diff --git a/.github/workflows/tests.yaml b/.github/workflows/tests.yaml
index c564208e8..4222e1e8f 100644
--- a/.github/workflows/tests.yaml
+++ b/.github/workflows/tests.yaml
@@ -22,22 +22,37 @@ jobs:
     steps:
       - uses: actions/checkout@v4
       - name: Set up Python
+        id: setup_python
         uses: actions/setup-python@v4
         with:
           python-version: '3.10'
+      - name: Cache virtual environment
+        uses: actions/cache@v3
+        with:
+          # TODO: we are hashing requirements.txt but that doesn't contain all
+          # our dependencies pinned.
+          key: venv-${{ runner.os }}-${{ steps.setup_python.outputs.python-version}}-${{ hashFiles('requirements.txt') }}
+          path: .venv
       - name: Install system packages
         run: sudo apt-get install -y portaudio19-dev
-      - name: Install basic dependencies
+      - name: Setup virtual environment
         run: |
+          python -m venv .venv
+      - name: Install basic Python dependencies
+        run: |
+          source .venv/bin/activate
           python -m pip install --upgrade pip
           pip install -r requirements.txt
       - name: Build project
         run: |
+          source .venv/bin/activate
           python -m build
-      - name: Install project and other dependencies
+      - name: Install project and other Python dependencies
         run: |
+          source .venv/bin/activate
           pip install --editable .
       - name: Test with pytest
         run: |
+          source .venv/bin/activate
           pip install pytest
-          pytest --doctest-modules --ignore-glob="*to_be_updated*" src/dailyai
+          pytest --doctest-modules --ignore-glob="*to_be_updated*" src tests
diff --git a/README.md b/README.md
index c8dff3252..531d2412b 100644
--- a/README.md
+++ b/README.md
@@ -99,6 +99,20 @@ If you want to use this package from another directory, you can run:
 pip install path_to_this_repo
 ```
 
+### Running tests
+
+To run tests you need to install `pytest`:
+
+```
+pip install pytest
+```
+
+Then, from the root directory, run:
+
+```
+pytest --doctest-modules --ignore-glob="*to_be_updated*" src tests
+```
+
 ## Setting up your editor
 
 This project uses strict [PEP 8](https://peps.python.org/pep-0008/) formatting.
@@ -116,13 +130,7 @@ You can use [use-package](https://github.com/jwiegley/use-package) to install [p
   (setq py-autopep8-options '("-a" "-a")))
 ```
 
-If you don't have it already, you also need to install [autopep8](https://pypi.org/project/autopep8/):
-
-```
-pip install autopep8
-```
-
-If use install `autopep8` in the `venv` environment described before, you can use [pyvenv-auto](https://github.com/ryotaro612/pyvenv-auto) to automatically load the virtual environment inside Emacs.
+`autopep8` was installed in the `venv` environment described before, so you should be able to use [pyvenv-auto](https://github.com/ryotaro612/pyvenv-auto) to automatically load that environment inside Emacs.
 
 ```elisp
 (use-package pyvenv-auto
diff --git a/pyproject.toml b/pyproject.toml
index d2e61fdbb..e1eac802b 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -45,3 +45,6 @@ Website = "https://daily.co"
 [tool.setuptools.packages.find]
 # All the following settings are optional:
 where = ["src"]
+
+[tool.pytest.ini_options]
+pythonpath = ["src"]
diff --git a/src/dailyai/tests/__init__.py b/src/dailyai/tests/__init__.py
deleted file mode 100644
index e69de29bb..000000000
diff --git a/src/dailyai/tests/integration/integration_azure_llm.py b/tests/integration/integration_azure_llm.py
similarity index 100%
rename from src/dailyai/tests/integration/integration_azure_llm.py
rename to tests/integration/integration_azure_llm.py
diff --git a/src/dailyai/tests/integration/integration_ollama_llm.py b/tests/integration/integration_ollama_llm.py
similarity index 100%
rename from src/dailyai/tests/integration/integration_ollama_llm.py
rename to tests/integration/integration_ollama_llm.py
diff --git a/src/dailyai/tests/integration/integration_openai_llm.py b/tests/integration/integration_openai_llm.py
similarity index 100%
rename from src/dailyai/tests/integration/integration_openai_llm.py
rename to tests/integration/integration_openai_llm.py
diff --git a/src/dailyai/tests/test_aggregators.py b/tests/test_aggregators.py
similarity index 100%
rename from src/dailyai/tests/test_aggregators.py
rename to tests/test_aggregators.py
diff --git a/src/dailyai/tests/test_ai_services.py b/tests/test_ai_services.py
similarity index 100%
rename from src/dailyai/tests/test_ai_services.py
rename to tests/test_ai_services.py
diff --git a/src/dailyai/tests/test_daily_transport_service.py b/tests/test_daily_transport_service.py
similarity index 100%
rename from src/dailyai/tests/test_daily_transport_service.py
rename to tests/test_daily_transport_service.py
diff --git a/src/dailyai/tests/test_pipeline.py b/tests/test_pipeline.py
similarity index 100%
rename from src/dailyai/tests/test_pipeline.py
rename to tests/test_pipeline.py