diff --git a/pylons_app/websetup.py b/pylons_app/websetup.py
--- a/pylons_app/websetup.py
+++ b/pylons_app/websetup.py
@@ -1,40 +1,25 @@
 """Setup the pylons_app application"""
 
-from os.path import dirname as dn, join as jn
+from os.path import dirname as dn
 from pylons_app.config.environment import load_environment
 from pylons_app.lib.db_manage import DbManage
-import datetime
-from time import mktime
 import logging
 import os
 import sys
-import tarfile
 
 log = logging.getLogger(__name__)
 
 ROOT = dn(dn(os.path.realpath(__file__)))
 sys.path.append(ROOT)
 
+
 def setup_app(command, conf, vars):
     """Place any commands to setup pylons_app here"""
     log_sql = True
     tests = False
-    
-    dbname = os.path.split(conf['sqlalchemy.db1.url'])[-1]
-    filename = os.path.split(conf.filename)[-1]
+    REPO_TEST_PATH = None
     
-    if filename == 'tests.ini':
-        uniq_suffix = str(int(mktime(datetime.datetime.now().timetuple())))
-        REPO_TEST_PATH = '/tmp/hg_app_test_%s' % uniq_suffix
-        
-        if not os.path.isdir(REPO_TEST_PATH):
-            os.mkdir(REPO_TEST_PATH)
-            cur_dir = dn(os.path.abspath(__file__))
-            tar = tarfile.open(jn(cur_dir,'tests',"vcs_test.tar.gz"))
-            tar.extractall(REPO_TEST_PATH)
-            tar.close()
-            
-        tests = True    
+    dbname = os.path.split(conf['sqlalchemy.db1.url'])[-1] 
     
     dbmanage = DbManage(log_sql, dbname, tests)
     dbmanage.create_tables(override=True)