diff --git a/.travis.yml b/.travis.yml
index bf4c886..17e0571 100644
--- a/.travis.yml
+++ b/.travis.yml
@@ -152,7 +152,7 @@ install:
   - source install.travis
 
 script:
-  - pip install pyyaml
+  - pip install pyyaml travis-tox tox
   - python ../tests/run_yaml.py .travis.yml script script.travis
   - source script.travis
 
diff --git a/README.md b/README.md
index 5eb2898..51ccab5 100644
--- a/README.md
+++ b/README.md
@@ -18,7 +18,7 @@ remove deployment platforms, or test with a different suite.
 * Pre-configured `setup.py` for installation and packaging
 * Pre-configured Window, Linux, and OSX continuous integration on AppVeyor and Travis-CI
 * Choice of dependency locations through `conda-forge`, default `conda`, or `pip` 
-* Basic testing structure with [PyTest](https://docs.pytest.org/en/latest/)
+* Basic testing structure with [tox](https://tox.readthedocs.io/en/latest/) and [PyTest](https://docs.pytest.org/en/latest/)
 * Automatic `git` initialization + tag
 * GitHub Hooks
 * Automatic package version control with [Versioneer](https://github.com/warner/python-versioneer)
@@ -73,7 +73,11 @@ To get started additional tests can be added to the `project/tests/` folder. Any
 included in the testing framework. While these can be added in anywhere in your directory structure, it is highly recommended to keep them
 contained within the `project/tests/` folder.
 
-Tests can be run with the `pytest -v` command. There are a number of additional command line arguments to 
+To tox have been added to allow us to test our packages in with various python versions
+and environments. The goal of tox is to allow us to isolate testing environment and make tests
+reproducible locally and on continuous integration.
+
+Tests can be run with the `tox` command. There are a number of additional command line arguments to
 [explore](https://docs.pytest.org/en/latest/usage.html).
 
 ### Continuous Integration
@@ -188,7 +192,7 @@ building your packages than the Conda tool, `conda-build`, will be. Depending on
 have conditions where `conda-build` takes 10-20 min to resolve, download, configure, and install all dependencies 
 *before your tests start*, whereas `pip` would do the same in about 5 min. It is also important to note that both 
 `pip` and `conda-build` are not *testing tools* in and of themselves; they are deployment and dependency resolution 
-tools.  For pure testing, we include other packages like [pytest](https://pytest.org).
+tools.  For pure testing, we include other packages like [tox](https://tox.readthedocs.io/en/latest/).
 
 From a deployment perspective, it is possible to deploy your package on both platforms, although doing so is beyond 
 the scope of this Cookiecutter. 
diff --git a/appveyor.yml b/appveyor.yml
index 83a29d7..73bae7a 100644
--- a/appveyor.yml
+++ b/appveyor.yml
@@ -46,6 +46,6 @@ install:
 build: false
 
 test_script:
-  - pip install pyyaml
+  - pip install pyyaml tox
   - python ../tests/run_yaml.py appveyor.yml test_script script.appveyor.bat
   - .\script.appveyor.bat
diff --git a/docs/index.rst b/docs/index.rst
index 77d572a..9f8a285 100644
--- a/docs/index.rst
+++ b/docs/index.rst
@@ -26,7 +26,7 @@ Features
 * Pre-configured ``setup.py`` for installation and packaging
 * Pre-configured Window, Linux, and OSX continuous integration on AppVeyor and Travis-CI
 * Choice of dependency locations through ``conda-forge``, default ``conda``, or ``pip``
-* Basic testing structure with `PyTest <https://docs.pytest.org/en/latest/>`_
+* Basic testing structure with `tox <https://tox.readthedocs.io/en/latest/>` and `PyTest <https://docs.pytest.org/en/latest/>`_
 * Automatic ``git`` initialization + tag
 * GitHub Hooks
 * Automatic package version control with `Versioneer <https://github.com/warner/python-versioneer>`_
@@ -96,7 +96,11 @@ To get started additional tests can be added to the ``project/tests/`` folder. A
 included in the testing framework. While these can be added in anywhere in your directory structure, it is highly recommended to keep them
 contained within the ``project/tests/`` folder.
 
-Tests can be run with the ``pytest -v`` command. There are a number of additional command line arguments to
+To tox have been added to allow us to test our packages in with various python versions
+and environments. The goal of tox is to allow us to isolate testing environment and make tests
+reproducible locally and on continuous integration.
+
+Tests can be run with the ``tox`` command. There are a number of additional command line arguments to
 `explore <https://docs.pytest.org/en/latest/usage.html>`_.
 
 Continuous Integration
diff --git a/{{cookiecutter.repo_name}}/.travis.yml b/{{cookiecutter.repo_name}}/.travis.yml
index 9999713..d0b240e 100644
--- a/{{cookiecutter.repo_name}}/.travis.yml
+++ b/{{cookiecutter.repo_name}}/.travis.yml
@@ -41,7 +41,7 @@ before_install:
 install:
 {% if cookiecutter.dependency_source == 'Dependencies from pip only (no conda)' %}
     # Install the package locally
-  - pip install -U pytest pytest-cov codecov
+  - pip install -U tox-travis tox pytest-cov codecov
   - pip install -e .
 {% else %}
     # Create test environment for package
@@ -53,7 +53,7 @@ install:
 {% endif %}
 
 script:
-  - pytest -v --cov={{cookiecutter.repo_name}} {{cookiecutter.repo_name}}/tests/
+  - tox
 
 notifications:
     email: false
diff --git a/{{cookiecutter.repo_name}}/appveyor.yml b/{{cookiecutter.repo_name}}/appveyor.yml
index d71f378..b1045c7 100644
--- a/{{cookiecutter.repo_name}}/appveyor.yml
+++ b/{{cookiecutter.repo_name}}/appveyor.yml
@@ -47,13 +47,13 @@ install:
   {% elif cookiecutter.dependency_source == 'Dependencies from pip only (no conda)' %}
     # Install the package locally
   - pip install --upgrade pip setuptools
-  - pip install pytest pytest-cov codecov
+  - pip install tox pytest-cov codecov
   - pip install -e .
   {% endif %}
 build: false
 
 test_script:
-  - pytest -v --cov={{cookiecutter.repo_name}} {{cookiecutter.repo_name}}\\tests
+  - tox
 
 on_success:
   - codecov
diff --git a/{{cookiecutter.repo_name}}/setup.py b/{{cookiecutter.repo_name}}/setup.py
index 8b0fc6c..ff43a08 100644
--- a/{{cookiecutter.repo_name}}/setup.py
+++ b/{{cookiecutter.repo_name}}/setup.py
@@ -2,16 +2,11 @@
 {{cookiecutter.project_name}}
 {{cookiecutter.description}}
 """
-import sys
 from setuptools import setup, find_packages
 import versioneer
 
 short_description = __doc__.split("\n")
 
-# from https://github.com/pytest-dev/pytest-runner#conditional-requirement
-needs_pytest = {'pytest', 'test', 'ptr'}.intersection(sys.argv)
-pytest_runner = ['pytest-runner'] if needs_pytest else []
-
 try:
     with open("README.md", "r") as handle:
         long_description = handle.read()
@@ -41,9 +36,6 @@
     # Comment out this line to prevent the files from being packaged with your software
     include_package_data=True,
 
-    # Allows `setup.py test` to work correctly with pytest
-    setup_requires=[] + pytest_runner,
-
     # Additional entries you may want simply uncomment the lines you want and fill in the data
     # url='http://www.my_package.com',  # Website
     # install_requires=[],              # Required packages, pulls from pip if needed; do not use for Conda deployment
diff --git a/{{cookiecutter.repo_name}}/tox.ini b/{{cookiecutter.repo_name}}/tox.ini
new file mode 100644
index 0000000..4abd371
--- /dev/null
+++ b/{{cookiecutter.repo_name}}/tox.ini
@@ -0,0 +1,31 @@
+[tox]
+minversion = 3.2.0
+envlist = py36,py37
+ignore_basepython_conflict = True
+
+[testenv]
+basepython = python3
+usedevelop = True
+deps = nose
+       pytest
+       pytest-cov
+commands = nosetests
+
+[testenv:pep8]
+basepython = python3.6
+deps = flake8
+       flake8-import-order
+       flake8-blind-except
+       flake8-builtins
+       flake8-docstrings
+       flake8-rst-docstrings
+       flake8-logging-format
+commands = flake8
+
+[flake8]
+exclude = .tox,.eggs
+show-source = true
+ignore = D100,D101,D102,D103,D104
+
+[travis]
+python = 3.6: py36, pep8