diff --git a/setup.py b/setup.py
index e37bbc69..b8eb063c 100644
--- a/setup.py
+++ b/setup.py
@@ -79,13 +79,10 @@ def scm_config():
         .hg = setuptools_scm.hg:parse
         .git = setuptools_scm.git:parse
 
-        # those are left here for backward compatibility in the 1.x series
-        .hg_archival.txt = setuptools_scm.hg:parse_archival
-        PKG-INFO = setuptools_scm.hacks:parse_pkginfo
-
         [setuptools_scm.parse_scm_fallback]
         .hg_archival.txt = setuptools_scm.hg:parse_archival
         PKG-INFO = setuptools_scm.hacks:parse_pkginfo
+        pip-egg-info = setuptools_scm.hacks:parse_pip_egg_info
 
         [setuptools_scm.files_command]
         .hg = setuptools_scm.hg:FILES_COMMAND
diff --git a/setuptools_scm/__init__.py b/setuptools_scm/__init__.py
index 04fd85a0..b243443d 100644
--- a/setuptools_scm/__init__.py
+++ b/setuptools_scm/__init__.py
@@ -79,7 +79,8 @@ def _do_parse(root, parse):
             root, 'setuptools_scm.parse_scm_fallback')
     else:
         # include fallbacks after dropping them from the main entrypoint
-        version = version_from_scm(root)
+        version = version_from_scm(root) or _version_from_entrypoint(
+            root, 'setuptools_scm.parse_scm_fallback')
 
     if version:
         return version
diff --git a/setuptools_scm/hacks.py b/setuptools_scm/hacks.py
index db13e9b4..2d298bec 100644
--- a/setuptools_scm/hacks.py
+++ b/setuptools_scm/hacks.py
@@ -11,3 +11,14 @@ def parse_pkginfo(root):
     version = data.get('Version')
     if version != 'UNKNOWN':
         return meta(version)
+
+
+def parse_pip_egg_info(root):
+    pipdir = os.path.join(root, 'pip-egg-info')
+    if not os.path.isdir(pipdir):
+        return
+    items = os.listdir(pipdir)
+    trace('pip-egg-info', pipdir, items)
+    if not items:
+        return
+    return parse_pkginfo(os.path.join(pipdir, items[0]))
diff --git a/setuptools_scm/integration.py b/setuptools_scm/integration.py
index 5254cb00..fefc3270 100644
--- a/setuptools_scm/integration.py
+++ b/setuptools_scm/integration.py
@@ -14,7 +14,9 @@ def version_keyword(dist, keyword, value):
         value = {}
     if getattr(value, '__call__', None):
         value = value()
-    if os.path.exists('PKG-INFO'):
+    # this piece of code is a hack to counter the mistake in root finding
+    ep = find_matching_entrypoint('.', 'setuptools_scm.parse_scm_fallback')
+    if ep is not None:
         value.pop('root', None)
     dist.metadata.version = get_version(**value)
 
diff --git a/setuptools_scm/version.py b/setuptools_scm/version.py
index 1b245098..4f94e04f 100644
--- a/setuptools_scm/version.py
+++ b/setuptools_scm/version.py
@@ -23,6 +23,7 @@ def callable_or_entrypoint(group, callable_or_name):
     trace('ep', (group, callable_or_name))
     if isinstance(callable_or_name, str):
         for ep in iter_entry_points(group, callable_or_name):
+            trace("ep found:", ep.name)
             return ep.load()
     else:
         return callable_or_name
diff --git a/testing/conftest.py b/testing/conftest.py
index 78a7c1f5..49a9d14b 100644
--- a/testing/conftest.py
+++ b/testing/conftest.py
@@ -61,6 +61,14 @@ def version(self):
         return version
 
 
+@pytest.yield_fixture(autouse=True)
+def debug_mode():
+    from setuptools_scm import utils
+    utils.DEBUG = True
+    yield
+    utils.DEBUG = False
+
+
 @pytest.fixture
 def wd(tmpdir):
     return Wd(tmpdir.ensure('wd', dir=True))
diff --git a/testing/test_regressions.py b/testing/test_regressions.py
index ac7ecfc8..4a067b34 100644
--- a/testing/test_regressions.py
+++ b/testing/test_regressions.py
@@ -1,9 +1,11 @@
 import sys
 
-import pytest
+from setuptools_scm import get_version
 from setuptools_scm.git import parse
 from setuptools_scm.utils import do_ex, do
 
+import pytest
+
 
 def test_pkginfo_noscmroot(tmpdir, monkeypatch):
     """if we are indeed a sdist, the root does not apply"""
@@ -29,6 +31,23 @@ def test_pkginfo_noscmroot(tmpdir, monkeypatch):
     assert res == '1.0'
 
 
+def test_pip_egg_info(tmpdir, monkeypatch):
+    """if we are indeed a sdist, the root does not apply"""
+
+    # we should get the version from pkg-info if git is broken
+    p = tmpdir.ensure('sub/package', dir=1)
+    tmpdir.mkdir('.git')
+    p.join('setup.py').write(
+        'from setuptools import setup;'
+        'setup(use_scm_version={"root": ".."})')
+
+    with pytest.raises(LookupError):
+        get_version(root=p.strpath)
+
+    p.ensure('pip-egg-info/random.egg-info/PKG-INFO').write('Version: 1.0')
+    assert get_version(root=p.strpath) == '1.0'
+
+
 def test_use_scm_version_callable(tmpdir, monkeypatch):
     """use of callable as use_scm_version argument"""
     monkeypatch.delenv("SETUPTOOLS_SCM_DEBUG")