diff --git a/requirements.txt b/requirements.txt
deleted file mode 100644
--- a/requirements.txt
+++ /dev/null
@@ -1,3 +0,0 @@
-django>=1.5
-South
-django-braces
diff --git a/requirements/base.txt b/requirements/base.txt
new file mode 100644
--- /dev/null
+++ b/requirements/base.txt
@@ -0,0 +1,3 @@
+django>=1.5
+South
+django-braces
diff --git a/requirements/development.txt b/requirements/development.txt
new file mode 100644
--- /dev/null
+++ b/requirements/development.txt
@@ -0,0 +1,3 @@
+-r base.txt
+coverage
+django-discover-runner
diff --git a/requirements/production.txt b/requirements/production.txt
new file mode 100644
--- /dev/null
+++ b/requirements/production.txt
@@ -0,0 +1,1 @@
+-r base.txt
diff --git a/requirements/test.txt b/requirements/test.txt
new file mode 100644
--- /dev/null
+++ b/requirements/test.txt
@@ -0,0 +1,3 @@
+-r base.txt
+coverage
+django-discover-runner
diff --git a/setup.py b/setup.py
--- a/setup.py
+++ b/setup.py
@@ -1,8 +1,10 @@
 import os
 from setuptools import setup
+from pip.req import parse_requirements
 
 README = open(os.path.join(os.path.dirname(__file__), 'README.rst')).read()
-REQUIREMENTS = open(os.path.join(os.path.dirname(__file__), 'requirements.txt')).read().split("\n")
+INSTALL_REQUIREMENTS = [r.req for r in parse_requirements("requirements/production.txt")]
+TEST_REQUIREMENTS = [r.req for r in parse_requirements("requirements/test.txt")]
 
 # allow setup.py to be run from any path
 os.chdir(os.path.normpath(os.path.join(os.path.abspath(__file__), os.pardir)))
@@ -18,7 +20,8 @@ setup(
     url='http://projects.majic.rs/conntrackt',
     author='Branko Majic',
     author_email='branko@majic.rs',
-    install_requires=REQUIREMENTS,
+    install_requires=INSTALL_REQUIREMENTS,
+    tests_requires=TEST_REQUIREMENTS,
     classifiers=[
         'Environment :: Web Environment',
         'Framework :: Django',