diff -r a1515a16727a -r 444108d080bc virtualenv/res/lib/lib_create_env.py
--- a/virtualenv/res/lib/lib_create_env.py	Sun Mar 11 16:53:25 2012 +0100
+++ b/virtualenv/res/lib/lib_create_env.py	Sun Mar 11 22:52:51 2012 +0100
@@ -277,9 +277,9 @@
         logger.notify("Install %s from %s with %s" % (key,res_env.URLS[key][res_source_key],method))
         if method == 'pip':
             if sys.platform == 'win32':
-                args = [os.path.abspath(os.path.join(home_dir, 'Scripts', 'pip')), 'install', '-E', os.path.abspath(home_dir), res_env.URLS[key][res_source_key]]
+                args = [os.path.abspath(os.path.join(home_dir, 'Scripts', 'pip')), 'install', res_env.URLS[key][res_source_key]]
             else:
-                args = [os.path.abspath(os.path.join(home_dir, 'bin', 'pip')), 'install', '-E', os.path.abspath(home_dir), res_env.URLS[key][res_source_key]]
+                args = [os.path.abspath(os.path.join(home_dir, 'bin', 'pip')), 'install', res_env.URLS[key][res_source_key]]
             if option_str :
                 args.insert(4,option_str)
             call_subprocess(args,