diff --git a/managed_vms/memcache/main_test.py b/managed_vms/memcache/main_test.py
index 5cc4fb852c51..bd3e9a756fb1 100644
--- a/managed_vms/memcache/main_test.py
+++ b/managed_vms/memcache/main_test.py
@@ -12,6 +12,8 @@
 # See the License for the specific language governing permissions and
 # limitations under the License.
 
+from unittest.case import SkipTest
+
 from testing import CloudTest
 
 from . import main
@@ -20,7 +22,9 @@
 class MemcacheTest(CloudTest):
 
     def test_index(self):
-        main.memcache_client.set('counter', 0)
+        if main.memcache_client.set('counter', 0) is None:
+            raise SkipTest('Memcache is unavailable.')
+
         main.app.testing = True
         client = main.app.test_client()
 
diff --git a/tox.ini b/tox.ini
index bc7a3e9b045c..e66ddc905d93 100644
--- a/tox.ini
+++ b/tox.ini
@@ -3,19 +3,7 @@ skipsdist = True
 envlist = pep8, reqcheck, gae, py27, py34
 
 [testenv]
-passenv =
-    PYTHONPATH
-    GOOGLE_*
-    GCLOUD_*
-    TEST_*
-    CLOUD_*
-    TRAVIS*
-    SQLALCHEMY_DATABASE_URI
-    PUBSUB_*
-    GA_TRACKING_ID
-    MAILGUN_*
-    SENDGRID_*
-    TWILIO_*
+passenv = *
 basepython = python2.7
 deps =
     -rrequirements.txt
@@ -56,7 +44,7 @@ deps =
     -rrequirements-py27-dev.txt
 commands =
     # Create a lib directory, otherwise, the vendor library will explode.
-    mkdir lib
+    mkdir -p lib
     nosetests --with-gae \
         --gae-app=appengine/resources/app.yaml \
         --logging-level=INFO \