diff --git a/pkgs/clan-cli/clan_cli/dirs.py b/pkgs/clan-cli/clan_cli/dirs.py
index e895df02..514bbe12 100644
--- a/pkgs/clan-cli/clan_cli/dirs.py
+++ b/pkgs/clan-cli/clan_cli/dirs.py
@@ -2,18 +2,19 @@ import os
 import sys
 from pathlib import Path
 
+from .errors import ClanError
+
 
 def get_clan_flake_toplevel() -> Path:
     """Returns the path to the toplevel of the clan flake"""
-    initial_path = Path(os.getcwd())
-    path = Path(initial_path)
-    while path.parent == path:
-        project_files = [".clan-flake"]
-        for project_file in project_files:
+    for project_file in [".clan-flake", ".git", ".hg", ".svn", "flake.nix"]:
+        initial_path = Path(os.getcwd())
+        path = Path(initial_path)
+        while path.parent == path:
             if (path / project_file).exists():
                 return path
-        path = path.parent
-    return initial_path
+            path = path.parent
+    raise ClanError("Could not find clan flake toplevel directory")
 
 
 def user_data_dir() -> Path:
diff --git a/pkgs/clan-cli/pyproject.toml b/pkgs/clan-cli/pyproject.toml
index ae423ee7..58067e66 100644
--- a/pkgs/clan-cli/pyproject.toml
+++ b/pkgs/clan-cli/pyproject.toml
@@ -1,15 +1,20 @@
 [build-system]
-requires = ["setuptools"]
+requires = [ "setuptools" ]
 build-backend = "setuptools.build_meta"
 
 [project]
 name = "clan"
 description = "cLAN CLI tool"
-dynamic = ["version"]
-scripts = {clan = "clan_cli:main"}
+dynamic = [ "version" ]
+scripts = { clan = "clan_cli:main" }
+
+[tool.setuptools]
+packages = [ "clan_cli" ]
 
 [tool.pytest.ini_options]
 addopts = "--cov . --cov-report term --cov-report html:.reports/html --no-cov-on-fail"
+norecursedirs = "tests/helpers"
+
 
 [tool.mypy]
 python_version = "3.10"
@@ -33,13 +38,13 @@ ignore_missing_imports = true
 [tool.ruff]
 line-length = 88
 
-select = ["E", "F", "I"]
+select = [ "E", "F", "I" ]
 ignore = [ "E501" ]
 
 [tool.black]
 line-length = 88
-target-version = ['py310']
-include = '\.pyi?$'
+target-version = [ "py310" ]
+include = "\\.pyi?$"
 exclude = '''
 /(
     \.git
diff --git a/pkgs/clan-cli/tests/__init__.py b/pkgs/clan-cli/tests/__init__.py
deleted file mode 100644
index e69de29b..00000000
diff --git a/pkgs/clan-cli/tests/conftest.py b/pkgs/clan-cli/tests/conftest.py
new file mode 100644
index 00000000..f9b5b00d
--- /dev/null
+++ b/pkgs/clan-cli/tests/conftest.py
@@ -0,0 +1,6 @@
+import os
+import sys
+
+sys.path.append(os.path.join(os.path.dirname(__file__), "helpers"))
+
+pytest_plugins = ["temporary_dir"]
diff --git a/pkgs/clan-cli/tests/environment.py b/pkgs/clan-cli/tests/helpers/environment.py
similarity index 100%
rename from pkgs/clan-cli/tests/environment.py
rename to pkgs/clan-cli/tests/helpers/environment.py
diff --git a/pkgs/clan-cli/tests/temporary_dir.py b/pkgs/clan-cli/tests/temporary_dir.py
new file mode 100644
index 00000000..91310f90
--- /dev/null
+++ b/pkgs/clan-cli/tests/temporary_dir.py
@@ -0,0 +1,11 @@
+import tempfile
+from pathlib import Path
+from typing import Iterator
+
+import pytest
+
+
+@pytest.fixture
+def temporary_dir() -> Iterator[Path]:
+    with tempfile.TemporaryDirectory(prefix="pytest-") as dirpath:
+        yield Path(dirpath)
diff --git a/pkgs/clan-cli/tests/test_clan_ssh.py b/pkgs/clan-cli/tests/test_clan_ssh.py
index 628bc0ec..ed1d366e 100644
--- a/pkgs/clan-cli/tests/test_clan_ssh.py
+++ b/pkgs/clan-cli/tests/test_clan_ssh.py
@@ -3,12 +3,11 @@ from typing import Union
 
 import pytest
 import pytest_subprocess.fake_process
+from environment import mock_env
 from pytest_subprocess import utils
 
 import clan_cli.ssh
 
-from .environment import mock_env
-
 
 def test_no_args(
     capsys: pytest.CaptureFixture, monkeypatch: pytest.MonkeyPatch
diff --git a/pkgs/clan-cli/tests/test_dirs.py b/pkgs/clan-cli/tests/test_dirs.py
new file mode 100644
index 00000000..e3794906
--- /dev/null
+++ b/pkgs/clan-cli/tests/test_dirs.py
@@ -0,0 +1,14 @@
+from pathlib import Path
+
+import pytest
+
+from clan_cli.dirs import get_clan_flake_toplevel
+from clan_cli.errors import ClanError
+
+
+def test_get_clan_flake_toplevel(
+    monkeypatch: pytest.MonkeyPatch, temporary_dir: Path
+) -> None:
+    monkeypatch.chdir(temporary_dir)
+    with pytest.raises(ClanError):
+        get_clan_flake_toplevel()