diff --git a/.github/workflows/downstream.yml b/.github/workflows/downstream.yml
index 0007b252d3..dbef7cde58 100644
--- a/.github/workflows/downstream.yml
+++ b/.github/workflows/downstream.yml
@@ -9,6 +9,7 @@ on:
 jobs:
   tests:
     runs-on: ubuntu-latest
+    timeout-minutes: 15
 
     steps:
     - name: Checkout
@@ -22,11 +23,14 @@ jobs:
     - name: Install dependencies
       run: |
         pip install --upgrade pip
-        pip install ".[test]"
+        pip install "."
         pip install --pre --upgrade jupyterlab_server[test] jupyterlab[test] nbclassic[test]
         pip freeze
     - name: Run tests
+      working-directory: ../
       run: |
+        # NOTE: tests won't pass from inside the working copy because of
+        # conftest.py:pytest_plugins (must be at the top level)
         pytest --pyargs jupyterlab_server
         python -m jupyterlab.browser_check --no-browser-test
 
diff --git a/conftest.py b/conftest.py
index 4a3b569856..bdac3802bc 100644
--- a/conftest.py
+++ b/conftest.py
@@ -1,31 +1,3 @@
-import pytest
-
 pytest_plugins = [
     "jupyter_server.pytest_plugin"
 ]
-
-def pytest_addoption(parser):
-    parser.addoption(
-        "--integration_tests",
-        default=False,
-        type=bool,
-        help="only run tests with the 'integration_test' pytest mark.",
-    )
-
-
-def pytest_configure(config):
-    # register an additional marker
-    config.addinivalue_line(
-        "markers", "integration_test"
-    )
-
-
-def pytest_runtest_setup(item):
-    is_integration_test = any([mark for mark in item.iter_markers(name="integration_test")])
-
-    if item.config.getoption("--integration_tests") is True:
-        if not is_integration_test:
-            pytest.skip("Only running tests marked as 'integration_test'.")
-    else:
-        if is_integration_test:
-            pytest.skip("Skipping this test because it's marked 'integration_test'. Run integration tests using the `--integration_tests` flag.")
diff --git a/jupyter_server/tests/conftest.py b/jupyter_server/tests/conftest.py
new file mode 100644
index 0000000000..cb373c80c4
--- /dev/null
+++ b/jupyter_server/tests/conftest.py
@@ -0,0 +1,27 @@
+import pytest
+
+def pytest_addoption(parser):
+    parser.addoption(
+        "--integration_tests",
+        default=False,
+        type=bool,
+        help="only run tests with the 'integration_test' pytest mark.",
+    )
+
+
+def pytest_configure(config):
+    # register an additional marker
+    config.addinivalue_line(
+        "markers", "integration_test"
+    )
+
+
+def pytest_runtest_setup(item):
+    is_integration_test = any([mark for mark in item.iter_markers(name="integration_test")])
+
+    if item.config.getoption("--integration_tests") is True:
+        if not is_integration_test:
+            pytest.skip("Only running tests marked as 'integration_test'.")
+    else:
+        if is_integration_test:
+            pytest.skip("Skipping this test because it's marked 'integration_test'. Run integration tests using the `--integration_tests` flag.")