diff --git a/lib/glance b/lib/glance
index 5259174..da9cd43 100644
--- a/lib/glance
+++ b/lib/glance
@@ -235,7 +235,7 @@
     iniset $GLANCE_CACHE_CONF DEFAULT use_syslog $SYSLOG
     iniset $GLANCE_CACHE_CONF DEFAULT image_cache_dir $GLANCE_CACHE_DIR/
     iniuncomment $GLANCE_CACHE_CONF DEFAULT auth_url
-    iniset $GLANCE_CACHE_CONF DEFAULT auth_url $KEYSTONE_AUTH_URI/v2.0
+    iniset $GLANCE_CACHE_CONF DEFAULT auth_url $KEYSTONE_AUTH_URI/v3
     iniuncomment $GLANCE_CACHE_CONF DEFAULT auth_tenant_name
     iniset $GLANCE_CACHE_CONF DEFAULT admin_tenant_name $SERVICE_PROJECT_NAME
     iniuncomment $GLANCE_CACHE_CONF DEFAULT auth_user
diff --git a/lib/tempest b/lib/tempest
index 0d01843..166a521 100644
--- a/lib/tempest
+++ b/lib/tempest
@@ -271,13 +271,15 @@
         iniset $TEMPEST_CONFIG auth admin_tenant_id $admin_project_id
         iniset $TEMPEST_CONFIG auth admin_domain_name $admin_domain_name
     fi
-    if [ "$ENABLE_IDENTITY_V2" == "False" ]; then
-        # Only Identity v3 is available; then skip Identity API v2 tests
-        iniset $TEMPEST_CONFIG identity-feature-enabled api_v2 False
-        # In addition, use v3 auth tokens for running all Tempest tests
-        iniset $TEMPEST_CONFIG identity auth_version v3
-    else
+    if [ "$ENABLE_IDENTITY_V2" == "True" ]; then
+        # Run Identity API v2 tests ONLY if needed
+        iniset $TEMPEST_CONFIG identity-feature-enabled api_v2 True
         iniset $TEMPEST_CONFIG identity auth_version ${TEMPEST_AUTH_VERSION:-v2}
+    else
+        # Skip Identity API v2 tests by default
+        iniset $TEMPEST_CONFIG identity-feature-enabled api_v2 False
+        # Use v3 auth tokens for running all Tempest tests
+        iniset $TEMPEST_CONFIG identity auth_version v3
     fi
 
     if is_ssl_enabled_service "key" || is_service_enabled tls-proxy; then
diff --git a/openrc b/openrc
index 8d8ae8b..d1c6129 100644
--- a/openrc
+++ b/openrc
@@ -81,12 +81,12 @@
 KEYSTONE_AUTH_HOST=${KEYSTONE_AUTH_HOST:-$SERVICE_HOST}
 
 # Identity API version
-export OS_IDENTITY_API_VERSION=${IDENTITY_API_VERSION:-2.0}
+export OS_IDENTITY_API_VERSION=${IDENTITY_API_VERSION:-3}
 
 # Authenticating against an OpenStack cloud using Keystone returns a **Token**
 # and **Service Catalog**.  The catalog contains the endpoints for all services
 # the user/project has access to - including nova, glance, keystone, swift, ...
-# We currently recommend using the 2.0 *identity api*.
+# We currently recommend using the version 3 *identity api*.
 #
 export OS_AUTH_URL=$KEYSTONE_AUTH_PROTOCOL://$KEYSTONE_AUTH_HOST:5000/v${OS_IDENTITY_API_VERSION}
 
diff --git a/stackrc b/stackrc
index ea8b044..e4ff1b7 100644
--- a/stackrc
+++ b/stackrc
@@ -158,7 +158,7 @@
 fi
 
 # Configure Identity API version: 2.0, 3
-IDENTITY_API_VERSION=${IDENTITY_API_VERSION:-2.0}
+IDENTITY_API_VERSION=${IDENTITY_API_VERSION:-3}
 
 # Set the option ENABLE_IDENTITY_V2 to True. It defines whether the DevStack
 # deployment will be deploying the Identity v2 pipelines. If this option is set
diff --git a/tools/create_userrc.sh b/tools/create_userrc.sh
index 30d1a01..f4a4edc 100755
--- a/tools/create_userrc.sh
+++ b/tools/create_userrc.sh
@@ -152,7 +152,7 @@
 fi
 
 if [ -z "$OS_AUTH_URL" ]; then
-    export OS_AUTH_URL=http://localhost:5000/v2.0/
+    export OS_AUTH_URL=http://localhost:5000/v3/
 fi
 
 if [ -z "$OS_USER_DOMAIN_ID" -a -z "$OS_USER_DOMAIN_NAME" ]; then