An invention for electronic file protection using location and other entropy factors is provided. Environment information regarding a computer is obtained, wherein the environment information includes data concerning an operating environment of the computer. Based on the environment information, an encryption key is generated and an electronic file is encrypted using the encryption key. A decryption key can also be created based on environment information, wherein the decryption key can be utilized to decrypt the electronic file. In addition, the environment information can include location information of the computer, drive information regarding a drive wherein the electronic file will be stored, and time information specifying access duration.