diff --git a/Dockerfile b/Dockerfile
index 1986ac5a5..a4cc99fea 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -66,8 +66,8 @@ WORKDIR /code/
 ADD requirements.txt /code/
 RUN pip install -r requirements.txt
 
-ADD requirements-dev-py2.txt /code/
-RUN pip install -r requirements-dev-py2.txt
+ADD requirements-dev.txt /code/
+RUN pip install -r requirements-dev.txt
 
 RUN pip install tox==2.1.1
 
diff --git a/compose/container.py b/compose/container.py
index f727c8673..6f426532a 100644
--- a/compose/container.py
+++ b/compose/container.py
@@ -1,9 +1,8 @@
 from __future__ import absolute_import
 from __future__ import unicode_literals
 
-from functools import reduce
-
-import six
+from six import iteritems
+from six.moves import reduce
 
 from .const import LABEL_CONTAINER_NUMBER
 from .const import LABEL_SERVICE
@@ -90,7 +89,7 @@ class Container(object):
                 private=private, **public[0])
 
         return ', '.join(format_port(*item)
-                         for item in sorted(six.iteritems(self.ports)))
+                         for item in sorted(iteritems(self.ports)))
 
     @property
     def labels(self):
diff --git a/compose/progress_stream.py b/compose/progress_stream.py
index 582c09fb9..e2300fd4a 100644
--- a/compose/progress_stream.py
+++ b/compose/progress_stream.py
@@ -17,6 +17,8 @@ def stream_output(output, stream):
     diff = 0
 
     for chunk in output:
+        if six.PY3 and not isinstance(chunk, str):
+            chunk = chunk.decode('utf-8')
         event = json.loads(chunk)
         all_events.append(event)
 
diff --git a/compose/project.py b/compose/project.py
index d14941e72..cd88b2988 100644
--- a/compose/project.py
+++ b/compose/project.py
@@ -2,9 +2,9 @@ from __future__ import absolute_import
 from __future__ import unicode_literals
 
 import logging
-from functools import reduce
 
 from docker.errors import APIError
+from six.moves import reduce
 
 from .config import ConfigurationError
 from .config import get_service_name_from_net
diff --git a/requirements-dev.txt b/requirements-dev.txt
new file mode 100644
index 000000000..cc9842253
--- /dev/null
+++ b/requirements-dev.txt
@@ -0,0 +1,2 @@
+flake8
+tox
diff --git a/script/test-versions b/script/test-versions
index d67a6f5e1..e2102e449 100755
--- a/script/test-versions
+++ b/script/test-versions
@@ -24,5 +24,5 @@ for version in $DOCKER_VERSIONS; do
     -e "DOCKER_DAEMON_ARGS" \
     --entrypoint="script/dind" \
     "$TAG" \
-    script/wrapdocker nosetests --with-coverage --cover-branches --cover-package=compose --cover-erase --cover-html-dir=coverage-html --cover-html "$@"
+    script/wrapdocker tox "$@"
 done
diff --git a/setup.py b/setup.py
index b7fd44034..cdb5686cf 100644
--- a/setup.py
+++ b/setup.py
@@ -48,7 +48,7 @@ tests_require = [
 ]
 
 
-if sys.version_info < (2, 6):
+if sys.version_info < (2, 7):
     tests_require.append('unittest2')
 if sys.version_info[:1] < (3,):
     tests_require.append('pyinstaller')
diff --git a/tests/integration/cli_test.py b/tests/integration/cli_test.py
index 609370a3e..9552bf6a6 100644
--- a/tests/integration/cli_test.py
+++ b/tests/integration/cli_test.py
@@ -275,7 +275,7 @@ class CLITestCase(DockerClientTestCase):
         self.command.base_dir = 'tests/fixtures/user-composefile'
         name = 'service'
         user = 'sshd'
-        args = ['run', '--user={}'.format(user), name]
+        args = ['run', '--user={user}'.format(user=user), name]
         self.command.dispatch(args, None)
         service = self.project.get_service(name)
         container = service.containers(stopped=True, one_off=True)[0]
diff --git a/tests/integration/service_test.py b/tests/integration/service_test.py
index fe54d4ae2..effd356df 100644
--- a/tests/integration/service_test.py
+++ b/tests/integration/service_test.py
@@ -358,7 +358,7 @@ class ServiceTest(DockerClientTestCase):
         )
 
         old_container = create_and_start_container(service)
-        self.assertEqual(old_container.get('Volumes').keys(), ['/data'])
+        self.assertEqual(list(old_container.get('Volumes').keys()), ['/data'])
         volume_path = old_container.get('Volumes')['/data']
 
         new_container, = service.execute_convergence_plan(
diff --git a/tests/unit/progress_stream_test.py b/tests/unit/progress_stream_test.py
index 5674f4e4e..e38a74435 100644
--- a/tests/unit/progress_stream_test.py
+++ b/tests/unit/progress_stream_test.py
@@ -8,7 +8,6 @@ from tests import unittest
 
 
 class ProgressStreamTestCase(unittest.TestCase):
-
     def test_stream_output(self):
         output = [
             '{"status": "Downloading", "progressDetail": {"current": '
diff --git a/tox.ini b/tox.ini
index 35523a969..2e3edd2a5 100644
--- a/tox.ini
+++ b/tox.ini
@@ -8,7 +8,7 @@ passenv =
 deps =
     -rrequirements.txt
 commands =
-    nosetests -v {posargs}
+    nosetests -v --with-coverage --cover-branches --cover-package=compose --cover-erase --cover-html-dir=coverage-html --cover-html {posargs}
     flake8 compose tests setup.py
 
 [testenv:pre-commit]
@@ -38,6 +38,7 @@ deps =
 [testenv:py34]
 deps = {[testenv:py33]deps}
 
+# TODO pypy3
 
 [flake8]
 # ignore line-length for now