diff --git a/.coveragerc b/.coveragerc
new file mode 100644
index 00000000..6deec938
--- /dev/null
+++ b/.coveragerc
@@ -0,0 +1,9 @@
+[run]
+include =
+    src/**
+
+omit =
+    **/__init__.py
+    **/_version.py
+    src/dug/config.py
+    src/dug/hookspecs.py
\ No newline at end of file
diff --git a/Makefile b/Makefile
index 170d70c4..65fa9442 100644
--- a/Makefile
+++ b/Makefile
@@ -6,6 +6,7 @@ DOCKER_OWNER = helxplatform
 DOCKER_APP	 = dug
 DOCKER_TAG   = ${VERSION}
 DOCKER_IMAGE = ${DOCKER_OWNER}/${DOCKER_APP}:$(DOCKER_TAG)
+export PYTHONPATH = $(shell echo ${PWD})/src
 
 .DEFAULT_GOAL = help
 
@@ -27,13 +28,15 @@ clean:
 install:
 	${PYTHON} -m pip install --upgrade pip
 	${PYTHON} -m pip install -r requirements.txt
-	${PYTHON} -m pip install .
 
 #test: Run all tests
 test:
 	# ${PYTHON} -m flake8 src
 	${PYTHON} -m pytest --doctest-modules src
-	${PYTHON} -m pytest tests
+	coverage run -m pytest tests
+
+coverage:
+	coverage report
 
 #build: Build Docker image
 build: