diff --git a/.github/workflows/build_docs.yml b/.github/workflows/build_docs.yml
index 8745acd..8f2ee01 100644
--- a/.github/workflows/build_docs.yml
+++ b/.github/workflows/build_docs.yml
@@ -46,11 +46,14 @@ jobs:
       # This action sets the current path to the root of your github repo
       - uses: actions/checkout@v7
 
-      - name: Update pip
-        run: python3 -m pip install  --upgrade pip setuptools
+      - name: Update pip and extra deps
+        run: |
+           python3 -m pip install  --upgrade pip setuptools
+           python3 -m pip install --no-binary=h5py h5py
+           python3 -m pip install . --group docs
 
       - name: Install dependencies
-        run: python3 -m pip install --no-binary=h5py  -e ".[docs]"
+        run: python3 -m pip install -e . --no-build-isolation
 
       - name: Build docs
         run: jupyter book build .
diff --git a/.github/workflows/check_formatting.yml b/.github/workflows/check_formatting.yml
index afe2700..96183fc 100644
--- a/.github/workflows/check_formatting.yml
+++ b/.github/workflows/check_formatting.yml
@@ -43,11 +43,13 @@ jobs:
     steps:
       - uses: actions/checkout@v7
 
-      - name: Update pip
-        run: python3 -m pip install  --upgrade pip setuptools
+      - name: Update pip and install build deps
+        run: |
+          python3 -m pip install  --upgrade pip setuptools
+          python3 -m pip install . --group dev --no-build-isolation
 
       - name: Install code
-        run: python3 -m pip install  .[dev]
+        run: python3 -m pip install  . --no-build-isolation
 
       - name: Check code formatting with ruff
         run: |
diff --git a/.github/workflows/test_dolfinx_versions.yml b/.github/workflows/test_dolfinx_versions.yml
index 56441dd..c9233ab 100644
--- a/.github/workflows/test_dolfinx_versions.yml
+++ b/.github/workflows/test_dolfinx_versions.yml
@@ -31,4 +31,4 @@ jobs:
     # Call the reusable workflow
     uses: ./.github/workflows/test_workflow.yml
     with:
-      dolfinx_tag: ${{ matrix.tag }}
+      tag: ${{ matrix.tag }}
diff --git a/.github/workflows/test_package_openmpi.yml b/.github/workflows/test_package_openmpi.yml
deleted file mode 100644
index 7c98a9a..0000000
--- a/.github/workflows/test_package_openmpi.yml
+++ /dev/null
@@ -1,88 +0,0 @@
-name: Test package with different mpi compilers
-
-on:
-  push:
-    branches:
-      - main
-  pull_request:
-    branches:
-      - main
-
-  workflow_call:
-  workflow_dispatch:
-  schedule:
-    - cron: "0 8 * * *"
-
-jobs:
-  create-datasets:
-    uses: ./.github/workflows/create_legacy_data.yml
-    with:
-      artifact_name: "legacy_ompi"
-
-  create-legacy-datasets:
-    uses: ./.github/workflows/create_legacy_checkpoint.yml
-    with:
-      artifact_name: "legacy_checkpoint_ompi"
-
-  test-code:
-    runs-on: ubuntu-latest
-    needs: [create-datasets, create-legacy-datasets]
-    container: ${{ matrix.container }}
-    env:
-      DEB_PYTHON_INSTALL_LAYOUT: deb_system
-      PETSC_ARCH: "linux-gnu-real64-32"
-      OMPI_ALLOW_RUN_AS_ROOT: 1
-      OMPI_ALLOW_RUN_AS_ROOT_CONFIRM: 1
-      PRTE_MCA_rmaps_default_mapping_policy: :oversubscribe
-      working-directory: ./src
-      PIP_NO_BINARY: h5py
-
-    strategy:
-      matrix:
-        adios2: ["v2.11.0", "v2.12.1", "default"]
-        container:
-          - ghcr.io/fenics/test-env:current-openmpi
-          - ghcr.io/fenics/test-env:current-mpich
-    steps:
-      - uses: actions/checkout@v7
-
-      - name: Update pip
-        run: python3 -m pip install  --upgrade pip
-
-      - name: Install build requirements
-        run: python3 -m pip install  -r build-requirements.txt
-
-      - name: Install DOLFINx
-        uses: jorgensd/actions/install-dolfinx@v0.4
-        with:
-          adios2: ${{ matrix.adios2 }}
-          petsc_arch: ${{ env.PETSC_ARCH }}
-          dolfinx: main
-          basix: main
-          ufl: main
-          ffcx: main
-          working-directory: ${{ env.working-directory}}
-
-      - name: Download legacy data
-        uses: actions/download-artifact@v8
-        with:
-          name: legacy_ompi
-          path: ./legacy
-
-      - name: Download legacy data
-        uses: actions/download-artifact@v8
-        with:
-          name: legacy_checkpoint_ompi
-          path: ./legacy_checkpoint
-
-      - name: Install package
-        run: |
-          HDF5_MPI=ON HDF5_PKGCONFIG_NAME="hdf5" python3 -m pip install h5py  --no-build-isolation --no-binary=h5py
-          python3 -m pip install  .[test]
-      - name: Run tests
-        run: |
-          coverage run --rcfile=.coveragerc -m mpi4py -m pytest -xvs ./tests/
-
-      - name: Run tests in parallel
-        run: |
-          mpirun -n 2 coverage run --rcfile=.coveragerc -m mpi4py -m pytest -xvs ./tests/
diff --git a/.github/workflows/test_redhat.yml b/.github/workflows/test_redhat.yml
deleted file mode 100644
index e0a8b65..0000000
--- a/.github/workflows/test_redhat.yml
+++ /dev/null
@@ -1,93 +0,0 @@
-name: Test package with redhat
-
-on:
-  # push:
-  #   branches:
-  #     - main
-  # pull_request:
-  #   branches:
-  #     - main
-
-  workflow_call:
-  workflow_dispatch:
-  # schedule:
-  #   - cron: "0 8 * * *"
-
-jobs:
-  create-datasets:
-    uses: ./.github/workflows/create_legacy_data.yml
-    with:
-      artifact_name: "legacy_ompi"
-
-  create-legacy-datasets:
-    uses: ./.github/workflows/create_legacy_checkpoint.yml
-    with:
-      artifact_name: "legacy_checkpoint_ompi"
-
-  test-code:
-    runs-on: "ubuntu-latest"
-    needs: [create-datasets, create-legacy-datasets]
-    container: docker.io/fenicsproject/test-env:current-redhat
-    env:
-      DEB_PYTHON_INSTALL_LAYOUT: deb_system
-      PETSC_ARCH: ""
-      PETSC_DIR: "/usr/local/"
-      PYTHONPATH: "/usr/local/lib/:${PYTHONPATH}"
-      working-directory: ./src
-
-    strategy:
-      matrix:
-        adios2: ["master"]
-    steps:
-      - uses: actions/checkout@v7
-
-      - name: Get pip flags based on version
-        id: python-version
-        shell: bash -el {0}
-        run: |
-          MODERN_PIP=$(python3 -c "import sys; t = sys.version_info >= (3, 11, 0); sys.stdout.write(str(t))")
-          if [ ${MODERN_PIP} == "True" ]; then
-            FLAGS="--break-system-packages"
-          else
-            FLAGS=""
-            python3 -m pip install --upgrade pip
-          fi
-          echo "PYTHON_FLAGS=${FLAGS}" >> "$GITHUB_OUTPUT"
-
-      - name: Update pip
-        run: python3 -m pip install ${{ steps.python-version.outputs.PYTHON_FLAGS}} --upgrade pip setuptools
-
-      - name: Install DOLFINx
-        uses: jorgensd/actions/install-dolfinx@v0.4
-        with:
-          adios2: ${{ matrix.adios2 }}
-          petsc_arch: ${{ env.PETSC_ARCH }}
-          petsc_dir: ${{ env.PETSC_DIR }}
-          dolfinx: main
-          basix: main
-          ufl: main
-          ffcx: main
-          working-directory: ${{ env.working-directory}}
-
-      - name: Download legacy data
-        uses: actions/download-artifact@v8
-        with:
-          name: legacy_ompi
-          path: ./legacy
-
-      - name: Download legacy data
-        uses: actions/download-artifact@v8
-        with:
-          name: legacy_checkpoint_ompi
-          path: ./legacy_checkpoint
-
-      - name: Install package
-        run: python3 -m pip install ${{ steps.python-version.outputs.PYTHON_FLAGS}} --check-build-dependencies .[test]
-
-      - name: Run tests
-        run: |
-          coverage run --rcfile=.coveragerc -m mpi4py -m pytest -xvs ./tests
-
-      - name: Run tests in parallel
-        run: |
-          mpirun -n 4 coverage run --rcfile=.coveragerc -m mpi4py -m pytest -xvs ./tests
diff --git a/.github/workflows/test_workflow.yml b/.github/workflows/test_workflow.yml
index 7849337..6d829aa 100644
--- a/.github/workflows/test_workflow.yml
+++ b/.github/workflows/test_workflow.yml
@@ -1,17 +1,49 @@
-name: Test
+name: Test package
 
 on:
   workflow_call:
     inputs:
-      dolfinx_tag:
+      tag:
+        description: "Tag of DOLFINx docker image"
+        default: "nightly"
         required: true
         type: string
+  workflow_dispatch:
+    inputs:
+      tag:
+        description: "Tag of DOLFINx docker image"
+        default: "nightly"
+        required: true
+        type: string
+env:
+  DEB_PYTHON_INSTALL_LAYOUT: deb_system
+  DEFAULT_TAG: nightly
+  HDF5_MPI: "ON"
+  HDF5_INCLUDEDIR: "/usr/include/hdf5/openmpi"
+  H5PY_SETUP_REQUIRES: 0
+  OMPI_ALLOW_RUN_AS_ROOT: 1
+  OMPI_ALLOW_RUN_AS_ROOT_CONFIRM: 1
+  PRTE_MCA_rmaps_default_mapping_policy: :oversubscribe
+  CC: mpicc
+  CXX: mpicxx
 
 jobs:
+  get_image_tag:
+    runs-on: ubuntu-latest
+    outputs:
+      image: ${{ steps.docker_tag.outputs.image }}
+    steps:
+      - id: docker_tag
+        run: echo "image=${{ inputs.tag || env.DEFAULT_TAG }}" >> $GITHUB_OUTPUT
+
   test-code:
     runs-on: ubuntu-24.04
     # The container tag is now dynamic based on the input passed by the caller
-    container: ghcr.io/fenics/dolfinx/dolfinx:${{ inputs.dolfinx_tag }}
+    container: ghcr.io/fenics/test-env:current
+    needs:
+      [get_image_tag]
+    env:
+      working-directory: ./src
 
     steps:
       - uses: actions/checkout@v7
@@ -20,7 +52,8 @@ jobs:
         run: python3 -m pip install --upgrade pip
 
       - name: Install build requirements
-        run: python3 -m pip install -r build-requirements.txt
+        run: python3 -m pip install --group build --no-build-isolation
+
 
       # Note: We assume the caller workflow has already uploaded these artifacts
       - name: Download legacy mpich data
@@ -35,10 +68,38 @@ jobs:
           name: legacy_checkpoint_mpich
           path: ./legacy_checkpoint
 
+      - name: Install DOLFINx (stable)
+        if: needs.get_image_tag.outputs.image == 'stable'
+        uses: jorgensd/actions/install-dolfinx@v0.4
+        with:
+          adios2: v2.12.1
+          petsc_arch: linux-gnu-real64-32
+          dolfinx: release
+          basix: release
+          ufl: release
+          ffcx: release
+          working-directory: ${{ env.working-directory}}
+
+      - name: Install DOLFINx (nightly)
+        if: needs.get_image_tag.outputs.image == 'nightly'
+        uses: jorgensd/actions/install-dolfinx@v0.4
+        with:
+          adios2: v2.12.1
+          petsc_arch: linux-gnu-real64-32
+          working-directory: ${{ env.working-directory}}
+
+      - name: Configure HDF5 MPI Environment
+        run: |
+          # Evaluate architecture dynamically and write to GITHUB_ENV
+          ARCH_TRIPLET=$(gcc -print-multiarch)
+          echo "HDF5_LIBDIR=/usr/lib/${ARCH_TRIPLET}/hdf5/openmpi" >> $GITHUB_ENV
+
       - name: Install package
         run: |
-          HDF5_MPI=ON HDF5_PKGCONFIG_NAME="hdf5" python3 -m pip install h5py --no-build-isolation --no-binary=h5py
-          python3 -m pip install .[test]
+          python3 -m pip install "Cython>=3.0.11" "pkgconfig>=1.5.5"
+          python3 -m pip install h5py --no-binary=h5py --no-build-isolation
+          python3 -m pip install --group dev --group test
+          python3 -m pip install . --no-build-isolation
 
       - name: Show adios2 version
         run: python3 -c "import adios2; print(adios2.__version__)"
@@ -65,6 +126,6 @@ jobs:
       - name: Upload coverage report
         uses: actions/upload-artifact@v7
         with:
-          name: code-coverage-report-${{ inputs.dolfinx_tag }}
+          name: code-coverage-report-${{ inputs.tag }}
           path: htmlcov
           if-no-files-found: error
diff --git a/build-requirements.txt b/build-requirements.txt
deleted file mode 100644
index a58cd3b..0000000
--- a/build-requirements.txt
+++ /dev/null
@@ -1,5 +0,0 @@
-scikit-build-core[pyproject]>=0.11.0
-nanobind>=1.3.2
-setuptools>=77.0.3
-packaging>=24.2
-pkgconfig
diff --git a/docs/testing.md b/docs/testing.md
index 7751c05..e7cbe20 100644
--- a/docs/testing.md
+++ b/docs/testing.md
@@ -21,7 +21,8 @@ Install the library with the optional `test` dependencies to ensure you have
 packages like `pytest`, `coverage`, and `ipyparallel`
 
 ```bash
-python3 -m pip install ".[test]"
+python3 -m pip install . --group test --no-build-isolation
+python3 -m pip install -e . --no-build-isolation
 ```
 
 ### Running Tests
diff --git a/pyproject.toml b/pyproject.toml
index ccb8852..9bba01a 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -1,5 +1,13 @@
-[build-system] # Require setuptool version due to https://github.com/pypa/setuptools/issues/2938
-requires = ["setuptools>=61.0.0", "wheel"]
+[build-system]
+requires = [
+    "setuptools>=77.0.3",
+    "wheel",
+    "scikit-build-core[pyproject]>=0.11.0",
+    "nanobind>=1.3.2,<2.15",  # Temporary cap on nanobind for stable dolfinx
+    "packaging>=24.2",
+    "pkgconfig"
+]
+build-backend = "setuptools.build_meta"
 
 [project]
 name = "io4dolfinx"
@@ -14,6 +22,20 @@ readme = "README.md"
 dependencies = ["fenics-dolfinx>=0.10.0", "packaging"]
 
 [project.optional-dependencies]
+h5py = ["h5py"]
+pyvista = ["pyvista"]
+xdmf = ["h5py"]
+exodus = ["netcdf4"]
+
+[dependency-groups]
+build = [
+    "scikit-build-core[pyproject]>=0.11.0",
+    "nanobind>=1.3.2,<3.0",
+    "setuptools>=77.0.3",
+    "packaging>=24.2",
+    "pkgconfig"
+]
+
 test = [
     "pytest",
     "coverage",
@@ -22,23 +44,28 @@ test = [
     "io4dolfinx[pyvista]",
     "io4dolfinx[xdmf]"
 ]
-dev = ["pdbpp", "ipython", "mypy", "ruff"]
-h5py = ["h5py"]
-pyvista = ["pyvista"]
-xdmf = ["h5py"]
-exodus = ["netcdf4"]
+dev = [
+    "pdbpp",
+    "ipython",
+    "mypy",
+    "ruff"
+]
 docs = [
     "jupyter-book<2.0.0",
     "ipyparallel",
     "ipywidgets",
     "jupytext",
-    "ipykernel<7.0.0",     # Note: Remove once https://github.com/ipython/ipykernel/issues/1450 is in a release
+    "ipykernel",
     "sphinx-codeautolink",
     "io4dolfinx[h5py]",
     "io4dolfinx[pyvista]",
     "sphinx_external_toc<1.1.0",
 ]
-all = ["io4dolfinx[test,dev,docs]"]
+all = [
+    { include-group = "test" },
+    { include-group = "dev" },
+    { include-group = "docs" }
+]
 
 [tool.pytest.ini_options]
 addopts = ["--import-mode=importlib"]
@@ -67,7 +94,6 @@ select = [
     "I001",
 ]
 
-
 [tool.ruff.lint.isort]
 known-first-party = ["io4dolfinx"]
 known-third-party = [
@@ -91,7 +117,6 @@ section-order = [
 [tool.ruff.lint.isort.sections]
 "mpi" = ["mpi4py", "petsc4py"]
 
-
 [tool.bumpversion]
 allow_dirty = false
 commit = true
@@ -102,7 +127,6 @@ tag_name = "v{new_version}"
 tag_message = "Bump version: {current_version} → {new_version}"
 current_version = "1.3.0"
 
-
 [[tool.bumpversion.files]]
 filename = "pyproject.toml"
 search = 'version = "{current_version}"'