diff --git a/dev-requirements.txt b/dev-requirements.txt
index 41611c81aec..548ba96bab7 100644
--- a/dev-requirements.txt
+++ b/dev-requirements.txt
@@ -1,9 +1,9 @@
 # These are packages that required when running ckan tests
+
 -e git+https://github.com/okfn/ckanclient@a315a72eef74dda4831acd022ef84a1246803c73#egg=ckanclient-dev
 docutils==0.8.1
-httpretty==0.6.0
+httpretty==0.6.2
 nose==1.2.1
-pep8==1.4.5
-pip-tools==0.3.1
+pep8==1.4.6
 Sphinx==1.2b1
 polib==1.0.3
diff --git a/requirements.in b/requirements.in
new file mode 100644
index 00000000000..e332cc7867c
--- /dev/null
+++ b/requirements.in
@@ -0,0 +1,31 @@
+# The file contains the direct ckan requirements.
+# Use pip-compile to create a requirements.txt file from this
+
+Babel>=0.9.6
+Jinja2>=2.6
+Pylons==0.9.7
+Genshi==0.6
+WebTest==1.4.3  # need to pin this so that Pylons does not install a newer version that conflicts with WebOb==1.0.8
+apachemiddleware>=0.1.1
+fanstatic==0.12
+FormAlchemy>=1.4.2
+ofs>=0.4.1
+Pairtree>=0.7.1-T
+paste>=1.7.5.1
+psycopg2==2.4.5
+python-dateutil>=1.5.0,<2.0.0
+pyutilib.component.core>=4.5.3
+repoze.who-friendlyform>=1.0.8
+repoze.who.plugins.openid>=0.5.3
+repoze.who==1.0.19
+requests==1.1.0
+Routes>=1.13
+solrpy>=0.9.5
+sqlalchemy-migrate>=0.7.2
+SQLAlchemy==0.7.8
+Tempita>=0.5.1
+vdm>=0.11
+WebHelpers>=1.3
+WebOb==1.0.8
+zope.interface>=4.0.1
+unicodecsv>=0.9
diff --git a/requirements.txt b/requirements.txt
index 79fd67948dd..7ce50e4f400 100644
--- a/requirements.txt
+++ b/requirements.txt
@@ -1,46 +1,45 @@
-# a Python virtual environment) after you have installed CKAN, with a command
-# instructions in CKAN's documentation for full installation instructions.
-# like: pip install -r requirements.txt. See the Install from Source
-# This file lists CKAN's dependencies so that you can install them (e.g. into
-apachemiddleware==0.1.1
-Babel==0.9.6
+Babel==1.3
 Beaker==1.6.4
-decorator==3.4.0
-fanstatic==0.12
-FormAlchemy==1.4.2
+FormAlchemy==1.4.3
 FormEncode==1.2.6
 Genshi==0.6
-Jinja2==2.6
-Mako==0.7.3
-MarkupSafe==0.15
-ofs==0.4.1
+Jinja2==2.7
+Mako==0.8.1
+MarkupSafe==0.18
 Pairtree==0.7.1-T
 Paste==1.7.5.1
 PasteDeploy==1.5.0
 PasteScript==1.7.5
-psycopg2==2.4.5
 Pygments==1.6
 Pylons==0.9.7
+Routes==1.13
+SQLAlchemy==0.7.8
+Tempita==0.5.1
+WebError==0.10.3
+WebHelpers==1.3
+WebOb==1.0.8
+WebTest==1.4.3
+apachemiddleware==0.1.1
+argparse==1.2.1
+decorator==3.4.0
+distribute==0.6.34
+fanstatic==0.12
+nose==1.3.0
+ofs==0.4.1
+psycopg2==2.4.5
 python-dateutil==1.5
 python-openid==2.2.5
-pyutilib.component.core==4.5.3
+pytz==2013b
+pyutilib.component.core==4.6
 repoze.lru==0.6
+repoze.who==1.0.19
 repoze.who-friendlyform==1.0.8
 repoze.who.plugins.openid==0.5.3
-repoze.who==1.0.19
 requests==1.1.0
-Routes==1.13
-simplejson==3.1.2
+simplejson==3.3.0
 solrpy==0.9.5
 sqlalchemy-migrate==0.7.2
-SQLAlchemy==0.7.8
-Tempita==0.5.1
-unicodecsv==0.9.0
+unicodecsv==0.9.4
 vdm==0.11
-verlib==0.1
-virtualenv==1.9.1
-WebError==0.10.3
-WebHelpers==1.3
-WebOb==1.0.8
-WebTest==1.4.3
-zope.interface==4.0.1
+wsgiref==0.1.2
+zope.interface==4.0.5
diff --git a/setup.py b/setup.py
index f4e97942047..276e03a5fdf 100644
--- a/setup.py
+++ b/setup.py
@@ -7,52 +7,6 @@
 
 from ckan import __version__, __description__, __long_description__, __license__
 
-install_requires = [
-    'Babel>=0.9.6',
-    'Genshi==0.6',
-    'Jinja2>=2.6',
-    'Pylons==0.9.7',
-    'WebTest==1.4.3',  # need to pin this so that Pylons does not install a newer version that conflicts with WebOb==1.0.8
-    'apachemiddleware>=0.1.1',
-    'babel>=0.9.6',
-    'fanstatic==0.12',
-    'formalchemy>=1.4.2',
-    'markupsafe>=0.15',
-    'ofs>=0.4.1',
-    'pairtree>=0.7.1-T',
-    'paste>=1.7.5.1',
-    'psycopg2==2.4.5',
-    'python-dateutil>=1.5.0,<2.0.0',
-    'pyutilib.component.core>=4.5.3',
-    'repoze.who-friendlyform>=1.0.8',
-    'repoze.who.plugins.openid>=0.5.3',
-    'repoze.who==1.0.19',
-    'requests==1.1.0',
-    'routes>=1.13',
-    'solrpy>=0.9.5',
-    'sqlalchemy-migrate>=0.7.2',
-    'sqlalchemy==0.7.8',
-    'tempita>=0.5.1',
-    'vdm>=0.11',
-    'webhelpers>=1.3',
-    'webob==1.0.8',
-    'zope.interface>=4.0.1',
-    'unicodecsv>=0.9',
-]
-
-dev_requires = [
-    'ckanclient>=0.10',
-    'docutils>=0.8.1',
-    'httpretty>=0.5',
-    'nose>=1.2.1',
-    'pip-tools>=0.3.1',
-    'Sphinx>=1.2b1',
-]
-
-dependency_links = [
-    'https://github.com/okfn/ckanclient/tarball/master#egg=ckanclient'
-]
-
 setup(
     name='ckan',
     version=__version__,
@@ -63,8 +17,6 @@
     description=__description__,
     keywords='data packaging component tool server',
     long_description =__long_description__,
-    install_requires=install_requires,
-    extras_require={'dev': dev_requires},
     zip_safe=False,
     packages=find_packages(exclude=['ez_setup']),
     namespace_packages=['ckanext', 'ckanext.stats'],