diff --git a/README.md b/README.md
index 352ad5e..39c32ac 100644
--- a/README.md
+++ b/README.md
@@ -9,7 +9,7 @@ The project is configured using `pyproject.toml` (Python specifics) and `databri
 | Directory | Description |
 |-----------|-------------|
 | `.github/workflows` | CI/CD jobs to test and deploy bundle |
-| `dab_project` | Python project (Used in Databricks Workflow as Python-Wheel-Task) |
+| `src/dab_project` | Python project (Used in Databricks Workflow as Python-Wheel-Task) |
 | `dbt` | [dbt](https://github.com/dbt-labs/dbt-core) project<br/>* Used in Databricks Workflow as dbt-Task<br/>* dbt-Models used from https://github.com/dbt-labs/jaffle_shop_duckdb |
 | `resources` | Resources such as Databricks Workflows or Databricks Volumes/Schemas<br/>* Python-based workflow: https://docs.databricks.com/aws/en/dev-tools/bundles/python<br/>* YAML-based Workflow: https://docs.databricks.com/aws/en/dev-tools/bundles/resources#job |
 | `scripts` | Python script to setup groups, service principals and catalogs used in a Databricks (Free Edition) workspace |
@@ -131,19 +131,6 @@ uv run ./scripts/setup_workspace.py
 
 ## FAQ
 
-* Why no `src` directory?
-
-   Working in Databricks Git Repos automatically adds the root of the Git Repo to Python `sys.path`.
-
-   This way Notebooks in the Git Repo can run `import dab_project` to import the local Python package during development without explicitly installing the package on the Cluster.
-
-   A Notebook outside the Git Repo can do `import os; os.chdir("/Workspace/Users/...")` to act like it is within the Git Repo.
-
-   Using a `src` directory requires changing the `sys.path` during development (without package installed) in a Databricks Git Repo.
-   ```python
-   import sys
-   sys.path.append("../src")
-   ```
 * Service Principals
 
    For this example, the targets `test` and `prod` use a group and service principals.
diff --git a/databricks.yml b/databricks.yml
index 3f58519..da5fba5 100644
--- a/databricks.yml
+++ b/databricks.yml
@@ -18,9 +18,9 @@ include:
 
 sync:
   paths:
-    - dab_project/
     - dbt/
     - resources/
+    - src/
     - typings/
     - databricks.yml
     - pyproject.toml
diff --git a/pyproject.toml b/pyproject.toml
index c8221b4..47a7b32 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -38,10 +38,6 @@ dev = [
 [project.scripts]
 dab-project = "dab_project.cli:main"
 
-[tool.uv.build-backend]
-module-name = "dab_project"
-module-root = ""
-
 [[tool.mypy.overrides]]
 ignore_missing_imports = true
 
@@ -49,17 +45,23 @@ ignore_missing_imports = true
 line-length = 100
 include = [
     "pyproject.toml",
-    "dab_project/**/*.py",
+    "src/**/*.py",
     "resources/**/*.py",
     "scripts/**/*.py",
     "tests/**/*.py",
 ]
+exclude = [
+    "tests/notebook_run_pytest.py"
+]
 
 [tool.ruff.format]
 docstring-code-format = true
 
 [tool.ruff.lint]
-exclude = ["scratch/**/*.py"]
+exclude = [
+    "scratch/**/*.py",
+    "tests/notebook_run_pytest.py"
+]
 select = [
   "E", # pycodestyle
   "W", # pycodestyle
@@ -82,6 +84,7 @@ line-length = 100
 target-version = ['py312']
 
 [tool.pytest.ini_options]
+pythonpath = "src"
 addopts = "-ra -q"
 testpaths = [
     "tests",
diff --git a/scratch/README.md b/scratch/README.md
index 1eda061..5f2fbcc 100644
--- a/scratch/README.md
+++ b/scratch/README.md
@@ -1,7 +1,11 @@
-# Notebooks
+# Scratch
 
-This folder contains Databricks Notebook style files (as `.py`).
+This folder is reserved for personal, exploratory notebooks.
+By default these are not committed to Git, as 'scratch' is listed in .gitignore.
 
-They access `dab_project` Python project, so it can be used as:
-* Databricks Git Repo
-* Local IDE (Project installed as 'editable')
\ No newline at end of file
+Using the `src` directory requires appending to the `sys.path`:
+
+```python
+import sys
+sys.path.append("../src")
+```
\ No newline at end of file
diff --git a/dab_project/__init__.py b/src/dab_project/__init__.py
similarity index 100%
rename from dab_project/__init__.py
rename to src/dab_project/__init__.py
diff --git a/dab_project/__main__.py b/src/dab_project/__main__.py
similarity index 100%
rename from dab_project/__main__.py
rename to src/dab_project/__main__.py
diff --git a/dab_project/catalog.py b/src/dab_project/catalog.py
similarity index 100%
rename from dab_project/catalog.py
rename to src/dab_project/catalog.py
diff --git a/dab_project/cli.py b/src/dab_project/cli.py
similarity index 100%
rename from dab_project/cli.py
rename to src/dab_project/cli.py
diff --git a/dab_project/databricks.py b/src/dab_project/databricks.py
similarity index 100%
rename from dab_project/databricks.py
rename to src/dab_project/databricks.py
diff --git a/dab_project/delta.py b/src/dab_project/delta.py
similarity index 100%
rename from dab_project/delta.py
rename to src/dab_project/delta.py
diff --git a/dab_project/spark.py b/src/dab_project/spark.py
similarity index 100%
rename from dab_project/spark.py
rename to src/dab_project/spark.py
diff --git a/dab_project/tasks/__init__.py b/src/dab_project/tasks/__init__.py
similarity index 100%
rename from dab_project/tasks/__init__.py
rename to src/dab_project/tasks/__init__.py
diff --git a/dab_project/tasks/base_task.py b/src/dab_project/tasks/base_task.py
similarity index 100%
rename from dab_project/tasks/base_task.py
rename to src/dab_project/tasks/base_task.py
diff --git a/dab_project/tasks/bronze_accuweather.py b/src/dab_project/tasks/bronze_accuweather.py
similarity index 100%
rename from dab_project/tasks/bronze_accuweather.py
rename to src/dab_project/tasks/bronze_accuweather.py
diff --git a/dab_project/tasks/bronze_nyctaxi.py b/src/dab_project/tasks/bronze_nyctaxi.py
similarity index 100%
rename from dab_project/tasks/bronze_nyctaxi.py
rename to src/dab_project/tasks/bronze_nyctaxi.py
diff --git a/dab_project/tasks/silver_nyctaxi_aggregated.py b/src/dab_project/tasks/silver_nyctaxi_aggregated.py
similarity index 100%
rename from dab_project/tasks/silver_nyctaxi_aggregated.py
rename to src/dab_project/tasks/silver_nyctaxi_aggregated.py
diff --git a/tests/notebook_run_pytest.py b/tests/notebook_run_pytest.py
index 95c632b..593a293 100644
--- a/tests/notebook_run_pytest.py
+++ b/tests/notebook_run_pytest.py
@@ -1,14 +1,26 @@
-import sys
+# Databricks notebook source
+# MAGIC %pip install pytest
+
+# COMMAND ----------
+
+dbutils.library.restartPython()
 
+# COMMAND ----------
+
+import sys
 import pytest
 
-sys.dont_write_bytecode = True  # Prevent writing .pyc files
+# Prevent writing .pyc files
+sys.dont_write_bytecode = True
+# Add src to python path
+sys.path.append("../src")
+
+# COMMAND ----------
 
 pytest_result = pytest.main(
     [
         ".",
         "-v",
-        "-x",
     ]
 )