diff --git a/docs/source/user_guide/installation/install-from-source.rst b/docs/source/user_guide/installation/install-from-source.rst
index 0aa50cf8a8..fb448950bf 100644
--- a/docs/source/user_guide/installation/install-from-source.rst
+++ b/docs/source/user_guide/installation/install-from-source.rst
@@ -116,7 +116,7 @@ Using Nox (recommended)
 .. note::
 	It is recommended to use ``--verbose`` or ``-v`` to see outputs of all commands run.
 
-This creates a virtual environment ``.nox/dev`` inside the ``PyBaMM/`` directory.
+This creates a virtual environment ``venv/`` inside the ``PyBaMM/`` directory.
 It comes ready with PyBaMM and some useful development tools like `pre-commit <https://pre-commit.com/>`_ and `ruff <https://beta.ruff.rs/docs/>`_.
 
 You can now activate the environment with
@@ -125,13 +125,13 @@ You can now activate the environment with
 
 	.. code:: bash
 
-		source .nox/dev/bin/activate
+		source venv/bin/activate
 
 .. tab:: Windows
 
 	.. code:: bash
 
-		.nox\dev\Scripts\activate.bat
+		venv\Scripts\activate.bat
 
 and run the tests to check your installation.
 
diff --git a/noxfile.py b/noxfile.py
index c215c73ca5..430ad59659 100644
--- a/noxfile.py
+++ b/noxfile.py
@@ -1,6 +1,7 @@
 import nox
 import os
 import sys
+from pathlib import Path
 
 
 # Options to modify nox behaviour
@@ -16,6 +17,7 @@
     "SUNDIALS_INST": f"{homedir}/.local",
     "LD_LIBRARY_PATH": f"{homedir}/.local/lib:",
 }
+VENV_DIR = Path('./venv').resolve()
 
 
 def set_environment_variables(env_dict, session):
@@ -116,18 +118,19 @@ def run_scripts(session):
 def set_dev(session):
     """Install PyBaMM in editable mode."""
     set_environment_variables(PYBAMM_ENV, session=session)
-    envbindir = session.bin
-    session.install("-e", ".[all]", silent=False)
-    session.install("cmake", silent=False)
-    if sys.platform == "linux" or sys.platform == "darwin":
-        session.run(
-            "echo",
-            "export",
-            f"LD_LIBRARY_PATH={PYBAMM_ENV['LD_LIBRARY_PATH']}",
-            ">>",
-            f"{envbindir}/activate",
-            external=True,  # silence warning about echo being an external command
+    session.install("virtualenv", "cmake")
+    session.run("virtualenv", os.fsdecode(VENV_DIR), silent=True)
+    python = os.fsdecode(VENV_DIR.joinpath("bin/python"))
+    if sys.platform == "linux":
+        session.run(python,
+                    "-m",
+                    "pip",
+                    "install",
+                    ".[all,dev,jax,odes]",
+                    external=True,
         )
+    else:
+        session.run(python, "-m", "pip", "install", "-e", ".[all,dev]", external=True)
 
 
 @nox.session(name="tests")