diff --git a/script/bootstrap b/script/bootstrap
index 211f1355b7d..2b599950625 100755
--- a/script/bootstrap
+++ b/script/bootstrap
@@ -7,4 +7,5 @@ set -e
 cd "$(dirname "$0")/.."
 
 echo "Installing development dependencies..."
-python3 -m pip install tox colorlog pre-commit $(grep mypy requirements_test.txt)
+python3 -m pip install wheel --constraint homeassistant/package_constraints.txt
+python3 -m pip install tox colorlog pre-commit $(grep mypy requirements_test.txt) --constraint homeassistant/package_constraints.txt
diff --git a/script/setup b/script/setup
index 0076d70a7f0..eb7bda18d44 100755
--- a/script/setup
+++ b/script/setup
@@ -1,11 +1,26 @@
-#!/bin/sh
+#!/bin/bash
 # Setups the repository.
 
 # Stop on errors
 set -e
 
 cd "$(dirname "$0")/.."
+
+mkdir -p config
+
+python3 -m venv venv
+source venv/bin/activate
+
 script/bootstrap
 
 pre-commit install
-pip install -e .
+pip install -e . --constraint homeassistant/package_constraints.txt
+
+hass --script ensure_config -c config
+
+echo "
+logger:
+  default: info
+  logs:
+    homeassistant.components.cloud: debug
+" >> config/configuration.yaml