diff --git a/.gitignore b/.gitignore
index 52c5521..2206bbc 100644
--- a/.gitignore
+++ b/.gitignore
@@ -3,3 +3,4 @@ MANIFEST
 build
 cheat.egg-info
 dist
+venv
diff --git a/README.md b/README.md
index aedcfd8..0f7cd9d 100644
--- a/README.md
+++ b/README.md
@@ -23,7 +23,7 @@ cheat tar
 You will be presented with a cheatsheet resembling:
 
 ```sh
-# To extract an uncompressed archive: 
+# To extract an uncompressed archive:
 tar -xvf '/path/to/foo.tar'
 
 # To extract a .gz archive:
@@ -117,6 +117,27 @@ enable this feature, set a `CHEATCOLORS` environment variable:
 export CHEATCOLORS=true
 ```
 
+Development
+-----------
+
+Virtual environments and `setuptools` can be used to develop `cheat`:
+
+Create a virtual environment with [virtualenv](http://docs.python-guide.org/en/latest/dev/virtualenvs/):
+
+    $ virtualenv venv
+
+Activate it:
+
+    $ source venv/bin/activate
+
+Install `cheat` in the venv in [development mode](http://setuptools.readthedocs.io/en/latest/setuptools.html#development-mode):
+
+    $ python setup.py develop
+
+Now `cheat` can be run from inside the venv:
+
+    $ venv/bin/cheat
+
 See Also:
 ---------
 - [Enabling Command-line Autocompletion][autocompletion]
diff --git a/setup.py b/setup.py
index abd32c4..1e815cd 100644
--- a/setup.py
+++ b/setup.py
@@ -1,4 +1,7 @@
-from distutils.core import setup
+try:
+    from setuptools import setup
+except ImportError:
+    from distutils.core import setup
 import os
 
 setup(