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+# Virtual-env folder location
+
+Project maintainer may have different opinion on how their project'v virtualenv should be located.
+Some are more confortable with a virtualenv folder within the `.venv` folder at the root folder of their project.
+
+# Current state
+
+Pipenv, as 2018.10.8, has the following behavior:
+
+- by default, the virtualenv folder is created in `~/.local/` folder, inside the user's home
+- if a `.venv` folder exists in the projects's folder before the first call to `pipenv install`, this folder will be used to store the virtualenv
+- if a `.venv` file exists in the projects's folder, its content will be read and is expected to be the path to the location where to store the virtualenv.
+
+# Proposal
+
+These feature would be exposed to the command line (and in respect of PEEP002, exposed as environment variables as well).
+
+## Default behavior
+
+First call of:
+```bash
+pipenv install
+```
+will kep the default behavior of storing in `~/.local`
+
+## Force .venv folder
+
+Add an option `--venv` that would mimick the behavior when a `.venv` folder has been created prior to `pipenv install`.
+
+```bash
+pipenv install --venv
+# or
+pipenv install --dev --venv
+```
+Would install to a folder name `.venv` in the current directory.
+
+This would be enabled as well if the environment variable `PIPENV_INSTALL_VENV=1` is set.
+
+## Custom location
+
+```bash
+pipenv install --venv-dir /path/to/my/custom/venv
+```
+Would create a .venv file in the current folder and store the custom location of the virtualenv.
+If an relative path is given, this is expected to be a path relative to the project root folder (where the Pipfile is stored).
+
+This would be enabled as well with an environment variable: `PIPENV_INSTALL_VENV_DIR=custom/path`.
+
+## Precedence and conflict management
+
+pipenv should just discard any conflicting commands.
+
+For example:
+
+```bash
+pipenv install
+pipenv install --dev  --venv
+```
+
+- the first command would create the virtualenv inside the `~/.local` folder
+- the second command should ignore the `--venv` command and display a warning such as `Virtualenv already configured in ..., cannot change its location. Use 'pipenv --rm' first.