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Make sure you add this to your $PATH. I usually place this in /opt/ruby/bin and recommend you to do so, too. Or at least inside $RUBY_PREFIX/bin. Should work otherwise, but I never tested that (and don't plan to) You need to set those values in your .bashrc or somewhere: RUBY_PATH (mine is /opt/ruby) RUBY_VERSION (default ruby version, mine is 1.8.7) Usage: install_ruby 1.8.7 every_ruby -v gem install rails