diff --git a/MANIFEST.in b/MANIFEST.in
index 8e6b6386b61f..e8e949f97f26 100644
--- a/MANIFEST.in
+++ b/MANIFEST.in
@@ -1,3 +1,2 @@
-recursive-include lib-typing *.py
 recursive-include scripts *
 recursive-exclude scripts myunit
diff --git a/build-requirements.txt b/build-requirements.txt
new file mode 100644
index 000000000000..0a8547bcc8ef
--- /dev/null
+++ b/build-requirements.txt
@@ -0,0 +1,2 @@
+setuptools
+wheel
diff --git a/mypy/test/testcmdline.py b/mypy/test/testcmdline.py
index a5a888711840..f2ddc9bd429b 100644
--- a/mypy/test/testcmdline.py
+++ b/mypy/test/testcmdline.py
@@ -15,7 +15,7 @@
 from mypy.test.config import test_data_prefix, test_temp_dir
 from mypy.test.data import parse_test_cases, DataDrivenTestCase
 from mypy.test.helpers import assert_string_arrays_equal
-from mypy.version import __version__
+from mypy.version import __version__, base_version
 
 # Path to Python 3 interpreter
 python3_path = sys.executable
@@ -99,5 +99,6 @@ def normalize_file_output(content: List[str], current_abs_path: str) -> List[str
     timestamp_regex = re.compile('\d{10}')
     result = [x.replace(current_abs_path, '$PWD') for x in content]
     result = [x.replace(__version__, '$VERSION') for x in result]
+    result = [x.replace(base_version, '$VERSION') for x in result]
     result = [timestamp_regex.sub('$TIMESTAMP', x) for x in result]
     return result
diff --git a/setup.cfg b/setup.cfg
index dd46edd3aeff..084dab95b5e1 100644
--- a/setup.cfg
+++ b/setup.cfg
@@ -20,3 +20,12 @@ parallel = true
 
 [coverage:report]
 show_missing = true
+
+[metadata]
+# This seems to be used only by bdist_wheel.
+# You need "pip3 install wheel".
+# Then run "python3 setup.py bdist_wheel" to build a wheel file
+# (and then upload that to PyPI).
+requires-dist =
+    typed-ast >= 0.6.3
+    typing >= 3.5.3; python_version < "3.5"
diff --git a/setup.py b/setup.py
index 374f76b627ed..722fab858c0c 100644
--- a/setup.py
+++ b/setup.py
@@ -9,8 +9,11 @@
     sys.stderr.write("ERROR: You need Python 3.2 or later to use mypy.\n")
     exit(1)
 
-from distutils.core import setup
-from distutils.command.build_py import build_py
+# This requires setuptools when building; setuptools is not needed
+# when installing from a wheel file (though it is still neeeded for
+# alternative forms of installing, as suggested by README.md).
+from setuptools import setup
+from setuptools.command.build_py import build_py
 from mypy.version import base_version
 from mypy import git
 
@@ -81,18 +84,26 @@ def run(self):
     'Programming Language :: Python :: 3.3',
     'Programming Language :: Python :: 3.4',
     'Programming Language :: Python :: 3.5',
+    'Programming Language :: Python :: 3.6',
     'Topic :: Software Development',
 ]
 
 
 package_dir = {'mypy': 'mypy'}
-if sys.version_info < (3, 5, 0):
-    package_dir[''] = 'lib-typing/3.2'
 
 scripts = ['scripts/mypy', 'scripts/stubgen']
 if os.name == 'nt':
     scripts.append('scripts/mypy.bat')
 
+# These requirements are used when installing by other means than bdist_wheel.
+# E.g. "pip3 install ." or
+# "pip3 install git+git://github.com/python/mypy.git"
+# (as suggested by README.md).
+install_requires = []
+install_requires.append('typed-ast >= 0.6.3')
+if sys.version_info < (3, 5):
+    install_requires.append('typing >= 3.5.3')
+
 setup(name='mypy-lang',
       version=version,
       description=description,
@@ -103,10 +114,11 @@ def run(self):
       license='MIT License',
       platforms=['POSIX'],
       package_dir=package_dir,
-      py_modules=['typing'] if sys.version_info < (3, 5, 0) else [],
+      py_modules=[],
       packages=['mypy'],
       scripts=scripts,
       data_files=data_files,
       classifiers=classifiers,
       cmdclass={'build_py': CustomPythonBuild},
+      install_requires=install_requires,
       )
diff --git a/test-data/unit/pythoneval.test b/test-data/unit/pythoneval.test
index 1887177d3320..7945fe552114 100644
--- a/test-data/unit/pythoneval.test
+++ b/test-data/unit/pythoneval.test
@@ -11,7 +11,8 @@ print('hello, world')
 [out]
 hello, world
 
-[case testAbstractBaseClasses]
+-- Skipped because different typing package versions have different repr()s. 
+[case testAbstractBaseClasses-skip]
 import re
 from typing import Sized, Sequence, Iterator, Iterable, Mapping, AbstractSet