diff --git a/create-site-packages.patch b/create-site-packages.patch
new file mode 100644
index 0000000..60f9795
--- /dev/null
+++ b/create-site-packages.patch
@@ -0,0 +1,17 @@
+diff --git a/setuptools/command/easy_install.py b/setuptools/command/easy_install.py
+index 91c48b3..0c9b0f4 100755
+--- a/setuptools/command/easy_install.py
++++ b/setuptools/command/easy_install.py
+@@ -446,6 +446,12 @@ class easy_install(Command):
+         instdir = normalize_path(self.install_dir)
+         pth_file = os.path.join(instdir, 'easy-install.pth')
+ 
++        if not os.path.exists(instdir):
++            try:
++                os.makedirs(instdir)
++            except (OSError, IOError):
++                self.cant_write_to_target()
++
+         # Is it a configured, PYTHONPATH, implicit, or explicit site dir?
+         is_site_dir = instdir in self.all_site_dirs
+ 
diff --git a/python-setuptools.spec b/python-setuptools.spec
index 54dffb2..70b6cfb 100644
--- a/python-setuptools.spec
+++ b/python-setuptools.spec
@@ -32,7 +32,7 @@
 
 Name:           python-setuptools
 Version:        37.0.0
-Release:        1%{?dist}
+Release:        2%{?dist}
 Summary:        Easily build and distribute Python packages
 
 Group:          Applications/System
@@ -40,6 +40,12 @@ License:        MIT
 URL:            https://pypi.python.org/pypi/%{srcname}
 Source0:        https://files.pythonhosted.org/packages/source/s/%{srcname}/%{srcname}-%{version}.zip
 
+# In Fedora, sudo setup.py install installs to /usr/local/lib/pythonX.Y/site-packages
+# But pythonX doesn't own that dir, that would be against FHS
+# We need to create it if it doesn't exist
+# https://bugzilla.redhat.com/show_bug.cgi?id=1576924
+Patch0:         create-site-packages.patch
+
 BuildArch:      noarch
 
 %if %{with python2}
@@ -146,7 +152,7 @@ execute the software that requires pkg_resources.py.
 
 
 %prep
-%setup -q -n %{srcname}-%{version}
+%autosetup -p1 -n %{srcname}-%{version}
 
 # We can't remove .egg-info (but it doesn't matter, since it'll be rebuilt):
 #  The problem is that to properly execute setuptools' setup.py,
@@ -294,6 +300,9 @@ PYTHONDONTWRITEBYTECODE=1 PYTHONPATH=$(pwd) py.test-%{python3_version}
 
 
 %changelog
+* Thu Jul 19 2018 Miro Hrončok <mhroncok@redhat.com> - 37.0.0-2
+- Create /usr/local/lib/pythonX.Y when needed (#1576924)
+
 * Tue Nov 21 2017 Miro Hrončok <mhroncok@redhat.com> - 37.0.0-1
 - Update to 37.0.0 (fixes #1474126)
 - Removed not needed pip3 patch (upstream included different version of fix)