diff --git a/setup.py b/setup.py
index 0cca10682d..d81e7b7ead 100644
--- a/setup.py
+++ b/setup.py
@@ -1,18 +1,18 @@
 from setuptools import setup, find_packages
+from pip.req import parse_requirements
 
 version = "6.12.6"
-
-with open("requirements.txt", "r") as f:
-	install_requires = f.readlines()
+requirements = parse_requirements("requirements.txt", session="")
 
 setup(
-    name='erpnext',
-    version=version,
-    description='Open Source ERP',
-    author='Frappe Technologies',
-    author_email='info@erpnext.com',
-    packages=find_packages(),
-    zip_safe=False,
-    include_package_data=True,
-    install_requires=install_requires
+	name='erpnext',
+	version=version,
+	description='Open Source ERP',
+	author='Frappe Technologies',
+	author_email='info@erpnext.com',
+	packages=find_packages(),
+	zip_safe=False,
+	include_package_data=True,
+	install_requires=[str(ir.req) for ir in requirements],
+	dependency_links=[str(ir._link) for ir in requirements if ir._link]
 )