diff --git a/setup.sh b/setup.sh
index 88f97ec63..6a6744cef 100755
--- a/setup.sh
+++ b/setup.sh
@@ -49,7 +49,8 @@ function updateenv() {
     source .env/bin/activate
     SYS_ARCH=$(uname -m)
     echo "pip install in-progress. Please wait..."
-    ${PYTHON} -m pip install --upgrade pip
+    # Setuptools 65.5.0 is the last version that can install gym==0.21.0
+    ${PYTHON} -m pip install --upgrade pip wheel setuptools==65.5.0
     read -p "Do you want to install dependencies for dev [y/N]? "
     dev=$REPLY
     if [[ $REPLY =~ ^[Yy]$ ]]