diff --git a/.github/workflows/integration-tests.yml b/.github/workflows/integration-tests.yml
index d736719..e3390fb 100644
--- a/.github/workflows/integration-tests.yml
+++ b/.github/workflows/integration-tests.yml
@@ -91,7 +91,7 @@ jobs:
           python-version: ${{ matrix.python-version }}
 
       - name: Run integration tests
-        run: hatch run integration-tests:all
+        run: hatch run integration-tests
         env:
           POSTGRES_TEST_HOST: localhost
           POSTGRES_TEST_PORT: 5432
diff --git a/.github/workflows/release_prep_hatch.yml b/.github/workflows/release_prep_hatch.yml
index 8e9ded0..ab343b4 100644
--- a/.github/workflows/release_prep_hatch.yml
+++ b/.github/workflows/release_prep_hatch.yml
@@ -31,7 +31,7 @@
 #  1. Bump the version if it has not been bumped
 #  2. Generate the changelog (via changie) if there is no markdown file for this version
 name: "Release prep"
-run-name: "Release prep: Generate changelog and bump ${{ inputs.package }} to ${{ inputs.version }} for release to ${{ inputs.deploy-to }}"
+run-name: "Release prep: Generate changelog and bump to ${{ inputs.version }} for release to ${{ inputs.deploy-to }}"
 on:
   workflow_call:
     inputs:
@@ -342,7 +342,7 @@ jobs:
         uses: dbt-labs/dbt-adapters/.github/actions/setup-hatch@main
 
       - name: "Run unit tests"
-        run: hatch run unit-tests:all
+        run: hatch run unit-tests
 
   integration-tests:
     runs-on: ubuntu-latest
@@ -387,7 +387,7 @@ jobs:
         uses: dbt-labs/dbt-adapters/.github/actions/setup-hatch@main
 
       - name: "Run integration tests"
-        run: hatch run integration-tests:all
+        run: hatch run integration-tests
         env:
           POSTGRES_TEST_HOST: localhost
           POSTGRES_TEST_PORT: 5432
@@ -464,6 +464,6 @@ jobs:
         run: echo "sha=$(git rev-parse HEAD)" >> $GITHUB_OUTPUT
 
       # if this is a real release and a release branch was created, delete it
-      - name: "Delete release branch: ${{ needs.branch.outputs.name }}"
+      - name: "Delete release branch: ${{ needs.release-branch.outputs.name }}"
         if: ${{ inputs.deploy-to == 'prod' && inputs.is-nightly-release == 'false' && needs.release-branch.outputs.name != '' }}
-        run: git push origin -d ${{ needs.branch.outputs.name }}
+        run: git push origin -d ${{ needs.release-branch.outputs.name }}
diff --git a/.github/workflows/unit-tests.yml b/.github/workflows/unit-tests.yml
index 91d8c57..e171ff7 100644
--- a/.github/workflows/unit-tests.yml
+++ b/.github/workflows/unit-tests.yml
@@ -37,5 +37,5 @@ jobs:
           python-version: ${{ matrix.python-version }}
 
       - name: Run unit tests
-        run: hatch run unit-tests:all
+        run: hatch run unit-tests
         shell: bash
diff --git a/CONTRIBUTING.md b/CONTRIBUTING.md
index 427d2de..9d92515 100644
--- a/CONTRIBUTING.md
+++ b/CONTRIBUTING.md
@@ -66,26 +66,42 @@ Rather than forking `dbt-labs/dbt-postgres`, use `dbt-labs/dbt-postgres` directl
 
 ### Installation
 
-1. Ensure the latest version of `pip` is installed:
+1. Ensure the latest versions of `pip` and `hatch` are installed:
    ```shell
-   pip install --upgrade pip
+   pip install --user --upgrade pip hatch
    ```
-2. Configure and activate a virtual environment using `virtualenv` as described in
-[Setting up an environment](https://github.com/dbt-labs/dbt-core/blob/HEAD/CONTRIBUTING.md#setting-up-an-environment)
-3. Install `dbt-postgres` and development dependencies in the virtual environment
+2. This step is optional, but it's recommended. Configure `hatch` to create its virtual environments in the project. Add this block to your `hatch` `config.toml` file:
+   ```toml
+   # MacOS: ~/Library/Application Support/hatch/config.toml
+   [dirs.env]
+   virtual = ".hatch"
+   ```
+   This makes `hatch` create all virtual environments in the project root inside of the directory `/.hatch`, similar to `/.tox` for `tox`.
+   It also makes it easier to add this environment as a runner in common IDEs like VSCode and PyCharm.
+3. Create a `hatch` environment with all of the development dependencies and activate it:
+   ```shell
+   hatch run setup
+   hatch shell
+   ```
+4. Run any commands within the virtual environment by prefixing the command with `hatch run`:
    ```shell
-   pip install -e .[dev]
+   hatch run <command>
    ```
 
 When `dbt-postgres` is installed this way, any changes made to the `dbt-postgres` source code
 will be reflected in the virtual environment immediately.
 
-
 ## Testing
 
-`dbt-postgres` contains [unit](https://github.com/dbt-labs/dbt-postgres/tree/main/tests/unit)
-and [functional](https://github.com/dbt-labs/dbt-postgres/tree/main/tests/functional) tests.
+`dbt-postgres` contains [code quality checks](https://github.com/dbt-labs/dbt-postgres/tree/main/.pre-commit-config.yaml), [unit tests](https://github.com/dbt-labs/dbt-postgres/tree/main/tests/unit),
+and [functional tests](https://github.com/dbt-labs/dbt-postgres/tree/main/tests/functional).
+
+### Code quality
 
+Code quality checks can run with a single command:
+```shell
+hatch run code-quality
+```
 
 ### Unit tests
 
@@ -94,10 +110,14 @@ Unit tests can be run locally without setting up a database connection:
 ```shell
 # Note: replace $strings with valid names
 
+# run all unit tests
+hatch run unit-test
+
 # run all unit tests in a module
-python -m pytest tests/unit/$test_file_name.py
+hatch run unit-tests tests/unit/$test_file_name.py
+
 # run a specific unit test
-python -m pytest tests/unit/$test_file_name.py::$test_class_name::$test_method_name
+hatch run unit-tests tests/unit/$test_file_name.py::$test_class_name::$test_method_name
 ```
 
 ### Functional tests
@@ -120,16 +140,45 @@ Functional tests can be run locally with a valid database connection configured
 ```shell
 # Note: replace $strings with valid names
 
+# run all functional tests
+hatch run integration-tests
+
 # run all functional tests in a directory
-python -m pytest tests/functional/$test_directory
+hatch run integration-tests tests/functional/$test_directory
+
 # run all functional tests in a module
-python -m pytest tests/functional/$test_dir_and_filename.py
+hatch run integration-tests tests/functional/$test_directory/$test_filename.py
+
 # run all functional tests in a class
-python -m pytest tests/functional/$test_dir_and_filename.py::$test_class_name
+hatch run integration-tests tests/functional/$test_directory/$test_filename.py::$test_class_name
+
 # run a specific functional test
-python -m pytest tests/functional/$test_dir_and_filename.py::$test_class_name::$test__method_name
+hatch run integration-tests tests/functional/$test_directory/$test_filename.py::$test_class_name::$test__method_name
+```
+
+### Testing against a development branch
+
+Some changes require a change in `dbt-common` and/or `dbt-adapters`.
+In that case, the dependency on `dbt-common` and/or `dbt-adapters` must be updated to point to the development branch. For example:
+
+```toml
+[tool.hatch.envs.default]
+dependencies = [
+    "dbt-common @ git+https://github.com/dbt-labs/dbt-common.git@my-dev-branch",
+    "dbt-adapters @ git+https://github.com/dbt-labs/dbt-adapters.git@my-dev-branch",
+    "dbt-tests-adapter @ git+https://github.com/dbt-labs/dbt-adapters.git@my-dev-branch#subdirectory=dbt-tests-adapter",
+    ...,
+]
 ```
 
+This will install `dbt-common`/`dbt-adapters`/`dbt-tests-adapter` as snapshots. In other words, if `my-dev-branch` is updated on GitHub, those updates will not be reflected locally.
+In order to pick up those updates, the `hatch` environment(s) will need to be rebuilt:
+
+```shell
+exit
+hatch env prune
+hatch shell
+```
 
 ## Documentation
 
diff --git a/pyproject.toml b/pyproject.toml
index 92fbf82..c645483 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -31,7 +31,6 @@ dependencies = [
     "dbt-common>=0.1.0a1,<2.0",
     "agate>=1.0,<2.0",
 ]
-
 [project.urls]
 Homepage = "https://github.com/dbt-labs/dbt-postgres"
 Documentation = "https://docs.getdbt.com"
@@ -56,44 +55,31 @@ path = "dbt/adapters/postgres/__version__.py"
 dependencies = [
     "dbt-adapters @ git+https://github.com/dbt-labs/dbt-adapters.git",
     "dbt-common @ git+https://github.com/dbt-labs/dbt-common.git",
+    "dbt-tests-adapter @ git+https://github.com/dbt-labs/dbt-adapters.git#subdirectory=dbt-tests-adapter",
+    "dbt-core @ git+https://github.com/dbt-labs/dbt-core.git#subdirectory=core",
     'pre-commit==3.7.0;python_version>="3.9"',
     'pre-commit==3.5.0;python_version=="3.8"',
-]
-[tool.hatch.envs.default.scripts]
-dev = "pre-commit install"
-code-quality = "pre-commit run --all-files"
-docker-dev = [
-    "echo Does not support integration testing, only development and unit testing. See issue https://github.com/dbt-labs/dbt-postgres/issues/99",
-	"docker build -f docker/dev.Dockerfile -t dbt-postgres-dev .",
-	"docker run --rm -it --name dbt-postgres-dev -v $(pwd):/opt/code dbt-postgres-dev",
-]
-docker-prod = "docker build -f docker/Dockerfile -t dbt-postgres ."
-
-[tool.hatch.envs.unit-tests]
-dependencies = [
-    "dbt-adapters @ git+https://github.com/dbt-labs/dbt-adapters.git",
-    "dbt-common @ git+https://github.com/dbt-labs/dbt-common.git",
-    "dbt-core @ git+https://github.com/dbt-labs/dbt-core.git#subdirectory=core",
     "freezegun",
     "pytest",
     "pytest-dotenv",
     "pytest-mock",
     "pytest-xdist",
 ]
-[tool.hatch.envs.unit-tests.scripts]
-all = "python -m pytest {args:tests/unit}"
-
-[tool.hatch.envs.integration-tests]
-template = "unit-tests"
-extra-dependencies = [
-    "dbt-tests-adapter @ git+https://github.com/dbt-labs/dbt-adapters.git#subdirectory=dbt-tests-adapter",
-]
-[tool.hatch.envs.integration-tests.env-vars]
+[tool.hatch.envs.default.env-vars]
 DBT_TEST_USER_1 = "dbt_test_user_1"
 DBT_TEST_USER_2 = "dbt_test_user_2"
 DBT_TEST_USER_3 = "dbt_test_user_3"
-[tool.hatch.envs.integration-tests.scripts]
-all = "python -m pytest {args:tests/functional}"
+[tool.hatch.envs.default.scripts]
+setup = "pre-commit install"
+code-quality = "pre-commit run --all-files"
+unit-tests = "python -m pytest {args:tests/unit}"
+integration-tests = "python -m pytest {args:tests/functional}"
+docker-dev = [
+    "echo Does not support integration testing, only development and unit testing. See issue https://github.com/dbt-labs/dbt-postgres/issues/99",
+	"docker build -f docker/dev.Dockerfile -t dbt-postgres-dev .",
+	"docker run --rm -it --name dbt-postgres-dev -v $(pwd):/opt/code dbt-postgres-dev",
+]
+docker-prod = "docker build -f docker/Dockerfile -t dbt-postgres ."
 
 [tool.hatch.envs.build]
 detached = true