diff --git a/README.md b/README.md
index 8adb06236573eda0f30ee4a5120f1d082f15991b..758996dde420ef5ea1632dedfc53e68a11fe6ca0 100644
--- a/README.md
+++ b/README.md
@@ -22,6 +22,8 @@ Clone and install the nomad infrastructure and the necessary dependencies (inclu
 git clone https://gitlab.mpcdf.mpg.de/nomad-lab/nomad-FAIR nomad
 cd nomad
 git submodule update --init
+pip install --upgrade pip
+pip install --upgrade setuptools
 pip install -r requirements.txt
 ./dependencies.sh -e
 pip install -e .