diff --git a/elements/ironic-agent/element-deps b/elements/ironic-agent/element-deps
index f332d35ba..ee8155c45 100644
--- a/elements/ironic-agent/element-deps
+++ b/elements/ironic-agent/element-deps
@@ -1,5 +1,6 @@
 dhcp-all-interfaces
 package-installs
+pip-and-virtualenv
 pkg-map
 source-repositories
 svc-map
diff --git a/elements/ironic-agent/install.d/ironic-agent-source-install/60-ironic-agent-install b/elements/ironic-agent/install.d/ironic-agent-source-install/60-ironic-agent-install
index 0cac68f59..17ac28316 100755
--- a/elements/ironic-agent/install.d/ironic-agent-source-install/60-ironic-agent-install
+++ b/elements/ironic-agent/install.d/ironic-agent-source-install/60-ironic-agent-install
@@ -7,27 +7,25 @@ set -eu
 set -o pipefail
 
 SCRIPTDIR=$(dirname $0)
+IPADIR=/usr/share/ironic-python-agent
 
-# Install the latest version of pip and setuptools which has some
-# fixes for building behind proxy.
-curl -o /tmp/get-pip.py https://bootstrap.pypa.io/get-pip.py
-python /tmp/get-pip.py
-rm -f /tmp/get-pip.py
-pip install -U setuptools
+# create the virtual environment
+virtualenv $IPADIR/venv
 
-pip install -r /tmp/ironic-python-agent/requirements.txt
-pip install /tmp/ironic-python-agent
+# install IPA inside the virtual environment
+$IPADIR/venv/bin/pip install $IPADIR
 
-if [ ! -f /usr/bin/ironic-python-agent ]; then
-    ln -s /usr/local/bin/ironic-python-agent /usr/bin/ironic-python-agent
-fi
+# FIXME(lucasagomes): Figure out how we can use the "--install-option"
+# parameter for pip install so we don't have to manually create a symlink
+# create the launcher link so services can use it
+ln -s $IPADIR/venv/bin/ironic-python-agent /usr/local/bin/ironic-python-agent
 
 case "$DIB_INIT_SYSTEM" in
     upstart)
         install -D -g root -o root -m 0755 ${SCRIPTDIR}/ironic-python-agent.conf /etc/init/ironic-python-agent.conf
         ;;
     systemd)
-        install -D -g root -o root -m 0755 ${SCRIPTDIR}/ironic-python-agent.service /usr/lib/systemd/system/$(svc-map ironic-python-agent).service
+        install -D -g root -o root -m 0755 ${SCRIPTDIR}/ironic-python-agent.service /usr/lib/systemd/system/ironic-python-agent.service
         ;;
     sysv)
         install -D -g root -o root -m 0755 ${SCRIPTDIR}/ironic-python-agent.init /etc/init.d/ironic-python-agent.init
diff --git a/elements/ironic-agent/install.d/ironic-agent-source-install/ironic-python-agent.conf b/elements/ironic-agent/install.d/ironic-agent-source-install/ironic-python-agent.conf
old mode 100755
new mode 100644
index 4601f19ee..eab283222
--- a/elements/ironic-agent/install.d/ironic-agent-source-install/ironic-python-agent.conf
+++ b/elements/ironic-agent/install.d/ironic-agent-source-install/ironic-python-agent.conf
@@ -17,4 +17,4 @@ pre-start script
     echo Starting Ironic Python Agent
 end script
 
-exec /usr/bin/ironic-python-agent
+exec /usr/local/bin/ironic-python-agent
diff --git a/elements/ironic-agent/install.d/ironic-agent-source-install/ironic-python-agent.init b/elements/ironic-agent/install.d/ironic-agent-source-install/ironic-python-agent.init
index 83035c26d..7ecb3a0a8 100755
--- a/elements/ironic-agent/install.d/ironic-agent-source-install/ironic-python-agent.init
+++ b/elements/ironic-agent/install.d/ironic-agent-source-install/ironic-python-agent.init
@@ -12,7 +12,7 @@
 
 NAME=ironic-python-agent
 INIT_NAME=/etc/init.d/${NAME}
-SCRIPT_NAME=/usr/bin/${NAME}
+SCRIPT_NAME=/usr/local/bin/${NAME}
 
 [ -x $SCRIPT_NAME ] || exit 0
 
diff --git a/elements/ironic-agent/install.d/ironic-agent-source-install/ironic-python-agent.service b/elements/ironic-agent/install.d/ironic-agent-source-install/ironic-python-agent.service
old mode 100755
new mode 100644
index a4593caf1..6513cd634
--- a/elements/ironic-agent/install.d/ironic-agent-source-install/ironic-python-agent.service
+++ b/elements/ironic-agent/install.d/ironic-agent-source-install/ironic-python-agent.service
@@ -3,7 +3,7 @@ Description=Ironic Python Agent
 After=network.target
 
 [Service]
-ExecStart=/usr/bin/ironic-python-agent
+ExecStart=/usr/local/bin/ironic-python-agent
 Restart=always
 RestartSec=30s
 
diff --git a/elements/ironic-agent/source-repository-ironic-agent b/elements/ironic-agent/source-repository-ironic-agent
index 37422952e..f657bdf46 100644
--- a/elements/ironic-agent/source-repository-ironic-agent
+++ b/elements/ironic-agent/source-repository-ironic-agent
@@ -1 +1 @@
-ironic-agent git /tmp/ironic-python-agent https://git.openstack.org/openstack/ironic-python-agent
+ironic-agent git /usr/share/ironic-python-agent https://git.openstack.org/openstack/ironic-python-agent