diff --git a/aodh/tests/api/__init__.py b/aodh/tests/functional/api/__init__.py
similarity index 99%
rename from aodh/tests/api/__init__.py
rename to aodh/tests/functional/api/__init__.py
index a9cf235a9..62980f8ac 100644
--- a/aodh/tests/api/__init__.py
+++ b/aodh/tests/functional/api/__init__.py
@@ -21,7 +21,7 @@ import pecan
 import pecan.testing
 
 from aodh import service
-from aodh.tests import db as db_test_base
+from aodh.tests.functional import db as db_test_base
 
 
 class FunctionalTest(db_test_base.TestBase):
diff --git a/aodh/tests/api/test_app.py b/aodh/tests/functional/api/test_app.py
similarity index 100%
rename from aodh/tests/api/test_app.py
rename to aodh/tests/functional/api/test_app.py
diff --git a/aodh/tests/api/test_versions.py b/aodh/tests/functional/api/test_versions.py
similarity index 97%
rename from aodh/tests/api/test_versions.py
rename to aodh/tests/functional/api/test_versions.py
index b76f72988..5dd8c251d 100644
--- a/aodh/tests/api/test_versions.py
+++ b/aodh/tests/functional/api/test_versions.py
@@ -13,7 +13,7 @@
 # See the License for the specific language governing permissions and
 # limitations under the License.
 
-from aodh.tests import api
+from aodh.tests.functional import api
 
 V2_MEDIA_TYPES = [
     {
diff --git a/aodh/tests/api/v2/__init__.py b/aodh/tests/functional/api/v2/__init__.py
similarity index 94%
rename from aodh/tests/api/v2/__init__.py
rename to aodh/tests/functional/api/v2/__init__.py
index 71bd7354e..7f9e7354a 100644
--- a/aodh/tests/api/v2/__init__.py
+++ b/aodh/tests/functional/api/v2/__init__.py
@@ -13,7 +13,7 @@
 # License for the specific language governing permissions and limitations
 # under the License.
 
-from aodh.tests import api
+from aodh.tests.functional import api
 
 
 class FunctionalTest(api.FunctionalTest):
diff --git a/aodh/tests/api/v2/test_acl_scenarios.py b/aodh/tests/functional/api/v2/test_acl_scenarios.py
similarity index 95%
rename from aodh/tests/api/v2/test_acl_scenarios.py
rename to aodh/tests/functional/api/v2/test_acl_scenarios.py
index bdc4a7ed7..8cf5da196 100644
--- a/aodh/tests/api/v2/test_acl_scenarios.py
+++ b/aodh/tests/functional/api/v2/test_acl_scenarios.py
@@ -19,8 +19,8 @@ import mock
 import webtest
 
 from aodh.api import app
-from aodh.tests.api import v2
-from aodh.tests import db as tests_db
+from aodh.tests.functional.api import v2
+from aodh.tests.functional import db as tests_db
 
 
 class TestAPIACL(v2.FunctionalTest,
diff --git a/aodh/tests/api/v2/test_alarm_scenarios.py b/aodh/tests/functional/api/v2/test_alarm_scenarios.py
similarity index 99%
rename from aodh/tests/api/v2/test_alarm_scenarios.py
rename to aodh/tests/functional/api/v2/test_alarm_scenarios.py
index fda53bd71..eb6415874 100644
--- a/aodh/tests/api/v2/test_alarm_scenarios.py
+++ b/aodh/tests/functional/api/v2/test_alarm_scenarios.py
@@ -27,9 +27,9 @@ import six.moves.urllib.parse as urlparse
 
 from aodh import messaging
 from aodh.storage import models
-from aodh.tests.api import v2
 from aodh.tests import constants
-from aodh.tests import db as tests_db
+from aodh.tests.functional.api import v2
+from aodh.tests.functional import db as tests_db
 
 
 def default_alarms(auth_headers):
diff --git a/aodh/tests/api/v2/test_app.py b/aodh/tests/functional/api/v2/test_app.py
similarity index 99%
rename from aodh/tests/api/v2/test_app.py
rename to aodh/tests/functional/api/v2/test_app.py
index 86a012679..9a78f1121 100644
--- a/aodh/tests/api/v2/test_app.py
+++ b/aodh/tests/functional/api/v2/test_app.py
@@ -22,7 +22,7 @@ import six
 import wsme
 
 from aodh import i18n
-from aodh.tests.api import v2
+from aodh.tests.functional.api import v2
 
 
 class TestApiMiddleware(v2.FunctionalTest):
diff --git a/aodh/tests/api/v2/test_capabilities.py b/aodh/tests/functional/api/v2/test_capabilities.py
similarity index 92%
rename from aodh/tests/api/v2/test_capabilities.py
rename to aodh/tests/functional/api/v2/test_capabilities.py
index 2da573de3..775f4dbcf 100644
--- a/aodh/tests/api/v2/test_capabilities.py
+++ b/aodh/tests/functional/api/v2/test_capabilities.py
@@ -17,8 +17,8 @@
 
 import testscenarios
 
-from aodh.tests.api import v2 as tests_api
-from aodh.tests import db as tests_db
+from aodh.tests.functional.api import v2 as tests_api
+from aodh.tests.functional import db as tests_db
 
 load_tests = testscenarios.load_tests_apply_scenarios
 
diff --git a/aodh/tests/api/v2/test_complex_query.py b/aodh/tests/functional/api/v2/test_complex_query.py
similarity index 100%
rename from aodh/tests/api/v2/test_complex_query.py
rename to aodh/tests/functional/api/v2/test_complex_query.py
diff --git a/aodh/tests/api/v2/test_complex_query_scenarios.py b/aodh/tests/functional/api/v2/test_complex_query_scenarios.py
similarity index 99%
rename from aodh/tests/api/v2/test_complex_query_scenarios.py
rename to aodh/tests/functional/api/v2/test_complex_query_scenarios.py
index c46bde0a7..a839f1f7d 100644
--- a/aodh/tests/api/v2/test_complex_query_scenarios.py
+++ b/aodh/tests/functional/api/v2/test_complex_query_scenarios.py
@@ -23,8 +23,8 @@ import datetime
 from oslo_utils import timeutils
 
 from aodh.storage import models
-from aodh.tests.api import v2 as tests_api
-from aodh.tests import db as tests_db
+from aodh.tests.functional.api import v2 as tests_api
+from aodh.tests.functional import db as tests_db
 
 
 admin_header = {"X-Roles": "admin",
diff --git a/aodh/tests/api/v2/test_query.py b/aodh/tests/functional/api/v2/test_query.py
similarity index 100%
rename from aodh/tests/api/v2/test_query.py
rename to aodh/tests/functional/api/v2/test_query.py
diff --git a/aodh/tests/api/v2/test_wsme_custom_type.py b/aodh/tests/functional/api/v2/test_wsme_custom_type.py
similarity index 100%
rename from aodh/tests/api/v2/test_wsme_custom_type.py
rename to aodh/tests/functional/api/v2/test_wsme_custom_type.py
diff --git a/aodh/tests/db.py b/aodh/tests/functional/db.py
similarity index 100%
rename from aodh/tests/db.py
rename to aodh/tests/functional/db.py
diff --git a/aodh/tests/gabbi/fixtures.py b/aodh/tests/functional/gabbi/fixtures.py
similarity index 100%
rename from aodh/tests/gabbi/fixtures.py
rename to aodh/tests/functional/gabbi/fixtures.py
diff --git a/aodh/tests/functional/gabbi/gabbits-live/alarming.yaml b/aodh/tests/functional/gabbi/gabbits-live/alarms.yaml
similarity index 100%
rename from aodh/tests/functional/gabbi/gabbits-live/alarming.yaml
rename to aodh/tests/functional/gabbi/gabbits-live/alarms.yaml
diff --git a/aodh/tests/gabbi/gabbits/alarms.yaml b/aodh/tests/functional/gabbi/gabbits/alarms.yaml
similarity index 100%
rename from aodh/tests/gabbi/gabbits/alarms.yaml
rename to aodh/tests/functional/gabbi/gabbits/alarms.yaml
diff --git a/aodh/tests/gabbi/gabbits/basic.yaml b/aodh/tests/functional/gabbi/gabbits/basic.yaml
similarity index 100%
rename from aodh/tests/gabbi/gabbits/basic.yaml
rename to aodh/tests/functional/gabbi/gabbits/basic.yaml
diff --git a/aodh/tests/gabbi/gabbits/capabilities.yaml b/aodh/tests/functional/gabbi/gabbits/capabilities.yaml
similarity index 100%
rename from aodh/tests/gabbi/gabbits/capabilities.yaml
rename to aodh/tests/functional/gabbi/gabbits/capabilities.yaml
diff --git a/aodh/tests/gabbi/test_gabbi.py b/aodh/tests/functional/gabbi/test_gabbi.py
similarity index 94%
rename from aodh/tests/gabbi/test_gabbi.py
rename to aodh/tests/functional/gabbi/test_gabbi.py
index 004f79587..284530cee 100644
--- a/aodh/tests/gabbi/test_gabbi.py
+++ b/aodh/tests/functional/gabbi/test_gabbi.py
@@ -23,7 +23,7 @@ import os
 from gabbi import driver
 
 from aodh.api import app
-from aodh.tests.gabbi import fixtures as fixture_module
+from aodh.tests.functional.gabbi import fixtures as fixture_module
 
 
 TESTS_DIR = 'gabbits'
diff --git a/aodh/tests/functional/gabbi/test_gabbi_live.py b/aodh/tests/functional/gabbi/test_gabbi_live.py
index af72a84de..ff6dfa1d3 100644
--- a/aodh/tests/functional/gabbi/test_gabbi_live.py
+++ b/aodh/tests/functional/gabbi/test_gabbi_live.py
@@ -13,7 +13,12 @@
 # License for the specific language governing permissions and limitations
 # under the License.
 
-"""A test module to exercise the Gnocchi API with gabbi."""
+"""
+A test module to exercise the Gnocchi API with gabbi.
+
+This is designed to run against a real running web server (started by
+devstack).
+"""
 
 import os
 
diff --git a/aodh/tests/gabbi/__init__.py b/aodh/tests/functional/storage/__init__.py
similarity index 100%
rename from aodh/tests/gabbi/__init__.py
rename to aodh/tests/functional/storage/__init__.py
diff --git a/aodh/tests/storage/__init__.py b/aodh/tests/functional/storage/sqlalchemy/__init__.py
similarity index 100%
rename from aodh/tests/storage/__init__.py
rename to aodh/tests/functional/storage/sqlalchemy/__init__.py
diff --git a/aodh/tests/storage/sqlalchemy/test_migrations.py b/aodh/tests/functional/storage/sqlalchemy/test_migrations.py
similarity index 96%
rename from aodh/tests/storage/sqlalchemy/test_migrations.py
rename to aodh/tests/functional/storage/sqlalchemy/test_migrations.py
index 52ae3cce6..e3f184e67 100644
--- a/aodh/tests/storage/sqlalchemy/test_migrations.py
+++ b/aodh/tests/functional/storage/sqlalchemy/test_migrations.py
@@ -20,7 +20,7 @@ import six
 
 from aodh.storage.sqlalchemy import models
 from aodh.tests import base
-from aodh.tests import db as tests_db
+from aodh.tests.functional import db as tests_db
 
 
 class ABCSkip(base.SkipNotImplementedMeta, abc.ABCMeta):
diff --git a/aodh/tests/storage/sqlalchemy/test_models.py b/aodh/tests/functional/storage/sqlalchemy/test_models.py
similarity index 100%
rename from aodh/tests/storage/sqlalchemy/test_models.py
rename to aodh/tests/functional/storage/sqlalchemy/test_models.py
diff --git a/aodh/tests/storage/test_get_connection.py b/aodh/tests/functional/storage/test_get_connection.py
similarity index 100%
rename from aodh/tests/storage/test_get_connection.py
rename to aodh/tests/functional/storage/test_get_connection.py
diff --git a/aodh/tests/storage/test_impl_hbase.py b/aodh/tests/functional/storage/test_impl_hbase.py
similarity index 97%
rename from aodh/tests/storage/test_impl_hbase.py
rename to aodh/tests/functional/storage/test_impl_hbase.py
index 0cfa71af0..020490b08 100644
--- a/aodh/tests/storage/test_impl_hbase.py
+++ b/aodh/tests/functional/storage/test_impl_hbase.py
@@ -30,7 +30,7 @@ except ImportError:
 
 from aodh.storage import impl_hbase
 from aodh.tests import base as test_base
-from aodh.tests import db as tests_db
+from aodh.tests.functional import db as tests_db
 
 
 class ConnectionTest(tests_db.TestBase,
diff --git a/aodh/tests/storage/test_impl_log.py b/aodh/tests/functional/storage/test_impl_log.py
similarity index 100%
rename from aodh/tests/storage/test_impl_log.py
rename to aodh/tests/functional/storage/test_impl_log.py
diff --git a/aodh/tests/storage/test_impl_mongodb.py b/aodh/tests/functional/storage/test_impl_mongodb.py
similarity index 98%
rename from aodh/tests/storage/test_impl_mongodb.py
rename to aodh/tests/functional/storage/test_impl_mongodb.py
index 6f55c3228..e106241e5 100644
--- a/aodh/tests/storage/test_impl_mongodb.py
+++ b/aodh/tests/functional/storage/test_impl_mongodb.py
@@ -23,7 +23,7 @@
 
 from aodh.storage import impl_mongodb
 from aodh.tests import base as test_base
-from aodh.tests import db as tests_db
+from aodh.tests.functional import db as tests_db
 
 
 @tests_db.run_with('mongodb')
diff --git a/aodh/tests/storage/test_impl_sqlalchemy.py b/aodh/tests/functional/storage/test_impl_sqlalchemy.py
similarity index 100%
rename from aodh/tests/storage/test_impl_sqlalchemy.py
rename to aodh/tests/functional/storage/test_impl_sqlalchemy.py
diff --git a/aodh/tests/storage/test_storage_scenarios.py b/aodh/tests/functional/storage/test_storage_scenarios.py
similarity index 99%
rename from aodh/tests/storage/test_storage_scenarios.py
rename to aodh/tests/functional/storage/test_storage_scenarios.py
index a5e9be27b..c1c048270 100644
--- a/aodh/tests/storage/test_storage_scenarios.py
+++ b/aodh/tests/functional/storage/test_storage_scenarios.py
@@ -22,7 +22,7 @@ from oslo_utils import timeutils
 
 from aodh.storage import models as alarm_models
 from aodh.tests import constants
-from aodh.tests import db as tests_db
+from aodh.tests.functional import db as tests_db
 
 
 class DBTestBase(tests_db.TestBase):
diff --git a/aodh/tests/functional/test_empty.py b/aodh/tests/functional/test_empty.py
deleted file mode 100644
index 043eaa6bd..000000000
--- a/aodh/tests/functional/test_empty.py
+++ /dev/null
@@ -1,23 +0,0 @@
-#
-# 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.
-
-""" This test is written to avoid failing running the functional test job
-caused by `subunit-trace -f` with empty testr output
-in ./tools/pretty-tox.sh"""
-
-from oslotest import base
-
-
-class TestEmpty(base.BaseTestCase):
-    def test_empty(self):
-        pass
diff --git a/aodh/tests/storage/sqlalchemy/__init__.py b/aodh/tests/unit/__init__.py
similarity index 100%
rename from aodh/tests/storage/sqlalchemy/__init__.py
rename to aodh/tests/unit/__init__.py
diff --git a/aodh/tests/test_bin.py b/aodh/tests/unit/test_bin.py
similarity index 100%
rename from aodh/tests/test_bin.py
rename to aodh/tests/unit/test_bin.py
diff --git a/aodh/tests/test_coordination.py b/aodh/tests/unit/test_coordination.py
similarity index 100%
rename from aodh/tests/test_coordination.py
rename to aodh/tests/unit/test_coordination.py
diff --git a/aodh/tests/test_evaluator.py b/aodh/tests/unit/test_evaluator.py
similarity index 100%
rename from aodh/tests/test_evaluator.py
rename to aodh/tests/unit/test_evaluator.py
diff --git a/aodh/tests/test_event.py b/aodh/tests/unit/test_event.py
similarity index 100%
rename from aodh/tests/test_event.py
rename to aodh/tests/unit/test_event.py
diff --git a/aodh/tests/test_messaging.py b/aodh/tests/unit/test_messaging.py
similarity index 100%
rename from aodh/tests/test_messaging.py
rename to aodh/tests/unit/test_messaging.py
diff --git a/aodh/tests/test_notifier.py b/aodh/tests/unit/test_notifier.py
similarity index 100%
rename from aodh/tests/test_notifier.py
rename to aodh/tests/unit/test_notifier.py
diff --git a/aodh/tests/test_rpc.py b/aodh/tests/unit/test_rpc.py
similarity index 100%
rename from aodh/tests/test_rpc.py
rename to aodh/tests/unit/test_rpc.py
diff --git a/aodh/tests/test_utils.py b/aodh/tests/unit/test_utils.py
similarity index 100%
rename from aodh/tests/test_utils.py
rename to aodh/tests/unit/test_utils.py
diff --git a/tox.ini b/tox.ini
index 448c2989f..8c3f9c57c 100644
--- a/tox.ini
+++ b/tox.ini
@@ -10,11 +10,10 @@ install_command = pip install -U {opts} {packages}
 usedevelop = True
 setenv = VIRTUAL_ENV={envdir}
          EVENTLET_NO_GREENDNS=yes
+         OS_TEST_PATH=aodh/tests/unit
 passenv = OS_TEST_TIMEOUT OS_STDOUT_CAPTURE OS_STDERR_CAPTURE OS_LOG_CAPTURE
 commands =
-   bash -x {toxinidir}/setup-test-env-mongodb.sh python setup.py testr --slowest --testr-args="{posargs}"
-   bash -x {toxinidir}/setup-test-env-mysql.sh python setup.py testr --slowest --testr-args="{posargs}"
-   bash -x {toxinidir}/setup-test-env-postgresql.sh python setup.py testr --slowest --testr-args="{posargs}"
+   python setup.py testr --slowest --testr-args="{posargs}"
    {toxinidir}/generate-config-file.sh
 whitelist_externals = bash
 
@@ -23,14 +22,17 @@ whitelist_externals = bash
 # in "py-<backend>" jobs
 
 [testenv:py27-mongodb]
+setenv = OS_TEST_PATH=aodh/tests/functional/
 commands =
    bash -x {toxinidir}/setup-test-env-mongodb.sh python setup.py testr --slowest --testr-args="{posargs}"
 
 [testenv:py27-mysql]
+setenv = OS_TEST_PATH=aodh/tests/functional/
 commands =
    bash -x {toxinidir}/setup-test-env-mysql.sh python setup.py testr --slowest --testr-args="{posargs}"
 
 [testenv:py27-pgsql]
+setenv = OS_TEST_PATH=aodh/tests/functional/
 commands =
    bash -x {toxinidir}/setup-test-env-postgresql.sh python setup.py testr --slowest --testr-args="{posargs}"
 
@@ -74,12 +76,18 @@ commands = {posargs}
 setenv = PYTHONHASHSEED=0
 
 [testenv:debug]
+commands = bash -x oslo_debug_helper {posargs}
+
+[testenv:debug-mongodb]
+setenv = OS_TEST_PATH=aodh/tests/functional/
 commands = bash -x {toxinidir}/setup-test-env-mongodb.sh oslo_debug_helper {posargs}
 
 [testenv:debug-mysql]
+setenv = OS_TEST_PATH=aodh/tests/functional/
 commands = bash -x {toxinidir}/setup-test-env-mysql.sh oslo_debug_helper {posargs}
 
 [testenv:debug-pgsql]
+setenv = OS_TEST_PATH=aodh/tests/functional/
 commands = bash -x {toxinidir}/setup-test-env-postgresql.sh oslo_debug_helper {posargs}
 
 [flake8]