diff --git a/MANIFEST.in b/MANIFEST.in
index 9e664ba..6722552 100644
--- a/MANIFEST.in
+++ b/MANIFEST.in
@@ -1,3 +1,3 @@
-include *.py *.txt *.rst
+include *.py *.txt *.rst *.md
 recursive-include docs *.rst *.py make.bat Makefile
 
diff --git a/setup.py b/setup.py
index b172c59..bb08f1e 100755
--- a/setup.py
+++ b/setup.py
@@ -11,7 +11,7 @@ setup(
     py_modules=['contextlib2'],
     license='PSF License',
     description='Backports and enhancements for the contextlib module',
-    long_description=open('README.txt').read(),
+    long_description=open('README.md').read(),
     author='Nick Coghlan',
     author_email='ncoghlan@gmail.com',
     url='http://contextlib2.readthedocs.org'