diff --git a/third_party/README.md b/third_party/README.md
index 29d43172a7909..0c162fcbcfdfc 100644
--- a/third_party/README.md
+++ b/third_party/README.md
@@ -114,11 +114,6 @@ Updating the protobuf dependency is now part of the internal release process (se
 
 Apart from the above steps, please run `tools/codegen/core/gen_upb_api.sh` to regenerate upb files.
 
-In addition, please perform the following two steps to generate the Python `xds-protos` package:
-
-1. Bump the version in the `tools/distrib/python/xds_protos/setup.py`;
-2. Run `tools/distrib/python/xds_protos/build_validate_upload.sh` to upload the built wheel.
-
 ### Updating third_party/upb
 
 Since upb is vendored in the gRPC repo, you cannot use submodule to update it. Please follow the steps below;
diff --git a/tools/buildgen/generate_projects.sh b/tools/buildgen/generate_projects.sh
index 31e81bcc027a5..a18d87c7e2be8 100755
--- a/tools/buildgen/generate_projects.sh
+++ b/tools/buildgen/generate_projects.sh
@@ -36,7 +36,23 @@ tools/buildgen/build_cleaner.py build_handwritten.yaml
 
 # /usr/local/google/home/rbellevi/dev/tmp/grpc/venv/bin/python3: No module named virtualenv
 # Generate xds-protos
-[[ -d generate_projects_virtual_environment ]] || { python3 -m pip install virtualenv --upgrade && python3 -m virtualenv generate_projects_virtual_environment; }
+if [[ ! -d generate_projects_virtual_environment ]]; then
+  if ! python3 -m pip freeze | grep virtualenv &>/dev/null; then
+    echo "virtualenv Python module not installed. Attempting to install via pip." >/dev/stderr
+    if INSTALL_OUTPUT=$(! python3 -m pip install virtualenv --upgrade &>/dev/stdout); then
+      echo "$INSTALL_OUTPUT"
+      if echo "$INSTALL_OUTPUT" | grep "externally managed" &>/dev/null; then
+        echo >/dev/stderr
+        echo "############################" >/dev/stderr
+        echo  "Your administrator is _insisting_ on managing your packages themself. Try running \`sudo apt-get install python3-virtualenv\`" >/dev/stderr
+        echo "############################" >/dev/stderr
+      fi
+      exit 1
+    fi
+  fi 
+  python3 -m virtualenv generate_projects_virtual_environment
+fi
+
 generate_projects_virtual_environment/bin/pip install --upgrade --ignore-installed grpcio-tools==1.59.0
 generate_projects_virtual_environment/bin/python tools/distrib/python/xds_protos/build.py