diff --git a/.gitignore b/.gitignore
index 8be4855..010ccba 100644
--- a/.gitignore
+++ b/.gitignore
@@ -92,3 +92,4 @@
 /setuptools-39.2.0.zip
 /setuptools-40.4.1.zip
 /setuptools-40.4.3.zip
+/setuptools-40.7.0.zip
diff --git a/python-setuptools.spec b/python-setuptools.spec
index da02737..82cbe3e 100644
--- a/python-setuptools.spec
+++ b/python-setuptools.spec
@@ -18,7 +18,7 @@
 
 Name:           python-setuptools
 # When updating, update the bundled libraries versions bellow!
-Version:        40.4.3
+Version:        40.7.0
 Release:        1%{?dist}
 Summary:        Easily build and distribute Python packages
 # setuptools is MIT
@@ -45,6 +45,7 @@ BuildRequires:  python2-pip
 BuildRequires:  python2-wheel
 %endif # without bootstrap
 %if %{with tests}
+BuildRequires:  python2-futures
 BuildRequires:  python2-pip
 BuildRequires:  python2-pytest
 BuildRequires:  python2-mock
@@ -67,12 +68,6 @@ BuildRequires:  python3-pip
 BuildRequires:  python3-wheel
 %endif # without bootstrap
 
-# We're now back to setuptools as the package.
-# Keep the python-distribute name active for a few releases.  Eventually we'll
-# want to get rid of the Provides and just keep the Obsoletes
-Provides: python-distribute = %{version}-%{release}
-Obsoletes: python-distribute < 0.6.36-2
-
 %description
 Setuptools is a collection of enhancements to the Python distutils that allow
 you to more easily build and distribute Python packages, especially ones that
@@ -258,6 +253,10 @@ PYTHONDONTWRITEBYTECODE=1 PYTHONPATH=$(pwd) py.test-%{python3_version} --ignore=
 
 
 %changelog
+* Mon Jan 28 2019 Miro Hrončok <mhroncok@redhat.com> - 40.7.0-1
+- Update to 40.7.0 (#1669876)
+- https://github.com/pypa/setuptools/blob/v40.7.0/CHANGES.rst
+
 * Mon Sep 24 2018 Miro Hrončok <mhroncok@redhat.com> - 40.4.3-1
 - Update to 40.4.3 to fix dire DeprecationWarnings (#1627071)
 - List vendored libraries
diff --git a/sources b/sources
index 3c216aa..c04fbdd 100644
--- a/sources
+++ b/sources
@@ -1 +1 @@
-SHA512 (setuptools-40.4.3.zip) = ff4c0bb4a238a8788c533a8f22851e6b59b258c3096fba68a09e7450baf1ee47f47f86bfcd7339133b0445ec6b61fc7f0c08d7d6c4d2b231c29b724aa83d5998
+SHA512 (setuptools-40.7.0.zip) = a360461f70222f1de859a8920d8f8e1257eb47f25a481c0d4a3435f74dc5aef4fd2e2fab5285173777483b1b23e7e203617073d753461373ad1c4768e5ce8aba