diff --git a/source/developers/development_environment.markdown b/source/developers/development_environment.markdown
index eb567b48ffd..687c9452497 100644
--- a/source/developers/development_environment.markdown
+++ b/source/developers/development_environment.markdown
@@ -24,5 +24,11 @@ On Windows you can use `python setup.py develop` instead of the setup script.
 
 After following these steps, running `hass` will invoke your local installation.
 
+###Developing on Windows 
 If you are using Windows as a development platform ensure you have the correct Microsoft Visual C++ build tools installed. Please check [the Windows Compilers](https://wiki.python.org/moin/WindowsCompilers) section on the [Python website](https://www.python.org/) for details. Validation using `tox` will fail if this is not done correctly. 
 
+Ensure you install or upgrade the Setuptools Python package. It contain compatibility improvements and add automatic use of compilers: 
+```bash
+pip install --upgrade setuptools
+```
+