diff --git a/README.md b/README.md
index 78a2c80..446ff09 100644
--- a/README.md
+++ b/README.md
@@ -95,6 +95,10 @@ You can set certain environment variables to control the pyenv-virtualenv.
 
 ## Version History
 
+#### 20131216
+
+ * Use latest release of setuptools and pip if the version not given via environment variables.
+
 #### 20130622
 
  * Removed bundled `virtualenv.py` script. Now pyenv-virtualenv installs `virtualenv` package into source version and then use it.
diff --git a/bin/pyenv-virtualenv b/bin/pyenv-virtualenv
index 9d36eac..df3dda8 100755
--- a/bin/pyenv-virtualenv
+++ b/bin/pyenv-virtualenv
@@ -11,7 +11,7 @@
 #   -f/--force       Install even if the version appears to be installed already
 #
 
-PYENV_VIRTUALENV_VERSION="20130622"
+PYENV_VIRTUALENV_VERSION="20131216"
 
 set -e
 [ -n "$PYENV_DEBUG" ] && set -x