diff --git a/INSTALL.md b/INSTALL.md
index 4d67c9bce..ebd6de465 100644
--- a/INSTALL.md
+++ b/INSTALL.md
@@ -50,7 +50,8 @@ and install the package in the new virtualenv:
  ```
  git clone https://github.com/lbryio/lbry.git
  cd lbry
- python setup.py install
+ pip install -r requirements.txt
+ pip install .
  ```
 
 To start LBRY, run `lbrynet-daemon` in a terminal.