Why is setuptool showing version 0.9.8 in virtualenv although I installed version 1.1.5 as shown in the global path?
The different setuptools version seen is due to virtualenv bundling a version of setuptools within its archive (version 1.10.1 is bundled with setuptools 0.9.8). The local setuptools is installed from the archive to avoid accessing the network.
Having a different version of setuptools in your virtualenv should not be a problem.
Changing the version
If you must change the version, currently there is no way to force downloading another version setuptools other than unpacking the tar file and replacing the setuptools archive, in virtualenv-1.10.1\virtualenv_support
with a newer version.
Eventually you will be able to specify a directory containing another version of setuptools to use, with the --extra-search-dir
option, but the feature currently does not work.
Note: Virtualenv will install its own version of setuptools if you do not specify --no-setuptools
when you create your virtualenv. Obviously, using the option --no-setuptools
will not install setuptools nor pip. It will most likely break the encapsulation provided by virtualenv (as the OP noted).