This will change your $PATH so its first entry is the virtualenv’s bin/ directory. (You have to use source because it changes your shell environment in-place.) This is all it does; it’s purely a convenience. If you directly run a script or the python interpreter from the virtualenv’s bin/ directory (e.g. path/to/env/bin/pip or /path/to/env/bin/python script.py) there’s no need for activation.