diff --git a/.pre-commit-config.yaml b/.pre-commit-config.yaml
index c79373dd..42d384bb 100644
--- a/.pre-commit-config.yaml
+++ b/.pre-commit-config.yaml
@@ -18,10 +18,10 @@ repos:
     exclude_types:
       - "markdown"
   - id: check-case-conflict
-  - id: format
-    name: format
-    entry: hatch run lint-all
-    language: python
-    types: [python]
-    pass_filenames: false
-    verbose: true
\ No newline at end of file
+  # - id: format
+  #   name: format
+  #   entry: hatch run lint-all
+  #   language: system
+  #   types: [python]
+  #   pass_filenames: false
+  #   verbose: true
\ No newline at end of file
diff --git a/CONTRIBUTING.md b/CONTRIBUTING.md
index 9075e35b..0d447026 100644
--- a/CONTRIBUTING.md
+++ b/CONTRIBUTING.md
@@ -54,6 +54,7 @@ There are some tools that will be helpful to you in developing locally. While th
 
 These are the tools used in `dbt-common` development and testing:
 
+- [`hatch`](https://hatch.pypa.io/latest/) for project management
 - [`flake8`](https://flake8.pycqa.org/en/latest/) for code linting
 - [`black`](https://github.com/psf/black) for code formatting
 - [`mypy`](https://mypy.readthedocs.io/en/stable/) for static type checking
@@ -62,31 +63,15 @@ These are the tools used in `dbt-common` development and testing:
 
 A deep understanding of these tools in not required to effectively contribute to `dbt-common`, but we recommend checking out the attached documentation if you're interested in learning more about each one.
 
-#### Virtual environments
-
-We strongly recommend using virtual environments when developing code in `dbt-common`. We recommend creating this virtualenv
-in the root of the `dbt-common` repository. To create a new virtualenv, run:
-```sh
-python3 -m venv env
-source env/bin/activate
-```
-
-This will create and activate a new Python virtual environment.
-
 ## Running `dbt-common` in development
 
 ### Installation
 
-First make sure that you set up your `virtualenv` as described in [Setting up an environment](#setting-up-an-environment).  Also ensure you have the latest version of pip installed with `pip install --upgrade pip`. Next, install `dbt-common` (and its dependencies):
-
-```sh
-git
-pre-commit install
-```
+Ensure you have the latest version of pip installed with `pip install --upgrade pip` as well as [hatch](https://hatch.pypa.io/latest/install/).
 
 ### Running `dbt-common`
 
-This repository is just a template and cannot be run.
+This repository cannot be run on its own.
 
 ## Testing
 
@@ -98,29 +83,33 @@ Once you're able to manually test that your code change is working as expected,
 
 ### Initial setup
 
-None needed.
-
-### Test commands
+- None needed to set up your environments.  hatch will create your environment as defined in the `pyproject.toml` when you run.
 
-No tests included.
+- set up pre-commit to use hatch: `hatch run setup-pre-commit`
 
+### Hatch Commands
 
-### Unit, Integration, Functional?
+See the pyproject.toml for a complete list of custom commands.  See the h[atch docs](https://hatch.pypa.io/latest/cli/reference/) for a description of built in commands and flags.  These are the most useful custom commands to use while developing.
 
-Here are some general rules for adding tests:
-* unit tests (`tests/unit`) don’t need to access a database; "pure Python" tests should be written as unit tests
-* functional tests (`tests/functional`) cover anything that interacts with a database, namely adapter
+|Command|Description|
+|---|---|
+|`hatch run setup-pre-commit`|set up pre-commit to use hatch|
+|`hatch run unit-tests`|run all unit tests|
+|`hatch run lint-all`|run black, flake8 and mypy checks|
+|`hatch run lint-black`|run black|
+|`hatch run lint-flake8`|run flake8|
+|`hatch run lint-mypy`|run mypy|
+|`hatch run format`|run TODO|
+|`hatch run proto`|regenerate protobuf definitions|
 
 ## Debugging
 
-1. The logs for a `dbt run` have stack traces and other information for debugging errors (in `logs/dbt.log` in your project directory).
-2. Try using a debugger, like `ipdb`. For pytest: `--pdb --pdbcls=IPython.terminal.debugger:pdb`
-3. 
+1. Try using a debugger, like `ipdb`. For pytest: `--pdb --pdbcls=IPython.terminal.debugger:pdb`
+2. 
 
 ### Assorted development tips
 * Append `# type: ignore` to the end of a line if you need to disable `mypy` on that line.
 * Sometimes flake8 complains about lines that are actually fine, in which case you can put a comment on the line such as: # noqa or # noqa: ANNN, where ANNN is the error code that flake8 issues.
-* To collect output for `CProfile`, run dbt with the `-r` option and the name of an output file, i.e. `dbt -r dbt.cprof run`. If you just want to profile parsing, you can do: `dbt -r dbt.cprof parse`. `pip` install `snakeviz` to view the output. Run `snakeviz dbt.cprof` and output will be rendered in a browser window.
 
 ## Adding or modifying a CHANGELOG Entry
 
diff --git a/pyproject.toml b/pyproject.toml
index aa460944..1deb9bd4 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -60,6 +60,8 @@ test = [
     "pytest-xdist~=3.2",
     "hypothesis~=6.87"
 ]
+[[tool.hatch.envs.test.matrix]]
+python = ["3.8","3.9","3.10", "3.11"]
 
 [project.urls]
 Homepage = "https://github.com/dbt-labs/dbt-common"  # TODO: should this be dbt's homepage?
@@ -89,19 +91,13 @@ packages = ["dbt_common"]
 [tool.hatch.version]
 path = "dbt_common/__about__.py"
 
-# [tool.hatch.envs.dev.scripts]
-# all = ["pre-commit run --all-files"]
-
 [tool.hatch.envs.default]
 description = "Env for running development commands like pytest & linting"
 features = ["lint", "test"]
 
 # these are the commands that you run with `hatch run <cmd>` for local dev & CI
 [tool.hatch.envs.default.scripts]
-# This edits your local pre-commit hook file to use Hatch when executing.
-# TODO: move to it's own env that only installs pre-commit - may need to live here though?
-setup-pre-commit = 'sed -i -e "s/exec /exec hatch run /g" .git/hooks/pre-commit'
-unit-tests = "- python -m pytest {args:tests/unit}"
+test = "- python -m pytest {args:tests/unit}"
 lint-all = [
     "- lint-black",
     "- lint-flake8",
@@ -110,9 +106,8 @@ lint-all = [
 lint-black = "python -m black ."
 lint-flake8 = "python -m flake8 ."
 lint-mypy = "python -m mypy ."
-proto = "protoc -I=./dbt_common/events --python_out=./dbt_common/events ./dbt_common/events/types.proto"
-lint = ["black --check --diff {args:.}", "ruff check {args:.}", "mypy {args:.}"]
 format = ["black {args:.}", "ruff --fix --exit-non-zero-on-fix {args:.}"]
+proto = "protoc -I=./dbt_common/events --python_out=./dbt_common/events ./dbt_common/events/types.proto"
 
 # ruff replaces flake8!
 [tool.ruff]
@@ -152,9 +147,6 @@ exclude = [
     "third-party-stubs/*",
 ]
 
-[tool.ruff.per-file-ignores]
-"types_pb2.py" = ["E501", "E712", "F821"]
-
 [tool.ruff.pydocstyle]
 convention = "google"
 
@@ -168,7 +160,6 @@ select = ["E", "W", "F"]
 ignore = ["E203", "E501", "E741", "W503", "W504"]
 exclude = [
     "dbt_common/events/types_pb2.py",
-    "tests",
     "venv",
     "env*"
 ]
@@ -187,7 +178,3 @@ exclude = [
     "env*",
     "third-party-stubs/*",
 ]
-
-[[tool.mypy.overrides]]
-module = ["dbt_common.events.types_pb2.py"]
-follow_imports = "skip"