diff --git a/readthedocs/rtd_tests/fixtures/spec/v2/schema.yml b/readthedocs/rtd_tests/fixtures/spec/v2/schema.yml
index d192f8c3b76..75022c6c404 100644
--- a/readthedocs/rtd_tests/fixtures/spec/v2/schema.yml
+++ b/readthedocs/rtd_tests/fixtures/spec/v2/schema.yml
@@ -53,22 +53,30 @@ python:
   # Default: '3'
   version: enum('2', '2.7', '3', '3.3', '3.4', '3.5', '3.6', required=False)
 
+  # Give the virtual environment access to the global site-packages dir
+  # Default: false | project config
+  system_packages: bool(required=False)
+
+  # Installation of packages and requiremens
+  install: list(any(include('python-install-requirements'), include('python-install')), required=False)
+
+python-install-requirements:
   # The path to the requirements file from the root of the project
-  # Default: null | project config
-  requirements: path(required=False)
+  requirements: path()
 
-  # Install the project using python setup.py install or pip
-  # Default: null | project config
-  install: enum('pip', 'setup.py', required=False)
+python-install:
+  # The path to the project to be installed
+  path: path()
 
-  # Extra requirements sections to install in addition to the package dependencies
+  # Install using python setup.py install or pip
+  # Default: pip
+  method: enum('pip', 'setuptools', required=False)
+
+  # Extra requirements sections to install in addition to the package dependencies.
+  # Only valid when `method` is `pip`.
   # Default: []
   extra_requirements: list(str(), required=False)
 
-  # Give the virtual environment access to the global site-packages dir
-  # Default: false | project config
-  system_packages: bool(required=False)
-
 sphinx:
   # The builder type for the sphinx documentation
   # Default: 'html'
diff --git a/readthedocs/rtd_tests/tests/test_build_config.py b/readthedocs/rtd_tests/tests/test_build_config.py
index 11afa046711..880b4fae686 100644
--- a/readthedocs/rtd_tests/tests/test_build_config.py
+++ b/readthedocs/rtd_tests/tests/test_build_config.py
@@ -74,7 +74,7 @@ def assertInvalidConfig(tmpdir, content, msgs=()):
     with pytest.raises(ValueError) as excinfo:
         validate_schema(file)
     for msg in msgs:
-        msg in str(excinfo.value)
+        assert msg in str(excinfo.value)
 
 
 def test_minimal_config(tmpdir):
@@ -250,16 +250,18 @@ def test_python_requirements(tmpdir):
     content = '''
 version: "2"
 python:
-  requirements: docs/requirements.txt
+  install:
+    - requirements: docs/requirements.txt
     '''
     assertValidConfig(tmpdir, content)
 
 
-def test_python_requirements_invalid(tmpdir):
+def test_python_install_requirements(tmpdir):
     content = '''
 version: "2"
 python:
-  requirements: 23
+  install:
+    - requirements: 23
     '''
     assertInvalidConfig(
         tmpdir,
@@ -268,22 +270,15 @@ def test_python_requirements_invalid(tmpdir):
     )
 
 
-def test_python_requirements_null(tmpdir):
-    content = '''
-version: "2"
-python:
-  requirements: null
-    '''
-    assertValidConfig(tmpdir, content)
-
-
-@pytest.mark.parametrize('value', ['pip', 'setup.py'])
+@pytest.mark.parametrize('value', ['pip', 'setuptools'])
 def test_python_install(tmpdir, value):
     content = '''
 version: "2"
 python:
   version: "3.6"
-  install: {value}
+  install:
+    - path: .
+      method: {value}
     '''
     assertValidConfig(tmpdir, content.format(value=value))
 
@@ -297,7 +292,7 @@ def test_python_install_invalid(tmpdir):
     assertInvalidConfig(
         tmpdir,
         content,
-        ["python.install: 'guido' not in"]
+        ["python.install: 'guido' is not a list"]
     )
 
 
@@ -310,38 +305,27 @@ def test_python_install_null(tmpdir):
     assertValidConfig(tmpdir, content)
 
 
-def test_python_extra_requirements(tmpdir):
+def test_python_install_extra_requirements(tmpdir):
     content = '''
 version: "2"
 python:
-  extra_requirements:
-    - test
-    - dev
+  install:
+    - path: .
+      extra_requirements:
+        - test
+        - dev
     '''
     assertValidConfig(tmpdir, content)
 
 
-def test_python_extra_requirements_invalid(tmpdir):
-    content = '''
-version: "2"
-python:
-  extra_requirements:
-    - 1
-    - dev
-    '''
-    assertInvalidConfig(
-        tmpdir,
-        content,
-        ["'1' is not a str"]
-    )
-
-
 @pytest.mark.parametrize('value', ['', 'null', '[]'])
 def test_python_extra_requirements_empty(tmpdir, value):
     content = '''
 version: "2"
 python:
-  extra_requirements: {value}
+  install:
+    - path: .
+      extra_requirements: {value}
     '''
     assertValidConfig(tmpdir, content.format(value=value))