diff --git a/README.md b/README.md
index cc1c951..7a4a40c 100644
--- a/README.md
+++ b/README.md
@@ -7,8 +7,8 @@ Initial setup
 Install dependencies:
 
 ```
-pip install -r requirements.txt
 python setup.py develop
+pip install -r dev_requirements.txt
 ```
 
 Setup mysql schema:
diff --git a/dev_requirements.txt b/dev_requirements.txt
new file mode 100644
index 0000000..26a2046
--- /dev/null
+++ b/dev_requirements.txt
@@ -0,0 +1,5 @@
+pytest
+pytest-mock
+requests
+gunicorn
+flake8
diff --git a/requirements.txt b/requirements.txt
deleted file mode 100644
index 4817253..0000000
--- a/requirements.txt
+++ /dev/null
@@ -1,25 +0,0 @@
-falcon==1.1.0
-falcon-cors
-gevent
-ujson
-sqlalchemy
-PyYAML
-PyMYSQL
-phonenumbers
-jinja2
-streql
-webassets
-beaker
-pycrypto
-importlib
-python-ldap
-ordereddict  # for 26
-pytz
-icalendar
-
-# for dev, also yum install sqlite-devel
-pytest
-pytest-mock
-requests
-gunicorn
-flake8
diff --git a/setup.py b/setup.py
index 4d2abda..9deecd4 100644
--- a/setup.py
+++ b/setup.py
@@ -6,7 +6,7 @@ try:
 except ImportError:
     from distutils.core import setup
 import re
-o
+
 with open('src/oncall/__init__.py', 'r') as fd:
     version = re.search(r'^__version__\s*=\s*[\'"]([^\'"]*)[\'"]', fd.read(), re.MULTILINE).group(1)
 
@@ -15,6 +15,23 @@ setup(
     version=version,
     packages=['oncall'],
     package_dir={'': 'src'},
+    install_requires=[
+        'falcon==1.1.0',
+        'falcon-cors',
+        'gevent',
+        'ujson',
+        'sqlalchemy',
+        'PyYAML',
+        'PyMYSQL',
+        'phonenumbers',
+        'jinja2',
+        'streql',
+        'webassets',
+        'beaker',
+        'pycrypto',
+        'python-ldap',
+        'pytz',
+    ],
     entry_points={
         'console_scripts': [
             'build_assets = oncall.bin.build_assets:main',