diff --git a/MODULE.bazel b/MODULE.bazel
index 6729d09..b7a0411 100644
--- a/MODULE.bazel
+++ b/MODULE.bazel
@@ -29,23 +29,6 @@
     "pypi__tomli",
     "pypi__wheel",
     "pypi__zipp",
-    # coverage_deps managed by running ./tools/update_coverage_deps.py <version>
-    "pypi__coverage_cp310_aarch64-apple-darwin",
-    "pypi__coverage_cp310_aarch64-unknown-linux-gnu",
-    "pypi__coverage_cp310_x86_64-apple-darwin",
-    "pypi__coverage_cp310_x86_64-unknown-linux-gnu",
-    "pypi__coverage_cp311_aarch64-apple-darwin",
-    "pypi__coverage_cp311_aarch64-unknown-linux-gnu",
-    "pypi__coverage_cp311_x86_64-apple-darwin",
-    "pypi__coverage_cp311_x86_64-unknown-linux-gnu",
-    "pypi__coverage_cp38_aarch64-apple-darwin",
-    "pypi__coverage_cp38_aarch64-unknown-linux-gnu",
-    "pypi__coverage_cp38_x86_64-apple-darwin",
-    "pypi__coverage_cp38_x86_64-unknown-linux-gnu",
-    "pypi__coverage_cp39_aarch64-apple-darwin",
-    "pypi__coverage_cp39_aarch64-unknown-linux-gnu",
-    "pypi__coverage_cp39_x86_64-apple-darwin",
-    "pypi__coverage_cp39_x86_64-unknown-linux-gnu",
 )
 
 # We need to do another use_extension call to expose the "pythons_hub"
diff --git a/examples/bzlmod/description.md b/examples/bzlmod/description.md
new file mode 100644
index 0000000..a5e5fba
--- /dev/null
+++ b/examples/bzlmod/description.md
@@ -0,0 +1,10 @@
+Before this PR the `coverage_tool` automatically registered by `rules_python`
+was visible outside the toolchain repository. This fixes it to be consistent
+with `non-bzlmod` setups and ensures that the default `coverage_tool` is not
+visible outside the toolchain repos.
+
+This means that the `MODULE.bazel` file can be cleaned-up at the expense of
+relaxing the `coverage_tool` attribute for the `python_repository` to be a
+simple string as the label would be evaluated within the context of
+`rules_python` which may not necessarily resolve correctly without the
+`use_repo` statement in our `MODULE.bazel`.
diff --git a/examples/bzlmod/test.py b/examples/bzlmod/test.py
index 0486916..80cd027 100644
--- a/examples/bzlmod/test.py
+++ b/examples/bzlmod/test.py
@@ -66,7 +66,7 @@
         if os.environ.get("COVERAGE_MANIFEST"):
             # we are running under the 'bazel coverage :test'
             self.assertTrue(
-                "pypi__coverage_cp" in last_item,
+                "_coverage" in last_item,
                 f"Expected {last_item} to be related to coverage",
             )
             self.assertEqual(pathlib.Path(last_item).name, "coverage")
diff --git a/python/extensions/private/internal_deps.bzl b/python/extensions/private/internal_deps.bzl
index dfa3e26..27e290c 100644
--- a/python/extensions/private/internal_deps.bzl
+++ b/python/extensions/private/internal_deps.bzl
@@ -9,12 +9,10 @@
 "Python toolchain module extension for internal rule use"
 
 load("@rules_python//python/pip_install:repositories.bzl", "pip_install_dependencies")
-load("@rules_python//python/private:coverage_deps.bzl", "install_coverage_deps")
 
 # buildifier: disable=unused-variable
 def _internal_deps_impl(module_ctx):
     pip_install_dependencies()
-    install_coverage_deps()
 
 internal_deps = module_extension(
     doc = "This extension to register internal rules_python dependecies.",
diff --git a/python/private/coverage_deps.bzl b/python/private/coverage_deps.bzl
index a4801ca..8d1e5f4 100644
--- a/python/private/coverage_deps.bzl
+++ b/python/private/coverage_deps.bzl
@@ -17,11 +17,6 @@
 
 load("@bazel_tools//tools/build_defs/repo:http.bzl", "http_archive")
 load("@bazel_tools//tools/build_defs/repo:utils.bzl", "maybe")
-load(
-    "//python:versions.bzl",
-    "MINOR_MAPPING",
-    "PLATFORMS",
-)
 
 # Update with './tools/update_coverage_deps.py <version>'
 #START: managed by update_coverage_deps.py script
@@ -103,7 +98,7 @@
 
 _coverage_patch = Label("//python/private:coverage.patch")
 
-def coverage_dep(name, python_version, platform, visibility, install = True):
+def coverage_dep(name, python_version, platform, visibility):
     """Register a singe coverage dependency based on the python version and platform.
 
     Args:
@@ -111,8 +106,6 @@
         python_version: The full python version.
         platform: The platform, which can be found in //python:versions.bzl PLATFORMS dict.
         visibility: The visibility of the coverage tool.
-        install: should we install the dependency with a given name or generate the label
-            of the bzlmod dependency fallback, which is hard-coded in MODULE.bazel?
 
     Returns:
         The label of the coverage tool if the platform is supported, otherwise - None.
@@ -131,17 +124,6 @@
         # Some wheels are not present for some builds, so let's silently ignore those.
         return None
 
-    if not install:
-        # FIXME @aignas 2023-01-19: right now we use globally installed coverage
-        # which has visibility set to public, but is hidden due to repo remapping.
-        #
-        # The name of the toolchain is not known when registering the coverage tooling,
-        # so we use this as a workaround for now.
-        return Label("@pypi__coverage_{abi}_{platform}//:coverage".format(
-            abi = abi,
-            platform = platform,
-        ))
-
     maybe(
         http_archive,
         name = name,
@@ -162,26 +144,4 @@
         urls = [url],
     )
 
-    return Label("@@{name}//:coverage".format(name = name))
-
-def install_coverage_deps():
-    """Register the dependency for the coverage dep.
-
-    This is only used under bzlmod.
-    """
-
-    for python_version in MINOR_MAPPING.values():
-        for platform in PLATFORMS.keys():
-            if "windows" in platform:
-                continue
-
-            coverage_dep(
-                name = "pypi__coverage_cp{version_no_dot}_{platform}".format(
-                    version_no_dot = python_version.rpartition(".")[0].replace(".", ""),
-                    platform = platform,
-                ),
-                python_version = python_version,
-                platform = platform,
-                visibility = ["//visibility:public"],
-                install = True,
-            )
+    return "@{name}//:coverage".format(name = name)
diff --git a/python/repositories.bzl b/python/repositories.bzl
index 2352e22..39182af 100644
--- a/python/repositories.bzl
+++ b/python/repositories.bzl
@@ -374,10 +374,9 @@
     _python_repository_impl,
     doc = "Fetches the external tools needed for the Python toolchain.",
     attrs = {
-        "coverage_tool": attr.label(
+        "coverage_tool": attr.string(
             # Mirrors the definition at
             # https://github.com/bazelbuild/bazel/blob/master/src/main/starlark/builtins_bzl/common/python/py_runtime_rule.bzl
-            allow_files = False,
             doc = """
 This is a target to use for collecting code coverage information from `py_binary`
 and `py_test` targets.
@@ -392,6 +391,9 @@
 of coverage.py (https://coverage.readthedocs.io), at least including
 the `run` and `lcov` subcommands.
 
+The target is accepted as a string by the python_repository and evaluated within
+the context of the toolchain repository.
+
 For more information see the official bazel docs
 (https://bazel.build/reference/be/python#py_runtime.coverage_tool).
 """,
@@ -535,11 +537,10 @@
                 ),
                 python_version = python_version,
                 platform = platform,
-                visibility = ["@@{name}_{platform}//:__subpackages__".format(
+                visibility = ["@{name}_{platform}//:__subpackages__".format(
                     name = name,
                     platform = platform,
                 )],
-                install = not bzlmod,
             )
 
         python_repository(
diff --git a/tools/update_coverage_deps.py b/tools/update_coverage_deps.py
index 4cf1e94..57b7850 100755
--- a/tools/update_coverage_deps.py
+++ b/tools/update_coverage_deps.py
@@ -241,16 +241,6 @@
         dry_run=args.dry_run,
     )
 
-    # Update the MODULE.bazel, which needs to expose the dependencies to the toolchain
-    # repositories
-    _update_file(
-        path=rules_python / "MODULE.bazel",
-        snippet="".join(sorted([f'    "{u.repo_name}",\n' for u in urls])),
-        start_marker="    # coverage_deps managed by running",
-        end_marker=")",
-        dry_run=args.dry_run,
-    )
-
     return