diff --git a/.coveragerc b/.coveragerc
new file mode 100644
index 00000000..076b5be6
--- /dev/null
+++ b/.coveragerc
@@ -0,0 +1,9 @@
+[run]
+source = simpegem
+omit =
+    */python?.?/*
+    */lib-python/?.?/*.py
+    */lib_pypy/_*.py
+    */site-packages/ordereddict.py
+    */site-packages/nose/*
+    */unittest2/*
diff --git a/.travis.yml b/.travis.yml
index 2092aef0..ef4509c2 100644
--- a/.travis.yml
+++ b/.travis.yml
@@ -1,28 +1,43 @@
 language: python
 python:
-  - "2.7"
-virtualenv:
-  system_site_packages: true
+  - 2.7
+notifications:
+    - rowanc1@gmail.com
+    # - dwfmarchant@gmail.com
+    # - sgkang09@gmail.com
+    # - lindseyheagy@gmail.com
+
+# Setup anaconda
 before_install:
-  - sudo apt-get install -qq gcc gfortran libblas-dev liblapack-dev python-numpy python-scipy python-matplotlib python-pip
-  # - sudo pip install scipy --upgrade
-  # - sudo pip install numpy --upgrade
+  - if [ ${TRAVIS_PYTHON_VERSION:0:1} == "2" ]; then wget http://repo.continuum.io/miniconda/Miniconda-3.3.0-Linux-x86_64.sh -O miniconda.sh; else wget http://repo.continuum.io/miniconda/Miniconda3-3.3.0-Linux-x86_64.sh -O miniconda.sh; fi
+  - chmod +x miniconda.sh
+  - ./miniconda.sh -b
+  - export PATH=/home/travis/anaconda/bin:/home/travis/miniconda/bin:$PATH
+  - conda update --yes conda
+  # The next couple lines fix a crash with multiprocessing on Travis and are not specific to using Miniconda
+  - sudo rm -rf /dev/shm
+  - sudo ln -s /run/shm /dev/shm
+  # Remove this when SimPEG is on pip
   - cd ../
   - git clone https://github.com/simpeg/simpeg.git
   - cd simpeg/SimPEG/
   - python setup.py
   - cd ../../
-  - echo export PYTHONPATH=$PYTHONPATH:/home/travis/build/simpeg/simpeg >> .bashrc
-  - source .bashrc
+  - export PYTHONPATH=/home/travis/build/simpeg/simpeg:$PYTHONPATH
   - cd simpegem
-# command to install dependencies
-install: "pip install -r requirements.txt --use-mirrors"
-# command to run tests
-script: nosetests -v
 
-notifications:
-  email:
-    - rowanc1@gmail.com
-    - dwfmarchant@gmail.com
-    - sgkang09@gmail.com
-    - lindseyheagy@gmail.com
+# Install packages
+install:
+  - conda install --yes python=$TRAVIS_PYTHON_VERSION atlas numpy scipy matplotlib nose dateutil pandas statsmodels
+  # Coverage packages are on dan_blanchard's binstar channel
+  - conda install --yes -c dan_blanchard python-coveralls nose-cov
+  - pip install -r requirements.txt
+  # - python setup.py install
+
+# Run test
+script:
+  - nosetests --with-cov --cov simpegem --cov-config .coveragerc --logging-level=INFO
+
+# Calculate coverage
+after_success:
+  - coveralls --config_file .coveragerc