diff --git a/Vagrantfile b/Vagrantfile
index a4cc661..1351a7b 100644
--- a/Vagrantfile
+++ b/Vagrantfile
@@ -77,7 +77,7 @@ Vagrant.configure('2') do |config|
     pip install -U setuptools     
     
     export PATH=/usr/local/bin/:$PATH
-    python setup.py install
+    pip install .
     giftwrap build -m #{GIFTWRAP_MANIFEST} #{GIFTWRAP_ARGS}
 
     if [ ! -z "#{GIFTWRAP_POSTBUILD_SCRIPT}" ]; then
diff --git a/giftwrap/builders/docker_builder.py b/giftwrap/builders/docker_builder.py
index bdd5ef9..f892995 100644
--- a/giftwrap/builders/docker_builder.py
+++ b/giftwrap/builders/docker_builder.py
@@ -92,15 +92,13 @@ class DockerBuilder(Builder):
 
             project_bin_path = os.path.join(project.install_path, 'bin')
             self._paths.append(project_bin_path)
-            venv_python_path = os.path.join(project_bin_path, 'python')
             venv_pip_path = os.path.join(project_bin_path, 'pip')
 
             if project.pip_dependencies:
                 commands.append("%s install %s" % (venv_pip_path,
                                 ' '.join(project.pip_dependencies)))
-            commands.append('cd %s && %s setup.py install && cd -' %
-                            (project_src_path, venv_python_path))
-            commands.append("%s install pbr" % venv_pip_path)
+            commands.append("%s install %s" % (venv_pip_path,
+                                               project_src_path))
 
         return commands
 
diff --git a/giftwrap/builders/package_builder.py b/giftwrap/builders/package_builder.py
index c8fa8e9..530808e 100644
--- a/giftwrap/builders/package_builder.py
+++ b/giftwrap/builders/package_builder.py
@@ -94,7 +94,6 @@ class PackageBuilder(Builder):
 
             # install into the virtualenv
             LOG.info("Installing '%s' to the virtualenv", project.name)
-            venv_python_path = os.path.join(install_path, 'bin/python')
             venv_pip_path = os.path.join(install_path, 'bin/pip')
 
             deps = " ".join(project.pip_dependencies)
@@ -114,8 +113,7 @@ class PackageBuilder(Builder):
             if spec.settings.gerrit_dependencies:
                 self._install_gerrit_dependencies(repo, project, install_path)
 
-            execute("%s setup.py install" % venv_python_path, project_src_path)
-            execute("%s install pbr" % venv_pip_path)
+            execute("%s install %s" % (venv_pip_path, project_src_path))
 
             # now build the package
             pkg = Package(project.package_name, project.version,