diff --git a/azdev.pyproj b/azdev.pyproj
index 6d40c214..b4e17809 100644
--- a/azdev.pyproj
+++ b/azdev.pyproj
@@ -49,6 +49,7 @@
     <Compile Include="azdev\operations\__init__.py" />
     <Compile Include="azdev\params.py" />
     <Compile Include="azdev\utilities\config.py" />
+    <Compile Include="azdev\utilities\venv.py" />
     <Compile Include="azdev\utilities\const.py">
       <SubType>Code</SubType>
     </Compile>
diff --git a/azdev/help.py b/azdev/help.py
index 9b1b21c9..34bc60f4 100644
--- a/azdev/help.py
+++ b/azdev/help.py
@@ -15,20 +15,31 @@
 helps['setup'] = """
     short-summary: Set up your environment for development of Azure CLI command modules and/or extensions.
     examples:
-        - name: Fully interactive setup.
+        - name: Fully interactive setup (Must be run in an existing virtual environment).
           text: azdev setup
 
-        - name: Install only the CLI in dev mode and search for the existing repo.
-          text: azdev setup -c
+        - name: Install CLI and setup an extensions repo in an existing virtual environment. Will create a azure directory and config in the current virtual environment.
+                Note the existing virtual environment could created by VENV or PYENV.
+          text: azdev setup -c azure-cli -r azure-cli-extensions
 
-        - name: Install public CLI and setup an extensions repo. Do not install any extensions.
+        - name: Same as above, but install the `alias` extension in the existing virtual environment too.
+          text: azdev setup -c azure-cli -r azure-cli-extensions -e alias
+
+        - name: Same as above, but will use the CLI repo path in local .azdev config, or the one in global .azdev config if not found the local one.
           text: azdev setup -r azure-cli-extensions
 
-        - name: Install CLI in dev mode, along with the extensions repo. Auto-find the CLI repo and install the `alias` extension in dev mode.
-          text: azdev setup -c -r azure-cli-extensions -e alias
+        - name: Same as above, but only install CLI without setup an extensions repo.
+          text: azdev setup -c azure-cli
+
+        - name: Install CLI and setup an extensions repo in a new virtual environment. Will create a azure directory and config in the current virtual environment.
+                Note -s is using VENV to create a new virtual environment, should un-install PYENV if you have.
+          text: azdev setup -c azure-cli -r azure-cli-extensions -s env1
+
+        - name: Same as above, but do not setup new azure directory and config in this virtual environment
+          text: azdev setup -c azure-cli -r azure-cli-extensions -s env1 -g
 
-        - name: Install only the CLI in dev mode and resolve dependencies from setup.py.
-          text: azdev setup -c -d setup.py
+        - name: Same as above, but copy over system level azure settings into new virtual environment azure settings
+          text: azdev setup -c azure-cli -r azure-cli-extensions -s env1 --copy
 """
 
 
diff --git a/azdev/operations/help/__init__.py b/azdev/operations/help/__init__.py
index 30c5af45..0f216224 100644
--- a/azdev/operations/help/__init__.py
+++ b/azdev/operations/help/__init__.py
@@ -20,7 +20,8 @@
 from azure.cli.core.extension.operations import list_available_extensions, list_extensions as list_cli_extensions  # pylint: disable=import-error
 from azdev.utilities import (
     display, heading, subheading,
-    get_cli_repo_path, get_path_table
+    get_cli_repo_path, get_path_table,
+    require_virtual_env
 )
 
 from azdev.utilities.tools import require_azure_cli
diff --git a/azdev/operations/pypi.py b/azdev/operations/pypi.py
index 55009f47..c58e3a8c 100644
--- a/azdev/operations/pypi.py
+++ b/azdev/operations/pypi.py
@@ -16,7 +16,8 @@
 
 from azdev.utilities import (
     display, heading, subheading, cmd, py_cmd, get_path_table,
-    pip_cmd, COMMAND_MODULE_PREFIX, require_azure_cli, find_files)
+    pip_cmd, COMMAND_MODULE_PREFIX, require_azure_cli, require_virtual_env,
+    find_files)
 
 logger = get_logger(__name__)
 
@@ -131,6 +132,7 @@ def verify_versions():
     import tempfile
     import shutil
 
+    require_virtual_env()
     require_azure_cli()
 
     heading('Verify CLI Versions')
diff --git a/azdev/operations/setup.py b/azdev/operations/setup.py
index 87aa4968..6f8921a9 100644
--- a/azdev/operations/setup.py
+++ b/azdev/operations/setup.py
@@ -6,7 +6,9 @@
 
 import os
 from shutil import copytree, rmtree
+import shutil
 import time
+import sys
 
 from knack.log import get_logger
 from knack.util import CLIError
@@ -14,9 +16,11 @@
 from azdev.operations.extensions import (
     list_extensions, add_extension_repo, remove_extension)
 from azdev.params import Flag
+import azdev.utilities.const as const
+import azdev.utilities.venv as venv
 from azdev.utilities import (
-    display, heading, subheading, pip_cmd, find_file,
-    get_azdev_config_dir, get_azdev_config, require_virtual_env, get_azure_config)
+    display, heading, subheading, pip_cmd, find_file, get_env_path,
+    get_azdev_config_dir, get_azdev_config, get_azure_config, shell_cmd)
 
 logger = get_logger(__name__)
 
@@ -196,8 +200,8 @@ def add_ext_repo(path):
         # repo directory. To use multiple extension repos or identify a repo outside the cwd, they must specify
         # the path.
         if prompt_y_n('\nDo you plan to develop CLI extensions?'):
-            display('\nGreat! Input the paths for the extension repos you wish to develop for, one per '
-                    'line. You can add as many repos as you like. (TIP: to quickly get started, press RETURN to '
+            display('\nGreat! Input the path for the extension repos you wish to develop for. '
+                    '(TIP: to quickly get started, press RETURN to '
                     'use your current working directory).')
             first_repo = True
             while True:
@@ -245,14 +249,170 @@ def add_ext_repo(path):
         raise CLIError('Installation aborted.')
 
 
-def setup(cli_path=None, ext_repo_path=None, ext=None, deps=None):
+def _validate_input(cli_path, ext_repo_path, set_env, copy, use_global, ext):
+    if copy and use_global:
+        raise CLIError("Copy and use global are mutally exlcusive.")
+    if cli_path == "pypi" and any([use_global, copy, set_env]):
+        raise CLIError("pypi for cli path is mutally exlcusive with global copy and set env")
+    if not cli_path and any([use_global, copy, set_env]):
+        raise CLIError("if global, copy, or set env are set then both an extensions repo "
+                       " and a cli repo must be specified")
+    if not ext_repo_path and ext:
+        raise CLIError("Extesions provided to be installed but no extensions path was given")
 
-    require_virtual_env()
 
-    start = time.time()
+def _check_paths(cli_path, ext_repo_path):
+    if not os.path.isdir(cli_path):
+        raise CLIError("The cli path is not a valid directory, please check the path")
+    if ext_repo_path and not os.path.isdir(ext_repo_path):
+        raise CLIError("The cli extensions path is not a valid directory, please check the path")
+
+
+def _check_shell():
+    if 'SHELL' in os.environ and const.IS_WINDOWS and 'bash.exe' in os.environ['SHELL']:
+        heading("WARNING: You are running bash in Windows, the setup may not work correctly and "
+                "command may have unexpected behavior")
+        from knack.prompting import prompt_y_n
+        if not prompt_y_n('Would you like to continue with the install?'):
+            sys.exit(0)
+
+
+def _check_env(set_env):
+    if not set_env:
+        if not get_env_path():
+            raise CLIError('You are not running in a virtual enviroment and have not chosen to set one up.')
+        _check_pyenv()
+    elif 'VIRTUAL_ENV' in os.environ:
+        raise CLIError("You are already running in a virtual enviroment, yet you want to set a new one up")
+
+
+def _check_pyenv():
+    if 'PYENV_VIRTUAL_ENV' in os.environ:
+        if const.IS_WINDOWS:
+            raise CLIError('AZDEV does not support setup in a pyenv-win virtual environment.')
+        activate_path = os.path.join(
+            os.environ['PYENV_ROOT'], 'plugins', 'pyenv-virtualenv', 'bin', 'pyenv-sh-activate')
+        venv.edit_pyenv_activate(activate_path)
+
+
+def setup(cli_path=None, ext_repo_path=None, ext=None, deps=None, set_env=None, copy=None, use_global=None):
+    _check_env(set_env)
+
+    _check_shell()
 
     heading('Azure CLI Dev Setup')
 
+    # cases for handling legacy install
+    if not any([cli_path, ext_repo_path]) or cli_path == "pypi":
+        display("WARNING: Installing azdev in legacy mode. Run with atleast -c "
+                "to install the latest azdev wihout \"pypi\"\n")
+        return _handle_legacy(cli_path, ext_repo_path, ext, deps, time.time())
+    if 'CONDA_PREFIX' in os.environ:
+        raise CLIError('CONDA virutal enviroments are not supported outside'
+                       ' of interactive mode or when -c and -r are provided')
+
+    if not cli_path:
+        cli_path = _handle_no_cli_path()
+
+    _validate_input(cli_path, ext_repo_path, set_env, copy, use_global, ext)
+    _check_paths(cli_path, ext_repo_path)
+
+    if set_env:
+        shell_cmd((const.VENV_CMD if const.IS_WINDOWS else const.VENV_CMD3) + set_env, raise_ex=False)
+        azure_path = os.path.join(os.path.abspath(os.getcwd()), set_env)
+    else:
+        azure_path = os.environ.get('VIRTUAL_ENV')
+
+    dot_azure_config = os.path.join(azure_path, '.azure')
+    dot_azdev_config = os.path.join(azure_path, '.azdev')
+
+    # clean up venv dirs if they already existed
+    # and this is a reinstall/new setup
+    if os.path.isdir(dot_azure_config):
+        shutil.rmtree(dot_azure_config)
+    if os.path.isdir(dot_azdev_config):
+        shutil.rmtree(dot_azdev_config)
+
+    global_az_config = os.path.expanduser(os.path.join('~', '.azure'))
+    global_azdev_config = os.path.expanduser(os.path.join('~', '.azdev'))
+    azure_config_path = os.path.join(dot_azure_config, const.CONFIG_NAME)
+    azdev_config_path = os.path.join(dot_azdev_config, const.CONFIG_NAME)
+
+    if os.path.isdir(global_az_config) and copy:
+        shutil.copytree(global_az_config, dot_azure_config)
+        if os.path.isdir(global_azdev_config):
+            shutil.copytree(global_azdev_config, dot_azdev_config)
+        else:
+            os.mkdir(dot_azdev_config)
+            file = open(azdev_config_path, "w")
+            file.close()
+    elif not use_global and not copy:
+        os.mkdir(dot_azure_config)
+        os.mkdir(dot_azdev_config)
+        file_az, file_dev = open(azure_config_path, "w"), open(azdev_config_path, "w")
+        file_az.close()
+        file_dev.close()
+    elif os.path.isdir(global_az_config):
+        dot_azure_config, dot_azdev_config = global_az_config, global_azdev_config
+        azure_config_path = os.path.join(dot_azure_config, const.CONFIG_NAME)
+    else:
+        raise CLIError(
+            "Global AZ config is not set up, yet it was specified to be used.")
+
+    # set env vars for get azure config and get azdev config
+    os.environ['AZURE_CONFIG_DIR'], os.environ['AZDEV_CONFIG_DIR'] = dot_azure_config, dot_azdev_config
+    config = get_azure_config()
+    if not config.get('cloud', 'name', None):
+        config.set_value('cloud', 'name', 'AzureCloud')
+    if ext_repo_path:
+        config.set_value(const.EXT_SECTION, const.AZ_DEV_SRC, os.path.abspath(ext_repo_path))
+    venv.edit_activate(azure_path, dot_azure_config, dot_azdev_config)
+    if cli_path:
+        config.set_value('clipath', const.AZ_DEV_SRC, os.path.abspath(cli_path))
+        venv.install_cli(os.path.abspath(cli_path), azure_path)
+    config = get_azdev_config()
+    config.set_value('ext', 'repo_paths', os.path.abspath(ext_repo_path) if ext_repo_path else '_NONE_')
+    config.set_value('cli', 'repo_path', os.path.abspath(cli_path))
+    _copy_config_files()
+    if ext and ext_repo_path:
+        venv.install_extensions(azure_path, ext)
+
+    if not set_env:
+        heading("The setup was successful! Please run or re-run the virtual environment activation script.")
+    else:
+        heading("The setup was successful!")
+    return None
+
+
+def _get_azdev_cli_path(config_file_path):
+    if not os.path.exists(config_file_path):
+        return None
+
+    import configparser
+    with open(config_file_path, "r") as file:
+        config_parser = configparser.RawConfigParser()
+        config_parser.read_string(file.read())
+        if config_parser.has_section('cli') and config_parser.has_option('cli', 'repo_path'):
+            return config_parser.get('cli', 'repo_path')
+        return None
+
+
+def _handle_no_cli_path():
+    local_azdev_config = os.path.join(os.environ.get('VIRTUAL_ENV'), '.azdev', const.CONFIG_NAME)
+    cli_path = _get_azdev_cli_path(local_azdev_config)
+    if cli_path is None:
+        display('Not found cli path in local azdev config file: ' + local_azdev_config)
+        display('Will use the one in global azdev config.')
+        global_azdev_config = os.path.expanduser(os.path.join('~', '.azdev', const.CONFIG_NAME))
+        cli_path = _get_azdev_cli_path(global_azdev_config)
+        if cli_path is None:
+            raise CLIError('Not found cli path in global azdev config file: ' + global_azdev_config)
+    display('cli_path: ' + cli_path)
+    return cli_path
+
+
+def _handle_legacy(cli_path, ext_repo_path, ext, deps, start):
+    ext_repo_path = [ext_repo_path] if ext_repo_path else None
     ext_to_install = []
     if not any([cli_path, ext_repo_path, ext]):
         cli_path, ext_repo_path, ext_to_install = _interactive_setup()
@@ -279,7 +439,6 @@ def setup(cli_path=None, ext_repo_path=None, ext=None, deps=None):
         # must add the necessary repo to add an extension
         if ext and not ext_repo_path:
             raise CLIError('usage error: --repo EXT_REPO [EXT_REPO ...] [--ext EXT_NAME ...]')
-
         get_azure_config().set_value('extension', 'dev_sources', '')
         if ext_repo_path:
             # add extension repo(s)
@@ -313,11 +472,10 @@ def setup(cli_path=None, ext_repo_path=None, ext=None, deps=None):
 
     # upgrade to latest pip
     pip_cmd('install --upgrade pip -q', 'Upgrading pip...')
-
     _install_cli(cli_path, deps=deps)
-    _install_extensions(ext_to_install)
+    if ext_repo_path:
+        _install_extensions(ext_to_install)
     _copy_config_files()
-
     end = time.time()
     elapsed_min = int((end - start) / 60)
     elapsed_sec = int(end - start) % 60
diff --git a/azdev/operations/style.py b/azdev/operations/style.py
index 3c0c1835..24bd6be9 100644
--- a/azdev/operations/style.py
+++ b/azdev/operations/style.py
@@ -201,7 +201,7 @@ def _config_file_path(style_type="pylint"):
 
     ext_repo_path = filter(
         lambda x: "azure-cli-extension" in x,
-        get_azdev_config().get("ext", "repo_paths").split(),
+        get_azdev_config().get("ext", "repo_paths").split(','),
     )
     try:
         ext_repo_path = next(ext_repo_path)
diff --git a/azdev/params.py b/azdev/params.py
index 4b7cafde..71afac94 100644
--- a/azdev/params.py
+++ b/azdev/params.py
@@ -34,10 +34,13 @@ def load_arguments(self, _):
         c.argument('git_repo', options_list='--repo', arg_group='Git', help='Path to the Git repo to check.')
 
     with ArgumentsContext(self, 'setup') as c:
-        c.argument('cli_path', options_list=['--cli', '-c'], nargs='?', const=Flag, help="Path to an existing Azure CLI repo. Omit value to search for the repo or use special value 'EDGE' to install the latest developer edge build.")
-        c.argument('ext_repo_path', options_list=['--repo', '-r'], nargs='+', help='Space-separated list of paths to existing Azure CLI extensions repos.')
+        c.argument('cli_path', options_list=['--cli', '-c'], type=str, help="Path to an existing Azure CLI repo. Use special value 'EDGE' to install the latest developer edge build. Note: if not provide, will use the one in local .azdev config, if not exist will use the one in global .azdev config.")
+        c.argument('ext_repo_path', options_list=['--repo', '-r'], type=str, help='Path to existing Azure CLI extensions repos.')
         c.argument('ext', options_list=['--ext', '-e'], nargs='+', help="Space-separated list of extensions to install initially. Use '*' to install all extensions.")
         c.argument('deps', options_list=['--deps-from', '-d'], choices=['requirements.txt', 'setup.py'], default='requirements.txt', help="Choose the file to resolve dependencies.")
+        c.argument('set_env', options_list=['--set-env', '-s'], type=str, help="Will create a virtual enviroment with the given env name")
+        c.argument('copy', options_list='--copy', action='store_true', help="Will copy entire global .azure diretory to the newly created virtual enviroment .azure direcotry if it exist")
+        c.argument('use_global', options_list=['--use-global', '-g'], action='store_true', help="Will use the default global system .azure config")
 
     with ArgumentsContext(self, 'test') as c:
         c.argument('discover', options_list='--discover', action='store_true', help='Build an index of test names so that you don\'t need to specify fully qualified test paths.')
diff --git a/azdev/utilities/__init__.py b/azdev/utilities/__init__.py
index 40f76e1b..f16e59e2 100644
--- a/azdev/utilities/__init__.py
+++ b/azdev/utilities/__init__.py
@@ -14,7 +14,8 @@
     call,
     cmd,
     py_cmd,
-    pip_cmd
+    pip_cmd,
+    shell_cmd
 )
 from .const import (
     COMMAND_MODULE_PREFIX,
@@ -22,8 +23,7 @@
     IS_WINDOWS,
     ENV_VAR_TEST_MODULES,
     ENV_VAR_TEST_LIVE,
-    ENV_VAR_VIRTUAL_ENV,
-    EXT_REPO_NAME
+    ENV_VAR_VIRTUAL_ENV
 )
 from .display import (
     display,
@@ -76,7 +76,6 @@
     'ENV_VAR_TEST_MODULES',
     'ENV_VAR_TEST_LIVE',
     'ENV_VAR_VIRTUAL_ENV',
-    'EXT_REPO_NAME',
     'IS_WINDOWS',
     'extract_module_name',
     'find_file',
diff --git a/azdev/utilities/command.py b/azdev/utilities/command.py
index 55d3a1da..cc55b289 100644
--- a/azdev/utilities/command.py
+++ b/azdev/utilities/command.py
@@ -9,7 +9,7 @@
 import sys
 
 from knack.log import get_logger
-from knack.util import CommandResultItem
+from knack.util import CommandResultItem, CLIError
 
 logger = get_logger(__name__)
 
@@ -36,8 +36,7 @@ def cmd(command, message=False, show_stderr=True, **kwargs):
     :param kwargs: Any kwargs supported by subprocess.Popen
     :returns: CommandResultItem object.
     """
-    from azdev.utilities import IS_WINDOWS, display
-
+    from . import IS_WINDOWS, display
     # use default message if custom not provided
     if message is True:
         message = 'Running: {}\n'.format(command)
@@ -56,6 +55,34 @@ def cmd(command, message=False, show_stderr=True, **kwargs):
         return CommandResultItem(err.output, exit_code=err.returncode, error=err)
 
 
+def shell_cmd(command, message=False, stderr=None, stdout=None, check=True, raise_ex=True, timeout=None,
+              executable=None, capture_output=False):
+
+    # use default message if custom not provided
+    if message is True:
+        message = '\nRunning: {}\n'.format(command)
+    from . import display
+    if message:
+        display(message)
+
+    try:
+        output = subprocess.run(command,
+                                stdout=subprocess.PIPE if capture_output else stdout,
+                                stderr=subprocess.PIPE if capture_output else stderr,
+                                check=check,
+                                timeout=timeout,
+                                executable=executable,
+                                shell=True)
+        if capture_output:
+            return CommandResultItem(output.stdout.decode('utf-8').strip(), exit_code=0, error=None)
+    except subprocess.CalledProcessError as err:
+        if raise_ex:
+            raise err
+        logger.debug(err)
+        raise CLIError("Command " + command + " failed. Trying running with --debug for more info")
+    return None
+
+
 def py_cmd(command, message=False, show_stderr=True, is_module=True, **kwargs):
     """ Run a script or command with Python.
 
diff --git a/azdev/utilities/config.py b/azdev/utilities/config.py
index 69a5d0e3..7b5963f7 100644
--- a/azdev/utilities/config.py
+++ b/azdev/utilities/config.py
@@ -5,7 +5,7 @@
 # -----------------------------------------------------------------------------
 
 import os
-
+import sys
 from knack.config import CLIConfig
 
 
@@ -21,7 +21,11 @@ def get_azdev_config_dir():
     """ Returns the user's .azdev directory. """
     from azdev.utilities import get_env_path
     env_name = None
-    _, env_name = os.path.splitdrive(get_env_path())
+    if not get_env_path():
+        _, env_name = os.path.splitdrive(sys.executable)
+    else:
+        _, env_name = os.path.splitdrive(get_env_path())
+
     azdev_dir = os.getenv('AZDEV_CONFIG_DIR', None) or os.path.expanduser(os.path.join('~', '.azdev'))
     if not env_name:
         return azdev_dir
diff --git a/azdev/utilities/const.py b/azdev/utilities/const.py
index d0db7900..607a2ee2 100644
--- a/azdev/utilities/const.py
+++ b/azdev/utilities/const.py
@@ -6,10 +6,21 @@
 
 import sys
 
+AZ_AZDEV_DIR = 'AZDEV_CONFIG_DIR'
+AZ_CONFIG_DIR = 'AZURE_CONFIG_DIR'
+AZ_DEV_SRC = 'dev_sources'
 COMMAND_MODULE_PREFIX = 'azure-cli-'
+CONFIG_NAME = 'config'
 EXTENSION_PREFIX = 'azext_'
-EXT_REPO_NAME = 'azure-cli-extensions'
+EXT_SECTION = 'extension'
 IS_WINDOWS = sys.platform.lower() in ['windows', 'win32']
+PIP_E_CMD = 'pip install -e '
+PIP_R_CMD = 'pip install -r '
+UN_ACTIVATE = 'activate'
+UN_BIN = 'bin'
+UN_EXPORT = 'export'
+VENV_CMD = 'python -m venv --system-site-packages '
+VENV_CMD3 = 'python3 -m venv --system-site-packages '
 
 ENV_VAR_TEST_MODULES = 'AZDEV_TEST_TESTS'               # comma-separated list of modules to test
 ENV_VAR_VIRTUAL_ENV = ['VIRTUAL_ENV', 'CONDA_PREFIX']   # used by system to identify virtual environment
diff --git a/azdev/utilities/path.py b/azdev/utilities/path.py
index 1f15c7d3..ae30620b 100644
--- a/azdev/utilities/path.py
+++ b/azdev/utilities/path.py
@@ -5,11 +5,12 @@
 # -----------------------------------------------------------------------------
 
 import os
-from glob import glob
 
+from glob import glob
 from knack.util import CLIError
-
-from .const import COMMAND_MODULE_PREFIX, EXTENSION_PREFIX, ENV_VAR_VIRTUAL_ENV
+from six.moves import configparser
+from azdev.utilities import get_azure_config, display
+from . import const
 
 
 def extract_module_name(path):
@@ -34,7 +35,7 @@ def get_env_path():
     :returns: Path (str) to the virtual env or None.
     """
     env_path = None
-    for item in ENV_VAR_VIRTUAL_ENV:
+    for item in const.ENV_VAR_VIRTUAL_ENV:
         env_path = os.environ.get(item)
         if env_path:
             break
@@ -70,12 +71,15 @@ def get_ext_repo_paths():
 
     :returns: Path (str) to Azure CLI dev extension repos.
     """
-    from configparser import NoSectionError
-    from .config import get_azdev_config
+    from configparser import NoSectionError, NoOptionError
     try:
-        return get_azdev_config().get('ext', 'repo_paths').split(',')
+        return get_azure_config().get(const.EXT_SECTION, const.AZ_DEV_SRC).split(',')
     except NoSectionError:
-        raise CLIError('Unable to retrieve extensions repo path from config. Please run `azdev setup`.')
+        raise CLIError('Unable to retrieve extensions repo path from config. Please run `azdev setup` '
+                       'with -r to set an extensions repo.')
+    except NoOptionError:
+        raise CLIError('Unable to retrieve the option {} from azure config section [{}]'.format(
+            const.AZ_DEV_SRC, const.EXT_SECTION))
 
 
 def find_file(file_name):
@@ -119,11 +123,14 @@ def make_dirs(path):
 def get_name_index(invert=False, include_whl_extensions=False):
     """ Returns a dictionary containing the long and short names of modules and extensions is {SHORT:LONG} format or
         {LONG:SHORT} format when invert=True. """
-    from azure.cli.core.extension import EXTENSIONS_DIR  # pylint: disable=import-error
+    config = get_azure_config()  # pylint: disable=import-error
+    try:
+        EXTENSIONS_DIR = config.get(const.EXT_SECTION, const.AZ_DEV_SRC)
+    except (configparser.NoSectionError, configparser.NoOptionError):
+        EXTENSIONS_DIR = ""
 
     table = {}
     cli_repo_path = get_cli_repo_path()
-    ext_repo_paths = get_ext_repo_paths()
 
     # unified azure-cli package (2.0.68 and later)
     paths = os.path.normcase(
@@ -133,9 +140,9 @@ def get_name_index(invert=False, include_whl_extensions=False):
     )
     modules_paths = glob(paths)
     core_paths = glob(os.path.normcase(os.path.join(cli_repo_path, 'src', '*', 'setup.py')))
-    ext_paths = [x for x in find_files(ext_repo_paths, '*.*-info') if 'site-packages' not in x]
+    ext_paths = [x for x in find_files(EXTENSIONS_DIR, '*.*-info') if 'site-packages' not in x]
     whl_ext_paths = []
-    if include_whl_extensions:
+    if include_whl_extensions and EXTENSIONS_DIR:
         whl_ext_paths = [x for x in find_files(EXTENSIONS_DIR, '*.*-info') if 'site-packages' not in x]
 
     def _update_table(paths, key):
@@ -149,15 +156,15 @@ def _update_table(paths, key):
             if key == 'ext':
                 short_name = base_name
                 for item in os.listdir(folder):
-                    if item.startswith(EXTENSION_PREFIX):
+                    if item.startswith(const.EXTENSION_PREFIX):
                         long_name = item
                         break
-            elif base_name.startswith(COMMAND_MODULE_PREFIX):
+            elif base_name.startswith(const.COMMAND_MODULE_PREFIX):
                 long_name = base_name
-                short_name = base_name.replace(COMMAND_MODULE_PREFIX, '') or '__main__'
+                short_name = base_name.replace(const.COMMAND_MODULE_PREFIX, '') or '__main__'
             else:
                 short_name = base_name
-                long_name = '{}{}'.format(COMMAND_MODULE_PREFIX, base_name)
+                long_name = '{}{}'.format(const.COMMAND_MODULE_PREFIX, base_name)
             if not invert:
                 table[short_name] = long_name
             else:
@@ -190,8 +197,14 @@ def get_path_table(include_only=None, include_whl_extensions=False):
         }
     }
     """
-    from azure.cli.core.extension import EXTENSIONS_DIR  # pylint: disable=import-error
-
+    config = get_azure_config()  # pylint: disable=import-error
+    try:
+        EXTENSIONS_DIR = config.get(const.EXT_SECTION, const.AZ_DEV_SRC)
+        os.chdir(EXTENSIONS_DIR)
+    except (configparser.NoSectionError, configparser.NoOptionError, TypeError):
+        display("WARNING: No extension path found, only modules will be available. "
+                "rerun setup with -r to make extensions available\n")
+        EXTENSIONS_DIR = ""
     # determine whether the call will filter or return all
     if isinstance(include_only, str):
         include_only = [include_only]
@@ -199,7 +212,6 @@ def get_path_table(include_only=None, include_whl_extensions=False):
 
     table = {}
     cli_repo_path = get_cli_repo_path()
-    ext_repo_paths = get_ext_repo_paths()
 
     paths = os.path.normcase(
         os.path.join(
@@ -208,7 +220,7 @@ def get_path_table(include_only=None, include_whl_extensions=False):
     )
     modules_paths = glob(paths)
     core_paths = glob(os.path.normcase(os.path.join(cli_repo_path, 'src', '*', 'setup.py')))
-    ext_paths = [x for x in find_files(ext_repo_paths, '*.*-info') if 'site-packages' not in x]
+    ext_paths = [x for x in find_files(EXTENSIONS_DIR, '*.*-info') if 'site-packages' not in x]
     whl_ext_paths = [x for x in find_files(EXTENSIONS_DIR, '*.*-info') if 'site-packages' not in x]
 
     def _update_table(package_paths, key):
@@ -221,10 +233,10 @@ def _update_table(package_paths, key):
 
             if key == 'ext':
                 short_name = base_name
-                long_name = next((item for item in os.listdir(folder) if item.startswith(EXTENSION_PREFIX)), None)
+                long_name = next((item for item in os.listdir(folder) if item.startswith(const.EXTENSION_PREFIX)), None)
             else:
                 short_name = base_name
-                long_name = '{}{}'.format(COMMAND_MODULE_PREFIX, base_name)
+                long_name = '{}{}'.format(const.COMMAND_MODULE_PREFIX, base_name)
 
             if get_all:
                 table[key][long_name if key == 'ext' else short_name] = folder
diff --git a/azdev/utilities/tools.py b/azdev/utilities/tools.py
index 47396a75..2fbb1b52 100644
--- a/azdev/utilities/tools.py
+++ b/azdev/utilities/tools.py
@@ -4,7 +4,9 @@
 # license information.
 # -----------------------------------------------------------------------------
 
+import os
 from knack.util import CLIError
+from . import const
 
 
 def require_virtual_env():
@@ -13,6 +15,12 @@ def require_virtual_env():
     env = get_env_path()
     if not env:
         raise CLIError('This command can only be run from an active virtual environment.')
+    if not os.environ.get(const.AZ_CONFIG_DIR):
+        raise CLIError(
+            "AZURE_CONFIG_DIR env var is not set. Please run 'azdev setup'")
+    if not os.path.exists(os.path.join(os.environ[const.AZ_CONFIG_DIR], "config")):
+        raise CLIError(
+            "The Azure config file does not exist. Please run 'azdev setup'")
 
 
 def require_azure_cli():
diff --git a/azdev/utilities/venv.py b/azdev/utilities/venv.py
new file mode 100644
index 00000000..67285bec
--- /dev/null
+++ b/azdev/utilities/venv.py
@@ -0,0 +1,152 @@
+# -----------------------------------------------------------------------------
+# Copyright (c) Microsoft Corporation. All rights reserved.
+# Licensed under the MIT License. See License.txt in the project root for
+# license information.
+# -----------------------------------------------------------------------------
+
+import os
+import subprocess
+import platform
+from knack.util import CLIError
+import azdev.operations.extensions
+from azdev.utilities import display, shell_cmd
+from . import const
+
+
+def edit_activate(azure_config_path, dot_azure_config, dot_azdev_config):
+    if const.IS_WINDOWS:
+        ps1_edit(azure_config_path, dot_azure_config, dot_azdev_config)
+        bat_edit(azure_config_path, dot_azure_config, dot_azdev_config)
+    else:
+        unix_edit(azure_config_path, dot_azure_config, dot_azdev_config)
+
+
+def edit_pyenv_activate(activate_path):
+    set_azdev_content = 'set -gx AZDEV_CONFIG_DIR "${prefix}/.azdev";\n'
+    set_azure_content = 'set -gx AZURE_CONFIG_DIR "${prefix}/.azure";\n'
+    export_azdev_content = 'export AZDEV_CONFIG_DIR="${prefix}/.azdev";\n'
+    export_azure_content = 'export AZURE_CONFIG_DIR="${prefix}/.azure";\n'
+
+    insert(activate_path, set_azdev_content, get_line_num(activate_path, "set -gx VIRTUAL_ENV \"${prefix}\";"))
+    insert(activate_path, set_azure_content, get_line_num(activate_path, "set -gx VIRTUAL_ENV \"${prefix}\";"))
+    insert(activate_path, export_azdev_content, get_line_num(activate_path, "export VIRTUAL_ENV=\"${prefix}\";"))
+    insert(activate_path, export_azure_content, get_line_num(activate_path, "export VIRTUAL_ENV=\"${prefix}\";"))
+
+
+def insert(file_path, content, line_num):
+    if line_num == -1:
+        raise CLIError("Cannot find a proper place to set/export environment variable.")
+    if get_line_num(file_path, content) == -1:
+        with open(file_path, 'r+') as reader:
+            file_content = reader.readlines()
+            file_content.insert(line_num, content)
+            reader.seek(0)
+            reader.writelines(file_content)
+
+
+def get_line_num(file_path, target):
+    with open(file_path, 'r') as reader:
+        for num, line in enumerate(reader, 1):
+            if target in line:
+                return num
+    return -1
+
+
+def unix_edit(azure_config_path, dot_azure_config, dot_azdev_config):
+    activate_path = os.path.join(azure_config_path, const.UN_BIN,
+                                 const.UN_ACTIVATE)
+    content = open(activate_path, "r").readlines()
+
+    # check if already ran setup before
+    if const.AZ_CONFIG_DIR not in content[0]:
+        content = [const.AZ_CONFIG_DIR + '=' + dot_azure_config + '\n',
+                   const.UN_EXPORT + ' ' + const.AZ_CONFIG_DIR + '\n',
+                   const.AZ_AZDEV_DIR + '=' + dot_azdev_config + '\n',
+                   const.UN_EXPORT + ' ' + const.AZ_AZDEV_DIR + '\n'] + content
+        with open(activate_path, "w") as file:
+            file.writelines(content)
+
+
+def bat_edit(azure_config_path, dot_azure_config, dot_azdev_config):
+    activate_path = os.path.join(azure_config_path, 'Scripts',
+                                 'activate.bat')
+    content = open(activate_path, "r").readlines()
+    if const.AZ_CONFIG_DIR not in content[1]:
+        content = content[0:1] + ['set ' + const.AZ_CONFIG_DIR +
+                                  '=' + dot_azure_config + '\n',
+                                  'set ' + const.AZ_AZDEV_DIR +
+                                  '=' + dot_azdev_config] + content[1::]
+        with open(activate_path, "w") as file:
+            file.writelines(content)
+
+
+def ps1_edit(azure_config_path, dot_azure_config, dot_azdev_config):
+    activate_path = os.path.join(azure_config_path, 'Scripts',
+                                 'Activate.ps1')
+    content = open(activate_path, "r").read()
+    idx = content.find('$env:VIRTUAL_ENV')
+    if idx < 0:
+        raise CLIError("hmm, it looks like Activate.ps1 does"
+                       " not set the virutal enviroment variable VIRTUAL_ENV")
+    if content.find('$env:AZURE_CONFIG_DIR') < 0:
+        content = content[:idx] + '$env:AZURE_CONFIG_DIR' + " = " + \
+            "\"" + dot_azure_config + "\"; " + \
+            "$env:AZDEV_CONFIG_DIR = " + \
+            "\"" + dot_azdev_config + "\"; " + \
+            content[idx:]
+    with open(activate_path, "w") as file:
+        file.write(content)
+
+
+def install_cli(cli_path, venv_path):
+    src_path = os.path.join(cli_path, 'src')
+    activate_path = (os.path.join(venv_path, 'Scripts', 'activate')
+                     if const.IS_WINDOWS else 'source ' + os.path.join(venv_path, const.UN_BIN, const.UN_ACTIVATE))
+    delimiter = ' && ' if const.IS_WINDOWS else '; '
+    executable = None if const.IS_WINDOWS else '/bin/bash'
+    display("\nvenv activate path is " + str(activate_path))
+    shell_cmd(activate_path + delimiter + 'pip install --ignore-installed azure-common',
+              stdout=subprocess.DEVNULL,
+              stderr=subprocess.DEVNULL, raise_ex=False, executable=executable)
+    display("\nInstalling telemetry ")
+    shell_cmd(activate_path + delimiter + const.PIP_E_CMD + os.path.join(src_path, 'azure-cli-telemetry'),
+              stdout=subprocess.DEVNULL, raise_ex=False, stderr=subprocess.DEVNULL, executable=executable)
+    display("\nInstalling core ")
+    shell_cmd(activate_path + delimiter + const.PIP_E_CMD + os.path.join(src_path, 'azure-cli-core'),
+              stdout=subprocess.DEVNULL, raise_ex=False, stderr=subprocess.DEVNULL, executable=executable)
+    shell_cmd(activate_path + delimiter + const.PIP_E_CMD + os.path.join(src_path, 'azure-cli-testsdk'),
+              stdout=subprocess.DEVNULL,
+              stderr=subprocess.DEVNULL, raise_ex=False, executable=executable)
+    display("\nInstalling cli ")
+    shell_cmd(activate_path + delimiter + const.PIP_E_CMD + os.path.join(src_path, 'azure-cli'),
+              raise_ex=False, executable=executable)
+    req_file = 'requirements.py3.{}.txt'.format(platform.system().lower() if const.IS_WINDOWS else platform.system())
+    req_file = "{}/src/azure-cli/{}".format(cli_path, req_file)
+    display("Installing " + req_file)
+    shell_cmd(activate_path + delimiter + const.PIP_R_CMD + req_file, raise_ex=False, executable=executable)
+
+
+def install_extensions(venv_path, extensions):
+    activate_path = os.path.join(venv_path, 'Scripts', 'activate') if const.IS_WINDOWS else 'source ' + os.path.join(
+        venv_path, const.UN_BIN, const.UN_ACTIVATE)
+    delimiter = ' && ' if const.IS_WINDOWS else '; '
+    executable = None if const.IS_WINDOWS else '/bin/bash'
+    all_ext = azdev.operations.extensions.list_extensions()
+    if extensions == ['*']:
+        display("\nInstalling all extensions")
+        for i in all_ext:
+            shell_cmd(activate_path + delimiter + const.PIP_E_CMD + i['path'], executable=executable)
+        extensions = False
+    else:
+        display("\nInstalling the following extensions: " + str(extensions))
+        extensions = set(extensions)
+    k = 0
+    while k < len(all_ext) and extensions:
+        if all_ext[k]['name'] in extensions:
+            shell_cmd(activate_path + delimiter + const.PIP_E_CMD + all_ext[k]['path'],
+                      executable=executable)
+            extensions.remove(all_ext[k]['name'])
+        k += 1
+    if extensions:
+        raise CLIError("The following extensions were not found. Ensure you have added "
+                       "the repo using `--repo/-r PATH`.\n    {}".format('\n    '.join(extensions)))
diff --git a/azure-pipelines.yml b/azure-pipelines.yml
index 33877a5b..adf8e3cf 100644
--- a/azure-pipelines.yml
+++ b/azure-pipelines.yml
@@ -122,9 +122,6 @@ jobs:
     - bash: |
         set -ev
 
-        python -m venv env
-        . env/bin/activate
-
         # install azdev from source code
         pip install -e .
         pip install pytest-cov
@@ -132,8 +129,8 @@ jobs:
         # azdev setup
         git clone --quiet https://github.com/Azure/azure-cli.git
         git clone --quiet https://github.com/Azure/azure-cli-extensions.git
-        azdev setup -c ./azure-cli -r ./azure-cli-extensions
-
+        azdev setup -c ./azure-cli -r ./azure-cli-extensions -s env
+        source env/bin/activate
         azdev --version
 
         python -m pytest azdev/ --ignore=azdev/mod_templates --junitxml=junit/test-results.xml --cov=azdev --cov-report=xml
@@ -176,6 +173,7 @@ jobs:
       set -ev
       . scripts/ci/install.sh
       # verify azdev setup worked
+      source env/bin/activate
       az -h
     displayName: 'Test azdev setup'
 
@@ -240,7 +238,7 @@ jobs:
       set -ev
       . scripts/ci/install.sh
       # verify azdev linter works
-      azdev linter acr
+      azdev linter CLI
     displayName: 'Test azdev linter'
 
 - job: TestAzdevStyle
@@ -272,6 +270,7 @@ jobs:
       set -ev
       . scripts/ci/install.sh
       # verify azdev style works
+      source env/bin/activate
       azdev style redis
     displayName: 'Test azdev style'
 
@@ -311,44 +310,3 @@ jobs:
         . env/bin/activate
         azdev perf benchmark "version" "network vnet -h" "rest -h" "storage account" -o table
       displayName: "Execution Performance"
-
-# - job: PerformanceCheckOnWindows
-#   displayName: "Performance Check on Windows"
-#   dependsOn: BuildPythonWheel
-#   pool:
-#     vmImage: 'vs2017-win2016'
-#   strategy:
-#     matrix:
-#       Python36:
-#         python.version: '3.6'
-#       Python38:
-#         python.version: '3.8'
-#   steps:
-#     - task: DownloadPipelineArtifact@1
-#       displayName: 'Download Build'
-#       inputs:
-#         TargetPath: '$(Build.ArtifactStagingDirectory)/pypi'
-#         artifactName: pypi
-#     - task: UsePythonVersion@0
-#       displayName: 'Use Python $(python.version)'
-#       inputs:
-#         versionSpec: '$(python.version)'
-#     - powershell: |
-#         python -m venv env
-#         .\env\Scripts\Activate.ps1
-#         pip install --user -U pip setuptools wheel -q
-#         pip install --user $(find ${BUILD_ARTIFACTSTAGINGDIRECTORY}/pypi -name *.tar.gz) -q
-#         git clone https://github.com/Azure/azure-cli.git
-#         git clone https://github.com/Azure/azure-cli-extensions.git
-#         azdev setup -c -r azure-cli-extensions
-
-#         azdev --version
-#       displayName: 'Azdev Setup'
-#     - powershell: |
-#         .\env\Scripts\Activate.ps1
-#         azdev perf load-times
-#       displayName: "Load Performance"
-#     - powershell: |
-#         .\env\Scripts\Activate.ps1
-#         azdev perf benchmark "version" "network vnet -h" "rest -h" "storage account"
-#       displayName: "Execution Performance"
diff --git a/scripts/ci/install.sh b/scripts/ci/install.sh
index 24950a6e..2b561820 100644
--- a/scripts/ci/install.sh
+++ b/scripts/ci/install.sh
@@ -4,9 +4,10 @@ set -ev
 
 echo "Install azdev into virtual environment"
 python -m venv env
-. env/bin/activate
+source env/bin/activate
 pip install -U pip setuptools wheel -q
 pip install $(find ${BUILD_ARTIFACTSTAGINGDIRECTORY}/pypi -name *.tar.gz) -q
 git clone https://github.com/Azure/azure-cli.git
 git clone https://github.com/Azure/azure-cli-extensions.git
-azdev setup -c -r azure-cli-extensions
+azdev setup -c azure-cli -r azure-cli-extensions
+source env/bin/activate
\ No newline at end of file
diff --git a/setup.py b/setup.py
index 3c5bdeca..947399f8 100644
--- a/setup.py
+++ b/setup.py
@@ -61,6 +61,7 @@
         'azdev.utilities',
     ],
     install_requires=[
+        'virtualenv',
         'docutils',
         'flake8',
         'gitpython',
@@ -68,7 +69,7 @@
         'knack',
         'mock',
         'pytest>=5.0.0',
-        'pytest-xdist', # depends on pytest-forked
+        'pytest-xdist',  # depends on pytest-forked
         'pyyaml',
         'requests',
         'sphinx==1.6.7',