NOTE. The answer is deprecated, now Setuptools works for Python 3. Distribution is deprecated.
Setuptools itself does not work in Python 3. But you can use Distribute, fork and drop to replace setuptools:
http://packages.python.org/distribute/
http://pypi.python.org/pypi/distribute
At the bottom of the page, install the distribution:
curl -O http://python-distribute.org/distribute_setup.py python distribute_setup.py
Thomas K
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