diff --git a/Pipfile b/Pipfile
index d2a6a293..1b75c47f 100644
--- a/Pipfile
+++ b/Pipfile
@@ -13,3 +13,4 @@ parse = "*"
 pipfile = "==0.0.1"
 click-completion = "*"
 "backports.shutil-get-terminal-size" = "*"
+pew = ">=0.1.26"
diff --git a/pipenv/cli.py b/pipenv/cli.py
index d280f357..31e36a0f 100644
--- a/pipenv/cli.py
+++ b/pipenv/cli.py
@@ -306,7 +306,7 @@ def do_create_virtualenv(three=None, python=None):
     click.echo(crayons.yellow('Creating a virtualenv for this project...'), err=True)
 
     # The command to create the virtualenv.
-    cmd = ['virtualenv', project.virtualenv_location, '--prompt=({0})'.format(project.name)]
+    cmd = ['pew', 'new', project.name, '-d']
 
     # Pass a Python version to virtualenv, if needed.
     if python:
@@ -658,6 +658,11 @@ def easter_egg(package_name):
 @click.version_option(prog_name=crayons.yellow('pipenv'), version=__version__)
 @click.pass_context
 def cli(ctx, where=False, bare=False, three=False, python=False, help=False):
+
+
+    # print project.virtualenv_location
+    # exit()
+
     if ctx.invoked_subcommand is None:
         # --where was passed...
         if where:
@@ -668,6 +673,9 @@ def cli(ctx, where=False, bare=False, three=False, python=False, help=False):
         if (python) or (three is not None):
             ensure_project(three=three, python=python)
 
+
+
+
         else:
 
             # Display help to user, if no commands were passed.
@@ -830,17 +838,14 @@ def shell(three=None, python=False):
     terminal_dimensions = get_terminal_size()
 
     c = pexpect.spawn(
-        shell,
-        ["-i"],
+        'pew',
+        ["workon", project.name],
         dimensions=(
             terminal_dimensions.lines,
             terminal_dimensions.columns
         )
     )
 
-    # Activate the virtualenv.
-    c.send(activate_virtualenv() + '\n')
-
     # Handler for terminal resizing events
     # Must be defined here to have the shell process in its context, since we
     # can't pass it as an argument
diff --git a/pipenv/project.py b/pipenv/project.py
index 1a8fab50..8082ba9c 100644
--- a/pipenv/project.py
+++ b/pipenv/project.py
@@ -4,6 +4,7 @@ import os
 import pipfile
 import toml
 
+import delegator
 from requests.compat import OrderedDict
 
 from .utils import format_toml, mkdir_p
@@ -29,11 +30,12 @@ class Project(object):
 
     @property
     def virtualenv_location(self):
-        return os.sep.join(self.pipfile_location.split(os.sep)[:-1] + ['.venv'])
+        c = delegator.run('pew dir {0}'.format(self.name))
+        return c.out.strip()
 
     @property
     def download_location(self):
-        d_dir = os.sep.join(self.pipfile_location.split(os.sep)[:-1] + ['.venv', 'downloads'])
+        d_dir = os.sep.join(self.virtualenv_location.split(os.sep) + ['downloads'])
 
         # Create the directory, if it doesn't exist.
         mkdir_p(d_dir)