diff --git a/crates/red_knot/src/args.rs b/crates/red_knot/src/args.rs
index 33ec3595c4bd70..b28642bcc9601e 100644
--- a/crates/red_knot/src/args.rs
+++ b/crates/red_knot/src/args.rs
@@ -41,12 +41,14 @@ pub(crate) struct CheckCommand {
     #[arg(long, value_name = "PROJECT")]
     pub(crate) project: Option<SystemPathBuf>,
 
-    /// Path to the virtual environment the project uses.
+    /// Path to the Python installation from which Red Knot resolves type information and third-party dependencies.
     ///
-    /// If provided, red-knot will use the `site-packages` directory of this virtual environment
-    /// to resolve type information for the project's third-party dependencies.
+    /// Red Knot will search in the path's `site-packages` directories for type information and
+    /// third-party imports.
+    ///
+    /// This option is commonly used to specify the path to a virtual environment.
     #[arg(long, value_name = "PATH")]
-    pub(crate) venv_path: Option<SystemPathBuf>,
+    pub(crate) python: Option<SystemPathBuf>,
 
     /// Custom directory to use for stdlib typeshed stubs.
     #[arg(long, value_name = "PATH", alias = "custom-typeshed-dir")]
@@ -97,7 +99,7 @@ impl CheckCommand {
                 python_version: self
                     .python_version
                     .map(|version| RangedValue::cli(version.into())),
-                venv_path: self.venv_path.map(RelativePathBuf::cli),
+                python: self.python.map(RelativePathBuf::cli),
                 typeshed: self.typeshed.map(RelativePathBuf::cli),
                 extra_paths: self.extra_search_path.map(|extra_search_paths| {
                     extra_search_paths
diff --git a/crates/red_knot/src/main.rs b/crates/red_knot/src/main.rs
index 18489996a3a740..29f36b60437c29 100644
--- a/crates/red_knot/src/main.rs
+++ b/crates/red_knot/src/main.rs
@@ -16,7 +16,7 @@ use red_knot_project::{watch, Db};
 use red_knot_project::{ProjectDatabase, ProjectMetadata};
 use red_knot_server::run_server;
 use ruff_db::diagnostic::{Diagnostic, DisplayDiagnosticConfig, Severity};
-use ruff_db::system::{OsSystem, System, SystemPath, SystemPathBuf};
+use ruff_db::system::{OsSystem, SystemPath, SystemPathBuf};
 use salsa::plumbing::ZalsaDatabase;
 
 mod args;
@@ -69,7 +69,7 @@ fn run_check(args: CheckCommand) -> anyhow::Result<ExitStatus> {
     let _guard = setup_tracing(verbosity)?;
 
     // The base path to which all CLI arguments are relative to.
-    let cli_base_path = {
+    let cwd = {
         let cwd = std::env::current_dir().context("Failed to get the current working directory")?;
         SystemPathBuf::from_path_buf(cwd)
             .map_err(|path| {
@@ -80,25 +80,27 @@ fn run_check(args: CheckCommand) -> anyhow::Result<ExitStatus> {
             })?
     };
 
-    let cwd = args
+    let project_path = args
         .project
         .as_ref()
-        .map(|cwd| {
-            if cwd.as_std_path().is_dir() {
-                Ok(SystemPath::absolute(cwd, &cli_base_path))
+        .map(|project| {
+            if project.as_std_path().is_dir() {
+                Ok(SystemPath::absolute(project, &cwd))
             } else {
-                Err(anyhow!("Provided project path `{cwd}` is not a directory"))
+                Err(anyhow!(
+                    "Provided project path `{project}` is not a directory"
+                ))
             }
         })
         .transpose()?
-        .unwrap_or_else(|| cli_base_path.clone());
+        .unwrap_or_else(|| cwd.clone());
 
     let system = OsSystem::new(cwd);
     let watch = args.watch;
     let exit_zero = args.exit_zero;
 
     let cli_options = args.into_options();
-    let mut project_metadata = ProjectMetadata::discover(system.current_directory(), &system)?;
+    let mut project_metadata = ProjectMetadata::discover(&project_path, &system)?;
     project_metadata.apply_cli_options(cli_options.clone());
     project_metadata.apply_configuration_files(&system)?;
 
diff --git a/crates/red_knot_project/src/combine.rs b/crates/red_knot_project/src/combine.rs
index df55cb7f4ebacd..0d035be83985b2 100644
--- a/crates/red_knot_project/src/combine.rs
+++ b/crates/red_knot_project/src/combine.rs
@@ -1,6 +1,6 @@
 use std::{collections::HashMap, hash::BuildHasher};
 
-use red_knot_python_semantic::{PythonPlatform, SitePackages};
+use red_knot_python_semantic::{PythonPath, PythonPlatform};
 use ruff_db::system::SystemPathBuf;
 use ruff_python_ast::PythonVersion;
 
@@ -128,7 +128,7 @@ macro_rules! impl_noop_combine {
 
 impl_noop_combine!(SystemPathBuf);
 impl_noop_combine!(PythonPlatform);
-impl_noop_combine!(SitePackages);
+impl_noop_combine!(PythonPath);
 impl_noop_combine!(PythonVersion);
 
 // std types
diff --git a/crates/red_knot_project/src/metadata/options.rs b/crates/red_knot_project/src/metadata/options.rs
index 6d7eb32271a061..a96536ff2cd01f 100644
--- a/crates/red_knot_project/src/metadata/options.rs
+++ b/crates/red_knot_project/src/metadata/options.rs
@@ -1,7 +1,7 @@
 use crate::metadata::value::{RangedValue, RelativePathBuf, ValueSource, ValueSourceGuard};
 use crate::Db;
 use red_knot_python_semantic::lint::{GetLintError, Level, LintSource, RuleSelection};
-use red_knot_python_semantic::{ProgramSettings, PythonPlatform, SearchPathSettings, SitePackages};
+use red_knot_python_semantic::{ProgramSettings, PythonPath, PythonPlatform, SearchPathSettings};
 use ruff_db::diagnostic::{Diagnostic, DiagnosticId, Severity, Span};
 use ruff_db::files::system_path_to_file;
 use ruff_db::system::{System, SystemPath};
@@ -90,7 +90,7 @@ impl Options {
             .map(|env| {
                 (
                     env.extra_paths.clone(),
-                    env.venv_path.clone(),
+                    env.python.clone(),
                     env.typeshed.clone(),
                 )
             })
@@ -104,11 +104,11 @@ impl Options {
                 .collect(),
             src_roots,
             custom_typeshed: typeshed.map(|path| path.absolute(project_root, system)),
-            site_packages: python
-                .map(|venv_path| SitePackages::Derived {
-                    venv_path: venv_path.absolute(project_root, system),
+            python_path: python
+                .map(|python_path| {
+                    PythonPath::SysPrefix(python_path.absolute(project_root, system))
                 })
-                .unwrap_or(SitePackages::Known(vec![])),
+                .unwrap_or(PythonPath::KnownSitePackages(vec![])),
         }
     }
 
@@ -236,10 +236,14 @@ pub struct EnvironmentOptions {
     #[serde(skip_serializing_if = "Option::is_none")]
     pub typeshed: Option<RelativePathBuf>,
 
-    // TODO: Rename to python, see https://github.com/astral-sh/ruff/issues/15530
-    /// The path to the user's `site-packages` directory, where third-party packages from ``PyPI`` are installed.
+    /// Path to the Python installation from which Red Knot resolves type information and third-party dependencies.
+    ///
+    /// Red Knot will search in the path's `site-packages` directories for type information and
+    /// third-party imports.
+    ///
+    /// This option is commonly used to specify the path to a virtual environment.
     #[serde(skip_serializing_if = "Option::is_none")]
-    pub venv_path: Option<RelativePathBuf>,
+    pub python: Option<RelativePathBuf>,
 }
 
 #[derive(Debug, Default, Clone, Eq, PartialEq, Combine, Serialize, Deserialize)]
diff --git a/crates/red_knot_python_semantic/src/lib.rs b/crates/red_knot_python_semantic/src/lib.rs
index ba8cf29d8fd72c..ab8a622d8afda6 100644
--- a/crates/red_knot_python_semantic/src/lib.rs
+++ b/crates/red_knot_python_semantic/src/lib.rs
@@ -7,7 +7,7 @@ use crate::suppression::{INVALID_IGNORE_COMMENT, UNKNOWN_RULE, UNUSED_IGNORE_COM
 pub use db::Db;
 pub use module_name::ModuleName;
 pub use module_resolver::{resolve_module, system_module_search_paths, KnownModule, Module};
-pub use program::{Program, ProgramSettings, SearchPathSettings, SitePackages};
+pub use program::{Program, ProgramSettings, PythonPath, SearchPathSettings};
 pub use python_platform::PythonPlatform;
 pub use semantic_model::{HasType, SemanticModel};
 
diff --git a/crates/red_knot_python_semantic/src/module_resolver/resolver.rs b/crates/red_knot_python_semantic/src/module_resolver/resolver.rs
index 94cf649a6ddf58..276640de801b1d 100644
--- a/crates/red_knot_python_semantic/src/module_resolver/resolver.rs
+++ b/crates/red_knot_python_semantic/src/module_resolver/resolver.rs
@@ -12,7 +12,7 @@ use crate::db::Db;
 use crate::module_name::ModuleName;
 use crate::module_resolver::typeshed::{vendored_typeshed_versions, TypeshedVersions};
 use crate::site_packages::VirtualEnvironment;
-use crate::{Program, SearchPathSettings, SitePackages};
+use crate::{Program, PythonPath, SearchPathSettings};
 
 use super::module::{Module, ModuleKind};
 use super::path::{ModulePath, SearchPath, SearchPathValidationError};
@@ -171,7 +171,7 @@ impl SearchPaths {
             extra_paths,
             src_roots,
             custom_typeshed: typeshed,
-            site_packages: site_packages_paths,
+            python_path,
         } = settings;
 
         let system = db.system();
@@ -222,16 +222,16 @@ impl SearchPaths {
 
         static_paths.push(stdlib_path);
 
-        let site_packages_paths = match site_packages_paths {
-            SitePackages::Derived { venv_path } => {
+        let site_packages_paths = match python_path {
+            PythonPath::SysPrefix(sys_prefix) => {
                 // TODO: We may want to warn here if the venv's python version is older
                 //  than the one resolved in the program settings because it indicates
                 //  that the `target-version` is incorrectly configured or that the
                 //  venv is out of date.
-                VirtualEnvironment::new(venv_path, system)
+                VirtualEnvironment::new(sys_prefix, system)
                     .and_then(|venv| venv.site_packages_directories(system))?
             }
-            SitePackages::Known(paths) => paths
+            PythonPath::KnownSitePackages(paths) => paths
                 .iter()
                 .map(|path| canonicalize(path, system))
                 .collect(),
@@ -1310,7 +1310,7 @@ mod tests {
                     extra_paths: vec![],
                     src_roots: vec![src.clone()],
                     custom_typeshed: Some(custom_typeshed),
-                    site_packages: SitePackages::Known(vec![site_packages]),
+                    python_path: PythonPath::KnownSitePackages(vec![site_packages]),
                 },
             },
         )
@@ -1816,7 +1816,7 @@ not_a_directory
                     extra_paths: vec![],
                     src_roots: vec![SystemPathBuf::from("/src")],
                     custom_typeshed: None,
-                    site_packages: SitePackages::Known(vec![
+                    python_path: PythonPath::KnownSitePackages(vec![
                         venv_site_packages,
                         system_site_packages,
                     ]),
diff --git a/crates/red_knot_python_semantic/src/module_resolver/testing.rs b/crates/red_knot_python_semantic/src/module_resolver/testing.rs
index 6a131796214e10..71b18a3ab15c7e 100644
--- a/crates/red_knot_python_semantic/src/module_resolver/testing.rs
+++ b/crates/red_knot_python_semantic/src/module_resolver/testing.rs
@@ -4,7 +4,7 @@ use ruff_python_ast::PythonVersion;
 
 use crate::db::tests::TestDb;
 use crate::program::{Program, SearchPathSettings};
-use crate::{ProgramSettings, PythonPlatform, SitePackages};
+use crate::{ProgramSettings, PythonPath, PythonPlatform};
 
 /// A test case for the module resolver.
 ///
@@ -239,7 +239,7 @@ impl TestCaseBuilder<MockedTypeshed> {
                     extra_paths: vec![],
                     src_roots: vec![src.clone()],
                     custom_typeshed: Some(typeshed.clone()),
-                    site_packages: SitePackages::Known(vec![site_packages.clone()]),
+                    python_path: PythonPath::KnownSitePackages(vec![site_packages.clone()]),
                 },
             },
         )
@@ -294,7 +294,7 @@ impl TestCaseBuilder<VendoredTypeshed> {
                 python_version,
                 python_platform,
                 search_paths: SearchPathSettings {
-                    site_packages: SitePackages::Known(vec![site_packages.clone()]),
+                    python_path: PythonPath::KnownSitePackages(vec![site_packages.clone()]),
                     ..SearchPathSettings::new(vec![src.clone()])
                 },
             },
diff --git a/crates/red_knot_python_semantic/src/program.rs b/crates/red_knot_python_semantic/src/program.rs
index 94bb1349a0ede6..4d3c1cc6c62859 100644
--- a/crates/red_knot_python_semantic/src/program.rs
+++ b/crates/red_knot_python_semantic/src/program.rs
@@ -110,8 +110,9 @@ pub struct SearchPathSettings {
     /// bundled as a zip file in the binary
     pub custom_typeshed: Option<SystemPathBuf>,
 
-    /// The path to the user's `site-packages` directory, where third-party packages from ``PyPI`` are installed.
-    pub site_packages: SitePackages,
+    /// Path to the Python installation from which Red Knot resolves third party dependencies
+    /// and their type information.
+    pub python_path: PythonPath,
 }
 
 impl SearchPathSettings {
@@ -120,17 +121,32 @@ impl SearchPathSettings {
             src_roots,
             extra_paths: vec![],
             custom_typeshed: None,
-            site_packages: SitePackages::Known(vec![]),
+            python_path: PythonPath::KnownSitePackages(vec![]),
         }
     }
 }
 
 #[derive(Debug, Clone, Eq, PartialEq)]
 #[cfg_attr(feature = "serde", derive(serde::Serialize, serde::Deserialize))]
-pub enum SitePackages {
-    Derived {
-        venv_path: SystemPathBuf,
-    },
-    /// Resolved site packages paths
-    Known(Vec<SystemPathBuf>),
+pub enum PythonPath {
+    /// A path that represents the value of [`sys.prefix`] at runtime in Python
+    /// for a given Python executable.
+    ///
+    /// For the case of a virtual environment, where a
+    /// Python binary is at `/.venv/bin/python`, `sys.prefix` is the path to
+    /// the virtual environment the Python binary lies inside, i.e. `/.venv`,
+    /// and `site-packages` will be at `.venv/lib/python3.X/site-packages`.
+    /// System Python installations generally work the same way: if a system
+    /// Python installation lies at `/opt/homebrew/bin/python`, `sys.prefix`
+    /// will be `/opt/homebrew`, and `site-packages` will be at
+    /// `/opt/homebrew/lib/python3.X/site-packages`.
+    ///
+    /// [`sys.prefix`]: https://docs.python.org/3/library/sys.html#sys.prefix
+    SysPrefix(SystemPathBuf),
+
+    /// Resolved site packages paths.
+    ///
+    /// This variant is mainly intended for testing where we want to skip resolving `site-packages`
+    /// because it would unnecessarily complicate the test setup.
+    KnownSitePackages(Vec<SystemPathBuf>),
 }
diff --git a/crates/red_knot_python_semantic/src/site_packages.rs b/crates/red_knot_python_semantic/src/site_packages.rs
index b2a8ce32f63798..3fc5719b27a85c 100644
--- a/crates/red_knot_python_semantic/src/site_packages.rs
+++ b/crates/red_knot_python_semantic/src/site_packages.rs
@@ -205,11 +205,11 @@ System site-packages will not be used for module resolution.",
 
 #[derive(Debug, thiserror::Error)]
 pub(crate) enum SitePackagesDiscoveryError {
-    #[error("Invalid --venv-path argument: {0} could not be canonicalized")]
+    #[error("Invalid --python argument: `{0}` could not be canonicalized")]
     VenvDirCanonicalizationError(SystemPathBuf, #[source] io::Error),
-    #[error("Invalid --venv-path argument: {0} does not point to a directory on disk")]
+    #[error("Invalid --python argument: `{0}` does not point to a directory on disk")]
     VenvDirIsNotADirectory(SystemPathBuf),
-    #[error("--venv-path points to a broken venv with no pyvenv.cfg file")]
+    #[error("--python points to a broken venv with no pyvenv.cfg file")]
     NoPyvenvCfgFile(#[source] io::Error),
     #[error("Failed to parse the pyvenv.cfg file at {0} because {1}")]
     PyvenvCfgParseError(SystemPathBuf, PyvenvCfgParseErrorKind),
diff --git a/crates/red_knot_test/src/lib.rs b/crates/red_knot_test/src/lib.rs
index 0c75d54ec2af6d..1449933535710d 100644
--- a/crates/red_knot_test/src/lib.rs
+++ b/crates/red_knot_test/src/lib.rs
@@ -4,7 +4,7 @@ use camino::Utf8Path;
 use colored::Colorize;
 use parser as test_parser;
 use red_knot_python_semantic::types::check_types;
-use red_knot_python_semantic::{Program, ProgramSettings, SearchPathSettings, SitePackages};
+use red_knot_python_semantic::{Program, ProgramSettings, PythonPath, SearchPathSettings};
 use ruff_db::diagnostic::{Diagnostic, DisplayDiagnosticConfig, ParseDiagnostic};
 use ruff_db::files::{system_path_to_file, File, Files};
 use ruff_db::panic::catch_unwind;
@@ -180,7 +180,7 @@ fn run_test(
                     src_roots: vec![src_path],
                     extra_paths: vec![],
                     custom_typeshed: custom_typeshed_path,
-                    site_packages: SitePackages::Known(vec![]),
+                    python_path: PythonPath::KnownSitePackages(vec![]),
                 },
             },
         )
diff --git a/knot.schema.json b/knot.schema.json
index 6f8ad6be7a5c1d..7cfdfc3236da32 100644
--- a/knot.schema.json
+++ b/knot.schema.json
@@ -62,6 +62,13 @@
             "type": "string"
           }
         },
+        "python": {
+          "description": "Path to the Python installation from which Red Knot resolves type information and third-party dependencies.\n\nRed Knot will search in the path's `site-packages` directories for type information and third-party imports.\n\nThis option is commonly used to specify the path to a virtual environment.",
+          "type": [
+            "string",
+            "null"
+          ]
+        },
         "python-platform": {
           "description": "Specifies the target platform that will be used to execute the source code. If specified, Red Knot will tailor its use of type stub files, which conditionalize type definitions based on the platform.\n\nIf no platform is specified, knot will use `all` or the current platform in the LSP use case.",
           "anyOf": [
@@ -90,13 +97,6 @@
             "string",
             "null"
           ]
-        },
-        "venv-path": {
-          "description": "The path to the user's `site-packages` directory, where third-party packages from ``PyPI`` are installed.",
-          "type": [
-            "string",
-            "null"
-          ]
         }
       },
       "additionalProperties": false
diff --git a/scripts/knot_benchmark/src/benchmark/cases.py b/scripts/knot_benchmark/src/benchmark/cases.py
index e2ef9d17ff84b6..eb444c5d13724e 100644
--- a/scripts/knot_benchmark/src/benchmark/cases.py
+++ b/scripts/knot_benchmark/src/benchmark/cases.py
@@ -75,7 +75,7 @@ def cold_command(self, project: Project, venv: Venv) -> Command:
         if project.include:
             command.extend(["--project", project.include[0]])
 
-        command.extend(["--venv-path", str(venv.path)])
+        command.extend(["--python", str(venv.path)])
 
         return Command(
             name="knot",