diff -r 413c0b0a105f Doc/install/index.rst
--- a/Doc/install/index.rst	Mon Apr 15 09:53:49 2013 -0400
+++ b/Doc/install/index.rst	Fri Apr 19 10:26:08 2013 -0400
@@ -645,6 +645,10 @@
 the Distutils are the only ones you can use.) See section :ref:`inst-config-files`
 for details.
 
+.. note:: When a :ref:`virtual environment <venv-def>` is activated, the ``install-*`` options above
+   are ignored from all distutils configuration files to prevent inadvertently
+   installing packages outside of the virtual environment.
+
 .. XXX need some Windows examples---when would custom installation schemes be
    needed on those platforms?
 
diff -r 413c0b0a105f Doc/library/venv.rst
--- a/Doc/library/venv.rst	Mon Apr 15 09:53:49 2013 -0400
+++ b/Doc/library/venv.rst	Fri Apr 19 10:26:08 2013 -0400
@@ -57,6 +57,10 @@
    :attr:`sys.exec_prefix` is the same as :attr:`sys.base_exec_prefix` (they
    all point to a non-venv Python installation).
 
+   When a virtual environment is active ``install-*`` options will be ignored in
+   distutils configuration files. This is to avoid projects being
+   inadvertently installed in the wrong place.
+
 
 API
 ---
diff -r 413c0b0a105f Lib/distutils/dist.py
--- a/Lib/distutils/dist.py	Mon Apr 15 09:53:49 2013 -0400
+++ b/Lib/distutils/dist.py	Fri Apr 19 10:26:08 2013 -0400
@@ -343,6 +343,15 @@
     def parse_config_files(self, filenames=None):
         from configparser import ConfigParser
 
+        # Ignore install directory options if we have a venv
+        if sys.prefix != sys.base_prefix:
+            ignore_options = [
+                'install-base', 'install-platbase', 'install-lib',
+                'install-platlib', 'install-purelib', 'install-headers',
+                'install-scripts', 'install-data', ]
+        else:
+            ignore_options = []
+
         if filenames is None:
             filenames = self.find_config_files()
 
@@ -359,7 +368,7 @@
                 opt_dict = self.get_option_dict(section)
 
                 for opt in options:
-                    if opt != '__name__':
+                    if opt != '__name__' and opt not in ignore_options:
                         val = parser.get(section,opt)
                         opt = opt.replace('-', '_')
                         opt_dict[opt] = (filename, val)
diff -r 413c0b0a105f Lib/distutils/tests/test_dist.py
--- a/Lib/distutils/tests/test_dist.py	Mon Apr 15 09:53:49 2013 -0400
+++ b/Lib/distutils/tests/test_dist.py	Fri Apr 19 10:26:08 2013 -0400
@@ -6,6 +6,8 @@
 import warnings
 import textwrap
 
+from unittest import mock
+
 from distutils.dist import Distribution, fix_help_options
 from distutils.cmd import Command
 
@@ -18,7 +20,7 @@
 
     user_options = [
         ("sample-option=", "S", "help text"),
-        ]
+    ]
 
     def initialize_options(self):
         self.sample_option = None
@@ -77,6 +79,54 @@
         self.assertIsInstance(cmd, test_dist)
         self.assertEqual(cmd.sample_option, "sometext")
 
+    def test_venv_install_options(self):
+        sys.argv.append("install")
+        self.addCleanup(os.unlink, TESTFN)
+
+        fakepath = '/somedir'
+
+        with open(TESTFN, "w") as f:
+            print(("[install]\n"
+                   "install-base = {0}\n"
+                   "install-platbase = {0}\n"
+                   "install-lib = {0}\n"
+                   "install-platlib = {0}\n"
+                   "install-purelib = {0}\n"
+                   "install-headers = {0}\n"
+                   "install-scripts = {0}\n"
+                   "install-data = {0}").format(fakepath), file=f)
+
+        # Base case: Not in a Virtual Environment
+        with mock.patch.multiple(sys, prefix='/a', base_prefix='/a') as values:
+            d = self.create_distribution([TESTFN])
+
+        option_tuple = (TESTFN, fakepath)
+
+        result_dict = {
+            'install_base': option_tuple,
+            'install_platbase': option_tuple,
+            'install_lib': option_tuple,
+            'install_platlib': option_tuple,
+            'install_purelib': option_tuple,
+            'install_headers': option_tuple,
+            'install_scripts': option_tuple,
+            'install_data': option_tuple,
+        }
+
+        self.assertEqual(
+            sorted(d.command_options.get('install').keys()),
+            sorted(result_dict.keys()))
+
+        for (key, value) in d.command_options.get('install').items():
+            self.assertEqual(value, result_dict[key])
+
+        # Test case: In a Virtual Environment
+        with mock.patch.multiple(sys, prefix='/a', base_prefix='/b') as values:
+            d = self.create_distribution([TESTFN])
+
+        for key in result_dict.keys():
+            self.assertNotIn(key, d.command_options.get('install', {}))
+
     def test_command_packages_configfile(self):
         sys.argv.append("build")
         self.addCleanup(os.unlink, TESTFN)
@@ -304,7 +354,7 @@
                 os.environ['HOME'] = temp_dir
                 files = dist.find_config_files()
                 self.assertIn(user_filename, files,
-                             '%r not found in %r' % (user_filename, files))
+                              '%r not found in %r' % (user_filename, files))
         finally:
             os.remove(user_filename)