diff --git a/app_setup/templates/local_settings.py.j2 b/app_setup/templates/local_settings.py.j2
index 4782c3c6d9..8957e770d2 100644
--- a/app_setup/templates/local_settings.py.j2
+++ b/app_setup/templates/local_settings.py.j2
@@ -41,6 +41,8 @@ if 'test' in sys.argv:
         'default': {
             'ENGINE': 'django.db.backends.sqlite3',
             'NAME': os.path.join(BASE_DIR, 'acom.sqlite3'),
+            # Test database cannot be :memory: for celery/inventory tests to work.
+            'TEST_NAME': os.path.join(BASE_DIR, 'acom_test.sqlite3'),
         }
     }
 
diff --git a/lib/settings/defaults.py b/lib/settings/defaults.py
index ec3de04e4a..47adaeb948 100644
--- a/lib/settings/defaults.py
+++ b/lib/settings/defaults.py
@@ -56,11 +56,6 @@ DATABASES = {
     }
 }
 
-#if 'test' in sys.argv:
-#    DATABASES['default'] = {
-#        'ENGINE': 'django.db.backends.sqlite3'
-#    }
-
 # Internationalization
 # https://docs.djangoproject.com/en/dev/topics/i18n/
 #