diff --git a/IPython/core/formatters.py b/IPython/core/formatters.py
index 1f59c3d..40afd48 100644
--- a/IPython/core/formatters.py
+++ b/IPython/core/formatters.py
@@ -27,7 +27,7 @@ from StringIO import StringIO
 
 # Our own imports
 from IPython.config.configurable import Configurable
-from IPython.external import pretty
+from IPython.lib import pretty
 from IPython.utils.traitlets import Bool, Dict, Int, Str, CStr
 
 
diff --git a/IPython/external/pretty/__init__.py b/IPython/external/pretty/__init__.py
deleted file mode 100644
index 612ffe4..0000000
--- a/IPython/external/pretty/__init__.py
+++ /dev/null
@@ -1,19 +0,0 @@
-## Current upstream pretty, does not (yet?) incorporate the changes to the
-## local _pretty.py
-#try:
-#    from pretty import *
-#    import pretty
-#    _singleton_pprinters = pretty._singleton_pprinters
-#    _type_pprinters = pretty._type_pprinters
-#    _deferred_type_pprinters = pretty._deferred_type_pprinters
-#except ImportError:
-#    from _pretty import *
-#    import _pretty
-#    _singleton_pprinters = _pretty._singleton_pprinters
-#    _type_pprinters = _pretty._type_pprinters
-#    _deferred_type_pprinters = _pretty._deferred_type_pprinters
-from _pretty import *
-import _pretty
-_singleton_pprinters = _pretty._singleton_pprinters
-_type_pprinters = _pretty._type_pprinters
-_deferred_type_pprinters = _pretty._deferred_type_pprinters
diff --git a/IPython/external/pretty/_pretty.py b/IPython/lib/pretty.py
similarity index 100%
rename from IPython/external/pretty/_pretty.py
rename to IPython/lib/pretty.py
diff --git a/setupbase.py b/setupbase.py
index ec723a1..87b2a0b 100644
--- a/setupbase.py
+++ b/setupbase.py
@@ -116,7 +116,6 @@ def find_packages():
     add_package(packages, 'external.Itpl')
     add_package(packages, 'external.mglob')
     add_package(packages, 'external.path')
-    add_package(packages, 'external.pretty')
     add_package(packages, 'external.pyparsing')
     add_package(packages, 'external.simplegeneric')
     add_package(packages, 'external.validate')