diff --git a/python-package/setup.py b/python-package/setup.py
new file mode 100644
index 000000000..5e0226c32
--- /dev/null
+++ b/python-package/setup.py
@@ -0,0 +1,49 @@
+# pylint: disable=invalid-name
+"""Setup xgboost package."""
+from __future__ import absolute_import
+import sys
+from setuptools import setup, find_packages
+import subprocess
+sys.path.insert(0, '.')
+
+import os
+#build on the fly if install in pip
+#otherwise, use build.sh in the parent directory
+
+if 'pip' in __file__:
+    if not os.name == 'nt': #if not windows
+        build_sh = subprocess.Popen(['sh', 'xgboost/build-python.sh'])
+        build_sh.wait()
+        output = build_sh.communicate()
+        print(output)
+
+import xgboost
+
+LIB_PATH = xgboost.core.find_lib_path()
+#print LIB_PATH
+
+#to deploy to pip, please use
+#make pythonpack
+#python setup.py register sdist upload
+#and be sure to test it firstly using "python setup.py register sdist upload -r pypitest"
+setup(name='xgboost',
+      #version=xgboost.__version__,
+      version='0.4a13',
+      description=xgboost.__doc__,
+      install_requires=[
+          'numpy',
+          'scipy',
+      ],
+      maintainer='Hongliang Liu',
+      maintainer_email='phunter.lau@gmail.com',
+      zip_safe=False,
+      packages=find_packages(),
+      #don't need this and don't use this, give everything to MANIFEST.in
+      #package_dir = {'':'xgboost'},
+      #package_data = {'': ['*.txt','*.md','*.sh'],
+      #               }
+      #this will use MANIFEST.in during install where we specify additional files,
+      #this is the golden line
+      include_package_data=True,
+      data_files=[('xgboost', LIB_PATH)],
+      url='https://github.com/dmlc/xgboost')