diff --git a/package/python-setuptools/python-setuptools.hash b/package/python-setuptools/python-setuptools.hash
index 88113fa1f9..de6ad56d44 100644
--- a/package/python-setuptools/python-setuptools.hash
+++ b/package/python-setuptools/python-setuptools.hash
@@ -1,4 +1,2 @@
-# From https://pypi.python.org/pypi/setuptools/18.7.1
-md5 a0984da9cd8d7b582e1fd7de67dfdbcc setuptools-18.7.1.tar.gz
 # Locally calculated
-sha256  aff36c95035e0b311eacb1434e3f7e85f5ccaad477773847e582978f8f45bd74  setuptools-18.7.1.tar.gz
+sha256  99339ac1b4c9bc0a74745d6ff196a207ddfb5f7ca75df76f3d8d081a7f70cecc  python-setuptools-v36.0.1.tar.gz
diff --git a/package/python-setuptools/python-setuptools.mk b/package/python-setuptools/python-setuptools.mk
index 15edc6fd07..1bdb78889f 100644
--- a/package/python-setuptools/python-setuptools.mk
+++ b/package/python-setuptools/python-setuptools.mk
@@ -4,12 +4,20 @@
 #
 ################################################################################
 
-PYTHON_SETUPTOOLS_VERSION = 18.7.1
-PYTHON_SETUPTOOLS_SOURCE = setuptools-$(PYTHON_SETUPTOOLS_VERSION).tar.gz
-PYTHON_SETUPTOOLS_SITE = http://pypi.python.org/packages/source/s/setuptools
-PYTHON_SETUPTOOLS_LICENSE = Python Software Foundation or Zope Public License
-PYTHON_SETUPTOOLS_LICENSE_FILES = PKG-INFO
+PYTHON_SETUPTOOLS_VERSION = v36.0.1
+PYTHON_SETUPTOOLS_SITE = $(call github,pypa,setuptools,$(PYTHON_SETUPTOOLS_VERSION))
+PYTHON_SETUPTOOLS_LICENSE = MIT
+PYTHON_SETUPTOOLS_LICENSE_FILES = LICENSE
 PYTHON_SETUPTOOLS_SETUP_TYPE = setuptools
 
+# recent setuptools versions require bootstrap.py to be invoked
+# before the standard setup process.
+define PYTHON_SETUPTOOLS_RUN_BOOTSTRAP
+	cd  $(@D) && $(HOST_DIR)/usr/bin/python ./bootstrap.py
+endef
+
+PYTHON_SETUPTOOLS_PRE_CONFIGURE_HOOKS = PYTHON_SETUPTOOLS_RUN_BOOTSTRAP
+HOST_PYTHON_SETUPTOOLS_PRE_CONFIGURE_HOOKS = PYTHON_SETUPTOOLS_RUN_BOOTSTRAP
+
 $(eval $(python-package))
 $(eval $(host-python-package))