diff --git a/default.nix b/default.nix
--- a/default.nix
+++ b/default.nix
@@ -65,13 +65,19 @@ let
       assert all isString (attrValues sourcesConfig);
       sourcesConfig;
 
+  rhodecode-vcsserver-src = builtins.filterSource src-filter ./.;
   version = builtins.readFile "${rhodecode-vcsserver-src}/vcsserver/VERSION";
-  rhodecode-vcsserver-src = builtins.filterSource src-filter ./.;
 
   pythonLocalOverrides = self: super: {
     rhodecode-vcsserver =
       let
         releaseName = "RhodeCodeVCSServer-${version}";
+        pythonWithEnv =
+            self.python.buildEnv.override {
+                extraLibs = [  ] ++ self.rhodecode-vcsserver.propagatedBuildInputs;
+                ignoreCollisions = true;
+                #--set PYTHONHASHSEED random TODO
+            };
       in super.rhodecode-vcsserver.override (attrs: {
       inherit
         doCheck
@@ -107,6 +113,7 @@ let
 
       # Add bin directory to path so that tests can find 'vcsserver'.
       preCheck = ''
+        echo "Expanding PATH with $out/bin directory"
         export PATH="$out/bin:$PATH"
       '';
 
@@ -142,25 +149,29 @@ let
         mkdir -p $out/bin
 
         # expose python
-        ln -s ${pkgs.pythonWithSetuptools}/bin/python $out/bin/
+        ln -s ${pythonWithEnv}/bin/python $out/bin/
 
         # required binaries from dependencies
-        ln -s ${self.gunicorn}/bin/gunicorn $out/bin/
-        ln -s ${self.pyramid}/bin/prequest $out/bin/
-        ln -s ${self.pyramid}/bin/pserve $out/bin/
+        ln -s ${pythonWithEnv}/bin/gunicorn  $out/bin/
+        ln -s ${pythonWithEnv}/bin/prequest $out/bin/
+        ln -s ${pythonWithEnv}/bin/pserve $out/bin/
 
         # Symlink version control utilities
         # We ensure that always the correct version is available as a symlink.
         # So that users calling them via the profile path will always use the
         # correct version. Wrapping is required so those can "import"
         # vcsserver python hooks.
-
         ln -s ${pkgs.git}/bin/git $out/bin
         ln -s ${self.mercurial}/bin/hg $out/bin
         ln -s ${pkgs.subversion}/bin/svn* $out/bin
 
-        echo "DONE: created symlinks into $out/bin"
-        DEPS="$out/bin/*"
+        echo "[DONE ]: created symlinks into $out/bin"
+        DEPS="$out/bin/hg \
+              $out/bin/git \
+              $out/bin/svn \
+              $out/bin/svnserve \
+              $out/bin/svnadmin
+             "
 
         # wrap only dependency scripts, they require to have full PYTHONPATH set
         # to be able to import all packages
@@ -168,12 +179,13 @@ let
         do
           wrapProgram $file \
             --prefix PATH : $PATH \
-            --prefix PYTHONPATH : $PYTHONPATH \
-            --set PYTHONHASHSEED random
+            --prefix PYTHONPATH : $PYTHONPATH
         done
 
-        echo "DONE: vcsserver binary wrapping"
+        echo "[DONE ]: vcsserver binary wrapping"
 
+        # expose sources of vcsserver
+        ln -s $out $out/etc/rhodecode_vcsserver_source
       '';
 
     });
diff --git a/pkgs/overlays.nix b/pkgs/overlays.nix
--- a/pkgs/overlays.nix
+++ b/pkgs/overlays.nix
@@ -1,9 +1,5 @@
 self: super: {
 
-  pythonWithSetuptools = self.python.withPackages(ps: with ps; [
-    setuptools
-  ]);
-
   # change GIT version
   # latest supported are in: https://github.com/NixOS/nixpkgs/tree/master/pkgs/applications/version-management/git-and-tools/git
   git = super.lib.overrideDerivation super.git (oldAttrs: {