I get the following error message when trying to set up a virtual environment with virtualenv 15.0.2 but receive OSError setuptools pip wheel failed with error code 1.
I had the same error even with no anaconda installed. After a few minutes i realized that i was trying to create a virtualenv folder (C:/myname/virtual_folder) at the same directory level as was my Python installation folder (C:/myname/python27) .
So I just created a folder and then inside of it (C:/myname/prefolder/..) i run ("virtualenv virtual_folder") with no issues .