diff --git a/install_puppet.sh b/install_puppet.sh
index f43063a12e..95476b924d 100755
--- a/install_puppet.sh
+++ b/install_puppet.sh
@@ -173,6 +173,7 @@ function setup_pip {
     fi
 
     python get-pip.py
+    pip install -U setuptools
 }
 
 #
diff --git a/modules/openstack_project/manifests/base.pp b/modules/openstack_project/manifests/base.pp
index 8da14c7b44..e61d40d9a5 100644
--- a/modules/openstack_project/manifests/base.pp
+++ b/modules/openstack_project/manifests/base.pp
@@ -47,7 +47,7 @@ class openstack_project::base(
   }
 
   include pip
-  $desired_virtualenv = '1.10.1'
+  $desired_virtualenv = '1.11.4'
 
   if (( versioncmp($::virtualenv_version, $desired_virtualenv) < 0 )) {
     $virtualenv_ensure = $desired_virtualenv