diff --git a/pytest_django/plugin.py b/pytest_django/plugin.py
index 5d4f323a7..232798bdf 100644
--- a/pytest_django/plugin.py
+++ b/pytest_django/plugin.py
@@ -11,7 +11,7 @@
 import sys
 import types
 
-import py
+import pathlib
 import pytest
 
 from .django_compat import is_django_unittest  # noqa
@@ -87,13 +87,6 @@ def pytest_addoption(parser):
                   type='bool', default=False)
 
 
-def _exists(path, ignore=EnvironmentError):
-    try:
-        return path.check()
-    except ignore:
-        return False
-
-
 PROJECT_FOUND = ('pytest-django found a Django project in %s '
                  '(it contains manage.py) and added it to the Python path.\n'
                  'If this is wrong, add "django_find_project = false" to '
@@ -120,21 +113,28 @@ def _handle_import_error(extra_message):
 
 
 def _add_django_project_to_path(args):
-    args = [x for x in args if not str(x).startswith("-")]
-
-    if not args:
-        args = [py.path.local()]
-
-    for arg in args:
-        arg = py.path.local(arg)
-
-        for base in arg.parts(reverse=True):
-            manage_py_try = base.join('manage.py')
-
-            if _exists(manage_py_try):
-                sys.path.insert(0, str(base))
-                return PROJECT_FOUND % base
+    def is_django_project(path):
+        return path.is_dir() and (path / 'manage.py').exists()
+
+    def find_django_path(args):
+        args = [pathlib.Path(x) for x in args if not str(x).startswith("-")]
+        args = [p for p in args if p.is_dir()]
+
+        if not args:
+            args = [pathlib.Path.cwd()]
+
+        for arg in args:
+            if is_django_project(arg):
+                return arg
+            for parent in arg.parents:
+                if is_django_project(parent):
+                    return parent
+        return None
 
+    project_dir = find_django_path(args)
+    if project_dir:
+        sys.path.insert(0, str(project_dir))
+        return PROJECT_FOUND % project_dir
     return PROJECT_NOT_FOUND
 
 
diff --git a/setup.py b/setup.py
index 0901054df..f53e112eb 100755
--- a/setup.py
+++ b/setup.py
@@ -30,12 +30,22 @@ def read(fname):
     long_description=read('README.rst'),
     python_requires='>=2.7, !=3.0.*, !=3.1.*, !=3.2.*, !=3.3.*',
     setup_requires=['setuptools_scm>=1.11.1'],
-    install_requires=['pytest>=3.6'],
+    install_requires=[
+        'pytest>=3.6',
+        'pathlib;python_version<"3.4"',
+    ],
     extras_require={
         'docs': [
             'sphinx',
             'sphinx_rtd_theme',
-        ]
+        ],
+        'testing': [
+            'pytest>=3.6',
+            'Django',
+            'django-configurations==2.0',
+            'pytest-xdist==1.15',
+            'six',
+        ],
     },
     classifiers=['Development Status :: 5 - Production/Stable',
                  'Framework :: Django',
diff --git a/tests/conftest.py b/tests/conftest.py
index 8ea211222..debdc7442 100644
--- a/tests/conftest.py
+++ b/tests/conftest.py
@@ -2,15 +2,16 @@
 import shutil
 from textwrap import dedent
 
-import py
+import pathlib
 import pytest
+import six
 from django.conf import settings
 
 from pytest_django_test.db_helpers import DB_NAME, TEST_DB_NAME
 
 pytest_plugins = 'pytester'
 
-REPOSITORY_ROOT = py.path.local(__file__).join('..')
+REPOSITORY_ROOT = pathlib.Path(__file__).parent
 
 
 def pytest_configure(config):
@@ -99,12 +100,12 @@ def django_testdir(request, testdir, monkeypatch):
 
     tpkg_path.ensure('__init__.py')
 
-    app_source = REPOSITORY_ROOT.dirpath('pytest_django_test/app')
+    app_source = REPOSITORY_ROOT / '../pytest_django_test/app'
     test_app_path = tpkg_path.join('app')
 
     # Copy the test app to make it available in the new test run
-    shutil.copytree(py.builtin._totext(app_source),
-                    py.builtin._totext(test_app_path))
+    shutil.copytree(six.text_type(app_source),
+                    six.text_type(test_app_path))
     tpkg_path.join("the_settings.py").write(test_settings)
 
     monkeypatch.setenv('DJANGO_SETTINGS_MODULE', 'tpkg.the_settings')
diff --git a/tox.ini b/tox.ini
index 068760b21..3d945e526 100644
--- a/tox.ini
+++ b/tox.ini
@@ -7,10 +7,8 @@ envlist =
     - py{36,py27}-checkqa
 
 [testenv]
+extras = testing
 deps =
-    pytest>=3.6
-    django-configurations==2.0
-    pytest-xdist==1.15
     {env:_PYTESTDJANGO_TOX_EXTRA_DEPS:}
 
     djmaster: https://github.com/django/django/archive/master.tar.gz