diff --git a/managed_vms/memcache/main.py b/managed_vms/memcache/main.py
index 3b9bba3fbfcf..3cda68026a0e 100644
--- a/managed_vms/memcache/main.py
+++ b/managed_vms/memcache/main.py
@@ -15,7 +15,7 @@
 import os
 
 from flask import Flask
-import memcache
+from pymemcache.client.base import Client as MemcacheClient
 
 
 app = Flask(__name__)
@@ -23,9 +23,8 @@
 
 # [START client]
 memcache_addr = os.environ.get('MEMCACHE_PORT_11211_TCP_ADDR', 'localhost')
-memcache_port = os.environ.get('MEMCACHE_PORT_11211_TCP_PORT', '11211')
-memcache_client = memcache.Client([
-    '{}:{}'.format(memcache_addr, memcache_port)])
+memcache_port = os.environ.get('MEMCACHE_PORT_11211_TCP_PORT', 11211)
+memcache_client = MemcacheClient((memcache_addr, int(memcache_port)))
 # [END client]
 
 
@@ -37,7 +36,7 @@ def index():
     if not memcache_client.get('counter'):
         memcache_client.set('counter', 0)
 
-    value = memcache_client.incr('counter')
+    value = memcache_client.incr('counter', 1)
 
     return 'Value is {}'.format(value)
 # [END example]
diff --git a/managed_vms/memcache/main_test.py b/managed_vms/memcache/main_test.py
index d118baea1e1d..ab4b3f87c67e 100644
--- a/managed_vms/memcache/main_test.py
+++ b/managed_vms/memcache/main_test.py
@@ -17,9 +17,9 @@
 
 
 def test_index():
-    main.memcache_client.set('counter', 0)
-
-    if main.memcache_client.get('counter') is None:
+    try:
+        main.memcache_client.set('counter', 0)
+    except ConnectionRefusedError:
         pytest.skip('Memcache is unavailable.')
 
     main.app.testing = True
diff --git a/managed_vms/memcache/requirements.txt b/managed_vms/memcache/requirements.txt
index 924f9437661d..e585d2e8e64b 100644
--- a/managed_vms/memcache/requirements.txt
+++ b/managed_vms/memcache/requirements.txt
@@ -1,3 +1,3 @@
 Flask==0.10.1
 gunicorn==19.4.5
-python-memcached==1.57
+pymemcache==1.3.5
diff --git a/requirements-py27-dev.txt b/requirements-py27-dev.txt
index 78ea9f6036de..da1be46332c0 100644
--- a/requirements-py27-dev.txt
+++ b/requirements-py27-dev.txt
@@ -1,3 +1,7 @@
+gcloud==0.10.1
+google-api-python-client==1.5.0
+oauth2client==2.0.0.post1
+requests[security]==2.9.1
 beautifulsoup4==4.4.1
 coverage==4.1b2
 Flask==0.10.1
@@ -18,7 +22,7 @@ Werkzeug==0.11.4
 nose-timer==0.6.0
 Flask-SQLAlchemy==2.1
 PyMySQL==0.7.1
-python-memcached==1.57
+pymemcache==1.3.5
 PyCrypto==2.6.1
 flaky==3.1.0
 Django==1.9.2
diff --git a/requirements-py34-dev.txt b/requirements-py34-dev.txt
index c0b044fdf10b..98f1168c1782 100644
--- a/requirements-py34-dev.txt
+++ b/requirements-py34-dev.txt
@@ -1,3 +1,7 @@
+gcloud==0.10.1
+google-api-python-client==1.5.0
+oauth2client==2.0.0.post1
+requests[security]==2.9.1
 beautifulsoup4==4.4.1
 coverage==4.1b2
 Flask==0.10.1
@@ -18,7 +22,7 @@ Werkzeug==0.11.4
 nose-timer==0.6.0
 Flask-SQLAlchemy==2.1
 PyMySQL==0.7.1
-python-memcached==1.57
+pymemcache==1.3.5
 PyCrypto==2.6.1
 flaky==3.1.0
 Django==1.9.2
diff --git a/requirements.txt b/requirements.txt
deleted file mode 100644
index bb5b16b4ed6e..000000000000
--- a/requirements.txt
+++ /dev/null
@@ -1,4 +0,0 @@
-gcloud==0.10.1
-google-api-python-client==1.5.0
-oauth2client==2.0.0.post1
-requests[security]==2.9.1
diff --git a/tox.ini b/tox.ini
index 4946f9cd4cbd..89c9c1fbd163 100644
--- a/tox.ini
+++ b/tox.ini
@@ -5,8 +5,6 @@ envlist = pep8, py27, py34, gae
 [testenv]
 passenv = *
 basepython = python2.7
-deps =
-    -rrequirements.txt
 examples =
     bigquery/api
     blog/introduction_to_data_models_in_cloud_datastore
@@ -38,7 +36,6 @@ commands =
 
 [testenv:py27]
 deps =
-    {[testenv]deps}
     -rrequirements-py27-dev.txt
 commands =
     python scripts/run-tests.py {posargs:{[testenv]examples}}
@@ -55,7 +52,6 @@ commands =
 [testenv:py34]
 basepython = python3.4
 deps =
-    {[testenv]deps}
     -rrequirements-py34-dev.txt
 commands =
     python scripts/run-tests.py {posargs:{[testenv]examples}}
@@ -72,7 +68,6 @@ commands =
 
 [testenv:gae]
 deps =
-    {[testenv]deps}
     -rrequirements-py27-dev.txt
 examples =
     appengine/app_identity/signing