diff --git a/pkgs/development/python-modules/setuptools/default.nix b/pkgs/development/python-modules/setuptools/default.nix
index ac3d0e473958..50b39c785264 100644
--- a/pkgs/development/python-modules/setuptools/default.nix
+++ b/pkgs/development/python-modules/setuptools/default.nix
@@ -8,13 +8,13 @@
 # Should use buildPythonPackage here somehow
 stdenv.mkDerivation rec {
   pname = "setuptools";
-  version = "40.4.3";
+  version = "40.5.0";
   name = "${python.libPrefix}-${pname}-${version}";
 
   src = fetchPypi {
     inherit pname version;
     extension = "zip";
-    sha256 = "acbc5740dd63f243f46c2b4b8e2c7fd92259c2ddb55a4115b16418a2ed371b15";
+    sha256 = "2a2a200f4a760adbded23a091a00be2eca4e28efed65c6120ea275f7e89a1eab";
   };
 
   nativeBuildInputs = [ unzip wrapPython ];