diff --git a/src/python/pants/backend/python/goals/setup_py.py b/src/python/pants/backend/python/goals/setup_py.py
index fd0e964a0bf..56ea0fea44a 100644
--- a/src/python/pants/backend/python/goals/setup_py.py
+++ b/src/python/pants/backend/python/goals/setup_py.py
@@ -328,7 +328,7 @@ def register_options(cls, register):
         register(
             "--first-party-dependency-version-scheme",
             type=FirstPartyDependencyVersionScheme,
-            default=FirstPartyDependencyVersionScheme.COMPATIBLE,
+            default=FirstPartyDependencyVersionScheme.EXACT,
             help=(
                 "What version to set in `install_requires` when a `python_distribution` depends on "
                 "other `python_distribution`s. If `exact`, will use `==`. If `compatible`, will "
diff --git a/src/python/pants/backend/python/goals/setup_py_test.py b/src/python/pants/backend/python/goals/setup_py_test.py
index 518656bc6ee..53888665bb8 100644
--- a/src/python/pants/backend/python/goals/setup_py_test.py
+++ b/src/python/pants/backend/python/goals/setup_py_test.py
@@ -216,7 +216,7 @@ def test_generate_chroot(chroot_rule_runner: RuleRunner) -> None:
             "packages": ("foo", "foo.qux"),
             "namespace_packages": ("foo",),
             "package_data": {"foo": ("resources/js/code.js",)},
-            "install_requires": ("baz~=1.1.1",),
+            "install_requires": ("baz==1.1.1",),
             "entry_points": {"console_scripts": ["foo_main=foo.qux.bin"]},
         },
         "src/python/foo:foo-dist",