diff --git a/.gitpod.yml b/.gitpod.yml
new file mode 100644
index 0000000000..ea913c7d21
--- /dev/null
+++ b/.gitpod.yml
@@ -0,0 +1,9 @@
+image:
+  file: .gitpod/.gitpod.Dockerfile
+tasks:
+  - name: Prepare Environment
+    init: |
+      composer install
+    command: | 
+      ./.gitpod/scripts/login.sh
+      printf "\n\n All set! Be sure to test your changes by running: vendor/bin/phpunit\n\n"
diff --git a/.gitpod/.gitpod.Dockerfile b/.gitpod/.gitpod.Dockerfile
new file mode 100644
index 0000000000..57a5df5461
--- /dev/null
+++ b/.gitpod/.gitpod.Dockerfile
@@ -0,0 +1,4 @@
+FROM gitpod/workspace-full:latest
+
+# Set PHP 7.4 - Gitpod defaults to 8.1 otherwise
+RUN sudo update-alternatives --set php $(which php7.4)
diff --git a/.gitpod/scripts/login.sh b/.gitpod/scripts/login.sh
new file mode 100755
index 0000000000..7d0b80ec89
--- /dev/null
+++ b/.gitpod/scripts/login.sh
@@ -0,0 +1,8 @@
+#!/usr/bin/env bash
+
+echo "When ready to make authenticated requests, use: platform auth:api-token-login"
+echo "Or: export \PLATFORMSH_CLI_TOKEN=YOUR_TOKEN"
+
+if [ -z "$PLATFORM_CLI_TOKEN" ]; then
+    echo "WARNING: \$PLATFORMSH_CLI_TOKEN was detected as an environment variable. If you share this workspace with others, they will have access to this token.";
+fi;
diff --git a/CONTRIBUTING.md b/CONTRIBUTING.md
index d34a13dea7..8f34af1c7f 100644
--- a/CONTRIBUTING.md
+++ b/CONTRIBUTING.md
@@ -4,6 +4,12 @@ Development of the Platform.sh CLI happens in public in the
 [GitHub repository](https://github.com/platformsh/platformsh-cli). Issues and
 pull requests submitted via GitHub are very welcome.
 
+## Developing via Gitpod
+
+This project ships with a no-install, ready-to-develop environment using Gitpod. Start working on the 3.x branch [here](https://gitpod.io/#https://github.com/platformsh/platformsh-cli/tree/3.x).
+
+Or, the branch of your choice using the format: https://gitpod.io/#https://github.com/platformsh/platformsh-cli/tree/{branch}
+
 ## Developing locally
 
 If you clone this repository locally, you can build it with:
diff --git a/README.md b/README.md
index 9cbef00ad2..0690bfff8f 100644
--- a/README.md
+++ b/README.md
@@ -143,3 +143,5 @@ the command `platform clear-cache` (or `platform cc` for short).
 ## Contributing
 
 See [CONTRIBUTING.md](CONTRIBUTING.md) for how to contribute to the CLI.
+
+Or, launch a ready-to-develop environment via [Gitpod](https://gitpod.io/#https://github.com/platformsh/platformsh-cli/tree/3.x).
diff --git a/src/Local/DependencyManager/Pip.php b/src/Local/DependencyManager/Pip.php
index 62e37454a6..493de5b8a8 100644
--- a/src/Local/DependencyManager/Pip.php
+++ b/src/Local/DependencyManager/Pip.php
@@ -58,7 +58,7 @@ public function install($path, array $dependencies, $global = false)
         file_put_contents($path . '/requirements.txt', $this->formatRequirementsTxt($dependencies));
         $command = $this->getCommandName() . ' install --requirement=requirements.txt';
         if (!$global) {
-            $command .= ' --prefix=.';
+            $command .= ' --prefix=';
         }
         $this->runCommand($command, $path);
     }