diff --git a/dot_config/direnv/direnvrc b/dot_config/direnv/direnvrc
new file mode 100644
index 0000000..4008540
--- /dev/null
+++ b/dot_config/direnv/direnvrc
@@ -0,0 +1,29 @@
+layout_hatch() {
+    if [[ ! -f "pyproject.toml" ]]; then
+        if [[ ! -f "setup.py" ]]; then
+            local tmpdir
+            log_status "No pyproject.toml or setup.py found. Executing \`hatch new\` to create a new project."
+            PROJECT_NAME=$(basename $PWD)
+            tmpdir="$(mktemp -d)"
+            hatch new $PROJECT_NAME $tmpdir > /dev/null
+            cp -a --no-clobber $tmpdir/* . && rm -rf $tmpdir
+        else
+            # I haven't yet seen a case where migrating from an existing `setup.py` works, but I'm sure there are some.
+            log_status "No pyproject.toml found. Executing \`hatch new --init\` to migrate from setuptools."
+            hatch new --init || log_error "Failed to migrate from setuptools. Please fix and run \`hatch new --init\` manually." && return 1
+        fi
+    fi
+
+    HATCH_ENV=${HATCH_ENV_ACTIVE:-default}
+    # We need this to error out if the env doesn't exist in the pyproject.toml file.
+    VIRTUAL_ENV=$(hatch env find $HATCH_ENV)
+
+    if [[ ! -d $VIRTUAL_ENV ]]; then
+        log_status "No virtual environment exists. Executing \`hatch env create\` to create one."
+        hatch env create $HATCH_ENV
+    fi
+
+    PATH_add "$VIRTUAL_ENV/bin"
+    export HATCH_ENV_ACTIVE=$HATCH_ENV
+    export VIRTUAL_ENV
+}