diff --git a/openstack-common.conf b/openstack-common.conf
index 96c782c79..0905e99ed 100644
--- a/openstack-common.conf
+++ b/openstack-common.conf
@@ -8,6 +8,7 @@ module=excutils
 module=fixture
 module=gettextutils
 module=importutils
+module=install_venv_common
 module=jsonutils
 module=local
 module=log
diff --git a/tools/install_venv.py b/tools/install_venv.py
index 0bdfd65f1..8164e68be 100644
--- a/tools/install_venv.py
+++ b/tools/install_venv.py
@@ -1,11 +1,8 @@
-#!/usr/bin/env python
-# vim: tabstop=4 shiftwidth=4 softtabstop=4
-
 # Copyright 2010 United States Government as represented by the
 # Administrator of the National Aeronautics and Space Administration.
 # All Rights Reserved.
 #
-# Copyright 2010 OpenStack Foundation.
+# Copyright 2010 OpenStack Foundation
 # Copyright 2013 IBM Corp.
 #
 #    Licensed under the Apache License, Version 2.0 (the "License"); you may
@@ -20,46 +17,45 @@
 #    License for the specific language governing permissions and limitations
 #    under the License.
 
-"""
-Installation script for Designate's development virtualenv
-"""
-
 import os
-import subprocess
 import sys
 
-import install_venv_common as install_venv
+import install_venv_common as install_venv  # noqa
 
 
-def print_help():
+def print_help(venv, root):
     help = """
- Designate development environment setup is complete.
+    Designate development environment setup is complete.
 
- Designate development uses virtualenv to track and manage Python dependencies
- while in development and testing.
+    Designate development uses virtualenv to track and manage Python
+    dependencies while in development and testing.
 
- To activate the Designate virtualenv for the extent of your current shell
- session you can run:
+    To activate the Designate virtualenv for the extent of your current shell
+    session you can run:
 
- $ source .venv/bin/activate
+    $ source %s/bin/activate
 
- Or, if you prefer, you can run commands in the virtualenv on a case by case
- basis by running:
+    Or, if you prefer, you can run commands in the virtualenv on a case by case
+    basis by running:
 
- $ tools/with_venv.sh <your command>
-
- Also, make test will automatically use the virtualenv.
+    $ %s/tools/with_venv.sh <your command>
     """
-    print help
+    print(help % (venv, root))
 
 
 def main(argv):
     root = os.path.dirname(os.path.dirname(os.path.realpath(__file__)))
+
+    if os.environ.get('tools_path'):
+        root = os.environ['tools_path']
     venv = os.path.join(root, '.venv')
+    if os.environ.get('venv'):
+        venv = os.environ['venv']
+
     pip_requires = os.path.join(root, 'requirements.txt')
     test_requires = os.path.join(root, 'test-requirements.txt')
     py_version = "python%s.%s" % (sys.version_info[0], sys.version_info[1])
-    project = 'designate'
+    project = 'Designate'
     install = install_venv.InstallVenv(root, venv, pip_requires, test_requires,
                                        py_version, project)
     options = install.parse_args(argv)
@@ -67,9 +63,7 @@ def main(argv):
     install.check_dependencies()
     install.create_virtualenv(no_site_packages=options.no_site_packages)
     install.install_dependencies()
-    install.post_process()
-    print_help()
-
+    print_help(venv, root)
 
 if __name__ == '__main__':
     main(sys.argv)
diff --git a/tools/install_venv_common.py b/tools/install_venv_common.py
index 42a44e8cd..46822e329 100644
--- a/tools/install_venv_common.py
+++ b/tools/install_venv_common.py
@@ -1,5 +1,3 @@
-# vim: tabstop=4 shiftwidth=4 softtabstop=4
-
 # Copyright 2013 OpenStack Foundation
 # Copyright 2013 IBM Corp.
 #
@@ -34,12 +32,13 @@ import sys
 
 class InstallVenv(object):
 
-    def __init__(self, root, venv, pip_requires, test_requires, py_version,
+    def __init__(self, root, venv, requirements,
+                 test_requirements, py_version,
                  project):
         self.root = root
         self.venv = venv
-        self.pip_requires = pip_requires
-        self.test_requires = test_requires
+        self.requirements = requirements
+        self.test_requirements = test_requirements
         self.py_version = py_version
         self.project = project
 
@@ -75,11 +74,13 @@ class InstallVenv(object):
     def get_distro(self):
         if (os.path.exists('/etc/fedora-release') or
                 os.path.exists('/etc/redhat-release')):
-            return Fedora(self.root, self.venv, self.pip_requires,
-                          self.test_requires, self.py_version, self.project)
+            return Fedora(
+                self.root, self.venv, self.requirements,
+                self.test_requirements, self.py_version, self.project)
         else:
-            return Distro(self.root, self.venv, self.pip_requires,
-                          self.test_requires, self.py_version, self.project)
+            return Distro(
+                self.root, self.venv, self.requirements,
+                self.test_requirements, self.py_version, self.project)
 
     def check_dependencies(self):
         self.get_distro().install_virtualenv()
@@ -98,11 +99,6 @@ class InstallVenv(object):
             else:
                 self.run_command(['virtualenv', '-q', self.venv])
             print('done.')
-            print('Installing pip in venv...', end=' ')
-            if not self.run_command(['tools/with_venv.sh', 'easy_install',
-                                    'pip>1.0']).strip():
-                self.die("Failed to install pip.")
-            print('done.')
         else:
             print("venv already exists...")
             pass
@@ -116,23 +112,12 @@ class InstallVenv(object):
         print('Installing dependencies with pip (this can take a while)...')
 
         # First things first, make sure our venv has the latest pip and
-        # distribute.
-        # NOTE: we keep pip at version 1.1 since the most recent version causes
-        # the .venv creation to fail. See:
-        # https://bugs.launchpad.net/nova/+bug/1047120
-        self.pip_install('pip==1.1')
-        self.pip_install('distribute')
+        # setuptools and pbr
+        self.pip_install('pip>=1.4')
+        self.pip_install('setuptools')
+        self.pip_install('pbr')
 
-        # Install greenlet by hand - just listing it in the requires file does
-        # not
-        # get it installed in the right order
-        self.pip_install('greenlet')
-
-        self.pip_install('-r', self.pip_requires)
-        self.pip_install('-r', self.test_requires)
-
-    def post_process(self):
-        self.get_distro().post_process()
+        self.pip_install('-r', self.requirements, '-r', self.test_requirements)
 
     def parse_args(self, argv):
         """Parses command-line arguments."""
@@ -166,14 +151,6 @@ class Distro(InstallVenv):
                  ' requires virtualenv, please install it using your'
                  ' favorite package management tool' % self.project)
 
-    def post_process(self):
-        """Any distribution-specific post-processing gets done here.
-
-        In particular, this is useful for applying patches to code inside
-        the venv.
-        """
-        pass
-
 
 class Fedora(Distro):
     """This covers all Fedora-based distributions.
@@ -185,10 +162,6 @@ class Fedora(Distro):
         return self.run_command_with_code(['rpm', '-q', pkg],
                                           check_exit_code=False)[1] == 0
 
-    def apply_patch(self, originalfile, patchfile):
-        self.run_command(['patch', '-N', originalfile, patchfile],
-                         check_exit_code=False)
-
     def install_virtualenv(self):
         if self.check_cmd('virtualenv'):
             return
@@ -197,26 +170,3 @@ class Fedora(Distro):
             self.die("Please install 'python-virtualenv'.")
 
         super(Fedora, self).install_virtualenv()
-
-    def post_process(self):
-        """Workaround for a bug in eventlet.
-
-        This currently affects RHEL6.1, but the fix can safely be
-        applied to all RHEL and Fedora distributions.
-
-        This can be removed when the fix is applied upstream.
-
-        Nova: https://bugs.launchpad.net/nova/+bug/884915
-        Upstream: https://bitbucket.org/eventlet/eventlet/issue/89
-        RHEL: https://bugzilla.redhat.com/958868
-        """
-
-        # Install "patch" program if it's not there
-        if not self.check_pkg('patch'):
-            self.die("Please install 'patch'.")
-
-        # Apply the eventlet patch
-        self.apply_patch(os.path.join(self.venv, 'lib', self.py_version,
-                                      'site-packages',
-                                      'eventlet/green/subprocess.py'),
-                         'contrib/redhat-eventlet.patch')
diff --git a/tools/with_venv.sh b/tools/with_venv.sh
index 5c4a271e4..7303990bd 100755
--- a/tools/with_venv.sh
+++ b/tools/with_venv.sh
@@ -1,21 +1,7 @@
 #!/bin/bash
-# vim: tabstop=4 shiftwidth=4 softtabstop=4
-
-# Copyright 2011 OpenStack Foundation.
-# All Rights Reserved.
-#
-#    Licensed under the Apache License, Version 2.0 (the "License"); you may
-#    not use this file except in compliance with the License. You may obtain
-#    a copy of the License at
-#
-#         http://www.apache.org/licenses/LICENSE-2.0
-#
-#    Unless required by applicable law or agreed to in writing, software
-#    distributed under the License is distributed on an "AS IS" BASIS, WITHOUT
-#    WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied. See the
-#    License for the specific language governing permissions and limitations
-#    under the License.
-
-TOOLS=`dirname $0`
-VENV=$TOOLS/../.venv
-source $VENV/bin/activate && $@
+TOOLS_PATH=${TOOLS_PATH:-$(dirname $0)}
+VENV_PATH=${VENV_PATH:-${TOOLS_PATH}}
+VENV_DIR=${VENV_NAME:-/../.venv}
+TOOLS=${TOOLS_PATH}
+VENV=${VENV:-${VENV_PATH}/${VENV_DIR}}
+source ${VENV}/bin/activate && "$@"