diff --git a/tox-update.ini b/tox-update.ini
index a527a56c0..cf0239fbf 100644
--- a/tox-update.ini
+++ b/tox-update.ini
@@ -31,12 +31,12 @@ setenv=
   container: PLAYBOOK = site-docker.yml.sample
   non_container: PLAYBOOK = site.yml.sample
 
-  CEPH_DOCKER_IMAGE_TAG = latest-mimic
-  CEPH_DOCKER_IMAGE_TAG_BIS = latest-bis-mimic
+  CEPH_DOCKER_IMAGE_TAG = latest-nautilus
+  CEPH_DOCKER_IMAGE_TAG_BIS = latest-bis-nautilus
   UPDATE_CEPH_DOCKER_IMAGE_TAG = latest-master
   UPDATE_CEPH_DEV_BRANCH = master
   UPDATE_CEPH_DEV_SHA1 = latest
-  CEPH_STABLE_RELEASE = mimic
+  CEPH_STABLE_RELEASE = nautilus
   ROLLING_UPDATE = True
 
 changedir={toxinidir}/tests/functional/all_daemons{env:CONTAINER_DIR:}
@@ -44,8 +44,8 @@ commands=
   vagrant up --no-provision {posargs:--provider=virtualbox}
   bash {toxinidir}/tests/scripts/generate_ssh_config.sh {changedir}
 
-  # use the stable-3.2 branch to deploy a mimic cluster
-  git clone -b stable-3.2 --single-branch https://github.com/ceph/ceph-ansible.git {envdir}/tmp/ceph-ansible
+  # use the stable-4.0 branch to deploy a nautilus cluster
+  git clone -b stable-4.0 --single-branch https://github.com/ceph/ceph-ansible.git {envdir}/tmp/ceph-ansible
   pip install -r {envdir}/tmp/ceph-ansible/tests/requirements.txt
 
   bash -c 'ANSIBLE_CONFIG={envdir}/tmp/ceph-ansible/ansible.cfg ansible-playbook -vv -i {changedir}/{env:INVENTORY} {envdir}/tmp/ceph-ansible/tests/functional/setup.yml'
@@ -54,14 +54,14 @@ commands=
   bash -c 'ANSIBLE_CONFIG={envdir}/tmp/ceph-ansible/ansible.cfg ansible-playbook -vv -i {changedir}/{env:INVENTORY} {envdir}/tmp/ceph-ansible/tests/functional/lvm_setup.yml --extra-vars "osd_scenario=lvm"'
 
   # deploy the cluster
-  bash -c 'ANSIBLE_CONFIG={envdir}/tmp/ceph-ansible/ansible.cfg ansible-playbook -vv -i {envdir}/tmp/ceph-ansible/tests/functional/all_daemons{env:CONTAINER_DIR:}/{env:INVENTORY} {envdir}/tmp/ceph-ansible/{env:PLAYBOOK:site.yml.sample} --extra-vars "\
+  ansible-playbook -vv -i {envdir}/tmp/ceph-ansible/tests/functional/all_daemons{env:CONTAINER_DIR:}/hosts {envdir}/tmp/ceph-ansible/{env:PLAYBOOK:site.yml.sample} --extra-vars "\
       delegate_facts_host={env:DELEGATE_FACTS_HOST:True} \
       fetch_directory={env:FETCH_DIRECTORY:{changedir}/fetch} \
-      ceph_stable_release={env:CEPH_STABLE_RELEASE:mimic} \
+      ceph_stable_release={env:CEPH_STABLE_RELEASE:nautilus} \
       ceph_docker_registry={env:CEPH_DOCKER_REGISTRY:docker.io} \
       ceph_docker_image={env:CEPH_DOCKER_IMAGE:ceph/daemon} \
-      ceph_docker_image_tag={env:CEPH_DOCKER_IMAGE_TAG:latest-mimic} \
-  "'
+      ceph_docker_image_tag={env:CEPH_DOCKER_IMAGE_TAG:latest-nautilus} \
+  "
 
   pip install -r {toxinidir}/tests/requirements.txt
   non_container: ansible-playbook -vv -i "localhost," -c local {toxinidir}/tests/functional/dev_setup.yml --extra-vars "dev_setup=True change_dir={changedir} ceph_dev_branch={env:UPDATE_CEPH_DEV_BRANCH:master} ceph_dev_sha1={env:UPDATE_CEPH_DEV_SHA1:latest}" --tags "vagrant_setup"
@@ -75,6 +75,6 @@ commands=
       ceph_dev_sha1={env:UPDATE_CEPH_DEV_SHA1:latest} \
   "
 
-  bash -c "CEPH_STABLE_RELEASE={env:UPDATE_CEPH_STABLE_RELEASE:nautilus} py.test --reruns 5 --reruns-delay 1 -n 8 --durations=0 --sudo -v --connection=ansible --ansible-inventory={changedir}/{env:INVENTORY} --ssh-config={changedir}/vagrant_ssh_config {toxinidir}/tests/functional/tests"
+  bash -c "CEPH_STABLE_RELEASE={env:UPDATE_CEPH_STABLE_RELEASE:octopus} py.test --reruns 5 --reruns-delay 1 -n 8 --durations=0 --sudo -v --connection=ansible --ansible-inventory={changedir}/{env:INVENTORY} --ssh-config={changedir}/vagrant_ssh_config {toxinidir}/tests/functional/tests"
 
   vagrant destroy --force