diff --git a/.github/workflows/test.yml b/.github/workflows/test.yml
index 321985c..9f74408 100644
--- a/.github/workflows/test.yml
+++ b/.github/workflows/test.yml
@@ -55,9 +55,6 @@ jobs:
       - name: Install the Python dependencies
         run: |
           pip install -e ".[test]" codecov
-      - name: Point at Jupyter Server branch with terminals removed.
-        run: |
-          pip install -U git+https://github.com/Zsailer/jupyter_server.git@jupyter_server_terminals
       - name: List installed packages
         run: |
           pip freeze
@@ -75,6 +72,42 @@ jobs:
         run: |
           codecov
 
+  test_minimum_versions:
+    name: Test Minimum Versions
+    timeout-minutes: 20
+    runs-on: ubuntu-latest
+    steps:
+      - uses: actions/checkout@v2
+      - name: Base Setup
+        uses: jupyterlab/maintainer-tools/.github/actions/base-setup@v1
+        with:
+          python_version: "3.7"
+      - name: Install miniumum versions
+        uses: jupyterlab/maintainer-tools/.github/actions/install-minimums@v1
+      - name: Run the unit tests
+        run: |
+          pytest -vv -W default || pytest -vv -W default --lf
+
+  test_prereleases:
+    name: Test Prereleases
+    runs-on: ubuntu-latest
+    timeout-minutes: 20
+    steps:
+      - name: Checkout
+        uses: actions/checkout@v2
+      - name: Base Setup
+        uses: jupyterlab/maintainer-tools/.github/actions/base-setup@v1
+      - name: Install the Python dependencies
+        run: |
+          pip install --pre -e ".[test]"
+      - name: List installed packages
+        run: |
+          pip freeze
+          pip check
+      - name: Run the tests
+        run: |
+          pytest -vv || pytest -vv --lf
+
   make_sdist:
     name: Make SDist
     runs-on: ubuntu-latest
@@ -84,11 +117,11 @@ jobs:
       - uses: jupyterlab/maintainer-tools/.github/actions/base-setup@v1
       - uses: jupyterlab/maintainer-tools/.github/actions/make-sdist@v1
 
-  # test_sdist:
-  #   runs-on: ubuntu-latest
-  #   needs: [make_sdist]
-  #   name: Install from SDist and Test
-  #   timeout-minutes: 15
-  #   steps:
-  #     - uses: jupyterlab/maintainer-tools/.github/actions/base-setup@v1
-  #     - uses: jupyterlab/maintainer-tools/.github/actions/test-sdist@v1
+  test_sdist:
+    runs-on: ubuntu-latest
+    needs: [make_sdist]
+    name: Install from SDist and Test
+    timeout-minutes: 15
+    steps:
+      - uses: jupyterlab/maintainer-tools/.github/actions/base-setup@v1
+      - uses: jupyterlab/maintainer-tools/.github/actions/test-sdist@v1
diff --git a/jupyter_server_terminals/api_handlers.py b/jupyter_server_terminals/api_handlers.py
index 3efc04a..9739037 100644
--- a/jupyter_server_terminals/api_handlers.py
+++ b/jupyter_server_terminals/api_handlers.py
@@ -1,4 +1,5 @@
 import json
+from pathlib import Path
 
 from tornado import web
 
@@ -31,6 +32,27 @@ def post(self):
         """POST /terminals creates a new terminal and redirects to it"""
         data = self.get_json_body() or {}
 
+        # if cwd is a relative path, it should be relative to the root_dir,
+        # but if we pass it as relative, it will we be considered as relative to
+        # the path jupyter_server was started in
+        if "cwd" in data:
+            cwd = Path(data["cwd"])
+            if not cwd.resolve().exists():
+                cwd = Path(self.settings["server_root_dir"]).expanduser() / cwd
+                if not cwd.resolve().exists():
+                    cwd = None
+
+            if cwd is None:
+                server_root_dir = self.settings["server_root_dir"]
+                self.log.debug(
+                    f"Failed to find requested terminal cwd: {data.get('cwd')}\n"
+                    f"  It was not found within the server root neither: {server_root_dir}."
+                )
+                del data["cwd"]
+            else:
+                self.log.debug(f"Opening terminal in: {cwd.resolve()!s}")
+                data["cwd"] = str(cwd.resolve())
+
         model = self.terminal_manager.create(**data)
         self.finish(json.dumps(model))
 
diff --git a/jupyter_server_terminals/app.py b/jupyter_server_terminals/app.py
index 6fed83b..38fca86 100644
--- a/jupyter_server_terminals/app.py
+++ b/jupyter_server_terminals/app.py
@@ -73,6 +73,9 @@ def initialize_handlers(self):
         )
         self.handlers.extend(api_handlers.default_handlers)
         self.serverapp.web_app.settings["terminal_manager"] = self.terminal_manager
+        self.serverapp.web_app.settings["terminals_available"] = self.settings[
+            "terminals_available"
+        ]
 
     def current_activity(self):
         if self.terminals_available:
@@ -89,7 +92,7 @@ async def cleanup_terminals(self):
         if not self.terminals_available:
             return
 
-        terminal_manager = self.web_app.settings["terminal_manager"]
+        terminal_manager = self.terminal_manager
         n_terminals = len(terminal_manager.list())
         terminal_msg = trans.ngettext(
             "Shutting down %d terminal", "Shutting down %d terminals", n_terminals
diff --git a/setup.cfg b/setup.cfg
index 928c0ea..e6f2971 100644
--- a/setup.cfg
+++ b/setup.cfg
@@ -37,7 +37,7 @@ test =
     pytest_tornasync
     pytest-cov
     pytest-timeout
-    jupyter_server[test]>=1
+    jupyter_server[test] @ git+https://github.com/Zsailer/jupyter_server.git@jupyter_server_terminals
 
 [options.packages.find]
 exclude = ['docs*', 'tests*']
diff --git a/tests/test_auth.py b/tests/test_auth.py
index f7be949..16aa051 100644
--- a/tests/test_auth.py
+++ b/tests/test_auth.py
@@ -1,11 +1,9 @@
 """Tests for authorization"""
+import asyncio
 
 import pytest
-from jupyter_client.kernelspec import NATIVE_KERNEL_NAME
 from jupyter_server.auth.authorizer import Authorizer
 from jupyter_server.auth.utils import HTTP_METHOD_TO_AUTH_ACTION, match_url_to_resource
-from nbformat import writes
-from nbformat.v4 import new_notebook
 from tornado.httpclient import HTTPClientError
 from tornado.websocket import WebSocketHandler
 from traitlets.config import Config
@@ -123,7 +121,6 @@ async def test_authorized_requests(
     request,
     io_loop,
     send_request,
-    tmp_path,
     jp_serverapp,
     jp_cleanup_subprocesses,
     method,
@@ -131,29 +128,12 @@ async def test_authorized_requests(
     body,
     allowed,
 ):
-    # Setup stuff for the Contents API
-    # Add a notebook on disk
-    contents_dir = tmp_path / jp_serverapp.root_dir
-    p = contents_dir / "dir_for_testing"
-    p.mkdir(parents=True, exist_ok=True)
-
-    # Create a notebook
-    nb = writes(new_notebook(), version=4)
-    nbname = p.joinpath("nb_for_testing.ipynb")
-    nbname.write_text(nb, encoding="utf-8")
-
-    # Setup
-    nbpath = "dir_for_testing/nb_for_testing.ipynb"
-    kernelspec = NATIVE_KERNEL_NAME
-    km = jp_serverapp.kernel_manager
-
-    if "terminal" in url:
-        term_manager = jp_serverapp.web_app.settings["terminal_manager"]
-        request.addfinalizer(lambda: io_loop.run_sync(term_manager.terminate_all))
-        term_model = term_manager.create()
-        term_name = term_model["name"]
-
-    url = url.format(**locals())
+    term_manager = jp_serverapp.web_app.settings["terminal_manager"]
+    request.addfinalizer(lambda: io_loop.run_sync(term_manager.terminate_all))
+    term_model = term_manager.create()
+    term_name = term_model["name"]
+
+    url = url.format(term_name=term_name)
     if allowed:
         # Create a server with full permissions
         permissions = {
@@ -168,7 +148,12 @@ async def test_authorized_requests(
         expected_codes = {403}
     jp_serverapp.authorizer.permissions = permissions
 
-    code = await send_request(url, body=body, method=method)
-    assert code in expected_codes
+    while True:
+        code = await send_request(url, body=body, method=method)
+        if code == 404:
+            await asyncio.sleep(1)
+            continue
+        assert code in expected_codes
+        break
 
     await jp_cleanup_subprocesses()
diff --git a/tests/test_terminal.py b/tests/test_terminal.py
index 0c7cfbd..0331d4b 100644
--- a/tests/test_terminal.py
+++ b/tests/test_terminal.py
@@ -2,7 +2,7 @@
 import json
 import os
 import shutil
-import time
+import sys
 
 import pytest
 from tornado.httpclient import HTTPClientError
@@ -19,6 +19,16 @@ def terminal_path(tmp_path):
     shutil.rmtree(str(subdir), ignore_errors=True)
 
 
+@pytest.fixture
+def terminal_root_dir(jp_root_dir):
+    subdir = jp_root_dir.joinpath("terminal_path")
+    subdir.mkdir()
+
+    yield subdir
+
+    shutil.rmtree(str(subdir), ignore_errors=True)
+
+
 CULL_TIMEOUT = 10
 CULL_INTERVAL = 3
 
@@ -38,7 +48,7 @@ def jp_server_config():
     )
 
 
-async def test_no_terminals(jp_fetch, jp_server_config):
+async def test_no_terminals(jp_fetch):
     resp_list = await jp_fetch(
         "api",
         "terminals",
@@ -51,7 +61,7 @@ async def test_no_terminals(jp_fetch, jp_server_config):
     assert len(data) == 0
 
 
-async def test_terminal_create(jp_server_config, jp_fetch, jp_cleanup_subprocesses):
+async def test_terminal_create(jp_fetch, jp_cleanup_subprocesses):
     resp = await jp_fetch(
         "api",
         "terminals",
@@ -77,9 +87,7 @@ async def test_terminal_create(jp_server_config, jp_fetch, jp_cleanup_subprocess
     await jp_cleanup_subprocesses()
 
 
-async def test_terminal_create_with_kwargs(
-    jp_server_config, jp_fetch, terminal_path, jp_cleanup_subprocesses
-):
+async def test_terminal_create_with_kwargs(jp_fetch, terminal_path, jp_cleanup_subprocesses):
     resp_create = await jp_fetch(
         "api",
         "terminals",
@@ -106,7 +114,7 @@ async def test_terminal_create_with_kwargs(
 
 
 async def test_terminal_create_with_cwd(
-    jp_server_config, jp_fetch, jp_ws_fetch, terminal_path, jp_cleanup_subprocesses
+    jp_fetch, jp_ws_fetch, terminal_path, jp_cleanup_subprocesses
 ):
     resp = await jp_fetch(
         "api",
@@ -126,7 +134,7 @@ async def test_terminal_create_with_cwd(
         except HTTPClientError as e:
             if e.code != 404:
                 raise
-            time.sleep(1)
+            await asyncio.sleep(1)
 
     ws.write_message(json.dumps(["stdin", "pwd\r\n"]))
 
@@ -148,7 +156,93 @@ async def test_terminal_create_with_cwd(
     await jp_cleanup_subprocesses()
 
 
-async def test_culling_config(jp_server_config, jp_configurable_serverapp):
+async def test_terminal_create_with_relative_cwd(
+    jp_fetch, jp_ws_fetch, jp_root_dir, terminal_root_dir, jp_cleanup_subprocesses
+):
+    resp = await jp_fetch(
+        "api",
+        "terminals",
+        method="POST",
+        body=json.dumps({"cwd": str(terminal_root_dir.relative_to(jp_root_dir))}),
+        allow_nonstandard_methods=True,
+    )
+
+    data = json.loads(resp.body.decode())
+    term_name = data["name"]
+
+    while True:
+        try:
+            ws = await jp_ws_fetch("terminals", "websocket", term_name)
+            break
+        except HTTPClientError as e:
+            if e.code != 404:
+                raise
+            await asyncio.sleep(1)
+
+    ws.write_message(json.dumps(["stdin", "pwd\r\n"]))
+
+    message_stdout = ""
+    while True:
+        try:
+            message = await asyncio.wait_for(ws.read_message(), timeout=5.0)
+        except asyncio.TimeoutError:
+            break
+
+        message = json.loads(message)
+
+        if message[0] == "stdout":
+            message_stdout += message[1]
+
+    ws.close()
+
+    expected = terminal_root_dir.name if sys.platform == "win32" else str(terminal_root_dir)
+    assert expected in message_stdout
+    await jp_cleanup_subprocesses()
+
+
+async def test_terminal_create_with_bad_cwd(jp_fetch, jp_ws_fetch, jp_cleanup_subprocesses):
+    non_existing_path = "/tmp/path/to/nowhere"
+    resp = await jp_fetch(
+        "api",
+        "terminals",
+        method="POST",
+        body=json.dumps({"cwd": non_existing_path}),
+        allow_nonstandard_methods=True,
+    )
+
+    data = json.loads(resp.body.decode())
+    term_name = data["name"]
+
+    while True:
+        try:
+            ws = await jp_ws_fetch("terminals", "websocket", term_name)
+            break
+        except HTTPClientError as e:
+            if e.code != 404:
+                raise
+            await asyncio.sleep(1)
+
+    ws.write_message(json.dumps(["stdin", "pwd\r\n"]))
+
+    message_stdout = ""
+    while True:
+        try:
+            message = await asyncio.wait_for(ws.read_message(), timeout=5.0)
+        except asyncio.TimeoutError:
+            break
+
+        message = json.loads(message)
+
+        if message[0] == "stdout":
+            message_stdout += message[1]
+
+    ws.close()
+
+    assert non_existing_path not in message_stdout
+    await jp_cleanup_subprocesses()
+
+
+async def test_culling_config(jp_configurable_serverapp):
     terminal_mgr_config = jp_configurable_serverapp().config.ServerApp.TerminalManager
     assert terminal_mgr_config.cull_inactive_timeout == CULL_TIMEOUT
     assert terminal_mgr_config.cull_interval == CULL_INTERVAL
@@ -158,7 +252,7 @@ async def test_culling_config(jp_server_config, jp_configurable_serverapp):
 
 
 @pytest.mark.skipif(os.name == "nt", reason="Not currently working on Windows")
-async def test_culling(jp_server_config, jp_fetch, jp_cleanup_subprocesses):
+async def test_culling(jp_fetch, jp_cleanup_subprocesses):
     # POST request
     resp = await jp_fetch(
         "api",