diff --git a/bench/commands/__init__.py b/bench/commands/__init__.py
index 4eedad79..e4ecb8c3 100755
--- a/bench/commands/__init__.py
+++ b/bench/commands/__init__.py
@@ -135,6 +135,9 @@ def migrate_env(python, no_backup = False):
 			pvenv      = pvenv
 		), cwd = path)
 
+		pip = osp.join(pvenv, 'bin', 'pip')
+		exec_cmd('{pip} install --upgrade pip'.format(pip=pip))
+		exec_cmd('{pip} install --upgrade setuptools'.format(pip=pip))
 		# TODO: Options
 
 		papps  = osp.join(path, 'apps')
@@ -143,7 +146,6 @@ def migrate_env(python, no_backup = False):
 		for app in apps:
 			papp = osp.join(papps, app)
 			if osp.isdir(papp) and osp.exists(osp.join(papp, 'setup.py')):
-				pip = osp.join(pvenv, 'bin', 'pip')
 				exec_cmd('{pip} install -e {app}'.format(
 					pip = pip, app = papp
 				))
diff --git a/bench/commands/make.py b/bench/commands/make.py
index eb0c21ba..639868ed 100755
--- a/bench/commands/make.py
+++ b/bench/commands/make.py
@@ -2,7 +2,7 @@ import click
 
 @click.command()
 @click.argument('path')
-@click.option('--python', type = str, default = 'python2', help = 'Path to Python Executable.')
+@click.option('--python', type = str, default = 'python', help = 'Path to Python Executable.')
 @click.option('--ignore-exist', is_flag = True, default = False, help = "Ignore if Bench instance exists.")
 @click.option('--apps_path', default=None, help="path to json files with apps to install after init")
 @click.option('--frappe-path', default=None, help="path to frappe repo")
@@ -16,7 +16,7 @@ import click
 def init(path, apps_path, frappe_path, frappe_branch, no_procfile, no_backups,
 		no_auto_update, clone_from, verbose, skip_redis_config_generation,
 		ignore_exist = False,
-		python 		 = 'python2'): # Let's change we're ready. - <achilles@frappe.io>
+		python 		 = 'python'): # Let's change we're ready. - <achilles@frappe.io>
 	'''
 	Create a New Bench Instance.
 	'''
diff --git a/bench/commands/setup.py b/bench/commands/setup.py
index d2736553..053e6357 100755
--- a/bench/commands/setup.py
+++ b/bench/commands/setup.py
@@ -68,10 +68,11 @@ def setup_backups():
 	setup_backups()
 
 @click.command('env')
-def setup_env():
+@click.option('--python', type = str, default = 'python', help = 'Path to Python Executable.')
+def setup_env(python='python'):
 	"Setup virtualenv for bench"
 	from bench.utils import setup_env
-	setup_env()
+	setup_env(python=python)
 
 @click.command('firewall')
 @click.option('--ssh_port')
diff --git a/bench/utils.py b/bench/utils.py
index 1a2a2f80..aafa29cd 100755
--- a/bench/utils.py
+++ b/bench/utils.py
@@ -29,7 +29,7 @@ def init(path, apps_path=None, no_procfile=False, no_backups=False,
 		no_auto_update=False, frappe_path=None, frappe_branch=None, wheel_cache_dir=None,
 		verbose=False, clone_from=None, skip_redis_config_generation=False,
 		ignore_exist = False,
-		python		 = 'python2'): # Let's change when we're ready. - <achilles@frappe.io>
+		python		 = 'python'): # Let's change when we're ready. - <achilles@frappe.io>
 	from .app import get_app, install_apps_from_path
 	from .config.common_site_config import make_config
 	from .config import redis
@@ -152,7 +152,7 @@ def which(executable, raise_err = False):
 
 	return exec_
 
-def setup_env(bench_path='.', python = 'python2'):
+def setup_env(bench_path='.', python = 'python'):
 	python = which(python, raise_err = True)
 
 	exec_cmd('virtualenv -q {} -p {}'.format('env', python), cwd=bench_path)