A Virtual Environment ("virtualenv") is a tool to create isolated Python environments. It keeps the dependencies required by different projects in separate places, by creating virtual Python env for them. It solves the “project A depends on version 2.xxx but, project B needs 2.xxx” dilemma, and keeps your global site-packages directory clean and manageable.
"virtualenv" creates a folder which contains all the necessary libs and bins to use the packages that a Python project would need.