diff --git a/pkgs/development/python-modules/bootstrapped-pip/default.nix b/pkgs/development/python-modules/bootstrapped-pip/default.nix
index f510c5c884b4..31436d0ea38e 100644
--- a/pkgs/development/python-modules/bootstrapped-pip/default.nix
+++ b/pkgs/development/python-modules/bootstrapped-pip/default.nix
@@ -6,8 +6,8 @@ let
     sha256 = "ea8033fc9905804e652f75474d33410a07404c1a78dd3c949a66863bd1050ebd";
   };
   setuptools_source = fetchurl {
-    url = "https://pypi.python.org/packages/3.5/s/setuptools/setuptools-19.4-py2.py3-none-any.whl";
-    sha256 = "0801e6d862ca4ce24d918420d62f07ee2fe736dc016e3afa99d2103e7a02e9a6";
+    url = "https://files.pythonhosted.org/packages/3b/c7/e9724e6f81c96248fba5876054418c11d327b3093d075790903cd66fad44/setuptools-26.1.1-py2.py3-none-any.whl";
+    sha256 = "226c9ce65e76c6069e805982b036f36dc4b227b37dd87fc219aef721ec8604ae";
   };
   argparse_source = fetchurl {
     url = "https://pypi.python.org/packages/2.7/a/argparse/argparse-1.4.0-py2.py3-none-any.whl";
diff --git a/pkgs/development/python-modules/setuptools/default.nix b/pkgs/development/python-modules/setuptools/default.nix
index 290b0d98fe08..3a38dee3174f 100644
--- a/pkgs/development/python-modules/setuptools/default.nix
+++ b/pkgs/development/python-modules/setuptools/default.nix
@@ -2,13 +2,13 @@
 
 stdenv.mkDerivation rec {
   shortName = "setuptools-${version}";
-  name = "${python.executable}-${shortName}";
+  name = "${python.libPrefix}-${shortName}";
 
-  version = "19.4";  # 18.4 and up breaks python34Packages.characteristic and many others
+  version = "26.1.1";  # 18.4 and up breaks python34Packages.characteristic and many others
 
   src = fetchurl {
     url = "mirror://pypi/s/setuptools/${shortName}.tar.gz";
-    sha256 = "214bf29933f47cf25e6faa569f710731728a07a19cae91ea64f826051f68a8cf";
+    sha256 = "475ce28993d7cb75335942525b9fac79f7431a7f6e8a0079c0f2680641379481";
   };
 
   buildInputs = [ python wrapPython ];