diff --git a/pkgs/development/python-modules/setuptools/default.nix b/pkgs/development/python-modules/setuptools/default.nix
index f585d758c2d..35630be2255 100644
--- a/pkgs/development/python-modules/setuptools/default.nix
+++ b/pkgs/development/python-modules/setuptools/default.nix
@@ -4,16 +4,13 @@ stdenv.mkDerivation rec {
   shortName = "setuptools-${version}";
   name = "${python.executable}-${shortName}";
 
-  version = "2.0.2";
+  version = "2.1";
 
   src = fetchurl {
     url = "http://pypi.python.org/packages/source/s/setuptools/${shortName}.tar.gz";
-    sha256 = "09nv5x45y8fgc0kjmmw4gig3hr0is9xlc5rq053vnbmkxr5q5xmi";
+    sha256 = "1m8qjvj5bfbphdags5s6pgmvk3xnw509lgdlq9whkq5a9mgxf8m7";
   };
 
-  # see https://bitbucket.org/pypa/setuptools/commits/976b839801a3a181f2e14f305ddbe0b410fa8fc0.patch
-  patches = [ ./fix_python3_egg_fetcher.patch ];
-
   buildInputs = [ python wrapPython distutils-cfg ];
 
   buildPhase = "${python}/bin/${python.executable} setup.py build";
diff --git a/pkgs/development/python-modules/setuptools/fix_python3_egg_fetcher.patch b/pkgs/development/python-modules/setuptools/fix_python3_egg_fetcher.patch
deleted file mode 100644
index 17ab473a502..00000000000
--- a/pkgs/development/python-modules/setuptools/fix_python3_egg_fetcher.patch
+++ /dev/null
@@ -1,28 +0,0 @@
-diff --git a/CHANGES.txt b/CHANGES.txt
---- a/CHANGES.txt
-+++ b/CHANGES.txt
-@@ -3,6 +3,12 @@
- =======
- 
- -----
-+2.0.3
-+-----
-+
-+* Issue #131: Fix RuntimeError when constructing an egg fetcher.
-+
-+-----
- 2.0.2
- -----
- 
-diff --git a/setuptools/dist.py b/setuptools/dist.py
---- a/setuptools/dist.py
-+++ b/setuptools/dist.py
-@@ -295,7 +295,7 @@
-                 'find_links', 'site_dirs', 'index_url', 'optimize',
-                 'site_dirs', 'allow_hosts'
-             )
--            for key in opts.keys():
-+            for key in list(opts):
-                 if key not in keep:
-                     del opts[key]   # don't use any other settings
-             if self.dependency_links: