Many surveys indicate that more organizations are practicing agile in distributed environments. Yet, agile is optimized for collocated people who can huddle around a problem space and closely collaborate on best solutions that will deliver value. But is collocation the only option these days? Does distributed always imply “dysfunctional”? Maybe the problem is how we think about the “working environment”. In this talk, we will share how we have experienced different work environments, principles and practices we have discovered after working for years with distributed agile teams in these environments and how re-thinking “distributed” and “co-located” allow these teams to thrive in an agile environment.