diff --git a/settings.org b/settings.org
index 61d8637..fbf8704 100644
--- a/settings.org
+++ b/settings.org
@@ -326,29 +326,37 @@ This handy function is a customized ripoff of custom-save-all
 	  (setq venv-name "emacs-default-venv")))
       (rlbr/setup-python-venv-dirlocals library-root venv-name)
       venv-name))
-
+  (require 'dash)
   (defun rlbr/init-venv ()
     (when (eq major-mode 'python-mode)
-      (unless (apply
-	       'string-prefix-p
-	       (mapcar
-		'file-truename
-		(list
-		 (pyvenv-workon-home)
-		 buffer-file-name)))
-	(if (and pyvenv-workon (not (member pyvenv-workon (pyvenv-virtualenv-list))))
-	    (if (y-or-n-p
-		 (format "Venv '%s' is specified but does not exist. Create it?" pyvenv-workon))
+      (unless
+	  (let ((buffer-file-name (file-truename buffer-file-name)))
+	    (-any (lambda (file-prefix) (string-prefix-p file-prefix buffer-file-name))
+		  (mapcar 'file-truename
+			  (list
+			   (elpy-rpc-get-or-create-virtualenv)
+			   (pyvenv-workon-home)))))
+	(cond
+	 ((and pyvenv-workon (not (member pyvenv-workon (pyvenv-virtualenv-list))))
+	  (if (y-or-n-p
+	       (format "Venv '%s' is specified but does not exist. Create it?" pyvenv-workon))
+	      (progn
 		(pyvenv-create pyvenv-workon (rlbr/get-python-executable))
-	      ((rlbr/save-buffer-func-to-file
-		(let ((default-directory (elpy-library-root)))
-		  (expand-file-name
-		   ".dir-locals.el"))
-		'delete-dir-local-variable
-		'(python pyvenv-workon))))
+		(pyvenv-workon pyvenv-workon))
+	    (rlbr/save-buffer-func-to-file
+	     (let ((default-directory (elpy-library-root)))
+	       (expand-file-name
+		".dir-locals.el"))
+	     'add-dir-local-variable
+	     '(python-mode pyvenv-workon "emacs-default-venv"))
+	    (setq-local
+	     pyvenv-workon
+	     "emacs-default-venv")))
+	 ((not pyvenv-workon)
 	  (setq-local
 	   pyvenv-workon
-	   (rlbr/init-python-venv-in-library-root)))))))
+	   (rlbr/init-python-venv-in-library-root))))
+	(pyvenv-workon pyvenv-workon))))
 #+END_SRC
 *** bindings/settings
 #+BEGIN_SRC emacs-lisp