diff --git a/.gitignore b/.gitignore
index c258e58c..2af7a1ed 100644
--- a/.gitignore
+++ b/.gitignore
@@ -17,3 +17,4 @@ cscope.*
 ssh_server_tests/.env
 /.cover
 built_artifacts/
+component-tests/.venv
diff --git a/.teamcity/windows/component-test.ps1 b/.teamcity/windows/component-test.ps1
index fe70738e..548fac6b 100644
--- a/.teamcity/windows/component-test.ps1
+++ b/.teamcity/windows/component-test.ps1
@@ -37,7 +37,7 @@ if ($LASTEXITCODE -ne 0) { throw "Failed unit tests" }
 
 Write-Output "Running component tests"
 
-python -m pip --disable-pip-version-check install --upgrade -r component-tests/requirements.txt
+python -m pip --disable-pip-version-check install --upgrade -r component-tests/requirements.txt --use-pep517
 python component-tests/setup.py --type create
 python -m pytest component-tests -o log_cli=true --log-cli-level=INFO
 if ($LASTEXITCODE -ne 0) {
diff --git a/component-tests/README.md b/component-tests/README.md
index 537fb47e..6eac7782 100644
--- a/component-tests/README.md
+++ b/component-tests/README.md
@@ -1,9 +1,9 @@
 # Requirements
-1. Python 3.7 or later with packages in the given `requirements.txt`
-   - E.g. with conda:
-   - `conda create -n component-tests python=3.7`  
-   - `conda activate component-tests`
-   - `pip3 install -r requirements.txt`
+1. Python 3.10 or later with packages in the given `requirements.txt`
+   - E.g. with venv:
+   - `python3 -m venv ./.venv`  
+   - `source ./.venv/bin/activate`
+   - `python3 -m pip install -r requirements.txt`
 
 2. Create a config yaml file, for example:
 ```