diff --git a/kedro/templates/project/{{ cookiecutter.repo_name }}/README.md b/kedro/templates/project/{{ cookiecutter.repo_name }}/README.md
index 07ae44d46c..9ece71ad8e 100644
--- a/kedro/templates/project/{{ cookiecutter.repo_name }}/README.md	
+++ b/kedro/templates/project/{{ cookiecutter.repo_name }}/README.md	
@@ -17,12 +17,12 @@ In order to get the best out of the template:
 
 ## How to install dependencies
 
-Declare any dependencies in `src/requirements.txt` for `pip` installation and `src/environment.yml` for `conda` installation.
+Declare any dependencies in `requirements.txt` for `pip` installation and `environment.yml` for `conda` installation.
 
 To install them, run:
 
 ```
-pip install -r src/requirements.txt
+pip install -r requirements.txt
 ```
 
 ## How to run your Kedro pipeline
@@ -35,7 +35,7 @@ kedro run
 
 ## How to test your Kedro project
 
-Have a look at the file `src/tests/test_run.py` for instructions on how to write your tests. You can run your tests as follows:
+Have a look at the file `tests/test_run.py` for instructions on how to write your tests. You can run your tests as follows:
 
 ```
 kedro test
@@ -51,9 +51,9 @@ To generate or update the dependency requirements for your project:
 kedro build-reqs
 ```
 
-This will `pip-compile` the contents of `src/requirements.txt` into a new file `src/requirements.lock`. You can see the output of the resolution by opening `src/requirements.lock`.
+This will `pip-compile` the contents of `requirements.txt` into a new file `requirements.lock`. You can see the output of the resolution by opening `requirements.lock`.
 
-After this, if you'd like to update your project requirements, please update `src/requirements.txt` and re-run `kedro build-reqs`.
+After this, if you'd like to update your project requirements, please update `requirements.txt` and re-run `kedro build-reqs`.
 
 [Further information about project dependencies](https://docs.kedro.org/en/stable/kedro_project_setup/dependencies.html#project-specific-dependencies)
 
@@ -61,7 +61,7 @@ After this, if you'd like to update your project requirements, please update `sr
 
 > Note: Using `kedro jupyter` or `kedro ipython` to run your notebook provides these variables in scope: `context`, `catalog`, and `startup_error`.
 >
-> Jupyter, JupyterLab, and IPython are already included in the project requirements by default, so once you have run `pip install -r src/requirements.txt` you will not need to take any extra steps before you use them.
+> Jupyter, JupyterLab, and IPython are already included in the project requirements by default, so once you have run `pip install -r requirements.txt` you will not need to take any extra steps before you use them.
 
 ### Jupyter
 To use Jupyter notebooks in your Kedro project, you need to install Jupyter:
diff --git a/kedro/templates/project/{{ cookiecutter.repo_name }}/src/requirements.txt b/kedro/templates/project/{{ cookiecutter.repo_name }}/requirements.txt
similarity index 100%
rename from kedro/templates/project/{{ cookiecutter.repo_name }}/src/requirements.txt
rename to kedro/templates/project/{{ cookiecutter.repo_name }}/requirements.txt
diff --git a/kedro/templates/project/{{ cookiecutter.repo_name }}/src/setup.py b/kedro/templates/project/{{ cookiecutter.repo_name }}/setup.py
similarity index 100%
rename from kedro/templates/project/{{ cookiecutter.repo_name }}/src/setup.py
rename to kedro/templates/project/{{ cookiecutter.repo_name }}/setup.py
diff --git a/kedro/templates/project/{{ cookiecutter.repo_name }}/src/tests/__init__.py b/kedro/templates/project/{{ cookiecutter.repo_name }}/tests/__init__.py
similarity index 100%
rename from kedro/templates/project/{{ cookiecutter.repo_name }}/src/tests/__init__.py
rename to kedro/templates/project/{{ cookiecutter.repo_name }}/tests/__init__.py
diff --git a/kedro/templates/project/{{ cookiecutter.repo_name }}/src/tests/pipelines/__init__.py b/kedro/templates/project/{{ cookiecutter.repo_name }}/tests/pipelines/__init__.py
similarity index 100%
rename from kedro/templates/project/{{ cookiecutter.repo_name }}/src/tests/pipelines/__init__.py
rename to kedro/templates/project/{{ cookiecutter.repo_name }}/tests/pipelines/__init__.py
diff --git a/kedro/templates/project/{{ cookiecutter.repo_name }}/src/tests/test_run.py b/kedro/templates/project/{{ cookiecutter.repo_name }}/tests/test_run.py
similarity index 100%
rename from kedro/templates/project/{{ cookiecutter.repo_name }}/src/tests/test_run.py
rename to kedro/templates/project/{{ cookiecutter.repo_name }}/tests/test_run.py