diff --git a/Doc/whatsnew/3.8.rst b/Doc/whatsnew/3.8.rst
index 5fe1c7166fe6fb..5cab14dfc0c4ff 100644
--- a/Doc/whatsnew/3.8.rst
+++ b/Doc/whatsnew/3.8.rst
@@ -135,6 +135,21 @@ Build and C API Changes
   ``const char *`` rather of ``char *``.
   (Contributed by Serhiy Storchaka in :issue:`33818`.)
 
+* The duality of ``Modules/Setup.dist`` and ``Modules/Setup`` has been
+  removed.  Previously, when updating the CPython source tree, one had
+  to manually copy ``Modules/Setup.dist`` (inside the source tree) to
+  ``Modules/Setup`` (inside the build tree) in order to reflect any changes
+  upstream.  This was of a small benefit to packagers at the expense of
+  a frequent annoyance to developers following CPython development, as
+  forgetting to copy the file could produce build failures.
+
+  Now the build system always reads from ``Modules/Setup`` inside the source
+  tree.  People who want to customize that file are encouraged to maintain
+  their changes in a git fork of CPython or as patch files, as they would do
+  for any other change to the source tree.
+
+  (Contributed by Antoine Pitrou in :issue:`32430`.)
+
 
 Deprecated
 ==========
diff --git a/Lib/distutils/sysconfig.py b/Lib/distutils/sysconfig.py
index e07a6c8b94ec79..b433fc86ffccd7 100644
--- a/Lib/distutils/sysconfig.py
+++ b/Lib/distutils/sysconfig.py
@@ -36,10 +36,8 @@
 # python_build: (Boolean) if true, we're either building Python or
 # building an extension with an un-installed Python, so we use
 # different (hard-wired) directories.
-# Setup.local is available for Makefile builds including VPATH builds,
-# Setup.dist is available on Windows
 def _is_python_source_dir(d):
-    for fn in ("Setup.dist", "Setup.local"):
+    for fn in ("Setup", "Setup.local"):
         if os.path.isfile(os.path.join(d, "Modules", fn)):
             return True
     return False
diff --git a/Lib/sysconfig.py b/Lib/sysconfig.py
index 9ee4d3185a7127..e0f9c18531b674 100644
--- a/Lib/sysconfig.py
+++ b/Lib/sysconfig.py
@@ -119,7 +119,7 @@ def _safe_realpath(path):
     _PROJECT_BASE = _safe_realpath(os.environ["_PYTHON_PROJECT_BASE"])
 
 def _is_python_source_dir(d):
-    for fn in ("Setup.dist", "Setup.local"):
+    for fn in ("Setup", "Setup.local"):
         if os.path.isfile(os.path.join(d, "Modules", fn)):
             return True
     return False
diff --git a/Makefile.pre.in b/Makefile.pre.in
index 0ed2cdf079a43a..51cf2fdb009b7b 100644
--- a/Makefile.pre.in
+++ b/Makefile.pre.in
@@ -687,26 +687,16 @@ oldsharedmods: $(SHAREDMODS)
 Makefile Modules/config.c: Makefile.pre \
 				$(srcdir)/Modules/config.c.in \
 				$(MAKESETUP) \
-				Modules/Setup \
+				$(srcdir)/Modules/Setup \
 				Modules/Setup.local
 	$(SHELL) $(MAKESETUP) -c $(srcdir)/Modules/config.c.in \
 				-s Modules \
 				Modules/Setup.local \
-				Modules/Setup
+				$(srcdir)/Modules/Setup
 	@mv config.c Modules
 	@echo "The Makefile was updated, you may need to re-run make."
 
 
-Modules/Setup: $(srcdir)/Modules/Setup.dist
-	@if test -f Modules/Setup; then \
-		echo "-----------------------------------------------"; \
-		echo "Modules/Setup.dist is newer than Modules/Setup;"; \
-		echo "check to make sure you have all the updates you"; \
-		echo "need in your Modules/Setup file."; \
-		echo "Usually, copying Modules/Setup.dist to Modules/Setup will work."; \
-		echo "-----------------------------------------------"; \
-	fi
-
 Programs/_testembed: Programs/_testembed.o $(LIBRARY) $(LDLIBRARY) $(PY3LIBRARY)
 	$(LINKCC) $(PY_LDFLAGS) $(LINKFORSHARED) -o $@ Programs/_testembed.o $(BLDLIBRARY) $(LIBS) $(MODLIBS) $(SYSLIBS) $(LDLAST)
 
@@ -1478,7 +1468,7 @@ libainstall:	@DEF_MAKE_RULE@ python-config
 	$(INSTALL_DATA) Programs/python.o $(DESTDIR)$(LIBPL)/python.o
 	$(INSTALL_DATA) $(srcdir)/Modules/config.c.in $(DESTDIR)$(LIBPL)/config.c.in
 	$(INSTALL_DATA) Makefile $(DESTDIR)$(LIBPL)/Makefile
-	$(INSTALL_DATA) Modules/Setup $(DESTDIR)$(LIBPL)/Setup
+	$(INSTALL_DATA) $(srcdir)/Modules/Setup $(DESTDIR)$(LIBPL)/Setup
 	$(INSTALL_DATA) Modules/Setup.local $(DESTDIR)$(LIBPL)/Setup.local
 	$(INSTALL_DATA) Misc/python.pc $(DESTDIR)$(LIBPC)/python-$(VERSION).pc
 	$(INSTALL_SCRIPT) $(srcdir)/Modules/makesetup $(DESTDIR)$(LIBPL)/makesetup
@@ -1701,8 +1691,7 @@ distclean: clobber
 	for file in $(srcdir)/Lib/test/data/* ; do \
 	    if test "$$file" != "$(srcdir)/Lib/test/data/README"; then rm "$$file"; fi; \
 	done
-	-rm -f core Makefile Makefile.pre config.status \
-		Modules/Setup Modules/Setup.local \
+	-rm -f core Makefile Makefile.pre config.status Modules/Setup.local \
 		Modules/ld_so_aix Modules/python.exp Misc/python.pc \
 		Misc/python-config.sh
 	-rm -f python*-gdb.py
diff --git a/Misc/NEWS.d/next/Build/2018-07-10-21-33-25.bpo-32430.UN3Nk8.rst b/Misc/NEWS.d/next/Build/2018-07-10-21-33-25.bpo-32430.UN3Nk8.rst
new file mode 100644
index 00000000000000..446c5a130d7133
--- /dev/null
+++ b/Misc/NEWS.d/next/Build/2018-07-10-21-33-25.bpo-32430.UN3Nk8.rst
@@ -0,0 +1,2 @@
+Rename Modules/Setup.dist to Modules/Setup, and remove the necessity to copy
+the former manually to the latter when updating the local source tree.
diff --git a/Modules/Setup.dist b/Modules/Setup
similarity index 97%
rename from Modules/Setup.dist
rename to Modules/Setup
index da2404a44a269f..e791c8cf8ac696 100644
--- a/Modules/Setup.dist
+++ b/Modules/Setup
@@ -1,14 +1,11 @@
 # -*- makefile -*-
 # The file Setup is used by the makesetup script to construct the files
 # Makefile and config.c, from Makefile.pre and config.c.in,
-# respectively.  The file Setup itself is initially copied from
-# Setup.dist; once it exists it will not be overwritten, so you can edit
-# Setup to your heart's content.  Note that Makefile.pre is created
-# from Makefile.pre.in by the toplevel configure script.
+# respectively.  Note that Makefile.pre is created from Makefile.pre.in
+# by the toplevel configure script.
 
 # (VPATH notes: Setup and Makefile.pre are in the build directory, as
-# are Makefile and config.c; the *.in and *.dist files are in the source
-# directory.)
+# are Makefile and config.c; the *.in files are in the source directory.)
 
 # Each line in this file describes one or more optional modules.
 # Modules configured here will not be compiled by the setup.py script,
diff --git a/Modules/getpath.c b/Modules/getpath.c
index e6a3e8e78cd3ee..755298eb4b78ca 100644
--- a/Modules/getpath.c
+++ b/Modules/getpath.c
@@ -322,7 +322,7 @@ search_for_prefix(const _PyCoreConfig *core_config,
     /* Check to see if argv[0] is in the build directory */
     wcsncpy(prefix, calculate->argv0_path, MAXPATHLEN);
     prefix[MAXPATHLEN] = L'\0';
-    joinpath(prefix, L"Modules/Setup");
+    joinpath(prefix, L"Modules/Setup.local");
     if (isfile(prefix)) {
         /* Check VPATH to see if argv0_path is in the build directory. */
         vpath = Py_DecodeLocale(VPATH, NULL);
diff --git a/Modules/makesetup b/Modules/makesetup
index 020b19938c4866..c7b0a60400cf29 100755
--- a/Modules/makesetup
+++ b/Modules/makesetup
@@ -17,7 +17,7 @@
 # Setup files after a -n option are used for their variables, modules
 # and libraries but not for their .o files.
 #
-# See Setup.dist for a description of the format of the Setup file.
+# See Setup for a description of the format of the Setup file.
 #
 # The following edits are made:
 #
diff --git a/aclocal.m4 b/aclocal.m4
index 8ed232fb515f90..69205776ed4c96 100644
--- a/aclocal.m4
+++ b/aclocal.m4
@@ -1,6 +1,6 @@
-# generated automatically by aclocal 1.15.1 -*- Autoconf -*-
+# generated automatically by aclocal 1.15 -*- Autoconf -*-
 
-# Copyright (C) 1996-2017 Free Software Foundation, Inc.
+# Copyright (C) 1996-2014 Free Software Foundation, Inc.
 
 # This file is free software; the Free Software Foundation
 # gives unlimited permission to copy and/or distribute it,
@@ -12,9 +12,9 @@
 # PARTICULAR PURPOSE.
 
 m4_ifndef([AC_CONFIG_MACRO_DIRS], [m4_defun([_AM_CONFIG_MACRO_DIRS], [])m4_defun([AC_CONFIG_MACRO_DIRS], [_AM_CONFIG_MACRO_DIRS($@)])])
-# pkg.m4 - Macros to locate and utilise pkg-config.   -*- Autoconf -*-
-# serial 12 (pkg-config-0.29.2)
-
+dnl pkg.m4 - Macros to locate and utilise pkg-config.   -*- Autoconf -*-
+dnl serial 11 (pkg-config-0.29.1)
+dnl
 dnl Copyright © 2004 Scott James Remnant <scott@netsplit.com>.
 dnl Copyright © 2012-2015 Dan Nicholson <dbn.lists@gmail.com>
 dnl
@@ -55,7 +55,7 @@ dnl
 dnl See the "Since" comment for each macro you use to see what version
 dnl of the macros you require.
 m4_defun([PKG_PREREQ],
-[m4_define([PKG_MACROS_VERSION], [0.29.2])
+[m4_define([PKG_MACROS_VERSION], [0.29.1])
 m4_if(m4_version_compare(PKG_MACROS_VERSION, [$1]), -1,
     [m4_fatal([pkg.m4 version $1 or higher is required but ]PKG_MACROS_VERSION[ found])])
 ])dnl PKG_PREREQ
@@ -156,7 +156,7 @@ AC_ARG_VAR([$1][_CFLAGS], [C compiler flags for $1, overriding pkg-config])dnl
 AC_ARG_VAR([$1][_LIBS], [linker flags for $1, overriding pkg-config])dnl
 
 pkg_failed=no
-AC_MSG_CHECKING([for $2])
+AC_MSG_CHECKING([for $1])
 
 _PKG_CONFIG([$1][_CFLAGS], [cflags], [$2])
 _PKG_CONFIG([$1][_LIBS], [libs], [$2])
@@ -166,11 +166,11 @@ and $1[]_LIBS to avoid the need to call pkg-config.
 See the pkg-config man page for more details.])
 
 if test $pkg_failed = yes; then
-        AC_MSG_RESULT([no])
+   	AC_MSG_RESULT([no])
         _PKG_SHORT_ERRORS_SUPPORTED
         if test $_pkg_short_errors_supported = yes; then
 	        $1[]_PKG_ERRORS=`$PKG_CONFIG --short-errors --print-errors --cflags --libs "$2" 2>&1`
-        else
+        else 
 	        $1[]_PKG_ERRORS=`$PKG_CONFIG --print-errors --cflags --libs "$2" 2>&1`
         fi
 	# Put the nasty error message in config.log where it belongs
@@ -187,7 +187,7 @@ installed software in a non-standard prefix.
 _PKG_TEXT])[]dnl
         ])
 elif test $pkg_failed = untried; then
-        AC_MSG_RESULT([no])
+     	AC_MSG_RESULT([no])
 	m4_default([$4], [AC_MSG_FAILURE(
 [The pkg-config script could not be found or is too old.  Make sure it
 is in your PATH or set the PKG_CONFIG environment variable to the full
diff --git a/configure b/configure
index d427703f8e860a..ea9559d6d615ec 100755
--- a/configure
+++ b/configure
@@ -781,6 +781,7 @@ infodir
 docdir
 oldincludedir
 includedir
+runstatedir
 localstatedir
 sharedstatedir
 sysconfdir
@@ -891,6 +892,7 @@ datadir='${datarootdir}'
 sysconfdir='${prefix}/etc'
 sharedstatedir='${prefix}/com'
 localstatedir='${prefix}/var'
+runstatedir='${localstatedir}/run'
 includedir='${prefix}/include'
 oldincludedir='/usr/include'
 docdir='${datarootdir}/doc/${PACKAGE_TARNAME}'
@@ -1143,6 +1145,15 @@ do
   | -silent | --silent | --silen | --sile | --sil)
     silent=yes ;;
 
+  -runstatedir | --runstatedir | --runstatedi | --runstated \
+  | --runstate | --runstat | --runsta | --runst | --runs \
+  | --run | --ru | --r)
+    ac_prev=runstatedir ;;
+  -runstatedir=* | --runstatedir=* | --runstatedi=* | --runstated=* \
+  | --runstate=* | --runstat=* | --runsta=* | --runst=* | --runs=* \
+  | --run=* | --ru=* | --r=*)
+    runstatedir=$ac_optarg ;;
+
   -sbindir | --sbindir | --sbindi | --sbind | --sbin | --sbi | --sb)
     ac_prev=sbindir ;;
   -sbindir=* | --sbindir=* | --sbindi=* | --sbind=* | --sbin=* \
@@ -1280,7 +1291,7 @@ fi
 for ac_var in	exec_prefix prefix bindir sbindir libexecdir datarootdir \
 		datadir sysconfdir sharedstatedir localstatedir includedir \
 		oldincludedir docdir infodir htmldir dvidir pdfdir psdir \
-		libdir localedir mandir
+		libdir localedir mandir runstatedir
 do
   eval ac_val=\$$ac_var
   # Remove trailing slashes.
@@ -1433,6 +1444,7 @@ Fine tuning of the installation directories:
   --sysconfdir=DIR        read-only single-machine data [PREFIX/etc]
   --sharedstatedir=DIR    modifiable architecture-independent data [PREFIX/com]
   --localstatedir=DIR     modifiable single-machine data [PREFIX/var]
+  --runstatedir=DIR       modifiable per-process data [LOCALSTATEDIR/run]
   --libdir=DIR            object code libraries [EPREFIX/lib]
   --includedir=DIR        C header files [PREFIX/include]
   --oldincludedir=DIR     C header files for non-gcc [/usr/include]
@@ -18355,12 +18367,6 @@ $as_echo "$as_me: WARNING: unrecognized options: $ac_unrecognized_opts" >&2;}
 fi
 
 
-echo "creating Modules/Setup" >&6
-if test ! -f Modules/Setup
-then
-	cp $srcdir/Modules/Setup.dist Modules/Setup
-fi
-
 echo "creating Modules/Setup.local" >&6
 if test ! -f Modules/Setup.local
 then
@@ -18370,7 +18376,7 @@ fi
 echo "creating Makefile" >&6
 $SHELL $srcdir/Modules/makesetup -c $srcdir/Modules/config.c.in \
 			-s Modules \
-			Modules/Setup.local Modules/Setup
+			Modules/Setup.local $srcdir/Modules/Setup
 mv config.c Modules
 
 if test "$Py_OPT" = 'false' -a "$Py_DEBUG" != 'true'; then
diff --git a/configure.ac b/configure.ac
index b98ceb2b1427eb..930e95c725b4ba 100644
--- a/configure.ac
+++ b/configure.ac
@@ -5565,12 +5565,6 @@ AC_CONFIG_FILES(Makefile.pre Misc/python.pc Misc/python-config.sh)
 AC_CONFIG_FILES([Modules/ld_so_aix], [chmod +x Modules/ld_so_aix])
 AC_OUTPUT
 
-echo "creating Modules/Setup" >&AS_MESSAGE_FD
-if test ! -f Modules/Setup
-then
-	cp $srcdir/Modules/Setup.dist Modules/Setup
-fi
-
 echo "creating Modules/Setup.local" >&AS_MESSAGE_FD
 if test ! -f Modules/Setup.local
 then
@@ -5580,7 +5574,7 @@ fi
 echo "creating Makefile" >&AS_MESSAGE_FD
 $SHELL $srcdir/Modules/makesetup -c $srcdir/Modules/config.c.in \
 			-s Modules \
-			Modules/Setup.local Modules/Setup
+			Modules/Setup.local $srcdir/Modules/Setup
 mv config.c Modules
 
 if test "$Py_OPT" = 'false' -a "$Py_DEBUG" != 'true'; then