diff --git a/docs/developing.md b/docs/developing.md
index ca04283..0434ed6 100644
--- a/docs/developing.md
+++ b/docs/developing.md
@@ -11,3 +11,24 @@
 - `vars/` vs `defaults/` - internal or interpolated variables that don't need to change or be overridden by user go in `vars/`, those that a user would likely override, go under `defaults/` directory
 - All arguments have a specification in `meta/argument_specs.yml`
 - All playbooks/roles should be focused on compatibility with Ansible Automation Platform
+
+## Development environment
+
+To develop and to run tests you need to install `tox` and `tox-ansible` on
+your machine.
+
+```
+pip install --user tox tox-ansible
+```
+
+### Virtualenv for development
+
+To build a virtualenv for development purposes run the following command:
+
+```
+make build-venv
+```
+
+The resulting virtualenv will be symlinked to `.venv`, which for example can
+be selected as virtualenv in VSCode (`Shift+Ctrl+P` and then
+`Python: Select Interpreter`).
diff --git a/docs/testing.md b/docs/testing.md
index 6ed0b3d..c71a1b6 100644
--- a/docs/testing.md
+++ b/docs/testing.md
@@ -1,9 +1,88 @@
 # Testing
 
-## Continuous integration
+## Sanity and unit tests
 
-The `hack/e2e-setup.sh` script contains the steps necessary to reproduce the CI test environment, which relies on `kubectl` and `kind`.
+Sanity and unit tests can be run in two ways:
 
+- with `tox` and the `tox-ansible` plugin (both need to be installed on the dev machine)
+- with `ansible-test`
+
+For development purposes `tox` and `tox-ansible` are better suited, as they allow
+debugging of issues in the collection on the developer's machine.
+
+For verification purposes of the collection the compatibility with `ansible-test`
+is ensured.
+
+### Running tests with tox-ansible
+
+Run sanity tests with `tox-ansible` like so:
+
+```
+make test-sanity
+```
+
+Run unit tests with `tox-ansible` like so:
+
+```
+make test-unit
+```
+
+### Running tests with ansible-test
+
+In order to test changes with `ansible-test`, it is recommended to bind mount
+the repository to `~/.ansible/collections/ansible_collections/kubevirt/core`
+if you did not check it out into this location.
+
+This can be done with:
+
+```
+mkdir -p ~/.ansible/collections/ansible_collections/kubevirt/core
+sudo mount --bind <project_dir>/kubevirt.core ~/.ansible/collections/ansible_collections/kubevirt/core
+cd ~/.ansible/collections/ansible_collections/kubevirt/core
+```
+
+Run sanity tests with `ansible-test` like so:
+
+```
+ANSIBLE_TEST_PREFER_PODMAN=1 ansible-test sanity --docker
+```
+
+Run unit tests with `ansible-test` like so:
+
+```
+ANSIBLE_TEST_PREFER_PODMAN=1 ansible-test units --docker
+```
+
+## Integration tests
+
+Integration tests require a working cluster and can be run with
+`ansible-test`.
+
+### Continuous integration
+
+The `hack/e2e-setup.sh` script contains the steps necessary to reproduce the
+CI integration test environment, which relies on `docker` or `podman`,
+`kubectl` and `kind`.
+
+To create the CI integration test environment on your machine run:
+
+```
+make cluster-up
+```
+
+To remove the test CI integration test environment run:
+
+```
+make cluster-down
+```
+
+### Running integration tests with ansible test
+
+Run integration tests with ansible-test like so:
+
+```
+ansible-test integration
+```
 
 ## Example config and playbooks
 
diff --git a/galaxy.yml b/galaxy.yml
index 4c15e9c..c598398 100644
--- a/galaxy.yml
+++ b/galaxy.yml
@@ -37,9 +37,11 @@ build_ignore:
   - OWNERS
   - REVIEW_CHECKLIST.md
   - tox.ini
+  - tox-ansible.ini
   - '*.tar.gz'
   - '*.zip'
   - docs/_gh_include
   - docs/conf.py
   - docs/roles.rst.template
   - docs/requirements.txt
+  - tests/requirements.txt
diff --git a/test-requirements.txt b/test-requirements.txt
index c826e5c..fa4ef3c 100644
--- a/test-requirements.txt
+++ b/test-requirements.txt
@@ -3,4 +3,3 @@ pytest
 pytest-ansible
 pytest-mock
 pytest-xdist
-tox-ansible