diff --git a/pkgs/applications/version-management/meld/default.nix b/pkgs/applications/version-management/meld/default.nix
index 145496cb49c..d48c50f9daf 100644
--- a/pkgs/applications/version-management/meld/default.nix
+++ b/pkgs/applications/version-management/meld/default.nix
@@ -1,33 +1,48 @@
-{stdenv, fetchurl, pygtk, python, intltool, scrollkeeper, makeWrapper }:
+{stdenv, fetchurl, itstool, buildPythonPackage, python27, intltool, scrollkeeper, makeWrapper, libxml2, pygobject3, gobjectIntrospection, gtk3, gnome3, pycairo, cairo}:
+
 
 let
-  minor = "1.8";
-  version = "${minor}.6";
+  minor = "3.12";
+  version = "${minor}.3";
 in
 
-stdenv.mkDerivation {
+buildPythonPackage rec {
   name = "meld-${version}";
+  namePrefix = "";
 
   src = fetchurl {
     url = "mirror://gnome/sources/meld/${minor}/meld-${version}.tar.xz";
-    sha256 = "19g86rksrs77hd58zhs3zwbjmmhqc98v2ly8451avwsbiwmni5mg";
+    sha256 = "1zg6qhm53j0vxmjj3pcj2hwi8c12dxzmlh98zks0jnwhqv2p4dfv";
   };
 
-  buildInputs = [ pygtk python intltool scrollkeeper makeWrapper ];
+  buildInputs = [ python27 intltool scrollkeeper makeWrapper itstool libxml2 gnome3.gtksourceview gnome3.gsettings_desktop_schemas pycairo cairo];
+  propagatedBuildInputs = [ gobjectIntrospection pygobject3 gtk3 ];
+
+  installPhase = ''
+    mkdir -p "$out/lib/${python27.libPrefix}/site-packages"
+
+    export PYTHONPATH="$out/lib/${python27.libPrefix}/site-packages:$PYTHONPATH"
+
+    ${python27}/bin/${python27.executable} setup.py install \
+      --install-lib=$out/lib/${python27.libPrefix}/site-packages \
+      --prefix="$out"
+
+    wrapProgram $out/bin/meld \
+      --prefix GI_TYPELIB_PATH : "$GI_TYPELIB_PATH" \
+      --prefix LD_LIBRARY_PATH : "${gnome3.gtk3}/lib" \
+      --prefix XDG_DATA_DIRS : "$GSETTINGS_SCHEMAS_PATH:$out/share"
+  '';
 
   patchPhase = ''
-    sed -e s,/usr/local,$out, -i INSTALL
-    sed -e 's,#!.*,#!${python}/bin/python,' -i bin/meld
+    sed -e 's,#!.*,#!${python27}/bin/python27,' -i bin/meld
   '';
 
-  postInstall = ''
-    wrapProgram $out/bin/meld --prefix PYTHONPATH : $PYTHONPATH:${pygtk}/lib/${python.libPrefix}/site-packages/gtk-2.0
-  '';
+  pythonPath = [ gtk3 ];
 
   meta = with stdenv.lib; {
     description = "Visual diff and merge tool";
     homepage = http://meld.sourceforge.net;
-    license = stdenv.lib.licenses.gpl2Plus;
+    license = stdenv.lib.licenses.gpl2;
     platforms = platforms.linux ++ stdenv.lib.platforms.darwin;
   };
 }
diff --git a/pkgs/development/python-modules/pygobject/3.nix b/pkgs/development/python-modules/pygobject/3.nix
index 94de33f0d50..14b7bd34eae 100644
--- a/pkgs/development/python-modules/pygobject/3.nix
+++ b/pkgs/development/python-modules/pygobject/3.nix
@@ -8,7 +8,8 @@ stdenv.mkDerivation rec {
     sha256 = "0dfsjsa95ix8bx3h8w4bhnz7rymgl2paclvbn93x6qp8b53y0pys";
   };
 
-  buildInputs = [ python pkgconfig glib gobjectIntrospection pycairo cairo ];
+  buildInputs = [ python pkgconfig glib gobjectIntrospection ];
+  propagatedBuildInputs = [ pycairo cairo ];
 
   meta = {
     homepage = http://live.gnome.org/PyGObject;
diff --git a/pkgs/top-level/all-packages.nix b/pkgs/top-level/all-packages.nix
index 7b83ad8130d..082f598f659 100644
--- a/pkgs/top-level/all-packages.nix
+++ b/pkgs/top-level/all-packages.nix
@@ -10440,7 +10440,6 @@ let
 
   meld = callPackage ../applications/version-management/meld {
     inherit (gnome) scrollkeeper;
-    pygtk = pyGtkGlade;
   };
 
   mcomix = callPackage ../applications/graphics/mcomix { };