b/managed_vms/analytics/__init__.py
deleted file mode 100644
index e69de29bb2d1..000000000000
diff --git a/managed_vms/cloudsql/__init__.py b/managed_vms/cloudsql/__init__.py
deleted file mode 100644
index e69de29bb2d1..000000000000
diff --git a/managed_vms/cloudsql/main_test.py b/managed_vms/cloudsql/main_test.py
index 66d7eb3f9601..ba275e4c4906 100644
--- a/managed_vms/cloudsql/main_test.py
+++ b/managed_vms/cloudsql/main_test.py
@@ -12,10 +12,9 @@
 # See the License for the specific language governing permissions and
 # limitations under the License.
 
+import main
 from testing import CloudTest
 
-from . import main
-
 
 class CloudSqlTest(CloudTest):
 
diff --git a/managed_vms/datastore/__init__.py b/managed_vms/datastore/__init__.py
deleted file mode 100644
index e69de29bb2d1..000000000000
diff --git a/managed_vms/datastore/main_test.py b/managed_vms/datastore/main_test.py
index e883e7251d68..3e8831cb483a 100644
--- a/managed_vms/datastore/main_test.py
+++ b/managed_vms/datastore/main_test.py
@@ -12,10 +12,9 @@
 # See the License for the specific language governing permissions and
 # limitations under the License.
 
+import main
 from testing import CloudTest
 
-from . import main
-
 
 class DatastoreTest(CloudTest):
 
diff --git a/managed_vms/disk/__init__.py b/managed_vms/disk/__init__.py
deleted file mode 100644
index e69de29bb2d1..000000000000
diff --git a/managed_vms/disk/main_test.py b/managed_vms/disk/main_test.py
index 15aa04917887..d341fe5e8352 100644
--- a/managed_vms/disk/main_test.py
+++ b/managed_vms/disk/main_test.py
@@ -12,10 +12,9 @@
 # See the License for the specific language governing permissions and
 # limitations under the License.
 
+import main
 from testing import CloudTest
 
-from . import main
-
 
 class DiskTest(CloudTest):
 
diff --git a/managed_vms/extending_runtime/__init__.py b/managed_vms/extending_runtime/__init__.py
deleted file mode 100644
index e69de29bb2d1..000000000000
diff --git a/managed_vms/extending_runtime/main_test.py b/managed_vms/extending_runtime/main_test.py
index 583ebbad0a8d..716e139b39e0 100644
--- a/managed_vms/extending_runtime/main_test.py
+++ b/managed_vms/extending_runtime/main_test.py
@@ -14,11 +14,10 @@
 
 import os
 
+import main
 from nose.plugins.skip import SkipTest
 from testing import CloudTest
 
-from . import main
-
 
 class ExtendingRuntimeTest(CloudTest):
 
diff --git a/managed_vms/hello_world/__init__.py b/managed_vms/hello_world/__init__.py
deleted file mode 100644
index e69de29bb2d1..000000000000
diff --git a/managed_vms/hello_world/main_test.py b/managed_vms/hello_world/main_test.py
index 34a3ab507b9d..f28b07ad42f7 100644
--- a/managed_vms/hello_world/main_test.py
+++ b/managed_vms/hello_world/main_test.py
@@ -12,10 +12,9 @@
 # See the License for the specific language governing permissions and
 # limitations under the License.
 
+import main
 from testing import CloudTest
 
-from . import main
-
 
 class HelloWorldTest(CloudTest):
 
diff --git a/managed_vms/hello_world_compat/__init__.py b/managed_vms/hello_world_compat/__init__.py
deleted file mode 100644
index e69de29bb2d1..000000000000
diff --git a/managed_vms/hello_world_compat/main_test.py b/managed_vms/hello_world_compat/main_test.py
index 34a3ab507b9d..f28b07ad42f7 100644
--- a/managed_vms/hello_world_compat/main_test.py
+++ b/managed_vms/hello_world_compat/main_test.py
@@ -12,10 +12,9 @@
 # See the License for the specific language governing permissions and
 # limitations under the License.
 
+import main
 from testing import CloudTest
 
-from . import main
-
 
 class HelloWorldTest(CloudTest):
 
diff --git a/managed_vms/mailgun/__init__.py b/managed_vms/mailgun/__init__.py
deleted file mode 100644
index e69de29bb2d1..000000000000
diff --git a/managed_vms/memcache/__init__.py b/managed_vms/memcache/__init__.py
deleted file mode 100644
index e69de29bb2d1..000000000000
diff --git a/managed_vms/memcache/main_test.py b/managed_vms/memcache/main_test.py
index 5cc4fb852c51..4445f4be047a 100644
--- a/managed_vms/memcache/main_test.py
+++ b/managed_vms/memcache/main_test.py
@@ -12,10 +12,9 @@
 # See the License for the specific language governing permissions and
 # limitations under the License.
 
+import main
 from testing import CloudTest
 
-from . import main
-
 
 class MemcacheTest(CloudTest):
 
diff --git a/managed_vms/pubsub/__init__.py b/managed_vms/pubsub/__init__.py
deleted file mode 100644
index e69de29bb2d1..000000000000
diff --git a/managed_vms/pubsub/main.py b/managed_vms/pubsub/main.py
index 0daf8bb5ad13..f9b3893fb4a3 100644
--- a/managed_vms/pubsub/main.py
+++ b/managed_vms/pubsub/main.py
@@ -11,6 +11,7 @@
 # WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
 # See the License for the specific language governing permissions and
 # limitations under the License.
+
 # [START app]
 import base64
 import json
diff --git a/managed_vms/pubsub/main_test.py b/managed_vms/pubsub/main_test.py
index b34662134549..84430e8c0906 100644
--- a/managed_vms/pubsub/main_test.py
+++ b/managed_vms/pubsub/main_test.py
@@ -16,10 +16,9 @@
 import json
 import os
 
+import main
 from testing import CloudTest
 
-from . import main
-
 
 class PubSubTest(CloudTest):
     def setUp(self):
diff --git a/managed_vms/sendgrid/__init__.py b/managed_vms/sendgrid/__init__.py
deleted file mode 100644
index e69de29bb2d1..000000000000
diff --git a/managed_vms/static_files/__init__.py b/managed_vms/static_files/__init__.py
deleted file mode 100644
index e69de29bb2d1..000000000000
diff --git a/managed_vms/static_files/main_test.py b/managed_vms/static_files/main_test.py
index 9861d6e953ea..d230546e2fdf 100644
--- a/managed_vms/static_files/main_test.py
+++ b/managed_vms/static_files/main_test.py
@@ -12,10 +12,9 @@
 # See the License for the specific language governing permissions and
 # limitations under the License.
 
+import main
 from testing import CloudTest
 
-from . import main
-
 
 class StaticFilesTest(CloudTest):
 
diff --git a/managed_vms/storage/__init__.py b/managed_vms/storage/__init__.py
deleted file mode 100644
index e69de29bb2d1..000000000000
diff --git a/managed_vms/storage/main_test.py b/managed_vms/storage/main_test.py
index 3037ffdf63d1..50e6d702b439 100644
--- a/managed_vms/storage/main_test.py
+++ b/managed_vms/storage/main_test.py
@@ -12,12 +12,11 @@
 # See the License for the specific language governing permissions and
 # limitations under the License.
 
+import main
 import requests
 from six import BytesIO
 from testing import CloudTest
 
-from . import main
-
 
 class StorageTest(CloudTest):
     def setUp(self):
diff --git a/managed_vms/twilio/__init__.py b/managed_vms/twilio/__init__.py
deleted file mode 100644
index e69de29bb2d1..000000000000
diff --git a/managed_vms/websockets/__init__.py b/managed_vms/websockets/__init__.py
deleted file mode 100644
index e69de29bb2d1..000000000000
diff --git a/monitoring/__init__.py b/monitoring/__init__.py
deleted file mode 100644
index e69de29bb2d1..000000000000
diff --git a/monitoring/api/__init__.py b/monitoring/api/__init__.py
deleted file mode 100644
index e69de29bb2d1..000000000000
diff --git a/monitoring/api/auth_test.py b/monitoring/api/auth_test.py
index 5bd05c0f4a0f..49725a5f2b1a 100644
--- a/monitoring/api/auth_test.py
+++ b/monitoring/api/auth_test.py
@@ -13,10 +13,9 @@
 
 import re
 
+import auth
 import testing
 
-from . import auth
-
 
 class TestTimeseriesList(testing.CloudTest):
 
diff --git a/requirements-py27-dev.txt b/requirements-py27-dev.txt
index 66a2b53c0620..54d182028dc0 100644
--- a/requirements-py27-dev.txt
+++ b/requirements-py27-dev.txt
@@ -26,3 +26,5 @@ twilio==6.3.dev0
 sendgrid==1.6.22
 Flask-Sockets==0.2.0
 mysql-python==1.2.5
+pytest
+pytest-cov
diff --git a/requirements-py34-dev.txt b/requirements-py34-dev.txt
index e9b43e36f825..3bea20011245 100644
--- a/requirements-py34-dev.txt
+++ b/requirements-py34-dev.txt
@@ -24,3 +24,5 @@ flaky==3.1.0
 Django==1.9.2
 twilio==6.3.dev0
 sendgrid==1.6.22
+pytest
+pytest-cov
diff --git a/scripts/run-tests.py b/scripts/run-tests.py
new file mode 100755
index 000000000000..0dece74e86dd
--- /dev/null
+++ b/scripts/run-tests.py
@@ -0,0 +1,57 @@
+#!/usr/bin/env python
+
+# Copyright (C) 2013 Google Inc.
+#
+# 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 a copy of the License at
+#
+#            http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+
+import argparse
+import subprocess
+import sys
+
+import pytest # flake8: noqa
+import _pytest.main
+
+
+def main():
+    parser = argparse.ArgumentParser()
+    parser.add_argument('--junit', help='Output junit test report.')
+    parser.add_argument('--run-slow', help='Run slow tests.')
+    parser.add_argument(
+        'directories', nargs='+', help='Directories to run py.test on.')
+    args = parser.parse_args()
+
+    extra_args = []
+
+    if not args.run_slow:
+        extra_args.append('-m not slow and not flaky')
+
+    for directory in args.directories:
+        per_directory_args = []
+
+        if args.junit:
+            per_directory_args.append(
+                '--junitxml={}/junit.xml'.format(directory))
+
+        # We could use pytest.main, however, we need import isolatation between
+        # test runs. Without using subprocess, any test files that are named
+        # the same will cause pytest to fail. Rather than do sys.module magic
+        # between runs, it's cleaner to just do a subprocess.
+        code = subprocess.call(
+            ['py.test'] + extra_args + per_directory_args + [directory])
+
+        if code not in (
+                _pytest.main.EXIT_OK, _pytest.main.EXIT_NOTESTSCOLLECTED):
+            sys.exit(code)
+
+if __name__ == '__main__':
+    main()
diff --git a/storage/__init__.py b/storage/__init__.py
deleted file mode 100644
index e69de29bb2d1..000000000000
diff --git a/storage/api/__init__.py b/storage/api/__init__.py
deleted file mode 100644
index e69de29bb2d1..000000000000
diff --git a/storage/api/compose_objects_test.py b/storage/api/compose_objects_test.py
index 5497d2cec12b..071edadc2f98 100644
--- a/storage/api/compose_objects_test.py
+++ b/storage/api/compose_objects_test.py
@@ -11,10 +11,9 @@
 # See the License for the specific language governing permissions and
 # limitations under the License.
 
+from compose_objects import main
 from testing import CloudTest
 
-from .compose_objects import main
-
 
 class TestComposeObjects(CloudTest):
     def test_main(self):
diff --git a/storage/api/list_objects.py b/storage/api/list_objects.py
index 705aab8c6371..965ef91f9740 100644
--- a/storage/api/list_objects.py
+++ b/storage/api/list_objects.py
@@ -13,6 +13,7 @@
 # WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
 # See the License for the specific language governing permissions and
 # limitations under the License.
+
 # [START all]
 
 """Command-line sample application for listing all objects in a bucket using
diff --git a/storage/api/list_objects_test.py b/storage/api/list_objects_test.py
index ecb9785faf5b..4cdee901937c 100644
--- a/storage/api/list_objects_test.py
+++ b/storage/api/list_objects_test.py
@@ -10,10 +10,9 @@
 # WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
 # See the License for the specific language governing permissions and
 # limitations under the License.
-#
-from testing import CloudTest
 
-from .list_objects import main
+from list_objects import main
+from testing import CloudTest
 
 
 class TestListObjects(CloudTest):
diff --git a/storage/transfer_service/__init__.py b/storage/transfer_service/__init__.py
deleted file mode 100644
index e69de29bb2d1..000000000000
diff --git a/testing/__init__.py b/testing/__init__.py
index 970b3ce1d730..b3373d37cd15 100644
--- a/testing/__init__.py
+++ b/testing/__init__.py
@@ -10,7 +10,6 @@
 # WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
 # See the License for the specific language governing permissions and
 # limitations under the License.
-#
 
 from .appengine import AppEngineTest
 from .cloud import CloudTest
diff --git a/testing/appengine.py b/testing/appengine.py
index 3db88e643e21..be24512a6fb8 100644
--- a/testing/appengine.py
+++ b/testing/appengine.py
@@ -10,7 +10,6 @@
 # WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
 # See the License for the specific language governing permissions and
 # limitations under the License.
-#
 
 """
 Common testing tools for Google App Engine tests.
diff --git a/testing/cloud.py b/testing/cloud.py
index 0411f26504f6..736ee63598f5 100644
--- a/testing/cloud.py
+++ b/testing/cloud.py
@@ -10,7 +10,6 @@
 # WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
 # See the License for the specific language governing permissions and
 # limitations under the License.
-#
 
 """
 Common testing tools for cloud samples.
diff --git a/testing/flaky.py b/testing/flaky.py
index fc85431ab1f1..260b2dd973b6 100644
--- a/testing/flaky.py
+++ b/testing/flaky.py
@@ -10,7 +10,6 @@
 # WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
 # See the License for the specific language governing permissions and
 # limitations under the License.
-#
 
 """
 Tools for dealing with flaky tests.
diff --git a/tox.ini b/tox.ini
index bc7a3e9b045c..cfc741c34eb9 100644
--- a/tox.ini
+++ b/tox.ini
@@ -1,6 +1,6 @@
 [tox]
 skipsdist = True
-envlist = pep8, reqcheck, gae, py27, py34
+envlist = pep8, py27, py34, gae
 
 [testenv]
 passenv =
@@ -19,111 +19,120 @@ passenv =
 basepython = python2.7
 deps =
     -rrequirements.txt
-commonargs =
-    --with-timer
-    --with-coverage
-    --cover-tests
-    --cover-branches
-    --cover-inclusive
-    --with-flaky
-    --no-success-flaky-report
-    --exclude-dir=managed_vms/django_cloudsql
-    --exclude-dir=managed_vms/hello_world_django
-
-[testenv:reqcheck]
-commands =
-    bash -c "find . -name requirements\*.txt |\
-        xargs -P 4 -n 1 gcp-python-repo-tools check-requirements"
-whitelist_externals =
-    bash
-    find
-    xargs
-    gcp-python-repo-tools
-
-[testenv:requpdate]
-commands =
-    bash -c "find . -name requirements\*.txt |\
-        xargs -P 4 -n 1 gcp-python-repo-tools update-requirements"
-whitelist_externals =
-    bash
-    find
-    xargs
-    gcp-python-repo-tools
+examples =
+    bigquery/api
+    blog/introduction_to_data_models_in_cloud_datastore
+    cloud_logging/api
+    compute/api
+    compute/autoscaler
+    datastore/api
+    managed_vms/cloudsql
+    managed_vms/datastore
+    managed_vms/disk
+    managed_vms/extending_runtime
+    managed_vms/hello_world
+    managed_vms/hello_world_compat
+    managed_vms/memcache
+    managed_vms/pubsub
+    managed_vms/static_files
+    managed_vms/storage
+    monitoring/api
+    storage/api
+setenv =
+    PYTHONPATH=.
 
-[testenv:gae]
-deps =
-    {[testenv]deps}
-    -rrequirements-py27-dev.txt
+[testenv:pep8]
+deps = 
+    flake8
+    flake8-import-order
 commands =
-    # Create a lib directory, otherwise, the vendor library will explode.
-    mkdir lib
-    nosetests --with-gae \
-        --gae-app=appengine/resources/app.yaml \
-        --logging-level=INFO \
-        --with-xunit \
-        --xunit-testsuite-name gae \
-        --xunit-file nosetests-gae.xml \
-        {[testenv]commonargs} \
-        {posargs:appengine}
-setenv =
-    PYTHONPATH={env:GAE_PYTHONPATH:}
-whitelist_externals = mkdir
+    flake8 --builtin=gettext --max-complexity=10 --import-order-style=google {posargs}
 
 [testenv:py27]
 deps =
     {[testenv]deps}
     -rrequirements-py27-dev.txt
 commands =
-    nosetests \
-        --exclude-dir=appengine \
-        {[testenv]commonargs} \
-        {posargs:-a '!slow,!flaky'}
+    python scripts/run-tests.py {posargs:{[testenv]examples}}
+    coverage report
 
 [testenv:py34]
 basepython = python3.4
 deps =
     {[testenv]deps}
     -rrequirements-py34-dev.txt
-commands = 
-    nosetests \
-        --exclude-dir=appengine \
-        # Websockets doesn't work with py34 because of gevent dep.
-        --exclude-dir=managed_vms/websockets \
-        {[testenv]commonargs} \
-        {posargs:-a '!slow,!flaky'}
+commands =
+    python scripts/run-tests.py {posargs:{[testenv]examples}}
+    coverage report
 
 [testenv:py27-all]
 deps =
     {[testenv:py27]deps}
-commands = 
-    nosetests \
-        --exclude-dir=appengine \
-        {[testenv]commonargs} \
-        --with-xunit \
-        --xunit-testsuite-name py27 \
-        --xunit-file nosetests-py27.xml \
-        {posargs}
+commands =
+    python scripts/run-tests.py \
+        --junit \
+        --run-slow \
+        {posargs:{[testenv]examples}}
+    coverage report
 
 [testenv:py34-all]
 basepython = python3.4
 deps =
     {[testenv:py34]deps}
-commands = 
-    nosetests \
-        --exclude-dir=appengine \
-        --exclude-dir=managed_vms/websockets \
-        {[testenv]commonargs} \
-        --with-xunit \
-        --xunit-testsuite-name py34 \
-        --xunit-file nosetests-py34.xml \
-        {posargs}
+commands =
+    python scripts/run-tests.py \
+        --junit \
+        --run-slow \
+        {posargs:{[testenv]examples}}
+    coverage report
 
-[testenv:pep8]
-deps = 
-    flake8
-    flake8-import-order
+[testenv:gae]
+deps =
+    {[testenv]deps}
+    -rrequirements-py27-dev.txt
 commands =
-    flake8 --builtin=gettext --max-complexity=10 --import-order-style=google {posargs}
+    # Create a lib directory, otherwise, the vendor library will explode.
+    mkdir lib
+    nosetests --with-gae \
+        --gae-app=appengine/resources/app.yaml \
+        --logging-level=INFO \
+        --with-xunit \
+        --xunit-testsuite-name gae \
+        --xunit-file appengine/junit.xml \
+        --with-timer \
+        --with-coverage \
+        --cover-tests \
+        --cover-branches \
+        --cover-inclusive \
+        --with-flaky \
+        --no-success-flaky-report \
+        {posargs:appengine}
+setenv =
+    PYTHONPATH={env:GAE_PYTHONPATH:}
+whitelist_externals = mkdir
 
 [flake8]
 exclude=container_engine/django_tutorial/polls/migrations/*
+
+[pytest]
+addopts = -x --no-flaky-report --no-success-flaky-report --cov --cov-config .coveragerc --cov-append --cov-report=
+
+[testenv:reqcheck]
+commands =
+    bash -c "find . -name requirements\*.txt |\
+        xargs -P 4 -n 1 gcp-python-repo-tools check-requirements"
+whitelist_externals =
+    bash
+    find
+    xargs
+    gcp-python-repo-tools
+
+[testenv:requpdate]
+commands =
+    bash -c "find . -name requirements\*.txt |\
+        xargs -P 4 -n 1 gcp-python-repo-tools update-requirements"
+whitelist_externals =
+    bash
+    find
+    xargs
+    gcp-python-repo-tools