diff --git a/.env b/.env
new file mode 100644
index 00000000..917ac4de
--- /dev/null
+++ b/.env
@@ -0,0 +1 @@
+PYTHONPATH=./src
diff --git a/.gitignore b/.gitignore
index eee0f1d1..e95c34ea 100644
--- a/.gitignore
+++ b/.gitignore
@@ -80,9 +80,6 @@ celerybeat-schedule
 # SageMath parsed files
 *.sage.py
 
-# dotenv
-.env
-
 # virtualenv
 .venv
 venv/
diff --git a/ptvsd.code-workspace b/ptvsd.code-workspace
index 6a9c48d9..84289e7d 100644
--- a/ptvsd.code-workspace
+++ b/ptvsd.code-workspace
@@ -7,5 +7,6 @@
     "settings": {
         "python.linting.enabled": true,
         "python.linting.pylintEnabled": false,
+        "python.envFile": "${workspaceFolder}/.env",
     }
 }