diff --git a/pyls/workspace.py b/pyls/workspace.py
index 3cce8575..edb9528f 100644
--- a/pyls/workspace.py
+++ b/pyls/workspace.py
@@ -3,7 +3,6 @@
 import logging
 import os
 import re
-import sys
 import imp
 import pkgutil
 
@@ -268,11 +267,8 @@ def sys_path(self):
         # Copy our extra sys path
         path = list(self._extra_sys_path)
 
-        # Check to see if we're in a virtualenv
-        if 'VIRTUAL_ENV' in os.environ:
-            log.info("Using virtualenv %s", os.environ['VIRTUAL_ENV'])
-            path.extend(jedi.evaluate.sys_path.get_venv_path(os.environ['VIRTUAL_ENV']))
-        else:
-            path.extend(sys.path)
+        # TODO(gatesn): #339 - make better use of jedi environments, they seem pretty powerful
+        environment = jedi.api.environment.get_default_environment()
+        path.extend(environment.get_sys_path())
 
         return path
diff --git a/setup.py b/setup.py
index ad994a5e..111a7045 100755
--- a/setup.py
+++ b/setup.py
@@ -35,7 +35,7 @@
         'configparser; python_version<"3.0"',
         'future>=0.14.0',
         'futures; python_version<"3.2"',
-        'jedi>=0.10,<0.12',
+        'jedi>=0.12',
         'pluggy'
     ],
 
diff --git a/test/test_document.py b/test/test_document.py
index 34905415..4fd4ea2f 100644
--- a/test/test_document.py
+++ b/test/test_document.py
@@ -1,5 +1,4 @@
 # Copyright 2017 Palantir Technologies, Inc.
-import sys
 from test.fixtures import DOC_URI, DOC
 from pyls.workspace import Document
 
@@ -42,14 +41,6 @@ def test_word_at_position(doc):
     assert doc.word_at_position({'line': 4, 'character': 0}) == ''
 
 
-def test_document_sys_path(doc):
-    """Test the document's sys path is updated."""
-    assert 'foo' not in doc.sys_path()
-    sys.path.append('foo')
-    # Check that the new sys path is included in the doc's sys path
-    assert 'foo' in doc.sys_path()
-
-
 def test_document_empty_edit():
     doc = Document('file:///uri', u'')
     doc.apply_change({