diff --git a/README.md b/README.md
index 10a8dcfa..b6c8756c 100644
--- a/README.md
+++ b/README.md
@@ -41,6 +41,7 @@ Using pandas datareader requires the following packages:
 -   pandas>=1.5.3
 -   lxml
 -   requests>=2.19.0
+-   distutils (not included in standard library of Python 3.12 and above it, which can be solved by installing `setuptools`)
 
 Building the documentation additionally requires:
 
diff --git a/requirements.txt b/requirements.txt
index 41ec4732..d47536ac 100644
--- a/requirements.txt
+++ b/requirements.txt
@@ -1,3 +1,4 @@
 lxml
 pandas>=1.5.3
 requests>=2.19.0
+setuptools