diff --git a/WORKSPACE b/WORKSPACE
index b9bfc7f4..42e5665e 100644
--- a/WORKSPACE
+++ b/WORKSPACE
@@ -1 +1,11 @@
 workspace(name = "org_tensorflow_estimator")
+
+# Use a custom python toolchain to make sure we always use the python binary
+# provided by PYTHON_BIN_PATH.
+# This is required due to https://github.com/bazelbuild/bazel/issues/7899,
+# because --python_path will not work since Bazel 0.27
+load("//third_party/py:python_configure.bzl", "python_configure")
+
+python_configure(name = "local_config_py_toolchain")
+
+register_toolchains("@local_config_py_toolchain//:py_toolchain")
diff --git a/third_party/py/BUILD b/third_party/py/BUILD
new file mode 100644
index 00000000..e69de29b
diff --git a/third_party/py/BUILD.tpl b/third_party/py/BUILD.tpl
new file mode 100644
index 00000000..cc0e013b
--- /dev/null
+++ b/third_party/py/BUILD.tpl
@@ -0,0 +1,31 @@
+licenses(["restricted"])
+
+package(default_visibility = ["//visibility:public"])
+
+# Point both runtimes to the same python binary to ensure we always
+# use the python binary specified by ./configure.py script.
+load("@bazel_tools//tools/python:toolchain.bzl", "py_runtime_pair")
+
+py_runtime(
+    name = "py2_runtime",
+    interpreter_path = "%{PYTHON_BIN_PATH}",
+    python_version = "PY2",
+)
+
+py_runtime(
+    name = "py3_runtime",
+    interpreter_path = "%{PYTHON_BIN_PATH}",
+    python_version = "PY3",
+)
+
+py_runtime_pair(
+    name = "py_runtime_pair",
+    py2_runtime = ":py2_runtime",
+    py3_runtime = ":py3_runtime",
+)
+
+toolchain(
+    name = "py_toolchain",
+    toolchain = ":py_runtime_pair",
+    toolchain_type = "@bazel_tools//tools/python:toolchain_type",
+)
diff --git a/third_party/py/python_configure.bzl b/third_party/py/python_configure.bzl
new file mode 100644
index 00000000..6601d7f2
--- /dev/null
+++ b/third_party/py/python_configure.bzl
@@ -0,0 +1,71 @@
+"""Repository rule for Python autoconfiguration.
+
+`python_configure` depends on the following environment variables:
+
+  * `PYTHON_BIN_PATH`: location of python binary.
+"""
+
+_PYTHON_BIN_PATH = "PYTHON_BIN_PATH"
+
+def _tpl(repository_ctx, tpl, substitutions = {}, out = None):
+    if not out:
+        out = tpl
+    repository_ctx.template(
+        out,
+        Label("//third_party/py:%s.tpl" % tpl),
+        substitutions,
+    )
+
+def _fail(msg):
+    """Output failure message when auto configuration fails."""
+    red = "\033[0;31m"
+    no_color = "\033[0m"
+    fail("%sPython Configuration Error:%s %s\n" % (red, no_color, msg))
+
+def _get_python_bin(repository_ctx):
+    """Gets the python bin path."""
+    python_bin = repository_ctx.os.environ.get(_PYTHON_BIN_PATH)
+    if python_bin != None:
+        return python_bin
+    python_bin_path = repository_ctx.which("python")
+    if python_bin_path != None:
+        return str(python_bin_path)
+    _fail("Cannot find python in PATH, please make sure " +
+          "python is installed and add its directory in PATH, or --define " +
+          "%s='/something/else'.\nPATH=%s" % (
+              _PYTHON_BIN_PATH,
+              repository_ctx.os.environ.get("PATH", ""),
+          ))
+
+def _create_local_python_repository(repository_ctx):
+    """Creates the repository containing files set up to build with Python."""
+    python_bin = _get_python_bin(repository_ctx)
+    _tpl(repository_ctx, "BUILD", {
+        "%{PYTHON_BIN_PATH}": python_bin,
+    })
+
+def _python_autoconf_impl(repository_ctx):
+    """Implementation of the python_autoconf repository rule."""
+    _create_local_python_repository(repository_ctx)
+
+python_configure = repository_rule(
+    implementation = _python_autoconf_impl,
+    environ = [
+        _PYTHON_BIN_PATH,
+    ],
+)
+"""Detects and configures the local Python toolchain.
+
+Add the following to your WORKSPACE FILE:
+
+```python
+load("//third_party/py:python_configure.bzl", "python_configure")
+
+python_configure(name = "local_config_py_toolchain")
+
+register_toolchains("@local_config_py_toolchain//:py_toolchain")
+```
+
+Args:
+  name: A unique name for this workspace rule.
+"""