diff --git a/CONTRIBUTING.md b/CONTRIBUTING.md
index c29fc1b..7b843e5 100644
--- a/CONTRIBUTING.md
+++ b/CONTRIBUTING.md
@@ -55,10 +55,15 @@ Remember that many community members have become regular contributors and some a
 
 ### Setting up the Development Environment
  * Install Python 3.10+
- * Install the requirements
+ * Install the requirements (needs pip 25.1+)
    ```bash
-   $ python3 -m pip install -U pip
-   $ python3 -m pip install -Ur requirements-dev.txt
+   # recommended to use a virtual environment
+   $ python3 -m venv .venv
+   $ source .venv/bin/activate
+   # make sure pip is up to date
+   $ pip install -U pip
+   # install all development dependencies and driver
+   $ pip install -U --group dev -e .
    ```
 * Install pre-commit hooks to notice mistakes before the CI does it for you ;)
   ```bash
diff --git a/bin/target_driver.sh b/bin/target_driver.sh
index 191fd93..5c9b720 100755
--- a/bin/target_driver.sh
+++ b/bin/target_driver.sh
@@ -3,7 +3,7 @@ set -e
 
 version="$1"; shift
 
-sed -i "s/\"\(neo4j *== *\).*\"/\"\1$version\"/" pyproject.toml
+sed -i "s/\"\(neo4j *\([\[0-9a-zA-Z, \]\+]\)\? *== *\).*\"/\"\1$version\"/" pyproject.toml
 sed -i "s/\(version *= *\)\"[0-9]\+\.[0-9]\+\.[0-9]\+\(.*\)\"/\1\"$version.0\"/" pyproject.toml
 
 cd driver
diff --git a/changelog.d/44.dev.md b/changelog.d/44.dev.md
new file mode 100644
index 0000000..58e98f4
--- /dev/null
+++ b/changelog.d/44.dev.md
@@ -0,0 +1 @@
+Use dependency groups in `pyproject.toml` for development dependencies<ISSUES_LIST>.
diff --git a/pyproject.toml b/pyproject.toml
index 5f7ad5a..902780a 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -61,6 +61,40 @@ pyarrow = ["neo4j[pyarrow]"]
 requires = ["maturin ~= 1.9.1"]
 build-backend = "maturin"
 
+[dependency-groups]
+# To install all development dependencies as well as the driver with all optional dependencies,
+# run `pip install --group dev -e .` inside repository root folder.
+dev = [
+    # dev tools
+    {include-group = "dep-project-dependencies"},
+    {include-group = "tox"},
+    {include-group = "precommit"},
+    {include-group = "test"},
+    {include-group = "packaging"},
+]
+tox = [
+    "tox >= 4.25.0",
+]
+precommit = [
+    "pre-commit >= 4.2.0",
+    "isort >= 6.0.1",
+]
+test = [
+    "pytest >= 8.3.5",
+    "pytest-benchmark >= 5.1.0",
+    "pytest-mock >= 3.14.1",
+]
+packaging = [
+    "build",
+    "maturin ~= 1.9.1",
+    "towncrier >= 24.8.0",
+]
+
+# single dependencies and other include-groups (not really meant to be installed as a group, but to avoid duplication)
+dep-project-dependencies = [
+    "neo4j[numpy,pandas,pyarrow] == 5.28.1",
+]
+
 [tool.maturin]
 features = ["pyo3/extension-module", "pyo3/generate-import-lib"]
 module-name = "neo4j._rust"
diff --git a/requirements-dev.txt b/requirements-dev.txt
deleted file mode 100644
index f6717b4..0000000
--- a/requirements-dev.txt
+++ /dev/null
@@ -1,18 +0,0 @@
-.[numpy,pandas,pyarrow]
-
-# for local development
-pre-commit>=4.2.0
-isort>=6.0.1
-
-# for unit tests
-tox>=4.25.0
-pytest>=8.3.5
-pytest-benchmark>=5.1.0
-pytest-mock>=3.14.1
-
-# for Python driver's TestKit backend
-freezegun>=1.5.1
-
-# for packaging
-maturin~=1.9.1
-towncrier>=24.8.0
diff --git a/testkit/build.py b/testkit/build.py
index 05c3ea3..1393c49 100644
--- a/testkit/build.py
+++ b/testkit/build.py
@@ -19,4 +19,17 @@
 
 if __name__ == "__main__":
     run_python(["-m", "pip", "install", "-U", "pip"])
-    run_python(["-m", "pip", "install", "-Ur", "requirements-dev.txt"])
+    run_python(["-m", "pip", "install", "-U", "--group", "packaging"])
+    run_python(["-m", "build", "."])
+    run_python(
+        [
+            "-m",
+            "pip",
+            "install",
+            "-U",
+            "--group",
+            "driver/pyproject.toml:testkit",
+            "-e",
+            ".",
+        ]
+    )
diff --git a/tox.ini b/tox.ini
index 579f325..2dea77e 100644
--- a/tox.ini
+++ b/tox.ini
@@ -2,6 +2,11 @@
 envlist = py{310,311,312,313}-{test}
 
 [testenv]
-deps = -r requirements-dev.txt
+dependency_groups =
+    test
+extras =
+    numpy
+    pandas
+    pyarrow
 commands =
     test: python -m pytest -v --benchmark-skip {posargs} tests