diff --git a/.github/workflows/test.yml b/.github/workflows/test.yml
index d1866ee18c..0497d436c9 100644
--- a/.github/workflows/test.yml
+++ b/.github/workflows/test.yml
@@ -89,11 +89,10 @@ jobs:
             opt-mode: gas
             evm-version: shanghai
 
-          # enable when py-evm makes it work:
-          #- python-version: ["3.11", "311"]
-          #  debug: false
-          #  opt-mode: gas
-          #  evm-version: cancun
+          - python-version: ["3.11", "311"]
+            debug: false
+            opt-mode: gas
+            evm-version: cancun
 
           # run with `--memorymock`, but only need to do it one configuration
           # TODO: consider removing the memorymock tests
diff --git a/setup.py b/setup.py
index becd73f7e3..b48e1b7030 100644
--- a/setup.py
+++ b/setup.py
@@ -13,14 +13,15 @@
         "pytest-instafail>=0.4,<1.0",
         "pytest-xdist>=3.5,<4.0",
         "pytest-split>=0.7.0,<1.0",
-        "eth-tester[py-evm]>=0.9.0b1,<0.10",
+        "eth-tester[py-evm]>=0.10.0b4,<0.11",
         "eth_abi>=4.0.0,<5.0.0",
-        "py-evm>=0.7.0a1,<0.8",
+        "py-evm>=0.10.0b4,<0.11",
         "web3==6.0.0",
         "lark==1.1.9",
         "hypothesis[lark]>=6.0,<7.0",
         "eth-stdlib==0.2.7",
         "setuptools",
+        "typing_extensions",  # we can remove this once dependencies upgrade to eth-rlp>=2.0
     ],
     "lint": [
         "black==23.12.0",
diff --git a/tests/unit/cli/storage_layout/test_storage_layout.py b/tests/unit/cli/storage_layout/test_storage_layout.py
index 9724dd723c..ece2743b81 100644
--- a/tests/unit/cli/storage_layout/test_storage_layout.py
+++ b/tests/unit/cli/storage_layout/test_storage_layout.py
@@ -1,4 +1,21 @@
 from vyper.compiler import compile_code
+from vyper.evm.opcodes import version_check
+
+
+def _adjust_storage_layout_for_cancun(layout):
+    def _go(layout):
+        for _varname, item in layout.items():
+            if "slot" in item and isinstance(item["slot"], int):
+                item["slot"] -= 1
+            else:
+                # recurse to submodule
+                _go(item)
+
+    if version_check(begin="cancun"):
+        layout["transient_storage_layout"] = {
+            "$.nonreentrant_key": layout["storage_layout"].pop("$.nonreentrant_key")
+        }
+        _go(layout["storage_layout"])
 
 
 def test_storage_layout():
@@ -40,13 +57,18 @@ def public_foo3():
 
     out = compile_code(code, output_formats=["layout"])
 
-    assert out["layout"]["storage_layout"] == {
-        "$.nonreentrant_key": {"slot": 0, "type": "nonreentrant lock"},
-        "foo": {"slot": 1, "type": "HashMap[address, uint256]"},
-        "arr": {"slot": 2, "type": "DynArray[uint256, 3]"},
-        "baz": {"slot": 6, "type": "Bytes[65]"},
-        "bar": {"slot": 10, "type": "uint256"},
+    expected = {
+        "storage_layout": {
+            "$.nonreentrant_key": {"slot": 0, "type": "nonreentrant lock"},
+            "foo": {"slot": 1, "type": "HashMap[address, uint256]"},
+            "arr": {"slot": 2, "type": "DynArray[uint256, 3]"},
+            "baz": {"slot": 6, "type": "Bytes[65]"},
+            "bar": {"slot": 10, "type": "uint256"},
+        }
     }
+    _adjust_storage_layout_for_cancun(expected)
+
+    assert out["layout"] == expected
 
 
 def test_storage_and_immutables_layout():
@@ -71,6 +93,7 @@ def __init__():
             "name": {"slot": 1, "type": "String[32]"},
         },
     }
+    _adjust_storage_layout_for_cancun(expected_layout)
 
     out = compile_code(code, output_formats=["layout"])
     assert out["layout"] == expected_layout
@@ -120,6 +143,7 @@ def __init__():
             "a_library": {"supply": {"slot": 3, "type": "uint256"}},
         },
     }
+    _adjust_storage_layout_for_cancun(expected_layout)
 
     out = compile_code(code, input_bundle=input_bundle, output_formats=["layout"])
     assert out["layout"] == expected_layout
@@ -169,6 +193,7 @@ def __init__():
             "counter2": {"slot": 3, "type": "uint256"},
         },
     }
+    _adjust_storage_layout_for_cancun(expected_layout)
 
     out = compile_code(code, input_bundle=input_bundle, output_formats=["layout"])
     assert out["layout"] == expected_layout
@@ -253,6 +278,7 @@ def bar():
             "a_library": {"supply": {"slot": 4, "type": "uint256"}},
         },
     }
+    _adjust_storage_layout_for_cancun(expected_layout)
 
     out = compile_code(code, input_bundle=input_bundle, output_formats=["layout"])
     assert out["layout"] == expected_layout
@@ -334,6 +360,7 @@ def foo() -> uint256:
             "counter2": {"slot": 4, "type": "uint256"},
         },
     }
+    _adjust_storage_layout_for_cancun(expected_layout)
 
     out = compile_code(code, input_bundle=input_bundle, output_formats=["layout"])
     assert out["layout"] == expected_layout
diff --git a/tests/unit/semantics/test_storage_slots.py b/tests/unit/semantics/test_storage_slots.py
index 7cbe71cf29..be0b0c3159 100644
--- a/tests/unit/semantics/test_storage_slots.py
+++ b/tests/unit/semantics/test_storage_slots.py
@@ -1,5 +1,6 @@
 import pytest
 
+from vyper.evm.opcodes import version_check
 from vyper.exceptions import StorageLayoutException
 
 code = """
@@ -97,10 +98,17 @@ def test_reentrancy_lock(get_contract):
 
 
 def test_allocator_overflow(get_contract):
-    code = """
-# --> global nonreentrancy slot allocated here <--
+    # cancun allocates reeentrancy slot in transient storage,
+    # so allocate an actual storage variable
+    if version_check(begin="cancun"):
+        slot1 = "x: uint256"
+    else:
+        slot1 = "# --> global nonreentrancy slot allocated here <--"
+    code = f"""
+{slot1}
 y: uint256[max_value(uint256)]
     """
+
     with pytest.raises(
         StorageLayoutException,
         match=f"Invalid storage slot, tried to allocate slots 1 through {2**256}",