diff --git a/pkgs/development/python-modules/localstack/default.nix b/pkgs/development/python-modules/localstack/default.nix
index 28653b44380a..a631de7a26e8 100644
--- a/pkgs/development/python-modules/localstack/default.nix
+++ b/pkgs/development/python-modules/localstack/default.nix
@@ -4,8 +4,10 @@
   fetchFromGitHub,
   apispec,
   boto3,
+  build,
   cachetools,
   click,
+  cryptography,
   localstack-client,
   localstack-ext,
   plux,
@@ -22,7 +24,7 @@
 buildPythonPackage rec {
   pname = "localstack";
   version = "3.5.0";
-  format = "setuptools";
+  pyproject = true;
 
   src = fetchFromGitHub {
     owner = "localstack";
@@ -31,18 +33,13 @@ buildPythonPackage rec {
     hash = "sha256-Sd5B4+pvUwNXfP3hsqBkUoHo06YyzUGCUHzc8f77Vx4=";
   };
 
-  postPatch = ''
-    substituteInPlace setup.cfg \
-      --replace "requests>=2.20.0,<2.26" "requests~=2.20" \
-      --replace "cachetools~=5.0.0" "cachetools~=5.0" \
-      --replace "boto3>=1.20,<1.25.0" "boto3~=1.20"
-  '';
-
-  propagatedBuildInputs = [
+  dependencies = [
     apispec
     boto3
+    build
     cachetools
     click
+    cryptography
     localstack-client
     localstack-ext
     plux
@@ -56,13 +53,20 @@ buildPythonPackage rec {
     tailer
   ];
 
+  pythonRelaxDeps = [ "dill" ];
+
   pythonImportsCheck = [ "localstack" ];
 
   # Test suite requires boto, which has been removed from nixpkgs
   # Just do minimal test, buildPythonPackage maps checkPhase
   # to installCheckPhase, so we can test that entrypoint point works.
   checkPhase = ''
+    runHook preCheck
+
+    export HOME=$(mktemp -d)
     $out/bin/localstack --version
+
+    runHook postCheck
   '';
 
   meta = with lib; {