Index: setup.py
===================================================================
--- setup.py	(revision 72608)
+++ setup.py	(working copy)
@@ -1148,30 +1148,39 @@
         # http://www.gzip.org/zlib/
         zlib_inc = find_file('zlib.h', [], inc_dirs)
         have_zlib = False
-        if zlib_inc is not None:
+        zlibdir = None
+        shipped_zlibdir = os.path.join(os.path.abspath('.'), 'Modules/zlib')
+        shipped_zlib_inc = find_file('zlib.h', [], [shipped_zlibdir])
+        # We ship zlib, so use it if system version is bad
+        if zlib_inc is None:
+            zlibdir, zlib_inc = shipped_zlibdir, shipped_zlib_inc
+        zlib_h = zlib_inc[0] + '/zlib.h'
+        version = '"0.0.0"'
+        version_req = '"1.1.3"'
+        fp = open(zlib_h)
+        while 1:
+            line = fp.readline()
+            if not line:
+                break
+            if line.startswith('#define ZLIB_VERSION'):
+                version = line.split()[2]
+                break
+        # We ship zlib, so use it if system version is bad
+        if version < version_req and zlibdir is None:
+            zlibdir, zlib_inc = shipped_zlibdir, shipped_zlib_inc
             zlib_h = zlib_inc[0] + '/zlib.h'
-            version = '"0.0.0"'
-            version_req = '"1.1.3"'
-            fp = open(zlib_h)
-            while 1:
-                line = fp.readline()
-                if not line:
-                    break
-                if line.startswith('#define ZLIB_VERSION'):
-                    version = line.split()[2]
-                    break
-            if version >= version_req:
-                if (self.compiler.find_library_file(lib_dirs, 'z')):
-                    if sys.platform == "darwin":
-                        zlib_extra_link_args = ('-Wl,-search_paths_first',)
-                    else:
-                        zlib_extra_link_args = ()
-                    exts.append( Extension('zlib', ['zlibmodule.c'],
-                                           libraries = ['z'],
-                                           extra_link_args = zlib_extra_link_args))
-                    have_zlib = True
+            version = '"1.1.3"'
+        if version >= version_req:
+            if (self.compiler.find_library_file(lib_dirs, 'z')) or zlibdir:
+                if sys.platform == "darwin":
+                    zlib_extra_link_args = ('-Wl,-search_paths_first',)
                 else:
-                    missing.append('zlib')
+                    zlib_extra_link_args = ()
+                exts.append( Extension('zlib', ['zlibmodule.c'],
+                                        libraries = ['z'],
+                                        include_dirs = zlib_inc,
+                                        extra_link_args = zlib_extra_link_args))
+                have_zlib = True
             else:
                 missing.append('zlib')
         else:
@@ -1190,6 +1199,7 @@
         exts.append( Extension('binascii', ['binascii.c'],
                                extra_compile_args = extra_compile_args,
                                libraries = libraries,
+                               include_dirs = zlib_inc,
                                extra_link_args = extra_link_args) )
 
         # Gustavo Niemeyer's bz2 module.