diff --git a/.circleci/config.yml b/.circleci/config.yml
index 030046ed..fb2e77aa 100644
--- a/.circleci/config.yml
+++ b/.circleci/config.yml
@@ -10,7 +10,7 @@ jobs:
       - image: dataders/pyodbc:1.4
     steps:
       - checkout
-      - run: tox -e unit
+      - run: tox -- -v test/unit
   integration-sqlserver: &sqlserver
     docker:
       - image: dataders/pyodbc:1.4
@@ -19,12 +19,15 @@ jobs:
           ACCEPT_EULA: 'yes'
           MSSQL_SA_PASSWORD: 5atyaNadella
           MSSQL_IP_ADDRESS: 0.0.0.0
-    executor: python/default
     steps:
       - run: &install-git
           name: "TEMP: install Git"
           command: |
             apt-get install -y git
+      - run: &upgrade-dbt
+          name: "TEMP: upgrade dbt"  # hot fix: dbt is installed in the pyodbc docker image, it should be removed there
+          command: |
+            pip install --upgrade dbt
       - checkout
       - run:
           name: wait for SQL Server container to set up
@@ -32,18 +35,18 @@ jobs:
       - run:
           name: test connection via SQL CMD
           command: sqlcmd -S 'localhost,1433' -U sa -P 5atyaNadella -Q 'create database blog'
-      - python/install-packages:
-          pkg-manager: pip
       - run:
           name: Test adapter on SQL Server against dbt-adapter-tests
-          command: tox -e integration-sqlserver
+          command: tox -- -v test/integration/sqlserver.dbtspec
   connection-sqlserver:
     <<: *sqlserver
     steps:
       - run: *install-git
+      - run: *upgrade-dbt
       - checkout
-      - python/install-packages:
-          pkg-manager: pip
+      - run: &install-dbt-sqlserver
+          name: "install dbt-sqlserver"
+          command: python setup.py install
       - run:
           name: wait for SQL Server container to set up
           command: sleep 30
@@ -51,8 +54,7 @@ jobs:
           name: prep for connecting
           command: |
             mkdir -p ~/.dbt
-            cd test/integration
-            cp sample.profiles.yml ~/.dbt/profiles.yml
+            cp test/integration/sample.profiles.yml ~/.dbt/profiles.yml
       - run:
           name: cnxn -- SQL Server - local sql cred
           command: |
@@ -63,28 +65,15 @@ jobs:
           command: |
             cd test/integration
             dbt compile --target sqlserver_local_encrypt
-      - run:
-          name: cnxn -- Azure SQL - SQL cred
-          command: |
-            cd test/integration
-            dbt compile --target azuresql_sqlcred
 
-      # TODO drop support for this method in favor of
-      # https://github.com/dbt-msft/dbt-sqlserver/pull/71
-      # - run:
-      #     name: cnxn -- Azure SQL - AAD Password
-      #     command: |
-      #       cd test/integration
-      #       dbt compile --target azuresql_aad
   integration-azuresql:
     docker:
       - image: dataders/pyodbc:1.4
-    executor: python/default
     steps:
       - run: *install-git
+      - run: *upgrade-dbt
       - checkout
-      - python/install-packages:
-          pkg-manager: pip
+      - run: *install-dbt-sqlserver
       - run:
           name: wake up serverless db
           command: |
@@ -92,16 +81,15 @@ jobs:
             dbt debug --target azuresql_sqlcred
       - run:
           name: Test adapter on Azure SQL against dbt-adapter-tests
-          command: tox -e integration-azuresql
+          command: tox -- -v test/integration/azuresql.dbtspec
   connection-azuresql:
     docker:
       - image: dataders/pyodbc:1.4
-    executor: python/default
     steps:
       - run: *install-git
+      - run: *upgrade-dbt
       - checkout
-      - python/install-packages:
-          pkg-manager: pip
+      - run: *install-dbt-sqlserver
       - run:
           name: install gnupg
           command: apt-get install gnupg -y
diff --git a/CHANGELOG.md b/CHANGELOG.md
index ab8157d7..3a44001f 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -12,6 +12,7 @@
 #### Under the hood:
 - This adapter has separate CI tests to ensure all the connection methods are working as they should [#75](https://github.com/dbt-msft/dbt-sqlserver/pull/75)
 - This adapter has a CI job for running unit tests [#103](https://github.com/dbt-msft/dbt-sqlserver/pull/103)
+- Update the tox setup [#105](https://github.com/dbt-msft/dbt-sqlserver/pull/105)
 
 ### v0.18.1
 #### New Features:
diff --git a/dev_requirements.txt b/dev_requirements.txt
new file mode 100644
index 00000000..34409954
--- /dev/null
+++ b/dev_requirements.txt
@@ -0,0 +1,5 @@
+black==20.8b1
+pytest-dbt-adapter==0.4.0
+pytest==6.2.2
+tox==3.2.0
+flake8==3.5.0
diff --git a/requirements.txt b/requirements.txt
deleted file mode 100644
index 22613703..00000000
--- a/requirements.txt
+++ /dev/null
@@ -1,10 +0,0 @@
-dbt-core==0.19.0
-pyodbc>=4.0.27
-azure-identity>=1.4.0
-black~=20.8b1
-pytest-dbt-adapter~=0.4.0
-pytest>=6.2.0
-tox==3.2.0
-flake8>=3.5.0
-certifi==2020.6.20
-.
diff --git a/setup.py b/setup.py
index 68ba819a..3b5e7560 100644
--- a/setup.py
+++ b/setup.py
@@ -57,8 +57,8 @@ def _dbt_sqlserver_version():
         ]
     },
     install_requires=[
-        'dbt-core~=0.19.0',
+        "dbt-core~=0.19.0",
         "pyodbc>=4.0.27",
         "azure-identity>=1.4.0",
     ]
-)
\ No newline at end of file
+)
diff --git a/tox.ini b/tox.ini
index b449562b..7100edd5 100644
--- a/tox.ini
+++ b/tox.ini
@@ -1,22 +1,13 @@
 [tox]
-skipsdist = True
-envlist = unit, flake8, integration-sqlserver, integration-synapse
+envlist = py37
 
-[testenv:integration-sqlserver]
-basepython = python3
-commands = /bin/bash -c '{envpython} -m pytest -v test/integration/sqlserver.dbtspec'
+[testenv]
+commands = pytest {posargs}
+passenv =
+  DBT_AZURESQL_DB
+  DBT_AZURESQL_SERVER
+  DBT_AZURESQL_PWD
+  DBT_AZURESQL_UID
 deps =
-    -r {toxinidir}/requirements.txt
-
-[testenv:integration-azuresql]
-basepython = python3
-commands = /bin/bash -c '{envpython} -m pytest -v test/integration/azuresql.dbtspec'
-passenv = DBT_AZURESQL_DB DBT_AZURESQL_PWD DBT_AZURESQL_SERVER DBT_AZURESQL_UID
-deps =
-    -r {toxinidir}/requirements.txt
-
-[testenv:unit]
-basepython = python3
-commands = /bin/bash -c '{envpython} -m pytest test/unit'
-deps =
-    -r {toxinidir}/requirements.txt
+  pytest~=6.2.2
+  pytest-dbt-adapter~=0.4.0