diff --git a/Makefile b/Makefile
index df5f479..ed84e3a 100644
--- a/Makefile
+++ b/Makefile
@@ -6,6 +6,7 @@ help:
 	@echo ""
 	@echo " make help - show this text"
 	@echo " make lint - run flake8"
+	@echo " make unittests - run the tests defined in the unittest subdirectory"
 	@echo " make test - run the functests and lint"
 	@echo " make functional - run the tests defined in the functional subdirectory"
 	@echo " make release - build the charm"
@@ -16,6 +17,9 @@ lint:
 	@echo "Running flake8"
 	@-tox -e lint
 
+unittests:
+	@echo "No unit tests available at the moment"
+
 test: lint functional
 
 functional: build
diff --git a/lib/lib_charm_juju_local.py b/lib/lib_charm_juju_local.py
index 39fc880..ba18467 100644
--- a/lib/lib_charm_juju_local.py
+++ b/lib/lib_charm_juju_local.py
@@ -4,6 +4,7 @@
 
 from charmhelpers.core import hookenv, host, templating
 from charmhelpers.fetch.ubuntu import apt_cache
+from charms.layer import snap
 
 
 LXD_BRIDGE_TMPL = "lxd-bridge.ini.j2"
@@ -46,6 +47,9 @@ def lxd_migrate(self):
             subprocess.call("sudo lxd.migrate -yes", shell=True)
 
     def lxd_init(self):
+        # Refresh lxd snap to "latest/stable" channel for Juju 3.x support.
+        snap.refresh("lxd", channel="latest/stable")
+
         install_sh = textwrap.dedent(
             """
             lxd init --auto --storage-backend dir
@@ -64,6 +68,14 @@ def setup_juju(self):
                 shell=True,
             )
         series = host.lsb_release()["DISTRIB_CODENAME"]
+
+        # Create juju's local user directory if missing
+        # This is a workaround for LP #1988355
+        subprocess.call(
+            "sudo -u ubuntu mkdir -p /home/ubuntu/.local/share/juju",
+            shell=True,
+        )
+
         subprocess.call(
             textwrap.dedent(
                 f"""
diff --git a/tests/bundles/focal-juju3.yaml b/tests/bundles/focal-juju3.yaml
new file mode 120000
index 0000000..f81f6ff
--- /dev/null
+++ b/tests/bundles/focal-juju3.yaml
@@ -0,0 +1 @@
+base.yaml
\ No newline at end of file
diff --git a/tests/bundles/jammy-juju3.yaml b/tests/bundles/jammy-juju3.yaml
new file mode 120000
index 0000000..f81f6ff
--- /dev/null
+++ b/tests/bundles/jammy-juju3.yaml
@@ -0,0 +1 @@
+base.yaml
\ No newline at end of file
diff --git a/tests/bundles/overlays/focal-juju3.yaml.j2 b/tests/bundles/overlays/focal-juju3.yaml.j2
new file mode 100644
index 0000000..e0bb1d4
--- /dev/null
+++ b/tests/bundles/overlays/focal-juju3.yaml.j2
@@ -0,0 +1,5 @@
+series: focal
+applications:
+  {{ charm_name }}:
+    options:
+      juju-channel: "3.1/stable"
diff --git a/tests/bundles/overlays/jammy-juju3.yaml.j2 b/tests/bundles/overlays/jammy-juju3.yaml.j2
new file mode 100644
index 0000000..6dac327
--- /dev/null
+++ b/tests/bundles/overlays/jammy-juju3.yaml.j2
@@ -0,0 +1,5 @@
+series: jammy
+applications:
+  {{ charm_name }}:
+    options:
+      juju-channel: "3.1/stable"
diff --git a/tests/tests.yaml b/tests/tests.yaml
index 4476d69..c0f919c 100644
--- a/tests/tests.yaml
+++ b/tests/tests.yaml
@@ -2,12 +2,16 @@ charm_name: juju-local
 tests:
   - tests.tests_juju_local.CharmJujuLocalTest
 gate_bundles:
+  - jammy-juju3
+  - focal-juju3
   - jammy
   - focal
   - bionic
 dev_bundles:
+  - jammy-juju3
   - jammy
 smoke_bundles:
+  - focal-juju3
   - focal
 target_deploy_status:
   juju-local:
diff --git a/tests/tests_juju_local.py b/tests/tests_juju_local.py
index b3f8a09..d34cf34 100644
--- a/tests/tests_juju_local.py
+++ b/tests/tests_juju_local.py
@@ -13,8 +13,13 @@ def setUpClass(cls):
         cls.model_name = model.get_juju_model()
         cls.test_config = lifecycle_utils.get_charm_config()
         model.block_until_all_units_idle()
+        # Add a test model in the remote Juju cloud 
+        # This is needed becuase in Juju 3.x there's no default model created
+        # after bootstrapping the controller
+        cls.remote_juju(["add-model", "test"], None)
 
-    def remote_juju(self, args, format="json"):
+    @classmethod
+    def remote_juju(cls, args, format="json"):
         if format:
             fmt = "--format={}".format(format)
         else:
@@ -22,11 +27,18 @@ def remote_juju(self, args, format="json"):
         cmd = """sudo -u ubuntu bash -c '/snap/bin/juju {} {}'""".format(
             " ".join(args), fmt
         )
-        res = model.run_on_unit(self.jlocal_unit, cmd)
-        return res.get("Stdout"), res.get("Stderr")
+        res = model.run_on_unit(cls.jlocal_unit, cmd)
+        return_code = int(res["Code"])
+        if return_code != 0:
+            raise RuntimeError(
+                "Failed to execute command in juju-local unit.\nStderr: {}".format(
+                    res.get("Stderr")
+                )
+            )
+        return res.get("Stdout")
 
     def juju_status(self):
-        stdout, _ = self.remote_juju(["status"])
+        stdout = self.remote_juju(["status"])
         return json.loads(stdout)
 
     def test_juju_status(self):
@@ -34,7 +46,7 @@ def test_juju_status(self):
         self.assertEqual(jstatus["model"]["controller"], "lxd")
 
     def test_juju_users(self):
-        stdout, _ = self.remote_juju(["users"])
+        stdout = self.remote_juju(["users"])
         userobjects = json.loads(stdout)
         usernames = set(u["user-name"] for u in userobjects)
         self.assertTrue("admin" in usernames)
diff --git a/wheelhouse.txt b/wheelhouse.txt
index 02a822a..65c7e41 100644
--- a/wheelhouse.txt
+++ b/wheelhouse.txt
@@ -1 +1,2 @@
 Markupsafe<2.0.0  # for xenial support
+tenacity<5.0.4 # workaround for LP#2031582