diff --git a/run_tests b/run_functional_tests
similarity index 65%
rename from run_tests
rename to run_functional_tests
index b800038..5208de8 100755
--- a/run_tests
+++ b/run_functional_tests
@@ -1,10 +1,9 @@
 #!/bin/bash
 #
-# Simple script to run all tests with multiple test servers
-# across all supported Python versions
+# Simple script to run all functional tests with multiple test servers
 #
 
-# Default test server running latest self-hosted site
+# Test server running latest self-hosted site
 
 tput setaf 3
 echo
@@ -12,7 +11,7 @@ echo "Testing latest self-hosted site..."
 tput sgr0
 export OPENPHOTO_TEST_CONFIG=test
 unset OPENPHOTO_TEST_SERVER_API
-tox $@
+python -m unittest discover --catch tests/functional
 
 # Test server running APIv1 OpenPhoto instance
 tput setaf 3
@@ -21,7 +20,7 @@ echo "Testing APIv1 self-hosted site..."
 tput sgr0
 export OPENPHOTO_TEST_CONFIG=test-apiv1
 export OPENPHOTO_TEST_SERVER_API=1
-tox $@
+python -m unittest discover --catch tests/functional
 
 # Test account on hosted trovebox.com site
 tput setaf 3
@@ -30,5 +29,5 @@ echo "Testing latest hosted site..."
 tput sgr0
 export OPENPHOTO_TEST_CONFIG=test-hosted
 unset OPENPHOTO_TEST_SERVER_API
-tox $@
+python -m unittest discover --catch tests/functional
 
diff --git a/tests/test_photo1.jpg b/tests/data/test_photo1.jpg
similarity index 100%
rename from tests/test_photo1.jpg
rename to tests/data/test_photo1.jpg
diff --git a/tests/test_photo2.jpg b/tests/data/test_photo2.jpg
similarity index 100%
rename from tests/test_photo2.jpg
rename to tests/data/test_photo2.jpg
diff --git a/tests/test_photo3.jpg b/tests/data/test_photo3.jpg
similarity index 100%
rename from tests/test_photo3.jpg
rename to tests/data/test_photo3.jpg
diff --git a/tests/api_versions/__init__.py b/tests/functional/__init__.py
similarity index 100%
rename from tests/api_versions/__init__.py
rename to tests/functional/__init__.py
diff --git a/tests/functional/api_versions/__init__.py b/tests/functional/api_versions/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/tests/api_versions/test_v1.py b/tests/functional/api_versions/test_v1.py
similarity index 74%
rename from tests/api_versions/test_v1.py
rename to tests/functional/api_versions/test_v1.py
index 92baabb..aa3c652 100644
--- a/tests/api_versions/test_v1.py
+++ b/tests/functional/api_versions/test_v1.py
@@ -1,4 +1,4 @@
-from tests import test_albums, test_photos, test_tags
+from tests.functional import test_albums, test_photos, test_tags
 
 class TestAlbumsV1(test_albums.TestAlbums):
     api_version = 1
diff --git a/tests/api_versions/test_v2.py b/tests/functional/api_versions/test_v2.py
similarity index 88%
rename from tests/api_versions/test_v2.py
rename to tests/functional/api_versions/test_v2.py
index 545e647..a2c425c 100644
--- a/tests/api_versions/test_v2.py
+++ b/tests/functional/api_versions/test_v2.py
@@ -2,7 +2,7 @@ try:
     import unittest2 as unittest
 except ImportError:
     import unittest
-from tests import test_base, test_albums, test_photos, test_tags
+from tests.functional import test_base, test_albums, test_photos, test_tags
 
 @unittest.skipIf(test_base.get_test_server_api() < 2,
                  "Don't test future API versions")
diff --git a/tests/test_albums.py b/tests/functional/test_albums.py
similarity index 97%
rename from tests/test_albums.py
rename to tests/functional/test_albums.py
index c48420e..95b28ab 100644
--- a/tests/test_albums.py
+++ b/tests/functional/test_albums.py
@@ -1,6 +1,6 @@
-import tests.test_base
+from tests.functional import test_base
 
-class TestAlbums(tests.test_base.TestBase):
+class TestAlbums(test_base.TestBase):
     testcase_name = "album API"
 
     def test_create_delete(self):
diff --git a/tests/test_base.py b/tests/functional/test_base.py
similarity index 96%
rename from tests/test_base.py
rename to tests/functional/test_base.py
index eb05caf..2c3926e 100644
--- a/tests/test_base.py
+++ b/tests/functional/test_base.py
@@ -128,13 +128,13 @@ class TestBase(unittest.TestCase):
         """ Upload three test photos """
         album = cls.client.album.create(cls.TEST_ALBUM)
         photos = [
-            cls.client.photo.upload("tests/test_photo1.jpg",
+            cls.client.photo.upload("tests/data/test_photo1.jpg",
                                     title=cls.TEST_TITLE,
                                     albums=album.id),
-            cls.client.photo.upload("tests/test_photo2.jpg",
+            cls.client.photo.upload("tests/data/test_photo2.jpg",
                                     title=cls.TEST_TITLE,
                                     albums=album.id),
-            cls.client.photo.upload("tests/test_photo3.jpg",
+            cls.client.photo.upload("tests/data/test_photo3.jpg",
                                     title=cls.TEST_TITLE,
                                     albums=album.id),
             ]
diff --git a/tests/test_framework.py b/tests/functional/test_framework.py
similarity index 93%
rename from tests/test_framework.py
rename to tests/functional/test_framework.py
index 6d34f73..788ac13 100644
--- a/tests/test_framework.py
+++ b/tests/functional/test_framework.py
@@ -1,9 +1,9 @@
 import logging
 
 import openphoto
-import tests.test_base
+from tests.functional import test_base
 
-class TestFramework(tests.test_base.TestBase):
+class TestFramework(test_base.TestBase):
     testcase_name = "framework"
 
     def setUp(self):
@@ -27,7 +27,7 @@ class TestFramework(tests.test_base.TestBase):
         """
         For all API versions >0, we get a generic hello world message
         """
-        for api_version in range(1, tests.test_base.get_test_server_api() + 1):
+        for api_version in range(1, test_base.get_test_server_api() + 1):
             client = openphoto.OpenPhoto(config_file=self.config_file,
                                          api_version=api_version)
             result = client.get("hello.json")
diff --git a/tests/test_photos.py b/tests/functional/test_photos.py
similarity index 94%
rename from tests/test_photos.py
rename to tests/functional/test_photos.py
index d0029a4..c6c9b57 100644
--- a/tests/test_photos.py
+++ b/tests/functional/test_photos.py
@@ -1,9 +1,9 @@
 from __future__ import unicode_literals
 
 import openphoto
-import tests.test_base
+from tests.functional import test_base
 
-class TestPhotos(tests.test_base.TestBase):
+class TestPhotos(test_base.TestBase):
     testcase_name = "photo API"
 
     def test_delete_upload(self):
@@ -19,11 +19,11 @@ class TestPhotos(tests.test_base.TestBase):
         self.assertEqual(self.client.photos.list(), [])
 
         # Re-upload the photos, one of them using Bas64 encoding
-        ret_val = self.client.photo.upload("tests/test_photo1.jpg",
+        ret_val = self.client.photo.upload("tests/data/test_photo1.jpg",
                                            title=self.TEST_TITLE)
-        self.client.photo.upload("tests/test_photo2.jpg",
+        self.client.photo.upload("tests/data/test_photo2.jpg",
                                  title=self.TEST_TITLE)
-        self.client.photo.upload_encoded("tests/test_photo3.jpg",
+        self.client.photo.upload_encoded("tests/data/test_photo3.jpg",
                                          title=self.TEST_TITLE)
 
         # Check there are now three photos with the correct titles
@@ -61,7 +61,7 @@ class TestPhotos(tests.test_base.TestBase):
         """ Ensure that duplicate photos are rejected """
         # Attempt to upload a duplicate
         with self.assertRaises(openphoto.OpenPhotoDuplicateError):
-            self.client.photo.upload("tests/test_photo1.jpg",
+            self.client.photo.upload("tests/data/test_photo1.jpg",
                                      title=self.TEST_TITLE)
 
         # Check there are still three photos
diff --git a/tests/test_tags.py b/tests/functional/test_tags.py
similarity index 96%
rename from tests/test_tags.py
rename to tests/functional/test_tags.py
index 40a577e..14ed6c0 100644
--- a/tests/test_tags.py
+++ b/tests/functional/test_tags.py
@@ -3,11 +3,11 @@ try:
 except ImportError:
     import unittest
 
-import tests.test_base
+from tests.functional import test_base
 
-@unittest.skipIf(tests.test_base.get_test_server_api() == 1,
+@unittest.skipIf(test_base.get_test_server_api() == 1,
                  "The tag API didn't work at v1 - see frontend issue #927")
-class TestTags(tests.test_base.TestBase):
+class TestTags(test_base.TestBase):
     testcase_name = "tag API"
 
     def test_create_delete(self, tag_id="create_tag"):
diff --git a/tests/test_config.py b/tests/unit/test_config.py
similarity index 100%
rename from tests/test_config.py
rename to tests/unit/test_config.py
diff --git a/tox.ini b/tox.ini
index 7f1f87f..5e5c469 100644
--- a/tox.ini
+++ b/tox.ini
@@ -2,10 +2,15 @@
 envlist = py26, py27, py33
 
 [testenv]
-commands = python -m unittest discover --catch
+commands = python -m unittest discover --catch tests/unit
+deps =
+    mock
+    httpretty
 
 [testenv:py26]
-commands = unit2 discover --catch
+commands = unit2 discover --catch tests/unit
 deps =
+    mock
+    httpretty
     unittest2
     discover