diff --git a/cookiecutter.json b/cookiecutter.json
index cc35ebb3..40b0b954 100644
--- a/cookiecutter.json
+++ b/cookiecutter.json
@@ -3,5 +3,13 @@
   "repo_name": "{{ cookiecutter.project_name.lstrip('0123456789.- ').replace(' ', '_').replace('-', '_').lower() }}",
   "author_name": "Nesta",
   "description": "A short description of the project.",
-  "openness": ["public", "private"]
-}
+  "openness": [
+    "public",
+    "private"
+  ],
+  "venv_type": [
+    "conda",
+    "venv",
+    "pyenv-virtualenv"
+  ]
+}
\ No newline at end of file
diff --git a/tests/test_creation.py b/tests/test_creation.py
index f6d7d786..351ca12d 100644
--- a/tests/test_creation.py
+++ b/tests/test_creation.py
@@ -150,29 +150,25 @@ def test_folders(self):
         assert len(set(abs_expected_dirs) ^ set(abs_dirs)) == 0
 
     @pytest.mark.usefixtures("conda_env")
-    def test_conda(self):
-        """Test conda environment is created, modified, and destroyed."""
+    def test_python_env(self):
+        """Test python environment is created, modified, and destroyed."""
         with ch_dir(self.path):
             try:
-                p = shell(["make", ".cookiecutter/state/conda-create"])
+                p = shell(["make", ".cookiecutter/state/python-env-create"])
                 assert " DONE" in p[-1]
                 assert self.env_path.exists()
 
                 # Add an extra pip dependency
                 check_output(["echo", "nuts_finder", ">>", "requirements.txt"])
-                p = shell(["make", "conda-update"])
-
-                # Add an extra conda dependency
-                check_output(["echo", "  - tqdm", ">>", "environment.yaml"])
-                p = shell(["make", "conda-update"])
+                p = shell(["make", "python-env-update"])
             except CalledProcessError:
-                log_path = Path(".cookiecutter/state/conda-create.log")
+                log_path = Path(".cookiecutter/state/python-env-create.log")
                 if log_path.exists():
                     with log_path.open() as f:
-                        print("conda-create.log:\n", f.read())
+                        print("python-env-create.log:\n", f.read())
                 raise
             finally:
-                p = shell(["make", "conda-remove"])
+                p = shell(["make", "python-env-remove"])
 
     def test_git(self):
         """Test expected git branches exist."""
@@ -201,16 +197,16 @@ def test_install(self):
                 output = "".join(shell(["bash", "-c", "source .envrc && which python"]))
                 print(output)
 
-                # Conda env activated by .envrc
+                # python env activated by .envrc
                 assert f"{pytest.param.get('repo_name')}/bin/python" in output, output
             except CalledProcessError:
-                log_path = Path(".cookiecutter/state/conda-create.log")
+                log_path = Path(".cookiecutter/state/python-env-create.log")
                 if log_path.exists():
                     with log_path.open() as f:
-                        print("conda-create.log:\n", f.read())
+                        print("python-env-create.log:\n", f.read())
                 raise
             finally:
-                p = shell(["make", "conda-remove"])
+                p = shell(["make", "python-env-remove"])
 
 
 def shell(cmd: List[str]) -> List[str]:
diff --git a/{{ cookiecutter.repo_name }}/.cookiecutter/config b/{{ cookiecutter.repo_name }}/.cookiecutter/config
index 493629a7..9a7f39cf 100644
--- a/{{ cookiecutter.repo_name }}/.cookiecutter/config	
+++ b/{{ cookiecutter.repo_name }}/.cookiecutter/config	
@@ -3,3 +3,31 @@ export PROJECT_NAME={{ cookiecutter.project_name }}
 export REPO_NAME={{ cookiecutter.repo_name }}
 export DESCRIPTION={{ cookiecutter.description }}
 export PROJECT_OPENNESS={{ cookiecutter.openness }}
+export ENVIRONMENT_TYPE={{ cookiecutter.venv_type }}
+
+{% if cookiecutter.venv_type == 'conda' %}
+# Conda configuration
+ENV_CREATE=conda env create -n ${REPO_NAME} -f environment.yaml
+ENV_ACTIVATE=conda activate ${REPO_NAME}
+ENV_DEACTIVATE=conda deactivate
+ENV_REMOVE=conda env remove -n ${REPO_NAME}
+ENV_UPDATE=conda env update -n ${REPO_NAME} -f environment.yaml
+ENV_INSTALL_EXTRAS=conda install pip
+{% elif cookiecutter.venv_type == 'venv' %}
+# venv configuration
+VENV_PATH=.venv
+ENV_CREATE=python -m venv ${VENV_PATH}
+ENV_ACTIVATE=source ${VENV_PATH}/bin/activate
+ENV_DEACTIVATE=deactivate
+ENV_REMOVE=rm -rf ${VENV_PATH}
+ENV_UPDATE=pip install -r requirements.txt
+ENV_INSTALL_EXTRAS=true
+{% else %}
+# pyenv-virtualenv configuration
+ENV_CREATE=pyenv virtualenv ${PYTHON_VERSION} ${REPO_NAME}
+ENV_ACTIVATE=pyenv activate ${REPO_NAME}
+ENV_DEACTIVATE=pyenv deactivate
+ENV_REMOVE=pyenv virtualenv-delete ${REPO_NAME}
+ENV_UPDATE=pip install -r requirements.txt
+ENV_INSTALL_EXTRAS=true
+{% endif %}
diff --git a/{{ cookiecutter.repo_name }}/Makefile b/{{ cookiecutter.repo_name }}/Makefile
index 230ae4cb..510c39b4 100644
--- a/{{ cookiecutter.repo_name }}/Makefile	
+++ b/{{ cookiecutter.repo_name }}/Makefile	
@@ -16,13 +16,13 @@ include .cookiecutter/config
 
 # Ensure directory to track and log setup state exists
 $(shell mkdir -p .cookiecutter/state)
-$(shell touch .cookiecutter/state/conda-create.log)
+$(shell touch .cookiecutter/state/python-env-create.log)
 
 .PHONY: install
-## Install a project: remove existing conda env (if exists); create conda env; install local package; setup git hooks
-install: conda-remove .cookiecutter/state/conda-create .cookiecutter/state/setup-git
-	@direnv reload  # Now the conda env exists, reload to activate it
-
+## Install the project: setup environment, install dependencies, and configure git hooks
+install:
+	$(MAKE) python-env-remove .cookiecutter/state/python-env-create .cookiecutter/state/setup-git
+	@direnv reload
 
 .PHONY: check-bucket-path
 check-bucket-path:
@@ -50,25 +50,40 @@ docs-clean:
 docs-open:
 	$(OPEN) docs/_build/index.html
 
-.PHONY: conda-update
-## Update the conda-environment based on changes to `environment.yaml`
-conda-update:
-	conda env update -n ${REPO_NAME} -f environment.yaml
+.PHONY: python-env-create
+## Create the virtual environment
+python-env-create:
+	@echo "Creating ${ENVIRONMENT_TYPE} environment..."
+	@${ENV_CREATE}
+
+.PHONY: python-env-remove
+## Remove the virtual environment
+python-env-remove:
+	@echo "Removing ${ENVIRONMENT_TYPE} environment..."
+	-@${ENV_DEACTIVATE} 2>/dev/null || true
+	-@${ENV_REMOVE} 2>/dev/null || true
+	@rm -f .cookiecutter/state/python-env-create*
+	@direnv reload
+
+.PHONY: python-env-activate
+## Activate the virtual environment
+python-env-activate:
+	@echo "Activating ${ENVIRONMENT_TYPE} environment..."
+	@${ENV_ACTIVATE}
+
+.PHONY: python-env-update
+## Update the environment based on dependency files
+python-env-update:
+	@echo "Updating ${ENVIRONMENT_TYPE} environment..."
+	@${ENV_UPDATE}
 	$(MAKE) -s pip-install
-	direnv reload
+	@direnv reload
 
 .PHONY: pip-install
-## Install our package and requirements in editable mode (including development dependencies)
+## Install package in editable mode with dev dependencies
 pip-install:
 	@pip install -e ".[dev]"
 
-.PHONY: conda-remove
-## Remove the conda-environment cleanly, using -f so works even if no environment to be removed
-conda-remove:
-	conda env remove -n ${REPO_NAME}
-	rm -f .cookiecutter/state/conda-create*
-	@direnv reload
-
 .PHONY: clean
 ## Delete all compiled Python files
 clean:
@@ -84,22 +99,25 @@ define err
 	(echo "$1, check $@.log for more info" && exit 1)
 endef
 
-.cookiecutter/state/conda-create:
-	@echo -n "Creating environment ${REPO_NAME} and installing all dependencies"
-	@(conda env create -q -n ${REPO_NAME} -f environment.yaml\
-	  && eval "$$(conda shell.bash activate "${REPO_NAME}")"\
-	  && pip install -e ".[dev]")\
-	 > $@.log 2>&1\
-	 || $(call err,Python environment setup failed)
+.cookiecutter/state/python-env-create:
+	@echo -n "Creating ${ENVIRONMENT_TYPE} environment and installing dependencies"
+	@( \
+		${ENV_CREATE} && \
+		${ENV_ACTIVATE} && \
+		${ENV_INSTALL_EXTRAS} && \
+		pip install -e ".[dev]" \
+	) > $@.log 2>&1 \
+	|| (echo "Environment setup failed, check $@.log for details" && exit 1)
 	@touch $@
 	@echo " DONE"
 
 .cookiecutter/state/setup-git:
 	@echo -n "Installing and configuring git pre-commit hooks"
-	@(eval "$$(conda shell.bash activate "${REPO_NAME}")"\
-	 &&pre-commit install --install-hooks)\
-	 > $@.log 2>&1\
-	 || $(call err,Git pre-commit setup failed)
+	@( \
+		${ENV_ACTIVATE} && \
+		pre-commit install --install-hooks \
+	) > $@.log 2>&1 \
+	|| (echo "Git pre-commit setup failed, check $@.log for details" && exit 1)
 	@touch $@
 	@echo " DONE"