diff --git a/.gitignore b/.gitignore
index abb5e7712..81adab414 100644
--- a/.gitignore
+++ b/.gitignore
@@ -61,3 +61,9 @@ releasenotes/build
 
 # Ansible retry files
 *.retry
+
+# Ansible modules that may be downloaded during env-setup.sh
+playbooks/library/os_ironic.py
+playbooks/library/os_ironic_node.py
+playbooks/library/os_ironic_inspect.py
+playbooks/library/os_keystone_service.py
diff --git a/README.rst b/README.rst
index 49dc547ec..c8555f751 100644
--- a/README.rst
+++ b/README.rst
@@ -132,21 +132,34 @@ If you are running the installation behind a proxy, export the
 environment variables ``http_proxy`` and ``https_proxy`` so that
 Ansible will use these proxy settings.
 
-The below script ``env-setup.sh`` will install ansible and all of bifrost's
-dependencies. You can configure the ansible installation location by setting
-``ANSIBLE_INSTALL_ROOT`` environment variable. The default value will be
-``/opt/stack``.
+The recommended path for use is with a local Ansible installation, and to
+install the library requirements. Alternatively the ``env-setup.sh`` script
+will install ansible and all of bifrost's dependencies.
 
-Note:
+If you use ``env-setup.sh``, ansible will be installed along
+with its missing Python dependencies into user's ``~/.local`` directory.
 
-  Only ansible installation location will be moved as part of the
-  environment variable.  The other components will continue to be cloned under
-  ``/opt/stack``
+Warning::
 
-Then run::
+  Use of the ``env-setup.sh`` script can squash an existing
+  Ansible installation, and is intended primarily for development
+  and testing.
+
+Note::
+
+  The next setup steps require elevated privilges, and might need to
+  be executed with the ``sudo`` command, depending on the access rights
+  of the user executing the command.
+
+If using the environment setup script::
 
   bash ./scripts/env-setup.sh
-  source ${ANSIBLE_INSTALL_ROOT}/ansible/hacking/env-setup
+  export PATH=${HOME}/.local/bin:${PATH}
+  cd playbooks
+
+Otherwise::
+
+  pip install -r requirements.txt
   cd playbooks
 
 The second part is an Ansible playbook that installs and configures ironic
diff --git a/playbooks/roles/bifrost-prep-for-install/tasks/main.yml b/playbooks/roles/bifrost-prep-for-install/tasks/main.yml
index 9429860ee..cf2cc9b1b 100644
--- a/playbooks/roles/bifrost-prep-for-install/tasks/main.yml
+++ b/playbooks/roles/bifrost-prep-for-install/tasks/main.yml
@@ -14,6 +14,7 @@
 # limitations under the License.
 ---
 - name: ensure installation root folder exists
+  become: yes
   file:
     state: directory
     dest: "{{ git_root }}"
diff --git a/releasenotes/notes/ansible-pip-install-2b66bd82ce9ed4f6.yaml b/releasenotes/notes/ansible-pip-install-2b66bd82ce9ed4f6.yaml
new file mode 100644
index 000000000..ac70b509c
--- /dev/null
+++ b/releasenotes/notes/ansible-pip-install-2b66bd82ce9ed4f6.yaml
@@ -0,0 +1,56 @@
+---
+features:
+  - |
+    Bifrost now prefers to use a system with Ansible already installed.
+    When this is the case, execution of the ``env-setup.sh`` script is not
+    required as it is geared for development and testing use of bifrost.
+
+    In order to use the playbooks on a system with Ansible already installed,
+    the library requirements must be installed prior to playbook
+    execution:
+
+        ``pip install -r requirements.txt``
+
+    Administrative privileges may be required if the packages
+    must be installed system wide.
+
+  - |
+    The environment setup script will now attempt to install bifrost from PyPI
+    instead of using a stable branch. This is to address stability issues
+    with Ansible stable branches.
+
+    If not requested to be installed into virtualenv, Ansible will be installed
+    into user's ``~/.local`` directory to not clobber possibly existing
+    system installation.
+    To use such installed Ansible, modifications of ``$PATH``
+    environment variable might be required to include ``~/.local/bin`` path.
+
+    Some backwards compatibility is provided via the use of the
+    ``ANSIBLE_GIT_BRANCH`` variable, where a user can define ``stable-X.Y``
+    and the latest available version in that series will be installed.
+    To install the Ansible 2.1 series as part of the env-setup script,
+    execute ``env ANSIBLE_GIT_BRANCH="stable-2.1" scripts/env-setup``.
+
+    Similarly, ``ANSIBLE_PIP_VERSION`` can be utilized to specify
+    the exact version, or range of version desired. Example:
+
+        ``ANSIBLE_PIP_VERSION=2.1.0.1`` or ``ANSIBLE_PIP_VERSION=<2.2``
+
+issues:
+  - |
+    If installing bifrost in a virtualenv (venv) and running playbooks
+    against localhost, you must install the basic python requirements
+    on a system-wide level due to the operating behavior of Ansible.
+
+fixes:
+  - |
+    Due to breaking change in the stable branch tags utilized with Ansible,
+    bifrost now utilizes installation of Ansible from PyPI.
+
+deprecations:
+  - |
+    The ``ANSIBLE_INSTALL_ROOT`` variable has been deprecated and is used
+    only to raise a warning for third party scripts.
+  - |
+    The ``ANSIBLE_FROM_PYPI`` variable no longer has any effect, as Ansible
+    is always installed from PyPI now.
diff --git a/releasenotes/notes/ocata-summary-040e557460bab2bc.yaml b/releasenotes/notes/ocata-summary-040e557460bab2bc.yaml
index 02507fd5f..15dae055d 100644
--- a/releasenotes/notes/ocata-summary-040e557460bab2bc.yaml
+++ b/releasenotes/notes/ocata-summary-040e557460bab2bc.yaml
@@ -5,7 +5,8 @@ prelude: >
     Coupled with a number of fixes, and improvements, users upgrading should
     take the time to read the entire release notes. A few highlights are below:
 
-        * Bifrost now installs and utilizes Ansible 2.1 by default.
+        * Bifrost now installs and utilizes Ansible 2.1 by default from
+          PyPI.
         * Ironic's default of modifying a pre-existing ironic.conf upon the
           installation being re-executed, has been changed to a utilize a
           template file.
diff --git a/scripts/ansible-pip-str.py b/scripts/ansible-pip-str.py
new file mode 100644
index 000000000..8ce6635cb
--- /dev/null
+++ b/scripts/ansible-pip-str.py
@@ -0,0 +1,55 @@
+#!/usr/bin/env python
+
+# Copyright (c) 2017 Mirantis Inc.
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#    http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+
+"""Helper script to choose which ansible version to install for bifrost"""
+
+from __future__ import print_function
+import sys
+
+in_str = sys.argv[1]
+HELP_MSG = ("Unsupported version or format %s - "
+            "Supporting format [stable-]MAJ.MIN where MAJ.MIN is 1.9 or 2.x"
+            % in_str)
+
+if in_str.startswith('stable-'):
+    in_version = in_str.split('stable-')[1]
+else:
+    if in_str[0].isdecimal():
+        print("ansible==%s" % in_str)
+    else:
+        print("ansible%s" % in_str)
+    sys.exit(0)
+
+if len(in_version) != 3 and in_version[1] != '.':
+    print(HELP_MSG)
+    sys.exit(1)
+else:
+    maj_version = in_version[0]
+    try:
+        min_version = int(in_version[2])
+    except ValueError:
+        print(HELP_MSG)
+        sys.exit(1)
+
+if maj_version == '1' and min_version == 9:
+    upper_bound = '2.0'
+elif maj_version == '2':
+    upper_bound = '2.%i' % (min_version + 1)
+else:
+    print(HELP_MSG)
+    sys.exit(1)
+
+print("ansible<%s" % upper_bound)
diff --git a/scripts/env-setup.sh b/scripts/env-setup.sh
index adf641648..c2d1b3d34 100755
--- a/scripts/env-setup.sh
+++ b/scripts/env-setup.sh
@@ -1,12 +1,73 @@
 #!/bin/bash
 set -eu
 
-ANSIBLE_FROM_PYPI=${ANSIBLE_FROM_PYPI:-"False"}
-
 source $(dirname $0)/install-deps.sh
+# NOTE(pas-ha) the above exports some useful variables like
+# $PYTHON , $PIP and $VENV depending on venv install or not
 
-if [[ "$ANSIBLE_FROM_PYPI" == "True" ]]; then
-    source $(dirname $0)/install-ansible-pip.sh
+ANSIBLE_PIP_VERSION=${ANSIBLE_PIP_VERSION:-${ANSIBLE_GIT_BRANCH:-stable-2.1}}
+
+ANSIBLE_PIP_STRING=$(${PYTHON} $(dirname $0)/ansible-pip-str.py ${ANSIBLE_PIP_VERSION})
+
+if [ -n "${VENV-}" ]; then
+    ${PIP} install --upgrade "${ANSIBLE_PIP_STRING}"
+    ANSIBLE=${VENV}/bin/ansible
 else
-    source $(dirname $0)/install-ansible-source.sh
+    ${PIP} install --user --upgrade "${ANSIBLE_PIP_STRING}"
+    ANSIBLE=${HOME}/.local/bin/ansible
 fi
+
+PLAYBOOKS_LIBRARY_PATH=$(dirname $0)/../playbooks/library
+
+function check_get_module () {
+    local module=${1}
+    local module_url_base=${2}
+    ${ANSIBLE} localhost -m ${module} | grep "changed" || \
+        wget "${module_url_base}/${module}.py" -O "${PLAYBOOKS_LIBRARY_PATH}/${module}.py"
+}
+
+# Note(TheJulia): These files should be in the ansible library folder
+# and this functionality exists for a level of ansible 1.9.x
+# backwards compatability although the modules were developed
+# for Ansible 2.0.
+check_get_module os_ironic \
+    https://raw.githubusercontent.com/ansible/ansible-modules-core/stable-2.0/cloud/openstack
+
+check_get_module os_ironic_node \
+    https://raw.githubusercontent.com/ansible/ansible-modules-core/stable-2.0/cloud/openstack
+
+# os_ironic_inspect has appeared in Ansible 2.1
+check_get_module os_ironic_inspect \
+    https://raw.githubusercontent.com/ansible/ansible-modules-extras/stable-2.1/cloud/openstack
+
+# os_keystone_service has appeared in Ansible 2.2
+check_get_module os_keystone_service \
+    https://raw.githubusercontent.com/ansible/ansible-modules-extras/stable-2.2/cloud/openstack
+
+# NOTE(pas-ha) the following is a temporary workaround for third-party CI
+# scripts that try to source Ansible's hacking/env-setup
+# after running this very script
+# TODO(pas-ha) remove after deprecation (in Pike?) and when third-party CIs
+# (in particular OPNFV) are fixed
+ANSIBLE_INSTALL_ROOT=${ANSIBLE_INSTALL_ROOT:-/opt/stack}
+u=$(whoami)
+g=$(groups | awk '{print $1}')
+if [ ! -d ${ANSIBLE_INSTALL_ROOT} ]; then
+    mkdir -p ${ANSIBLE_INSTALL_ROOT} || (sudo mkdir -p ${ANSIBLE_INSTALL_ROOT})
+fi
+sudo -H chown -R $u:$g ${ANSIBLE_INSTALL_ROOT}
+mkdir -p ${ANSIBLE_INSTALL_ROOT}/ansible/hacking
+echo "echo Sourcing this file is no longer needed! Ansible is always installed from PyPI" > ${ANSIBLE_INSTALL_ROOT}/ansible/hacking/env-setup
+
+echo
+echo "To use bifrost, do"
+
+if [ -n "${VENV-}" ]; then
+    echo "source ${VENV}/bin/activate"
+else
+    echo "Prepend ~/.local/bin to your PATH if it is not that way already.."
+    echo ".. or use full path to local Ansible at ~/.local/bin/ansible-playbook"
+fi
+echo "source env-vars"
+echo "Then run playbooks as normal."
+echo
diff --git a/scripts/install-ansible-pip.sh b/scripts/install-ansible-pip.sh
deleted file mode 100644
index 7248055fc..000000000
--- a/scripts/install-ansible-pip.sh
+++ /dev/null
@@ -1,15 +0,0 @@
-#!/bin/bash
-set -eu
-
-ANSIBLE_PIP_VERSION=${ANSIBLE_PIP_VERSION:-"2.2"}
-sudo -H -E ${PIP} install "ansible==$ANSIBLE_PIP_VERSION"
-
-echo
-echo "To use bifrost, do"
-
-if [ -n "${VENV-}" ]; then
-    echo "source ${VENV}/bin/activate"
-fi
-echo "source env-vars"
-echo "Then run playbooks as normal."
-echo
diff --git a/scripts/install-ansible-source.sh b/scripts/install-ansible-source.sh
deleted file mode 100644
index 11b0857e8..000000000
--- a/scripts/install-ansible-source.sh
+++ /dev/null
@@ -1,74 +0,0 @@
-#!/bin/bash
-set -eu
-
-ANSIBLE_GIT_URL=${ANSIBLE_GIT_URL:-https://github.com/ansible/ansible.git}
-ANSIBLE_GIT_BRANCH=${ANSIBLE_GIT_BRANCH:-stable-2.1}
-ANSIBLE_INSTALL_ROOT=${ANSIBLE_INSTALL_ROOT:-/opt/stack}
-
-function check_get_module () {
-    local file=${1}
-    local url=${2}
-    if [ ! -e ${file} ]; then
-        wget -O ${file} ${url}
-    fi
-}
-
-u=$(whoami)
-g=$(groups | awk '{print $1}')
-
-if [ ! -d ${ANSIBLE_INSTALL_ROOT} ]; then
-    mkdir -p ${ANSIBLE_INSTALL_ROOT} || (sudo mkdir -p ${ANSIBLE_INSTALL_ROOT})
-fi
-sudo -H chown -R $u:$g ${ANSIBLE_INSTALL_ROOT}
-cd ${ANSIBLE_INSTALL_ROOT}
-
-if [ ! -d ansible ]; then
-    git clone $ANSIBLE_GIT_URL --recursive -b $ANSIBLE_GIT_BRANCH
-    cd ansible
-else
-    cd ansible
-    git remote update origin --prune
-    git fetch --tags
-    git checkout $ANSIBLE_GIT_BRANCH
-    git pull --rebase origin $ANSIBLE_GIT_BRANCH
-    git submodule update --init --recursive
-    git fetch
-fi
-# Note(TheJulia): These files should be in the ansible folder
-# and this functionality exists for a level of ansible 1.9.x
-# backwards compatability although the modules were developed
-# for Ansible 2.0.
-
-check_get_module `pwd`/lib/ansible/modules/core/cloud/openstack/os_ironic.py \
-    https://raw.githubusercontent.com/ansible/ansible-modules-core/stable-2.0/cloud/openstack/os_ironic.py
-check_get_module `pwd`/lib/ansible/modules/core/cloud/openstack/os_ironic_node.py \
-    https://raw.githubusercontent.com/ansible/ansible-modules-core/stable-2.0/cloud/openstack/os_ironic_node.py
-
-# os_ironic_inspect has appeared in Ansible 2.1
-check_get_module `pwd`/lib/ansible/modules/extras/cloud/openstack/os_ironic_inspect.py \
-    https://raw.githubusercontent.com/ansible/ansible-modules-extras/stable-2.1/cloud/os_ironic_inspect.py
-
-# os_keystone_service has appeared in Ansible 2.2
-check_get_module `pwd`/lib/ansible/modules/extras/cloud/openstack/os_keystone_service.py \
-    https://raw.githubusercontent.com/ansible/ansible-modules-extras/stable-2.2/cloud/openstack/os_keystone_service.py
-
-sudo -H -E ${PIP} install --upgrade ${ANSIBLE_INSTALL_ROOT}/ansible
-
-if [ -n "${VENV-}" ]; then
-    echo
-    echo "To use bifrost, do"
-
-    echo "source ${VENV}/bin/activate"
-    echo "source env-vars"
-    echo "Then run playbooks as normal."
-    echo
-else
-    echo
-    echo "If you're using this script directly, execute the"
-    echo "following commands to update your shell."
-    echo
-    echo "source env-vars"
-    echo "source ${ANSIBLE_INSTALL_ROOT}/ansible/hacking/env-setup"
-    echo
-fi
-
diff --git a/scripts/test-bifrost.sh b/scripts/test-bifrost.sh
index 79add4086..408d86fe9 100755
--- a/scripts/test-bifrost.sh
+++ b/scripts/test-bifrost.sh
@@ -55,24 +55,21 @@ elif [ $SOURCE = "test-bifrost-keystone-auth.sh" ]; then
      ENABLE_KEYSTONE="true"
 fi
 
-# Source Ansible
-# NOTE(TheJulia): Ansible stable-1.9 source method tosses an error deep
-# under the hood which -x will detect, so for this step, we need to suspend
-# and then re-enable the feature.
-set +x +o nounset
 if [ ${USE_VENV} = "true" ]; then
     export VENV=/opt/stack/bifrost
     export PATH=${VENV}/bin:${PATH}
     $SCRIPT_HOME/env-setup.sh
+    # Note(cinerama): activate is not compatible with "set -u";
+    # disable it just for this line.
+    set +u
     source /opt/stack/bifrost/bin/activate
+    set -u
     ANSIBLE=${VENV}/bin/ansible-playbook
     ENABLE_VENV="true"
 else
     $SCRIPT_HOME/env-setup.sh
-    source ${ANSIBLE_INSTALL_ROOT}/ansible/hacking/env-setup
-    ANSIBLE=$(which ansible-playbook)
+    ANSIBLE=${HOME}/.local/bin/ansible-playbook
 fi
-set -x -o nounset
 
 # Adjust options for DHCP, VM, or Keystone tests
 if [ ${USE_DHCP} = "true" ]; then