Integrating nose with setup.py so that it runs using python setup.py test is not straightforward.

The simple approach is to update setup.py specifying the following:

[...]
test_suite='nose.collector',
[...]

Issue is that nose.collector doesn't detect nose plugins (e.g coverage). See here

Creating a NoseTestCommand in setup.py allow to address this. See http://fgimian.github.io/blog/2014/04/27/running-nose-tests-with-plugins-using-the-setuptools-test-command/