diff --git a/Makefile b/Makefile
index e679f225d..b39538791 100644
--- a/Makefile
+++ b/Makefile
@@ -2,7 +2,6 @@ SPEC_DIR = ./specs
 SCRIPT_DIR = ./scripts
 TEST_LIBS_DIR = ./test_libs
 PY_SPEC_DIR = $(TEST_LIBS_DIR)/pyspec
-PY_TEST_DIR = ./py_tests
 YAML_TEST_DIR = ./yaml_tests
 GENERATOR_DIR = ./test_generators
 CONFIGS_DIR = ./configs
@@ -24,7 +23,7 @@ all: $(PY_SPEC_ALL_TARGETS) $(YAML_TEST_DIR) $(YAML_TEST_TARGETS)
 clean:
 	rm -rf $(YAML_TEST_DIR)
 	rm -rf $(GENERATOR_VENVS)
-	rm -rf $(PY_TEST_DIR)/venv $(PY_TEST_DIR)/.pytest_cache
+	rm -rf $(PY_SPEC_DIR)/venv $(PY_SPEC_DIR)/.pytest_cache
 	rm -rf $(PY_SPEC_ALL_TARGETS)
 
 # "make gen_yaml_tests" to run generators
@@ -32,7 +31,7 @@ gen_yaml_tests: $(YAML_TEST_DIR) $(YAML_TEST_TARGETS)
 
 # runs a limited set of tests against a minimal config
 test: $(PY_SPEC_ALL_TARGETS)
-	cd $(PY_TEST_DIR); python3 -m venv venv; . venv/bin/activate; pip3 install -r requirements.txt; python -m pytest -m minimal_config .
+	cd $(PY_SPEC_DIR); python3 -m venv venv; . venv/bin/activate; pip3 install -r requirements.txt; python -m pytest -m minimal_config .
 
 # "make pyspec" to create the pyspec for all phases.
 pyspec: $(PY_SPEC_ALL_TARGETS)
diff --git a/README.md b/README.md
index d1aaab74e..aa5b7e302 100644
--- a/README.md
+++ b/README.md
@@ -37,6 +37,5 @@ The following are the broad design goals for Ethereum 2.0:
 
 Documentation on the different components used during spec writing can be found here:
 * [YAML Test Generators](test_generators/README.md)
-* [Executable Python Spec](test_libs/pyspec/README.md)
-* [Py-tests](py_tests/README.md)
+* [Executable Python Spec, with Py-tests](test_libs/pyspec/README.md)
 
diff --git a/py_tests/README.md b/py_tests/README.md
deleted file mode 100644
index ca2bed4cc..000000000
--- a/py_tests/README.md
+++ /dev/null
@@ -1,30 +0,0 @@
-# ETH 2.0 py-tests
-
-These tests are not intended for client-consumption.
-These tests are sanity tests, to verify if the spec itself is consistent.
-
-There are ideas to port these tests to the YAML test suite,
- but we are still looking for inputs on how this should work.
-
-## How to run tests
-
-### Automated
-
-Run `make test` from the root of the spec repository.
-
-### Manual
-
-From within the py_tests folder:
-
-Install dependencies:
-```bash
-python3 -m venv venv
-. venv/bin/activate
-pip3 install -r requirements.txt
-```
-Note: make sure to run `make pyspec` from the root of the specs repository, to build the pyspec requirement.
-
-Run the tests:
-```
-pytest -m minimal_config .
-```
diff --git a/py_tests/requirements.txt b/py_tests/requirements.txt
deleted file mode 100644
index 27b3f22d8..000000000
--- a/py_tests/requirements.txt
+++ /dev/null
@@ -1,7 +0,0 @@
-eth-utils>=1.3.0,<2
-eth-typing>=2.1.0,<3.0.0
-oyaml==0.7
-pycryptodome==3.7.3
-py_ecc>=1.6.0
-pytest>=3.6,<3.7
-../test_libs/pyspec
diff --git a/test_libs/pyspec/README.md b/test_libs/pyspec/README.md
index 08042e746..b3cab11d2 100644
--- a/test_libs/pyspec/README.md
+++ b/test_libs/pyspec/README.md
@@ -7,6 +7,7 @@ With this executable spec,
  test-generators can easily create test-vectors for client implementations,
  and the spec itself can be verified to be consistent and coherent, through sanity tests implemented with pytest.
 
+
 ## Building
 
 All the dynamic parts of the spec can be build at once with `make pyspec`.
@@ -15,12 +16,42 @@ Alternatively, you can build a sub-set of the pyspec: `make phase0`.
 
 Or, to build a single file, specify the path, e.g. `make test_libs/pyspec/eth2spec/phase0/spec.py`
 
+
+## Py-tests
+
+These tests are not intended for client-consumption.
+These tests are sanity tests, to verify if the spec itself is consistent.
+
+### How to run tests
+
+#### Automated
+
+Run `make test` from the root of the spec repository.
+
+#### Manual
+
+From within the `pyspec` folder:
+
+Install dependencies:
+```bash
+python3 -m venv venv
+. venv/bin/activate
+pip3 install -r requirements.txt
+```
+Note: make sure to run `make pyspec` from the root of the specs repository,
+ to build the parts of the pyspec module derived from the markdown specs.
+
+Run the tests:
+```
+pytest -m minimal_config .
+```
+
+
 ## Contributing
 
 Contributions are welcome, but consider implementing your idea as part of the spec itself first.
 The pyspec is not a replacement.
-If you see opportunity to include any of the `pyspec/eth2spec/utils/` code in the spec,
- please submit an issue or PR.
+
 
 ## License
 
diff --git a/test_libs/pyspec/requirements.txt b/test_libs/pyspec/requirements.txt
index 78d41708d..3296ef807 100644
--- a/test_libs/pyspec/requirements.txt
+++ b/test_libs/pyspec/requirements.txt
@@ -2,3 +2,4 @@ eth-utils>=1.3.0,<2
 eth-typing>=2.1.0,<3.0.0
 pycryptodome==3.7.3
 py_ecc>=1.6.0
+pytest>=3.6,<3.7
diff --git a/test_libs/pyspec/setup.py b/test_libs/pyspec/setup.py
index b04847d37..1a131a417 100644
--- a/test_libs/pyspec/setup.py
+++ b/test_libs/pyspec/setup.py
@@ -3,6 +3,7 @@ from setuptools import setup, find_packages
 setup(
     name='pyspec',
     packages=find_packages(),
+    tests_require=["pytest"],
     install_requires=[
         "eth-utils>=1.3.0,<2",
         "eth-typing>=2.1.0,<3.0.0",
diff --git a/py_tests/phase0/__init__.py b/test_libs/pyspec/tests/README.md
similarity index 100%
rename from py_tests/phase0/__init__.py
rename to test_libs/pyspec/tests/README.md
diff --git a/test_libs/pyspec/tests/__init__.py b/test_libs/pyspec/tests/__init__.py
new file mode 100644
index 000000000..e69de29bb
diff --git a/py_tests/phase0/block_processing/test_process_attestation.py b/test_libs/pyspec/tests/block_processing/test_process_attestation.py
similarity index 99%
rename from py_tests/phase0/block_processing/test_process_attestation.py
rename to test_libs/pyspec/tests/block_processing/test_process_attestation.py
index 2e3f24dd6..d66434c2c 100644
--- a/py_tests/phase0/block_processing/test_process_attestation.py
+++ b/test_libs/pyspec/tests/block_processing/test_process_attestation.py
@@ -11,7 +11,7 @@ from eth2spec.phase0.spec import (
     process_attestation,
     slot_to_epoch,
 )
-from phase0.helpers import (
+from tests.helpers import (
     build_empty_block_for_next_slot,
     get_valid_attestation,
 )
diff --git a/py_tests/phase0/block_processing/test_process_attester_slashing.py b/test_libs/pyspec/tests/block_processing/test_process_attester_slashing.py
similarity index 99%
rename from py_tests/phase0/block_processing/test_process_attester_slashing.py
rename to test_libs/pyspec/tests/block_processing/test_process_attester_slashing.py
index 8db71deb9..9417a6ffa 100644
--- a/py_tests/phase0/block_processing/test_process_attester_slashing.py
+++ b/test_libs/pyspec/tests/block_processing/test_process_attester_slashing.py
@@ -7,7 +7,7 @@ from eth2spec.phase0.spec import (
     get_beacon_proposer_index,
     process_attester_slashing,
 )
-from phase0.helpers import (
+from tests.helpers import (
     get_valid_attester_slashing,
 )
 
diff --git a/py_tests/phase0/block_processing/test_process_block_header.py b/test_libs/pyspec/tests/block_processing/test_process_block_header.py
similarity index 98%
rename from py_tests/phase0/block_processing/test_process_block_header.py
rename to test_libs/pyspec/tests/block_processing/test_process_block_header.py
index 3b99f2ad4..b35b0a9c1 100644
--- a/py_tests/phase0/block_processing/test_process_block_header.py
+++ b/test_libs/pyspec/tests/block_processing/test_process_block_header.py
@@ -8,7 +8,7 @@ from eth2spec.phase0.spec import (
     advance_slot,
     process_block_header,
 )
-from phase0.helpers import (
+from tests.helpers import (
     build_empty_block_for_next_slot,
     next_slot,
 )
diff --git a/py_tests/phase0/block_processing/test_process_deposit.py b/test_libs/pyspec/tests/block_processing/test_process_deposit.py
similarity index 99%
rename from py_tests/phase0/block_processing/test_process_deposit.py
rename to test_libs/pyspec/tests/block_processing/test_process_deposit.py
index cd682a4d4..4031e650d 100644
--- a/py_tests/phase0/block_processing/test_process_deposit.py
+++ b/test_libs/pyspec/tests/block_processing/test_process_deposit.py
@@ -8,7 +8,7 @@ from eth2spec.phase0.spec import (
     ZERO_HASH,
     process_deposit,
 )
-from phase0.helpers import (
+from tests.helpers import (
     build_deposit,
     privkeys,
     pubkeys,
diff --git a/py_tests/phase0/block_processing/test_process_proposer_slashing.py b/test_libs/pyspec/tests/block_processing/test_process_proposer_slashing.py
similarity index 99%
rename from py_tests/phase0/block_processing/test_process_proposer_slashing.py
rename to test_libs/pyspec/tests/block_processing/test_process_proposer_slashing.py
index d7afd2750..6f9dee262 100644
--- a/py_tests/phase0/block_processing/test_process_proposer_slashing.py
+++ b/test_libs/pyspec/tests/block_processing/test_process_proposer_slashing.py
@@ -7,7 +7,7 @@ from eth2spec.phase0.spec import (
     get_current_epoch,
     process_proposer_slashing,
 )
-from phase0.helpers import (
+from tests.helpers import (
     get_valid_proposer_slashing,
 )
 
diff --git a/py_tests/phase0/block_processing/test_voluntary_exit.py b/test_libs/pyspec/tests/block_processing/test_voluntary_exit.py
similarity index 99%
rename from py_tests/phase0/block_processing/test_voluntary_exit.py
rename to test_libs/pyspec/tests/block_processing/test_voluntary_exit.py
index 4404e7255..c58c5238a 100644
--- a/py_tests/phase0/block_processing/test_voluntary_exit.py
+++ b/test_libs/pyspec/tests/block_processing/test_voluntary_exit.py
@@ -9,7 +9,7 @@ from eth2spec.phase0.spec import (
     get_current_epoch,
     process_voluntary_exit,
 )
-from phase0.helpers import (
+from tests.helpers import (
     build_voluntary_exit,
     pubkey_to_privkey,
 )
diff --git a/py_tests/phase0/conftest.py b/test_libs/pyspec/tests/conftest.py
similarity index 100%
rename from py_tests/phase0/conftest.py
rename to test_libs/pyspec/tests/conftest.py
diff --git a/py_tests/phase0/helpers.py b/test_libs/pyspec/tests/helpers.py
similarity index 100%
rename from py_tests/phase0/helpers.py
rename to test_libs/pyspec/tests/helpers.py
diff --git a/py_tests/phase0/test_sanity.py b/test_libs/pyspec/tests/test_sanity.py
similarity index 100%
rename from py_tests/phase0/test_sanity.py
rename to test_libs/pyspec/tests/test_sanity.py