diff --git a/README.md b/README.md
index 639f78b..45112bc 100644
--- a/README.md
+++ b/README.md
@@ -18,6 +18,7 @@ is installed correctly (at least v0.6.6):
 
 	$ apt-get install python-dev libusb-1.0-0-dev libudev-dev
 	$ pip install Cython trezor
+	$ pip install -U setuptools
 
 Then, install the latest [trezor_agent](https://pypi.python.org/pypi/trezor_agent) package: