diff --git a/.activate.sh b/.activate.sh
deleted file mode 100644
index 2103e5b..0000000
--- a/.activate.sh
+++ /dev/null
@@ -1,4 +0,0 @@
-export TOP=$PWD
-make venv
-. venv/bin/activate
-pre-commit install
diff --git a/.activate.sh b/.activate.sh
new file mode 120000
index 0000000..9308d33
--- /dev/null
+++ b/.activate.sh
@@ -0,0 +1 @@
+venv/bin/activate
\ No newline at end of file
diff --git a/.deactivate.sh b/.deactivate.sh
index 02b27c4..d1898d7 100644
--- a/.deactivate.sh
+++ b/.deactivate.sh
@@ -1,2 +1 @@
 deactivate
-unset TOP
diff --git a/.pre-commit-config.yaml b/.pre-commit-config.yaml
index 1d2bea5..7629e80 100644
--- a/.pre-commit-config.yaml
+++ b/.pre-commit-config.yaml
@@ -13,6 +13,7 @@
     -   id: double-quote-string-fixer
     -   id: end-of-file-fixer
     -   id: flake8
+        exclude: ^docs/
 -   repo: git://github.com/asottile/reorder_python_imports
     sha: 8b583ac1beb0dd0f14c4bceb0a53bb1023cb3dd7
     hooks:
diff --git a/CI/circle/main b/CI/circle/main
index 8243ab7..517bced 100755
--- a/CI/circle/main
+++ b/CI/circle/main
@@ -15,7 +15,8 @@ lsb_release -a
 test $CIRCLE_NODE_TOTAL -eq 4
 
 timestamp
-sudo apt-get install python2.7-dev python3.4-dev
+sudo apt-get update
+sudo apt-get install -y python2.7-dev python3.4-dev
 
 ### per-node actions
 timestamp
diff --git a/pip_faster.py b/pip_faster.py
index b7c45b9..ba9fa9b 100644
--- a/pip_faster.py
+++ b/pip_faster.py
@@ -71,6 +71,25 @@ def is_local_directory(url):
         return isdir(url[5:])
 
 
+def is_vcs_url(url):
+    """Test if a URL is a VCS repo.
+
+    >>> is_vcs_url('git+git://git.myproject.org/MyProject#egg=MyProject')
+    True
+    >>> is_vcs_url('svn+http://svn.myproject.org/svn/MyProject/trunk@2019#egg=MyProject')
+    True
+    >>> is_vcs_url('file:///tmp/')
+    False
+    """
+    if url is None:
+        return False
+    else:
+        return url.startswith(tuple(
+            scheme + '+'
+            for scheme in pipmodule.vcs.vcs
+        ))
+
+
 def optimistic_wheel_search(req, find_links):
     assert req_is_pinned(req), req
 
@@ -145,7 +164,9 @@ def wheelable(req):
         # we don't want to permanently cache something we'll edit
         not req.editable and
         # people expect `pip install .` to work without bumping the version
-        not is_local_directory(req.url)
+        not is_local_directory(req.url) and
+        # don't cache vcs packages, since the version is often bogus (#156)
+        not is_vcs_url(req.url)
     )
 
 
diff --git a/pylintrc b/pylintrc
index 87c7f8d..ade0822 100644
--- a/pylintrc
+++ b/pylintrc
@@ -37,8 +37,8 @@ class-rgx=%(const-rgx)s
 [FORMAT]
 max-line-length=131
 
-# TODO: we'd like to hit 250 here
-max-module-lines=532
+# TODO: we'd like to hit this
+# max-module-lines=250
 
 [TYPECHECK]
 ignored-classes=pytest,LocalPath,RootLogger
diff --git a/tests/functional/get_installed_test.py b/tests/functional/get_installed_test.py
index b23abec..bcce4a8 100644
--- a/tests/functional/get_installed_test.py
+++ b/tests/functional/get_installed_test.py
@@ -52,7 +52,7 @@ def test_pip_get_installed(tmpdir):
     run('myvenv/bin/pip', 'uninstall', '--yes', 'cov-core', 'coverage', 'py', 'pytest', 'pytest-cov')
     assert get_installed() == []
 
-    run('myvenv/bin/pip', 'install', 'flake8')
+    run('myvenv/bin/pip', 'install', 'flake8==2.5.0')
     assert get_installed() == ['flake8', 'mccabe', 'pep8', 'pyflakes']
 
     run('myvenv/bin/pip', 'uninstall', '--yes', 'flake8')
diff --git a/tests/functional/pip_faster.py b/tests/functional/pip_faster.py
index edf7adf..b7b4801 100644
--- a/tests/functional/pip_faster.py
+++ b/tests/functional/pip_faster.py
@@ -32,7 +32,7 @@ def it_installs_stuff(tmpdir):
     install_coverage(venv)
 
     assert pip_freeze(str(venv)) == '''\
-coverage==4.0.3
+coverage==4.2
 coverage-enable-subprocess==1.0
 '''
 
@@ -89,7 +89,7 @@ def it_installs_stuff_with_dash_e_without_wheeling(tmpdir):
     assert set(frozen_requirements) == set([
         '-e git://github.com/Yelp/dumb-init.git@87545be699a13d0fd31f67199b7782ebd446437e#egg=dumb_init-dev',  # noqa
         'coverage-enable-subprocess==1.0',
-        'coverage==4.0.3',
+        'coverage==4.2',
         'venv-update==' + __version__,
         'wheel==0.29.0',
         '',
@@ -117,7 +117,7 @@ def it_doesnt_wheel_local_dirs(tmpdir):
 
     frozen_requirements = pip_freeze(str(venv)).split('\n')
     assert set(frozen_requirements) == set([
-        'coverage==4.0.3',
+        'coverage==4.2',
         'coverage-enable-subprocess==1.0',
         'dependant-package==1',
         'implicit-dependency==1',
@@ -136,6 +136,34 @@ def it_doesnt_wheel_local_dirs(tmpdir):
     ])
 
 
+@pytest.mark.usefixtures('pypi_server')
+def it_doesnt_wheel_git_repos(tmpdir):
+    venv = tmpdir.join('venv')
+    install_coverage(venv)
+
+    pip = venv.join('bin/pip').strpath
+    run(pip, 'install', 'venv-update==' + __version__)
+
+    run(
+        venv.join('bin/pip-faster').strpath,
+        'install',
+        'git+git://github.com/Yelp/dumb-init.git@87545be699a13d0fd31f67199b7782ebd446437e#egg=dumb-init',  # noqa
+    )
+
+    frozen_requirements = pip_freeze(str(venv)).split('\n')
+    assert set(frozen_requirements) == set([
+        'coverage-enable-subprocess==1.0',
+        'coverage==4.2',
+        'dumb-init==0.5.0',
+        'venv-update==' + __version__,
+        'wheel==0.29.0',
+        '',
+    ])
+
+    wheelhouse = tmpdir.join('home', '.cache', 'pip-faster', 'wheelhouse')
+    assert set(Wheel(f.basename).name for f in wheelhouse.listdir()) == set()
+
+
 @pytest.mark.usefixtures('pypi_server')
 def it_can_handle_requirements_already_met(tmpdir):
     venv = tmpdir.join('venv')
diff --git a/tests/functional/simple_test.py b/tests/functional/simple_test.py
index 30a7fbc..3a0529a 100644
--- a/tests/functional/simple_test.py
+++ b/tests/functional/simple_test.py
@@ -280,7 +280,7 @@ def flake8_older():
 ''' % TOP)
     venv_update()
     assert pip_freeze() == '\n'.join((
-        'coverage==4.0.3',
+        'coverage==4.2',
         'coverage-enable-subprocess==1.0',
         'flake8==2.0',
         'mccabe==0.3',
@@ -306,7 +306,7 @@ def flake8_newer():
 ''' % TOP)
     venv_update()
     assert pip_freeze() == '\n'.join((
-        'coverage==4.0.3',
+        'coverage==4.2',
         'coverage-enable-subprocess==1.0',
         'flake8==2.2.5',
         'mccabe==0.3',
diff --git a/tests/unit/fix_coverage_test.py b/tests/unit/fix_coverage_test.py
index 520b19d..5de47b5 100644
--- a/tests/unit/fix_coverage_test.py
+++ b/tests/unit/fix_coverage_test.py
@@ -22,16 +22,16 @@ def test_fix_coverage(tmpdir):
         str(unrelated_file): {(5, 6): None},
     })
 
-    assert coverage_data.lines(base_file) == [1]
-    assert coverage_data.lines(sub_file) == [3]
-    assert coverage_data.lines(unrelated_file) == [5]
+    assert coverage_data.lines(base_file) == [1, 2]
+    assert coverage_data.lines(sub_file) == [3, 4]
+    assert coverage_data.lines(unrelated_file) == [5, 6]
 
     merge_coverage(coverage_data, '/site-packages/', str(tmpdir))
 
     # The base file should contain all the lines and arcs
-    assert coverage_data.lines(base_file) == [1, 3]
+    assert coverage_data.lines(base_file) == [1, 2, 3, 4]
     assert coverage_data.arcs(base_file) == [(1, 2), (3, 4)]
-    assert coverage_data.lines(unrelated_file) == [5]
+    assert coverage_data.lines(unrelated_file) == [5, 6]
     assert coverage_data.arcs(unrelated_file) == [(5, 6)]
 
     # And the sub file should no longer exist
diff --git a/tox.ini b/tox.ini
index 477049f..82e589f 100644
--- a/tox.ini
+++ b/tox.ini
@@ -8,9 +8,9 @@ skipsdist=True
 passenv =
     PYTEST_OPTIONS
     PYTHON
-changedir = 
+changedir =
     {envtmpdir}
-setenv = 
+setenv =
     TOP={toxinidir}
     SITEPACKAGES={envsitepackagesdir}
 venv_update =
@@ -33,3 +33,6 @@ commands =
 deps = -rrequirements.d/docs.txt
 changedir = docs
 commands = sphinx-build -b html -d build/doctrees source build/html
+
+[flake8]
+max-line-length = 131
diff --git a/venv_update.py b/venv_update.py
index 19dafeb..b426e6e 100755
--- a/venv_update.py
+++ b/venv_update.py
@@ -58,7 +58,7 @@
 from os.path import exists
 from os.path import join
 
-__version__ = '1.1.0'
+__version__ = '1.1.1'
 DEFAULT_VIRTUALENV_PATH = 'venv'
 DEFAULT_OPTION_VALUES = {
     'venv=': (DEFAULT_VIRTUALENV_PATH,),
@@ -163,7 +163,7 @@ def exec_(argv):  # never returns
     """Wrapper to os.execv which shows the command and runs any atexit handlers (for coverage's sake).
     Like os.execv, this function never returns.
     """
-    ## info('EXEC' + colorize(argv))  # TODO: debug logging by environment variable
+    # info('EXEC' + colorize(argv))  # TODO: debug logging by environment variable
 
     # in python3, sys.exitfunc has gone away, and atexit._run_exitfuncs seems to be the only pubic-ish interface
     #   https://hg.python.org/cpython/file/3.4/Modules/atexitmodule.c#l289