diff --git a/src/com/mirantis/mk/Openstack.groovy b/src/com/mirantis/mk/Openstack.groovy
index ed0028c..8aa5690 100644
--- a/src/com/mirantis/mk/Openstack.groovy
+++ b/src/com/mirantis/mk/Openstack.groovy
@@ -27,6 +27,8 @@
     python.setupDocutilsVirtualenv(path)
 
     def openstack_kilo_packages = [
+        //XXX: hack to fix https://bugs.launchpad.net/ubuntu/+source/python-pip/+bug/1635463
+        'cliff==2.8',
         'python-cinderclient>=1.3.1,<1.4.0',
         'python-glanceclient>=0.19.0,<0.20.0',
         'python-heatclient>=0.6.0,<0.7.0',
@@ -43,6 +45,8 @@
     ]
 
     def openstack_latest_packages = [
+        //XXX: hack to fix https://bugs.launchpad.net/ubuntu/+source/python-pip/+bug/1635463
+        'cliff==2.8',
         'python-openstackclient',
         'python-heatclient',
         'docutils'
diff --git a/src/com/mirantis/mk/Python.groovy b/src/com/mirantis/mk/Python.groovy
index a288c93..6180daf 100644
--- a/src/com/mirantis/mk/Python.groovy
+++ b/src/com/mirantis/mk/Python.groovy
@@ -17,8 +17,7 @@
 def setupVirtualenv(path, python = 'python2', reqs=[], reqs_path=null, clean=false) {
     def common = new com.mirantis.mk.Common()
 
-    //XXX: hack to fix https://bugs.launchpad.net/ubuntu/+source/python-pip/+bug/1635463
-    def virtualenv_cmd = "virtualenv ${path} --python ${python} --no-setuptools"
+    def virtualenv_cmd = "virtualenv ${path} --python ${python}"
 
     if (clean) {
         common.infoMsg("Cleaning venv directory " + path)
@@ -35,8 +34,6 @@
         writeFile file: "${path}/requirements.txt", text: args
         reqs_path = "${path}/requirements.txt"
     }
-    //XXX: hack to fix https://bugs.launchpad.net/ubuntu/+source/python-pip/+bug/1635463
-    runVirtualenvCommand(path, "pip install setuptools")
     runVirtualenvCommand(path, "pip install -r ${reqs_path}")
 }