diff --git a/gnu/packages/python-xyz.scm b/gnu/packages/python-xyz.scm
index e8d1214a8d..bc2e76b5be 100644
--- a/gnu/packages/python-xyz.scm
+++ b/gnu/packages/python-xyz.scm
@@ -3867,29 +3867,6 @@ (define-public python2-virtualenv
   (let ((base (package-with-python2 (strip-python2-variant python-virtualenv))))
     (package
       (inherit base)
-      (arguments
-       `(#:python ,python-2
-         #:phases
-         (modify-phases %standard-phases
-           (add-after 'set-paths 'adjust-PYTHONPATH
-             (lambda* (#:key inputs #:allow-other-keys)
-               (let* ((python (assoc-ref inputs "python"))
-                      (python-sitedir (string-append python "/lib/python2.7"
-                                                     "/site-packages")))
-                 ;; XXX: 'python2' always comes first on PYTHONPATH
-                 ;; and shadows the 'setuptools' input.  Move python2
-                 ;; last: this should be fixed in python-build-system
-                 ;; in a future rebuild cycle.
-                 (setenv "PYTHONPATH"
-                         (string-append (string-join (delete python-sitedir
-                                                             (string-split
-                                                              (getenv "PYTHONPATH")
-                                                              #\:))
-                                                     ":")
-                                        ":" python-sitedir))
-                 (format #t "environment variable `PYTHONPATH' changed to `~a'~%"
-                         (getenv "PYTHONPATH"))
-                 #t))))))
       (propagated-inputs
        `(("python-contextlib2" ,python2-contextlib2)
          ,@(package-propagated-inputs base))))))