diff --git a/Makefile.pre.in b/Makefile.pre.in
index 0ed2cdf079..9ddb7777e5 100644
--- a/Makefile.pre.in
+++ b/Makefile.pre.in
@@ -684,11 +684,7 @@ $(DLLLIBRARY) libpython$(LDVERSION).dll.a: $(LIBRARY_OBJS)
 oldsharedmods: $(SHAREDMODS)
 
 
-Makefile Modules/config.c: Makefile.pre \
-				$(srcdir)/Modules/config.c.in \
-				$(MAKESETUP) \
-				Modules/Setup \
-				Modules/Setup.local
+makesetup:
 	$(SHELL) $(MAKESETUP) -c $(srcdir)/Modules/config.c.in \
 				-s Modules \
 				Modules/Setup.local \
@@ -697,16 +693,6 @@ Makefile Modules/config.c: Makefile.pre \
 	@echo "The Makefile was updated, you may need to re-run make."
 
 
-Modules/Setup: $(srcdir)/Modules/Setup.dist
-	@if test -f Modules/Setup; then \
-		echo "-----------------------------------------------"; \
-		echo "Modules/Setup.dist is newer than Modules/Setup;"; \
-		echo "check to make sure you have all the updates you"; \
-		echo "need in your Modules/Setup file."; \
-		echo "Usually, copying Modules/Setup.dist to Modules/Setup will work."; \
-		echo "-----------------------------------------------"; \
-	fi
-
 Programs/_testembed: Programs/_testembed.o $(LIBRARY) $(LDLIBRARY) $(PY3LIBRARY)
 	$(LINKCC) $(PY_LDFLAGS) $(LINKFORSHARED) -o $@ Programs/_testembed.o $(BLDLIBRARY) $(LIBS) $(MODLIBS) $(SYSLIBS) $(LDLAST)
 
@@ -1478,7 +1464,11 @@ libainstall:	@DEF_MAKE_RULE@ python-config
 	$(INSTALL_DATA) Programs/python.o $(DESTDIR)$(LIBPL)/python.o
 	$(INSTALL_DATA) $(srcdir)/Modules/config.c.in $(DESTDIR)$(LIBPL)/config.c.in
 	$(INSTALL_DATA) Makefile $(DESTDIR)$(LIBPL)/Makefile
-	$(INSTALL_DATA) Modules/Setup $(DESTDIR)$(LIBPL)/Setup
+	@if test -e Modules/Setup; then \
+		$(INSTALL_DATA) Modules/Setup $(DESTDIR)$(LIBPL)/Setup
+	else \
+		$(INSTALL_DATA) $(srcdir)/Modules/Setup.dist $(DESTDIR)$(LIBPL)/Setup \
+	fi
 	$(INSTALL_DATA) Modules/Setup.local $(DESTDIR)$(LIBPL)/Setup.local
 	$(INSTALL_DATA) Misc/python.pc $(DESTDIR)$(LIBPC)/python-$(VERSION).pc
 	$(INSTALL_SCRIPT) $(srcdir)/Modules/makesetup $(DESTDIR)$(LIBPL)/makesetup
@@ -1767,7 +1757,7 @@ Python/thread.o: @THREADHEADERS@
 .PHONY: frameworkinstallmaclib frameworkinstallapps frameworkinstallunixtools
 .PHONY: frameworkaltinstallunixtools recheck clean clobber distclean
 .PHONY: smelly funny patchcheck touch altmaninstall commoninstall
-.PHONY: gdbhooks
+.PHONY: gdbhooks makesetup
 
 # IF YOU PUT ANYTHING HERE IT WILL GO AWAY
 # Local Variables:
diff --git a/Modules/getpath.c b/Modules/getpath.c
index e6a3e8e78c..755298eb4b 100644
--- a/Modules/getpath.c
+++ b/Modules/getpath.c
@@ -322,7 +322,7 @@ search_for_prefix(const _PyCoreConfig *core_config,
     /* Check to see if argv[0] is in the build directory */
     wcsncpy(prefix, calculate->argv0_path, MAXPATHLEN);
     prefix[MAXPATHLEN] = L'\0';
-    joinpath(prefix, L"Modules/Setup");
+    joinpath(prefix, L"Modules/Setup.local");
     if (isfile(prefix)) {
         /* Check VPATH to see if argv0_path is in the build directory. */
         vpath = Py_DecodeLocale(VPATH, NULL);
diff --git a/Modules/makesetup b/Modules/makesetup
index 020b19938c..578e6e3355 100755
--- a/Modules/makesetup
+++ b/Modules/makesetup
@@ -98,11 +98,21 @@ CYGWIN*) if test $libdir = .
 esac
 
 # Main loop
-for i in ${*-Setup}
+for setupfile in ${*-Setup}
 do
-	case $i in
+	# Check if Setup file does not exist.  In that case, use
+	# Setup.dist from source folder.
+	case $setupfile in
+	*/Setup)
+		if ! test -f $setupfile; then
+			setupfile=$libdir/Setup.dist
+		fi
+		;;
+	esac
+
+	case $setupfile in
 	-n)	echo '*noobjects*';;
-	*)	echo '*doconfig*'; cat "$i";;
+	*)	echo '*doconfig*'; cat "$setupfile";;
 	esac
 done |
 sed -e 's/[ 	]*#.*//' -e '/^[ 	]*$/d' |
diff --git a/configure b/configure
index d427703f8e..cbaff110c6 100755
--- a/configure
+++ b/configure
@@ -18355,12 +18355,6 @@ $as_echo "$as_me: WARNING: unrecognized options: $ac_unrecognized_opts" >&2;}
 fi
 
 
-echo "creating Modules/Setup" >&6
-if test ! -f Modules/Setup
-then
-	cp $srcdir/Modules/Setup.dist Modules/Setup
-fi
-
 echo "creating Modules/Setup.local" >&6
 if test ! -f Modules/Setup.local
 then
diff --git a/configure.ac b/configure.ac
index b98ceb2b14..aba0f04653 100644
--- a/configure.ac
+++ b/configure.ac
@@ -5565,12 +5565,6 @@ AC_CONFIG_FILES(Makefile.pre Misc/python.pc Misc/python-config.sh)
 AC_CONFIG_FILES([Modules/ld_so_aix], [chmod +x Modules/ld_so_aix])
 AC_OUTPUT
 
-echo "creating Modules/Setup" >&AS_MESSAGE_FD
-if test ! -f Modules/Setup
-then
-	cp $srcdir/Modules/Setup.dist Modules/Setup
-fi
-
 echo "creating Modules/Setup.local" >&AS_MESSAGE_FD
 if test ! -f Modules/Setup.local
 then