diff --git a/awx/settings/development.py b/awx/settings/development.py
index 1df7a8b1bb..21b5bb6b4a 100644
--- a/awx/settings/development.py
+++ b/awx/settings/development.py
@@ -21,13 +21,6 @@ from split_settings.tools import optional, include
 # Load default settings.
 from .defaults import *  # NOQA
 
-if "pytest" in sys.modules:
-    CACHES = {
-        'default': {
-            'BACKEND': 'django.core.cache.backends.locmem.LocMemCache',
-            'LOCATION': 'unique-{}'.format(str(uuid.uuid4())),
-        },
-    }
 
 # awx-manage shell_plus --notebook
 NOTEBOOK_ARGUMENTS = [
@@ -170,6 +163,27 @@ except ImportError:
     traceback.print_exc()
     sys.exit(1)
 
+# Use SQLite for unit tests instead of PostgreSQL.  If the lines below are
+# commented out, Django will create the test_awx-dev database in PostgreSQL to
+# run unit tests.
+if "pytest" in sys.modules:
+    CACHES = {
+        'default': {
+            'BACKEND': 'django.core.cache.backends.locmem.LocMemCache',
+            'LOCATION': 'unique-{}'.format(str(uuid.uuid4())),
+        },
+    }
+    DATABASES = {
+        'default': {
+            'ENGINE': 'django.db.backends.sqlite3',
+            'NAME': os.path.join(BASE_DIR, 'awx.sqlite3'), # noqa
+            'TEST': {
+                # Test database cannot be :memory: for inventory tests.
+                'NAME': os.path.join(BASE_DIR, 'awx_test.sqlite3'), # noqa
+            },
+        }
+    }
+
 
 CELERYBEAT_SCHEDULE.update({  # noqa
     'isolated_heartbeat': {
diff --git a/tools/docker-compose/ansible/roles/sources/files/local_settings.py b/tools/docker-compose/ansible/roles/sources/files/local_settings.py
index f480f7fdb8..02af47c192 100644
--- a/tools/docker-compose/ansible/roles/sources/files/local_settings.py
+++ b/tools/docker-compose/ansible/roles/sources/files/local_settings.py
@@ -11,8 +11,6 @@
 ###############################################################################
 # MISC PROJECT SETTINGS
 ###############################################################################
-import os
-import sys
 
 # Enable the following lines and install the browser extension to use Django debug toolbar
 # if your deployment method is not VMWare of Docker-for-Mac you may
@@ -20,21 +18,6 @@ import sys
 # INTERNAL_IPS = ('172.19.0.1', '172.18.0.1', '192.168.100.1')
 # ALLOWED_HOSTS = ['*']
 
-# Use SQLite for unit tests instead of PostgreSQL.  If the lines below are
-# commented out, Django will create the test_awx-dev database in PostgreSQL to
-# run unit tests.
-if "pytest" in sys.modules:
-    DATABASES = {
-        'default': {
-            'ENGINE': 'django.db.backends.sqlite3',
-            'NAME': os.path.join(BASE_DIR, 'awx.sqlite3'),
-            'TEST': {
-                # Test database cannot be :memory: for inventory tests.
-                'NAME': os.path.join(BASE_DIR, 'awx_test.sqlite3'),
-            },
-        }
-    }
-
 # Location for cross-development of inventory plugins
 AWX_ANSIBLE_COLLECTIONS_PATHS = '/var/lib/awx/vendor/awx_ansible_collections'