diff --git a/pkgs/development/python-modules/nats-py/default.nix b/pkgs/development/python-modules/nats-py/default.nix
index 3f958d05cff9..889017f006d9 100644
--- a/pkgs/development/python-modules/nats-py/default.nix
+++ b/pkgs/development/python-modules/nats-py/default.nix
@@ -7,13 +7,14 @@
 , nats-server
 , pytestCheckHook
 , pythonOlder
+, setuptools
 , uvloop
 }:
 
 buildPythonPackage rec {
   pname = "nats-py";
-  version = "2.2.0";
-  format = "setuptools";
+  version = "2.3.1";
+  format = "pyproject";
 
   disabled = pythonOlder "3.7";
 
@@ -21,9 +22,18 @@ buildPythonPackage rec {
     owner = "nats-io";
     repo = "nats.py";
     rev = "refs/tags/v${version}";
-    hash = "sha256-w+YySX9RNXUttt7iLg/Efh8bNzmhIQTKMXcoPO1k4lI=";
+    hash = "sha256-vcTkQeaWBsPlPCp53VqI3inH0PkdxkKWDTW/vtrD/xw=";
   };
 
+  postPatch = ''
+    substituteInPlace pyproject.toml \
+      --replace '"--cov=nats", "--cov-report=html"' ""
+  '';
+
+  nativeBuildInputs = [
+    setuptools
+  ];
+
   propagatedBuildInputs = [
     aiohttp
     ed25519
@@ -35,11 +45,6 @@ buildPythonPackage rec {
     uvloop
   ];
 
-  postPatch = ''
-    substituteInPlace setup.cfg \
-      --replace "--cov=nats --cov-report html" ""
-  '';
-
   disabledTests = [
     # AssertionError: assert 5 == 0
     "test_pull_subscribe_limits"