Why is tox not using pyenv python interpreter?

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My pyenv is using Python 3.7, and yet when running tox on a project that has envlist = py37, it is using Python 2.7 to run the setup.py and failing:

Traceback (most recent call last):
  File "setup.py", line 3, in <module>
    from setuptools import setup, find_namespace_packages
ImportError: cannot import name find_namespace_packages

============================================================================================================== log end ==============================================================================================================
ERROR: FAIL could not package project - v = InvocationError(u'/usr/local/opt/python@2/bin/python2.7 setup.py sdist --formats=zip --dist-dir /Users/j/workspace/core/python/utils/.tox/dist', 1)

What needs to be configured to get tox to use Python 3? Is there any other information needed to answer this question?

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