diff --git a/lib/facter/pip_version.rb b/lib/facter/pip_version.rb
index 48dd0bff..131d1f94 100644
--- a/lib/facter/pip_version.rb
+++ b/lib/facter/pip_version.rb
@@ -5,7 +5,7 @@
 Facter.add("pip_version") do
   has_weight 100
   setcode do
-    Facter::Util::Resolution.exec('pip --version')
+    /^pip (\d+\.\d+\.?\d*).*$/.match(Facter::Util::Resolution.exec('pip --version'))[1]
   end
 end
 
diff --git a/manifests/pip.pp b/manifests/pip.pp
index ebe549be..fb73ae74 100644
--- a/manifests/pip.pp
+++ b/manifests/pip.pp
@@ -85,10 +85,17 @@
     default => "${url}#egg=${egg_name}",
   }
 
+  # Python 2.6 and older does not support setuptools/distribute > 0.8 which
+  # is required for pip wheel support, pip therefor requires --no-use-wheel flag
+  # if the # pip version is more recent than 1.4.1 but using an old python or
+  # setuputils/distribute version
+  # To check for this we test for wheel parameter using help and then using
+  # version, this makes sure we only use wheels if they are supported
+
   case $ensure {
     present: {
       exec { "pip_install_${name}":
-        command     => "${pip_env} --log ${cwd}/pip.log install ${install_args} ${proxy_flag} ${source}",
+        command     => "${pip_env} wheel --help > /dev/null 2>&1 && { ${pip_env} wheel --version > /dev/null 2>&1 || wheel_support_flag='--no-use-wheel'; } ; ${pip_env} --log ${cwd}/pip.log install ${install_args} \$wheel_support_flag ${proxy_flag} ${source}",
         unless      => "${pip_env} freeze | grep -i -e ${grep_regex}",
         user        => $owner,
         environment => $environment,
@@ -98,7 +105,7 @@
 
     latest: {
       exec { "pip_install_${name}":
-        command     => "${pip_env} --log ${cwd}/pip.log install --upgrade ${proxy_flag} ${source}",
+        command     => "${pip_env} wheel --help > /dev/null 2>&1 && { ${pip_env} wheel --version > /dev/null 2>&1 || wheel_support_flag='--no-use-wheel'; } ; ${pip_env} --log ${cwd}/pip.log install --upgrade \$wheel_support_flag ${proxy_flag} ${source}",
         user        => $owner,
         environment => $environment,
         path        => ['/usr/local/bin','/usr/bin','/bin', '/usr/sbin'],
@@ -107,7 +114,7 @@
 
     latest: {
       exec { "pip_install_${name}":
-        command     => "${pip_env} --log ${cwd}/pip.log install -U ${install_args} ${proxy_flag} ${source}",
+        command     => "${pip_env} wheel --help > /dev/null 2>&1 && { ${pip_env} wheel --version > /dev/null 2>&1 || wheel_support_flag='--no-use-wheel'; } ; ${pip_env} --log ${cwd}/pip.log install -U ${install_args} \$wheel_support_flag ${proxy_flag} ${source}",
         user        => $owner,
         environment => $environment,
       }
diff --git a/manifests/virtualenv.pp b/manifests/virtualenv.pp
index 85fc67a2..7f7fbb43 100644
--- a/manifests/virtualenv.pp
+++ b/manifests/virtualenv.pp
@@ -119,18 +119,25 @@
         default => "-i ${index}",
     }
 
+    # Python 2.6 and older does not support setuptools/distribute > 0.8 which
+    # is required for pip wheel support, pip therefor requires --no-use-wheel flag
+    # if the # pip version is more recent than 1.4.1 but using an old python or
+    # setuputils/distribute version
+    # To check for this we test for wheel parameter using help and then using
+    # version, this makes sure we only use wheels if they are supported
+
     exec { "python_virtualenv_${venv_dir}":
-      command     => "mkdir -p ${venv_dir} ${proxy_command} && virtualenv ${system_pkgs_flag} -p ${python} ${venv_dir} && ${venv_dir}/bin/pip --log ${venv_dir}/pip.log install ${pypi_index} ${proxy_flag} --upgrade pip ${distribute_pkg}",
+      command     => "mkdir -p ${venv_dir} ${proxy_command} && virtualenv ${system_pkgs_flag} -p ${python} ${venv_dir} && ${venv_dir}/bin/pip wheel --help > /dev/null 2>&1 && { ${venv_dir}/bin/pip wheel --version > /dev/null 2>&1 || wheel_support_flag='--no-use-wheel'; } ; ${venv_dir}/bin/pip --log ${venv_dir}/pip.log install ${pypi_index} ${proxy_flag} \$wheel_support_flag --upgrade pip ${distribute_pkg}",
       user        => $owner,
       path        => $path,
-      cwd         => '/tmp',
+      cwd         => $venv_dir,
       environment => $environment,
-      unless      => "grep '^[ \t]*VIRTUAL_ENV=[\'\"]*/tmp[\"\']*[ \t]*$' /tmp/bin/activate", #Unless activate exists and VIRTUAL_ENV is correct we re-create the virtualenv
+      unless      => "grep '^[\\t ]*VIRTUAL_ENV=[\\\\'\\\"]*${venv_dir}[\\\"\\\\'][\\t ]*$' ${venv_dir}/bin/activate", #Unless activate exists and VIRTUAL_ENV is correct we re-create the virtualenv
     }
 
     if $requirements {
       exec { "python_requirements_initial_install_${requirements}_${venv_dir}":
-        command     => "${venv_dir}/bin/pip --log ${venv_dir}/pip.log install ${pypi_index} ${proxy_flag} -r ${requirements}",
+        command     => "${venv_dir}/bin/pip wheel --help > /dev/null 2>&1 && { ${venv_dir}/bin/pip wheel --version > /dev/null 2>&1 || wheel_support_flag='--no-use-wheel'; } ; ${venv_dir}/bin/pip --log ${venv_dir}/pip.log install ${pypi_index} ${proxy_flag} \$wheel_support_flag -r ${requirements}",
         refreshonly => true,
         timeout     => $timeout,
         user        => $owner,