diff --git a/pkgs/by-name/sq/squid/package.nix b/pkgs/by-name/sq/squid/package.nix
index 5d2803944dcf..2ceb16f34194 100644
--- a/pkgs/by-name/sq/squid/package.nix
+++ b/pkgs/by-name/sq/squid/package.nix
@@ -14,20 +14,19 @@
   pkg-config,
   systemd,
   cppunit,
-  esi ? false,
   ipv6 ? true,
   nixosTests,
 }:
 
 stdenv.mkDerivation (finalAttrs: {
   pname = "squid";
-  version = "6.13";
+  version = "7.0.1";
 
   src = fetchurl {
     url = "https://github.com/squid-cache/squid/releases/download/SQUID_${
       builtins.replaceStrings [ "." ] [ "_" ] finalAttrs.version
     }/squid-${finalAttrs.version}.tar.xz";
-    hash = "sha256-Iy4FZ5RszAEVZTw8GPAeg/LZzEnEPZ3q2LMZrws1rVI=";
+    hash = "sha256-Bw3Y5iGtItRdcAYF6xnSysG2zae3PwTzRXjTw/2N35s=";
   };
 
   nativeBuildInputs = [ pkg-config ];
@@ -62,7 +61,6 @@ stdenv.mkDerivation (finalAttrs: {
       "--enable-htcp"
     ]
     ++ (if ipv6 then [ "--enable-ipv6" ] else [ "--disable-ipv6" ])
-    ++ lib.optional (!esi) "--disable-esi"
     ++ lib.optional (
       stdenv.hostPlatform.isLinux && !stdenv.hostPlatform.isMusl
     ) "--enable-linux-netfilter";
@@ -81,6 +79,20 @@ stdenv.mkDerivation (finalAttrs: {
         --replace "$(type -P true)" "$(realpath fake-true)" \
         --replace "/bin/true" "$(realpath fake-true)"
     done
+
+    cd test-suite/
+  '';
+
+  installPhase = ''
+    runHook preInstall
+    mkdir -p $out/bin $out/libexec $out/etc $out/share
+    cd ..
+    cp src/squid $out/bin
+    cp src/unlinkd $out/libexec
+    cp src/mime.conf.default $out/etc/mime.conf
+    cp -r icons $out/share
+    cp -r errors $out/share
+    runHook postInstall
   '';
 
   passthru.tests.squid = nixosTests.squid;