diff --git a/.coveragerc b/.coveragerc
index 62e14303..937d6069 100644
--- a/.coveragerc
+++ b/.coveragerc
@@ -6,6 +6,11 @@ omit = */_version.py
 # This tells coverage how to combine results together or said differently
 # which files at different paths are actually the same file
 # documented at https://coverage.readthedocs.io/en/latest/config.html#paths
+# Yes, we list repo2docker twice here. This allows you to install repo2docker
+# with `pip install -e.` for local development and from the wheel (as done on
+# CI) and get `repo2docker/foo.py` as paths in the coverage report
 source =
-    repo2docker/
-    /opt/hostedtoolcache/Python/*/site-packages/repo2docker
+    repo2docker
+    repo2docker
+    ../repo2docker
+    */site-packages/repo2docker
diff --git a/.github/workflows/test.yml b/.github/workflows/test.yml
index 4e6de4dc..d5a1eddb 100644
--- a/.github/workflows/test.yml
+++ b/.github/workflows/test.yml
@@ -114,7 +114,10 @@ jobs:
 
       - name: "Run tests"
         run: |
-          pytest --durations 10 --cov repo2docker -v tests/${{ matrix.repo_type }}
+          cd tests
+          pytest --durations 10 --cov repo2docker -v ${{ matrix.repo_type }}
 
       # Action Repo: https://github.com/codecov/codecov-action
       - uses: codecov/codecov-action@v1
+        with:
+          directory: ./tests