diff --git a/python-setuptools.changes b/python-setuptools.changes
index 32eaee0..28e139f 100644
--- a/python-setuptools.changes
+++ b/python-setuptools.changes
@@ -1,3 +1,10 @@
+-------------------------------------------------------------------
+Thu Dec 13 09:26:50 UTC 2018 - Thomas Bechtold <tbechtold@suse.com>
+
+- update to 40.6.3:
+  * #1594: PEP 517 backend no longer declares setuptools as a dependency
+  as it can be assumed.
+
 -------------------------------------------------------------------
 Thu Dec  6 12:04:06 UTC 2018 - Tomáš Chvátal <tchvatal@suse.com>
 
diff --git a/python-setuptools.spec b/python-setuptools.spec
index 10fccd0..fb83002 100644
--- a/python-setuptools.spec
+++ b/python-setuptools.spec
@@ -19,7 +19,7 @@
 %{?!python_module:%define python_module() python-%{**} python3-%{**}}
 %define oldpython python
 Name:           python-setuptools
-Version:        40.6.2
+Version:        40.6.3
 Release:        0
 Summary:        Enhancements to distutils for building and distributing Python packages
 License:        Python-2.0 OR ZPL-2.0
diff --git a/setuptools-40.6.2.zip b/setuptools-40.6.2.zip
deleted file mode 100644
index 0902d42..0000000
--- a/setuptools-40.6.2.zip
+++ /dev/null
@@ -1,3 +0,0 @@
-version https://git-lfs.github.com/spec/v1
-oid sha256:86bb4d8e1b0fabad1f4642b64c335b673e53e7a381de03c9a89fe678152c4c64
-size 839184
diff --git a/setuptools-40.6.3.zip b/setuptools-40.6.3.zip
new file mode 100644
index 0000000..2788e23
--- /dev/null
+++ b/setuptools-40.6.3.zip
@@ -0,0 +1,3 @@
+version https://git-lfs.github.com/spec/v1
+oid sha256:3b474dad69c49f0d2d86696b68105f3a6f195f7ab655af12ef9a9c326d2b08f8
+size 839328