diff --git a/.travis.yml b/.travis.yml
index 8c2ee3ab0d5..fbb7221d7ea 100644
--- a/.travis.yml
+++ b/.travis.yml
@@ -10,8 +10,7 @@ branches:
 matrix:
   fast_finish: true
   include:
-  - env: CONDA_ENV=py27-min
-  - env: CONDA_ENV=py27-cdat+iris+pynio
+  - env: CONDA_ENV=py35-min
   - env: CONDA_ENV=py35
   - env: CONDA_ENV=py36
   - env: CONDA_ENV=py37
diff --git a/appveyor.yml b/appveyor.yml
index 7020adae572..347883b96cb 100644
--- a/appveyor.yml
+++ b/appveyor.yml
@@ -7,15 +7,14 @@ branches:
 environment:
 
   matrix:
-    - PYTHON: "C:\\Python27-conda64"
-      PYTHON_VERSION: "2.7"
-      PYTHON_ARCH: "64"
-      CONDA_ENV: "py27-windows"
-
     - PYTHON: "C:\\Python36-conda64"
       PYTHON_VERSION: "3.6"
       PYTHON_ARCH: "64"
       CONDA_ENV: "py36-windows"
+    - PYTHON: "C:\\Python37-conda64"
+      PYTHON_VERSION: "3.7"
+      PYTHON_ARCH: "64"
+      CONDA_ENV: "py37-windows"
 
 install:
   # Install miniconda Python
diff --git a/ci/requirements-py27-cdat+iris+pynio.yml b/ci/requirements-py27-cdat+iris+pynio.yml
deleted file mode 100644
index 116e323d517..00000000000
--- a/ci/requirements-py27-cdat+iris+pynio.yml
+++ /dev/null
@@ -1,30 +0,0 @@
-name: test_env
-channels:
-  - conda-forge
-dependencies:
-  - python=2.7
-  - cdat-lite
-  - cftime
-  - cyordereddict
-  - dask
-  - distributed
-  - h5py
-  - h5netcdf
-  - matplotlib
-  - netcdf4
-  - numpy
-  - pandas
-  - pathlib2
-  - pynio
-  - pytest
-  - flake8
-  - mock
-  - scipy
-  - seaborn
-  - toolz
-  - rasterio
-  - iris>=1.10
-  - zarr
-  - pip:
-    - coveralls
-    - pytest-cov
diff --git a/ci/requirements-py27-min.yml b/ci/requirements-py35-min.yml
similarity index 71%
rename from ci/requirements-py27-min.yml
rename to ci/requirements-py35-min.yml
index 118b629271e..1f41d0d9dc1 100644
--- a/ci/requirements-py27-min.yml
+++ b/ci/requirements-py35-min.yml
@@ -1,11 +1,12 @@
 name: test_env
 dependencies:
-  - python=2.7
+  - python=3.5
   - pytest
   - flake8
   - mock
   - numpy=1.12
   - pandas=0.19
   - pip:
-    - coveralls
+    - pytest-env
     - pytest-cov
+    - coveralls
\ No newline at end of file
diff --git a/ci/requirements-py35.yml b/ci/requirements-py35.yml
index 9615aeba9aa..29f4bb020fc 100644
--- a/ci/requirements-py35.yml
+++ b/ci/requirements-py35.yml
@@ -10,6 +10,9 @@ dependencies:
   - matplotlib=1.5
   - netcdf4
   - pytest
+  - pytest-env
+  - pytest-cov
+  - coveralls
   - flake8
   - numpy
   - pandas
@@ -18,6 +21,3 @@ dependencies:
   - toolz
   - rasterio
   - zarr
-  - pip:
-    - coveralls
-    - pytest-cov
diff --git a/ci/requirements-py36-bottleneck-dev.yml b/ci/requirements-py36-bottleneck-dev.yml
index b8619658929..bdf0349b5c0 100644
--- a/ci/requirements-py36-bottleneck-dev.yml
+++ b/ci/requirements-py36-bottleneck-dev.yml
@@ -11,6 +11,9 @@ dependencies:
   - matplotlib
   - netcdf4
   - pytest
+  - pytest-env
+  - pytest-cov
+  - coveralls
   - flake8
   - numpy
   - pandas
@@ -19,5 +22,3 @@ dependencies:
   - toolz
   - pip:
     - git+https://github.com/kwgoodman/bottleneck.git
-    - coveralls
-    - pytest-cov
diff --git a/ci/requirements-py36-condaforge-rc.yml b/ci/requirements-py36-condaforge-rc.yml
index 8436d4e3e83..ba980deeeea 100644
--- a/ci/requirements-py36-condaforge-rc.yml
+++ b/ci/requirements-py36-condaforge-rc.yml
@@ -12,12 +12,12 @@ dependencies:
   - matplotlib
   - netcdf4
   - pytest
+  - pytest-env
+  - pytest-cov
+  - coveralls
   - flake8
   - numpy
   - pandas
   - seaborn
   - scipy
   - toolz
-  - pip:
-    - coveralls
-    - pytest-cov
diff --git a/ci/requirements-py36-dask-dev.yml b/ci/requirements-py36-dask-dev.yml
index e580aaf3889..20b10fe29ee 100644
--- a/ci/requirements-py36-dask-dev.yml
+++ b/ci/requirements-py36-dask-dev.yml
@@ -9,6 +9,9 @@ dependencies:
   - matplotlib
   - netcdf4
   - pytest
+  - pytest-env
+  - pytest-cov
+  - coveralls
   - flake8
   - numpy
   - pandas
@@ -20,7 +23,5 @@ dependencies:
   - zarr
   - pseudonetcdf>=3.0.1
   - pip:
-    - coveralls
-    - pytest-cov
     - git+https://github.com/dask/dask.git
     - git+https://github.com/dask/distributed.git
diff --git a/ci/requirements-py36-hypothesis.yml b/ci/requirements-py36-hypothesis.yml
index 29f4ae33538..c5c228095a4 100644
--- a/ci/requirements-py36-hypothesis.yml
+++ b/ci/requirements-py36-hypothesis.yml
@@ -10,6 +10,10 @@ dependencies:
   - matplotlib
   - netcdf4
   - pytest
+  - pytest-env
+  - pytest-cov
+  - coveralls
+  - hypothesis
   - flake8
   - numpy
   - pandas
@@ -19,9 +23,5 @@ dependencies:
   - rasterio
   - bottleneck
   - zarr
-  - pip:
-    - coveralls
-    - pytest-cov
-    - pydap
-    - lxml
-    - hypothesis
+  - pydap
+  - lxml
diff --git a/ci/requirements-py36-netcdf4-dev.yml b/ci/requirements-py36-netcdf4-dev.yml
index a473ceb5b0a..2616a113fa4 100644
--- a/ci/requirements-py36-netcdf4-dev.yml
+++ b/ci/requirements-py36-netcdf4-dev.yml
@@ -10,13 +10,14 @@ dependencies:
   - h5netcdf
   - matplotlib
   - pytest
+  - pytest-env
+  - pytest-cov
+  - coveralls
   - flake8
   - numpy
   - pandas
   - scipy
   - toolz
   - pip:
-    - coveralls
-    - pytest-cov
     - git+https://github.com/Unidata/netcdf4-python.git
     - git+https://github.com/Unidata/cftime.git
diff --git a/ci/requirements-py36-pandas-dev.yml b/ci/requirements-py36-pandas-dev.yml
index 1f1acabcae9..2b914f746ab 100644
--- a/ci/requirements-py36-pandas-dev.yml
+++ b/ci/requirements-py36-pandas-dev.yml
@@ -12,11 +12,12 @@ dependencies:
   - matplotlib
   - netcdf4
   - pytest
+  - pytest-env
+  - pytest-cov
+  - coveralls
   - flake8
   - numpy
   - scipy
   - toolz
   - pip:
-    - coveralls
-    - pytest-cov
     - git+https://github.com/pydata/pandas.git
diff --git a/ci/requirements-py36-pynio-dev.yml b/ci/requirements-py36-pynio-dev.yml
index 2caaa8affe5..b8987611a6e 100644
--- a/ci/requirements-py36-pynio-dev.yml
+++ b/ci/requirements-py36-pynio-dev.yml
@@ -13,6 +13,9 @@ dependencies:
   - netcdf4
   - pynio=dev
   - pytest
+  - pytest-env
+  - pytest-cov
+  - coveralls
   - numpy
   - pandas
   - scipy
@@ -20,7 +23,4 @@ dependencies:
   - toolz
   - rasterio
   - bottleneck
-  - pip:
-    - coveralls
-    - pytest-cov
-    - pydap
+  - pydap
diff --git a/ci/requirements-py36-rasterio.yml b/ci/requirements-py36-rasterio.yml
index 2ec75f5d8b2..dda9ea8cd29 100644
--- a/ci/requirements-py36-rasterio.yml
+++ b/ci/requirements-py36-rasterio.yml
@@ -11,6 +11,9 @@ dependencies:
   - matplotlib
   - netcdf4
   - pytest
+  - pytest-env
+  - pytest-cov
+  - coveralls
   - numpy
   - pandas
   - scipy
@@ -18,7 +21,4 @@ dependencies:
   - toolz
   - rasterio>=1.0
   - bottleneck
-  - pip:
-    - coveralls
-    - pytest-cov
-    - pydap
+  - pydap
diff --git a/ci/requirements-py36-windows.yml b/ci/requirements-py36-windows.yml
index 62f08318087..b139d5c78ca 100644
--- a/ci/requirements-py36-windows.yml
+++ b/ci/requirements-py36-windows.yml
@@ -11,6 +11,7 @@ dependencies:
   - matplotlib
   - netcdf4
   - pytest
+  - pytest-env
   - numpy
   - pandas
   - scipy
diff --git a/ci/requirements-py36-zarr-dev.yml b/ci/requirements-py36-zarr-dev.yml
index 6ed466ba5cb..9966cf74815 100644
--- a/ci/requirements-py36-zarr-dev.yml
+++ b/ci/requirements-py36-zarr-dev.yml
@@ -8,6 +8,9 @@ dependencies:
   - distributed
   - matplotlib
   - pytest
+  - pytest-env
+  - pytest-cov
+  - coveralls
   - flake8
   - numpy
   - pandas
@@ -16,6 +19,4 @@ dependencies:
   - toolz
   - bottleneck
   - pip:
-    - coveralls
-    - pytest-cov
     - git+https://github.com/zarr-developers/zarr.git
diff --git a/ci/requirements-py36.yml b/ci/requirements-py36.yml
index 321f3087ea2..2986dc33adb 100644
--- a/ci/requirements-py36.yml
+++ b/ci/requirements-py36.yml
@@ -11,6 +11,9 @@ dependencies:
   - matplotlib
   - netcdf4
   - pytest
+  - pytest-cov
+  - pytest-env
+  - coveralls
   - flake8
   - numpy
   - pandas
@@ -22,9 +25,10 @@ dependencies:
   - zarr
   - pseudonetcdf>=3.0.1
   - eccodes
+  - cdms2
+  - pynio
+  - iris>=1.10
+  - pydap
+  - lxml
   - pip:
-    - coveralls
-    - pytest-cov
-    - pydap
-    - lxml
     - cfgrib>=0.9.2
diff --git a/ci/requirements-py27-windows.yml b/ci/requirements-py37-windows.yml
similarity index 74%
rename from ci/requirements-py27-windows.yml
rename to ci/requirements-py37-windows.yml
index 967b7c584b9..24a7f556b2c 100644
--- a/ci/requirements-py27-windows.yml
+++ b/ci/requirements-py37-windows.yml
@@ -2,16 +2,16 @@ name: test_env
 channels:
   - conda-forge
 dependencies:
-  - python=2.7
+  - python=3.7
+  - cftime
   - dask
   - distributed
   - h5py
   - h5netcdf
   - matplotlib
-  - pathlib2
+  - netcdf4
   - pytest
-  - flake8
-  - mock
+  - pytest-env
   - numpy
   - pandas
   - scipy
@@ -19,5 +19,3 @@ dependencies:
   - toolz
   - rasterio
   - zarr
-  - pip:
-    - netcdf4
diff --git a/ci/requirements-py37.yml b/ci/requirements-py37.yml
index 6292c4c5eb6..86a44ed5398 100644
--- a/ci/requirements-py37.yml
+++ b/ci/requirements-py37.yml
@@ -11,6 +11,9 @@ dependencies:
   - matplotlib
   - netcdf4
   - pytest
+  - pytest-cov
+  - pytest-env
+  - coveralls
   - flake8
   - numpy
   - pandas
@@ -21,10 +24,8 @@ dependencies:
   - bottleneck
   - zarr
   - pseudonetcdf>=3.0.1
+  - lxml
   - eccodes
+  - pydap
   - pip:
-    - coveralls
-    - pytest-cov
-    - pydap
-    - lxml
     - cfgrib>=0.9.2
\ No newline at end of file
diff --git a/doc/installing.rst b/doc/installing.rst
index fbe6a316936..083ac6c450a 100644
--- a/doc/installing.rst
+++ b/doc/installing.rst
@@ -6,7 +6,7 @@ Installation
 Required dependencies
 ---------------------
 
-- Python 2.7 [1]_, 3.5, 3.6, or 3.7
+- Python 3.5, 3.6, or 3.7
 - `numpy <http://www.numpy.org/>`__ (1.12 or later)
 - `pandas <http://pandas.pydata.org/>`__ (0.19.2 or later)
 
@@ -111,14 +111,4 @@ To run these benchmark tests in a local machine, first install
 - `airspeed-velocity <https://asv.readthedocs.io/en/latest/>`__: a tool for benchmarking Python packages over their lifetime.
 
 and run
-``asv run  # this will install some conda environments in ./.asv/envs``
-
-.. [1] Xarray plans to drop support for python 2.7 at the end of 2018. This
-   means that new releases of xarray published after this date will only be
-   installable on python 3+ environments, but older versions of xarray will
-   always be available to python 2.7 users. For more information see the
-   following references:
-
-      - `Xarray Github issue discussing dropping Python 2 <https://github.com/pydata/xarray/issues/1829>`__
-      - `Python 3 Statement <http://www.python3statement.org/>`__
-      - `Tips on porting to Python 3 <https://docs.python.org/3/howto/pyporting.html>`__
+``asv run  # this will install some conda environments in ./.asv/envs``
\ No newline at end of file
diff --git a/doc/whats-new.rst b/doc/whats-new.rst
index ea3a12aae0d..b1c80ced761 100644
--- a/doc/whats-new.rst
+++ b/doc/whats-new.rst
@@ -21,6 +21,10 @@ v0.11.2 (unreleased)
 Breaking changes
 ~~~~~~~~~~~~~~~~
 
+- Remove support for Python 2. This is the first version of xarray that is
+  Python 3 only. (:issue:`1876`).
+  By `Joe Hamman <https://github.com/jhamman>`_.
+
 Enhancements
 ~~~~~~~~~~~~
 
diff --git a/setup.cfg b/setup.cfg
index 51261be0b36..847415ac04d 100644
--- a/setup.cfg
+++ b/setup.cfg
@@ -7,6 +7,8 @@ testpaths=xarray/tests
 # Fixed upstream in https://github.com/kwgoodman/bottleneck/pull/199
 filterwarnings =
     ignore:Using a non-tuple sequence for multidimensional indexing is deprecated:FutureWarning
+env =
+    UVCDAT_ANONYMOUS_LOG=no
 
 [flake8]
 max-line-length=79
diff --git a/setup.py b/setup.py
index eaf57dff81d..ac226c4cab5 100644
--- a/setup.py
+++ b/setup.py
@@ -24,6 +24,7 @@
     'Topic :: Scientific/Engineering',
 ]
 
+PYTHON_REQUIRES = '>=3.5'
 INSTALL_REQUIRES = ['numpy >= 1.12', 'pandas >= 0.19.2']
 SETUP_REQUIRES = ['pytest-runner >= 4.2']
 TESTS_REQUIRE = ['pytest >= 2.7.1']
@@ -66,10 +67,10 @@
       classifiers=CLASSIFIERS,
       description=DESCRIPTION,
       long_description=LONG_DESCRIPTION,
+      python_requires=PYTHON_REQUIRES,
       install_requires=INSTALL_REQUIRES,
       setup_requires=SETUP_REQUIRES,
       tests_require=TESTS_REQUIRE,
       url=URL,
-      python_requires='>=2.7,!=3.0.*,!=3.1.*,!=3.2.*,!=3.3.*,!=3.4.*',
       packages=find_packages(),
       package_data={'xarray': ['tests/data/*']})