diff --git a/README.rst b/README.rst
index 69d4fd1..fff8b95 100644
--- a/README.rst
+++ b/README.rst
@@ -29,8 +29,8 @@ We've created an "easy button" for Ubuntu, Centos, RHEL and openSUSE.
    By default, Tempest 31.1.0 will be installed from commit
    56d259dd78cc9ae974cc5dc24a54dbd8008770e6 (June 2022).
 
-   c. -p option allows to specify python version - python 2.7 (-p 2), 3.8.10 (-p 3)
-   or any specific one by -p X.X.X. Default to python 3.8.10.
+   c. -p option allows to specify python version - 3.8.10 (-p 3)
+   or any equal or above 3.8.0. Default to python 3.8.10.
 
    d. -q option makes ``refstack-client`` run quitely - if ``.tempest``
    directory exists ``refstack-client`` is considered as installed.
@@ -38,6 +38,10 @@ We've created an "easy button" for Ubuntu, Centos, RHEL and openSUSE.
    e. -s option makes ``refstack-client`` use ``python-tempestconf`` from the
    given source (path) - used when running f.e. in Zuul.
 
+   f. -l option makes ``refstack-client`` install ``python`` in directory ``./localpython``.
+   If option -l is not used and version of ``python`` specified by option -p is equal to
+   global version of python, script will use this version of ``python``.
+
 Usage
 #####
 
diff --git a/requirements.txt b/requirements.txt
index 2759bcd..1beadad 100644
--- a/requirements.txt
+++ b/requirements.txt
@@ -1,5 +1,5 @@
 pbr!=2.1.0,>=2.0.0 # Apache-2.0
-python-subunit>=0.0.18
+python-subunit>=0.0.18 # BSD/Apache-2.0
 cryptography>=1.0,!=1.3.0 # BSD/Apache-2.0
 requests>=2.5.2
 PyYAML>=3.1.0
diff --git a/setup.cfg b/setup.cfg
index 047437c..ba05240 100644
--- a/setup.cfg
+++ b/setup.cfg
@@ -14,14 +14,10 @@ classifier =
     License :: OSI Approved :: Apache Software License
     Operating System :: POSIX :: Linux
     Programming Language :: Python
-    Programming Language :: Python :: 2
-    Programming Language :: Python :: 2.7
     Programming Language :: Python :: 3
-    Programming Language :: Python :: 3.5
-    Programming Language :: Python :: 3.6
-    Programming Language :: Python :: 3.7
     Programming Language :: Python :: 3.8
     Programming Language :: Python :: 3.9
+    Programming Language :: Python :: 3.10
 
 [files]
 packages =
diff --git a/setup_env b/setup_env
index 4017052..7f37a0e 100755
--- a/setup_env
+++ b/setup_env
@@ -5,6 +5,7 @@
 CHECKOUT_POINT=56d259dd78cc9ae974cc5dc24a54dbd8008770e6
 PY_VERSION="3.8.10"
 UPPER_CONSTRAINTS_FILE="https://opendev.org/openstack/requirements/raw/branch/master/upper-constraints.txt"
+LOCAL_INTERPRETER=false
 
 # Prints help
 function usage {
@@ -16,11 +17,14 @@ function usage {
     echo "  -h  Print this usage message"
     echo "  -c  Tempest test runner commit. You can specify SHA or branch here"
     echo "      If no commit or tag is specified, tempest will be install from commit"
-    echo "  -p  [ 2 | 3 | X.X.X ] - Uses either python 2.7 (if -p 2), 3.8.10 (if -p 3)"
-    echo "      or given specific version (if -p X.X.X). Default to python 3.8.10"
+    echo "  -p  [ 3 | 3.X.X ] - Uses python 3.8.10 (if -p 3)"
+    echo "      or given specific version (3.8 and higher, if -p 3.X.X). Default to python 3.8.10"
     echo "  -q  Run quietly. If .tempest folder exists, refstack-client is considered as installed"
     echo "  -s  Use python-tempestconf from the given source (path), used when running f.e. in Zuul"
     echo "  -t  Tempest test runner tag. You can specify tag here"
+    echo "  -l  Force the installation of python version specified by -p (default 3.8.10) into"
+    echo "      the ./localpython file. If parameter -l is false and version of python specified by"
+    echo "      parameter -p is installed in the enviroment, script will use this interpreter."
     echo "      ${CHECKOUT_POINT}"
     exit 1
 }
@@ -36,18 +40,20 @@ function check_tag {
 
 # By default tempest uses commit ${CHECKOUT_POINT}
 
-while getopts c:p:t:qs:h FLAG; do
+while getopts c:p:t:qs:hl FLAG; do
     case ${FLAG} in
         c)
             CHECKOUT_POINT=${OPTARG}
             ;;
         p)
-            if [ ${OPTARG} == '2' ]; then
-                PY_VERSION="2.7.8"
-            elif [ ${OPTARG} == '3' ]; then
+            if [ ${OPTARG} == '3' ]; then
                 PY_VERSION=${PY_VERSION}
-            else
+            elif [[ ${OPTARG} =~ ^3.([8-9]|[1-9][0-9]).([0-9]|[1-9][0-9])$ ]]; then
+                # minimal version of python -> 3.8.0
                 PY_VERSION=${OPTARG}
+            else
+                echo "Version of python-${OPTARG} no longer supported."
+                usage
             fi
             ;;
         t)
@@ -62,6 +68,9 @@ while getopts c:p:t:qs:h FLAG; do
         h)  #show help
             usage
             ;;
+        l)  # use local python interpreter
+            LOCAL_INTERPRETER=true
+            ;;
         \?) #unrecognized option - show help
             echo -e \\n"Option -$OPTARG not allowed."
             usage
@@ -146,20 +155,12 @@ cd ${WORKDIR}
 # Setup binary requirements
 if [ -n "$(command -v apt-get)" ]; then
     # For apt-get-based Linux distributions (Ubuntu, Debian)
-    if [[ ${PY_VERSION::1} == "2" ]]; then
-        sudo DEBIAN_FRONTEND=noninteractive apt-get -y install curl wget tar unzip python-dev build-essential libssl-dev libxslt-dev libsasl2-dev libffi-dev libbz2-dev libyaml-dev
-    else
-        sudo DEBIAN_FRONTEND=noninteractive apt-get -y install curl wget tar unzip python3-dev build-essential libssl-dev libxslt-dev libsasl2-dev libffi-dev libbz2-dev libyaml-dev
-    fi
+    sudo DEBIAN_FRONTEND=noninteractive apt-get -y install curl wget tar unzip python3-dev build-essential libssl-dev libxslt-dev libsasl2-dev libffi-dev libbz2-dev libyaml-dev
 elif [ -n "$DNF_COMMAND" -a -n "$(command -v ${DNF_COMMAND})" ]; then
     # For yum/dnf-based distributions (RHEL, Centos)
     sudo ${DNF_COMMAND} -y install curl wget tar unzip make gcc gcc-c++ libffi-devel libxml2-devel bzip2-devel libxslt-devel openssl-devel
-    if [[ ${PY_VERSION::1} == "2" ]]; then
-        sudo ${DNF_COMMAND} -y install python-devel libyaml-devel
-    else
-        # python3 dependencies
-        sudo ${DNF_COMMAND} -y install python3-devel
-    fi
+    # python3 dependencies
+    sudo ${DNF_COMMAND} -y install python3-devel
 elif [ -n "$(command -v zypper)" ]; then
     # For zypper-based distributions (openSUSE, SELS)
     sudo zypper --non-interactive install curl wget tar unzip make python-devel.x86_64 gcc gcc-c++ libffi-devel libxml2-devel zlib-devel libxslt-devel libopenssl-devel python-xml libyaml-devel
@@ -169,9 +170,9 @@ else
 fi
 
 # Build local python interpreter if needed
-sub_pystr="python$(echo $PY_VERSION | cut -c 1-3)"
+sub_pystr="python$(echo $PY_VERSION | grep -o '3.[0-9]\+')"
 python_version=$($sub_pystr -V | cut -d " " -f 2)
-if [ $python_version == $PY_VERSION ]; then
+if [ $python_version == $PY_VERSION ] && [ ${LOCAL_INTERPRETER} == false ]; then
     echo "Python $PY_VERSION found!"
     PYPATH="$sub_pystr"
 else
@@ -190,27 +191,16 @@ else
     PYPATH="${WORKDIR}/.localpython/bin/$sub_pystr"
 fi
 
-# Setup virtual environments for refstack-client and tempest
-VENV_VERSION='16.7.9'
-wget https://github.com/pypa/virtualenv/archive/${VENV_VERSION}.tar.gz
-tar xvfz ${VENV_VERSION}.tar.gz
-rm ${VENV_VERSION}.tar.gz
-cd virtualenv-${VENV_VERSION}
-if [ -d ${WORKDIR}/.venv ]; then
-    rm -rf ${WORKDIR}/.venv
-fi
+mkdir ${WORKDIR}/.localvirtualenv
+VENV_VERSION='20.16.7'
+$PYPATH -m pip install --target=${WORKDIR}/.localvirtualenv virtualenv==${VENV_VERSION}
+export PYTHONPATH=$(realpath .localvirtualenv):$PYTHONPATH
+VIRTUALENV=${WORKDIR}/.localvirtualenv/bin/virtualenv
 
-# Determine python which will run virtualenv.py script
-if [ -n "$(command -v python3)" ]; then
-    python='python3'
-else
-    python='python'
-fi
-$python virtualenv.py ${WORKDIR}/.venv --python="${PYPATH}"
-$python virtualenv.py ${TEMPEST_DIR}/.venv --python="${PYPATH}"
+# Option -S disable import of modules installed in python which are causing errors when creating virtual enviroment
+$PYPATH -S $VIRTUALENV ${WORKDIR}/.venv --python="${PYPATH}"
+$PYPATH -S $VIRTUALENV ${TEMPEST_DIR}/.venv --python="${PYPATH}"
 
-cd ..
-rm -rf virtualenv-${VENV_VERSION}
 ${WORKDIR}/.venv/bin/python -m pip install -c ${UPPER_CONSTRAINTS_FILE} -e .
 cd ${TEMPESTCONF_DIR}
 ${WORKDIR}/.venv/bin/python -m pip install -c ${UPPER_CONSTRAINTS_FILE} -e .
diff --git a/tox.ini b/tox.ini
index c1885fd..8af594f 100644
--- a/tox.ini
+++ b/tox.ini
@@ -1,5 +1,5 @@
 [tox]
-envlist = pep8,py3,py27
+envlist = pep8,py3,py38
 minversion = 3.18
 skipsdist = True