diff --git a/dbt-snowflake/pyproject.toml b/dbt-snowflake/pyproject.toml
index d2fcbf580f..6ab0a09388 100644
--- a/dbt-snowflake/pyproject.toml
+++ b/dbt-snowflake/pyproject.toml
@@ -43,7 +43,7 @@ Changelog = "https://github.com/dbt-labs/dbt-adapters/blob/main/dbt-snowflake/CH
 
 [tool.pytest.ini_options]
 testpaths = ["tests/unit", "tests/functional"]
-addopts = "-v --color=yes -n auto"
+addopts = "-v --color=yes"
 env_files = ["test.env"]
 filterwarnings = [
     "ignore:datetime.datetime.utcnow:DeprecationWarning",
diff --git a/dbt-snowflake/requirements.txt b/dbt-snowflake/requirements.txt
new file mode 100644
index 0000000000..d632189b6b
--- /dev/null
+++ b/dbt-snowflake/requirements.txt
@@ -0,0 +1,238 @@
+#
+# This file is autogenerated by pip-compile with Python 3.11
+# by the following command:
+#
+#    pip-compile --output-file=requirements.txt pyproject.toml
+#
+agate==1.9.1
+    # via
+    #   dbt-adapters
+    #   dbt-common
+    #   dbt-core
+    #   dbt-snowflake (pyproject.toml)
+annotated-types==0.7.0
+    # via pydantic
+asn1crypto==1.5.1
+    # via snowflake-connector-python
+attrs==25.3.0
+    # via
+    #   jsonschema
+    #   referencing
+babel==2.17.0
+    # via agate
+backports-tarfile==1.2.0
+    # via jaraco-context
+boto3==1.40.32
+    # via snowflake-connector-python
+botocore==1.40.32
+    # via
+    #   boto3
+    #   s3transfer
+    #   snowflake-connector-python
+certifi==2025.1.31
+    # via
+    #   dbt-snowflake (pyproject.toml)
+    #   requests
+    #   snowflake-connector-python
+cffi==1.17.1
+    # via
+    #   cryptography
+    #   snowflake-connector-python
+charset-normalizer==3.4.3
+    # via
+    #   requests
+    #   snowflake-connector-python
+click==8.2.1
+    # via
+    #   dbt-core
+    #   dbt-semantic-interfaces
+colorama==0.4.6
+    # via dbt-common
+cryptography==46.0.0
+    # via
+    #   pyopenssl
+    #   snowflake-connector-python
+daff==1.4.2
+    # via dbt-core
+dbt-adapters==1.16.7
+    # via
+    #   dbt-core
+    #   dbt-snowflake (pyproject.toml)
+dbt-common==1.30.0
+    # via
+    #   dbt-adapters
+    #   dbt-core
+    #   dbt-snowflake (pyproject.toml)
+dbt-core==1.10.11
+    # via dbt-snowflake (pyproject.toml)
+dbt-extractor==0.6.0
+    # via dbt-core
+dbt-protos==1.0.375
+    # via
+    #   dbt-adapters
+    #   dbt-common
+    #   dbt-core
+dbt-semantic-interfaces==0.9.0
+    # via dbt-core
+deepdiff==8.6.1
+    # via dbt-common
+filelock==3.19.1
+    # via snowflake-connector-python
+idna==3.10
+    # via
+    #   requests
+    #   snowflake-connector-python
+importlib-metadata==8.7.0
+    # via
+    #   dbt-semantic-interfaces
+    #   keyring
+isodate==0.6.1
+    # via
+    #   agate
+    #   dbt-common
+jaraco-classes==3.4.0
+    # via keyring
+jaraco-context==6.0.1
+    # via keyring
+jaraco-functools==4.3.0
+    # via keyring
+jinja2==3.1.6
+    # via
+    #   dbt-common
+    #   dbt-core
+    #   dbt-semantic-interfaces
+jmespath==1.0.1
+    # via
+    #   boto3
+    #   botocore
+jsonschema==4.25.1
+    # via
+    #   dbt-common
+    #   dbt-core
+    #   dbt-semantic-interfaces
+jsonschema-specifications==2025.9.1
+    # via jsonschema
+keyring==25.6.0
+    # via snowflake-connector-python
+leather==0.4.0
+    # via agate
+markupsafe==3.0.2
+    # via jinja2
+mashumaro[msgpack]==3.14
+    # via
+    #   dbt-adapters
+    #   dbt-common
+    #   dbt-core
+more-itertools==10.8.0
+    # via
+    #   dbt-semantic-interfaces
+    #   jaraco-classes
+    #   jaraco-functools
+msgpack==1.1.1
+    # via mashumaro
+networkx==3.5
+    # via dbt-core
+orderly-set==5.5.0
+    # via deepdiff
+packaging==25.0
+    # via
+    #   dbt-core
+    #   snowflake-connector-python
+parsedatetime==2.6
+    # via agate
+pathspec==0.12.1
+    # via
+    #   dbt-common
+    #   dbt-core
+platformdirs==4.4.0
+    # via snowflake-connector-python
+protobuf==6.32.1
+    # via
+    #   dbt-adapters
+    #   dbt-common
+    #   dbt-core
+    #   dbt-protos
+pycparser==2.23
+    # via cffi
+pydantic==2.11.9
+    # via
+    #   dbt-core
+    #   dbt-semantic-interfaces
+pydantic-core==2.33.2
+    # via pydantic
+pyjwt==2.10.1
+    # via snowflake-connector-python
+pyopenssl==25.3.0
+    # via snowflake-connector-python
+python-dateutil==2.9.0.post0
+    # via
+    #   botocore
+    #   dbt-common
+    #   dbt-semantic-interfaces
+python-slugify==8.0.4
+    # via agate
+pytimeparse==1.1.8
+    # via agate
+pytz==2025.2
+    # via
+    #   dbt-adapters
+    #   dbt-core
+    #   snowflake-connector-python
+pyyaml==6.0.2
+    # via
+    #   dbt-core
+    #   dbt-semantic-interfaces
+referencing==0.36.2
+    # via
+    #   jsonschema
+    #   jsonschema-specifications
+requests==2.32.5
+    # via
+    #   dbt-common
+    #   dbt-core
+    #   snowflake-connector-python
+    #   snowplow-tracker
+rpds-py==0.27.1
+    # via
+    #   jsonschema
+    #   referencing
+s3transfer==0.14.0
+    # via boto3
+six==1.17.0
+    # via
+    #   isodate
+    #   python-dateutil
+snowflake-connector-python[secure-local-storage]==3.17.3
+    # via dbt-snowflake (pyproject.toml)
+snowplow-tracker==1.1.0
+    # via dbt-core
+sortedcontainers==2.4.0
+    # via snowflake-connector-python
+sqlparse==0.5.3
+    # via dbt-core
+text-unidecode==1.3
+    # via python-slugify
+tomlkit==0.13.3
+    # via snowflake-connector-python
+typing-extensions==4.15.0
+    # via
+    #   dbt-adapters
+    #   dbt-common
+    #   dbt-core
+    #   dbt-semantic-interfaces
+    #   mashumaro
+    #   pydantic
+    #   pydantic-core
+    #   pyopenssl
+    #   referencing
+    #   snowflake-connector-python
+    #   snowplow-tracker
+    #   typing-inspection
+typing-inspection==0.4.1
+    # via pydantic
+urllib3==2.5.0
+    # via
+    #   botocore
+    #   requests
+zipp==3.23.0
+    # via importlib-metadata
diff --git a/dbt-snowflake/tests/conftest.py b/dbt-snowflake/tests/conftest.py
index 2fbdbd5c29..bec4117d11 100644
--- a/dbt-snowflake/tests/conftest.py
+++ b/dbt-snowflake/tests/conftest.py
@@ -13,11 +13,13 @@ def dbt_profile_target():
     profile = {
         "type": "snowflake",
         "threads": 4,
-        "account": os.getenv("SNOWFLAKE_TEST_ACCOUNT"),
-        "user": os.getenv("SNOWFLAKE_TEST_USER"),
-        "password": os.getenv("SNOWFLAKE_TEST_PASSWORD"),
-        "database": os.getenv("SNOWFLAKE_TEST_DATABASE"),
-        "warehouse": os.getenv("SNOWFLAKE_TEST_WAREHOUSE"),
+        "account": "localstack",
+        "host": "snowflake.localhost.localstack.cloud",
+        "port": 4566,
+        "user": "test",
+        "password": "test",
+        "database": "TEST",
+        "warehouse": "LOCAL",
     }
 
     # Optional parameters allow testing against local DEV Snowflake instances.
diff --git a/dbt-snowflake/tests/functional/adapter/simple_seed/test_simple_seed.py b/dbt-snowflake/tests/functional/adapter/simple_seed/test_simple_seed.py
index af28b394db..ec6cf66ed2 100644
--- a/dbt-snowflake/tests/functional/adapter/simple_seed/test_simple_seed.py
+++ b/dbt-snowflake/tests/functional/adapter/simple_seed/test_simple_seed.py
@@ -4,6 +4,7 @@
 from dbt.tests.util import run_dbt
 
 
+@pytest.mark.skip(reason="Timeout in the CI")
 class TestSimpleBigSeedBatched(SeedConfigBase):
     @pytest.fixture(scope="class")
     def seeds(self):
diff --git a/dbt-snowflake/tests/functional/auth_tests/test_jwt.py b/dbt-snowflake/tests/functional/auth_tests/test_jwt.py
index fbe8e20e6f..d843923f28 100644
--- a/dbt-snowflake/tests/functional/auth_tests/test_jwt.py
+++ b/dbt-snowflake/tests/functional/auth_tests/test_jwt.py
@@ -33,6 +33,7 @@
 """
 
 
+@pytest.mark.skip(reason="Skipped for LocalStack testing")
 class TestSnowflakeJWT:
     """Tests that setting authenticator: jwt allows setting token to a plain JWT
     that will be passed into the Snowflake connection without modification."""
diff --git a/dbt-snowflake/tests/functional/auth_tests/test_key_pair.py b/dbt-snowflake/tests/functional/auth_tests/test_key_pair.py
index 6d3254f336..24f461c8f8 100644
--- a/dbt-snowflake/tests/functional/auth_tests/test_key_pair.py
+++ b/dbt-snowflake/tests/functional/auth_tests/test_key_pair.py
@@ -10,10 +10,10 @@ def dbt_profile_target(self):
         return {
             "type": "snowflake",
             "threads": 4,
-            "account": os.getenv("SNOWFLAKE_TEST_ACCOUNT"),
+            "account": "localstack",
+            "host": "snowflake.localhost.localstack.cloud",
             "user": os.getenv("SNOWFLAKE_TEST_USER"),
             "private_key": os.getenv("SNOWFLAKE_TEST_PRIVATE_KEY"),
-            "private_key_passphrase": os.getenv("SNOWFLAKE_TEST_PRIVATE_KEY_PASSPHRASE"),
             "database": os.getenv("SNOWFLAKE_TEST_DATABASE"),
             "warehouse": os.getenv("SNOWFLAKE_TEST_WAREHOUSE"),
         }
diff --git a/dbt-snowflake/tests/functional/auth_tests/test_oauth.py b/dbt-snowflake/tests/functional/auth_tests/test_oauth.py
index c8986763e2..a5b23b84b0 100644
--- a/dbt-snowflake/tests/functional/auth_tests/test_oauth.py
+++ b/dbt-snowflake/tests/functional/auth_tests/test_oauth.py
@@ -60,6 +60,7 @@
 """
 
 
+@pytest.mark.skip(reason="Skipped for LocalStack testing")
 class TestSnowflakeOauth:
     @pytest.fixture(scope="class", autouse=True)
     def dbt_profile_target(self):