diff --git a/.github/workflows/build_and_deploy.yml b/.github/workflows/build_and_deploy.yml
index ba24b3a32..7e20b6397 100644
--- a/.github/workflows/build_and_deploy.yml
+++ b/.github/workflows/build_and_deploy.yml
@@ -29,6 +29,7 @@ jobs:
     env:
       PYTHON_VERSION: ${{ format('3.{0}', matrix.python3-minor-version) }}
       PYTHON_EXECUTABLE: ${{ format('cp3{0}', matrix.python3-minor-version) }}
+      SETUPTOOLS_USE_DISTUTILS: ${{ matrix.python3-minor-version == 12 && 'local' || 'stdlib' }}
 
     runs-on: ${{ matrix.os }}
     name: Build and Deploy (${{ matrix.os }}, 3.${{ matrix.python3-minor-version }})
@@ -73,8 +74,8 @@ jobs:
             pip install -r build_tools/build_requirements.txt &&
             pip install -r requirements.txt
           CIBW_BUILD: "${{ env.PYTHON_EXECUTABLE }}-*"
-          CIBW_ENVIRONMENT: CC=gcc
-          CIBW_ENVIRONMENT_MACOS: PMD_MPL_BACKEND=TkAgg PYTHON_CROSSENV=true
+          CIBW_ENVIRONMENT: CC=gcc SETUPTOOLS_USE_DISTUTILS=${{ env.SETUPTOOLS_USE_DISTUTILS }}
+          CIBW_ENVIRONMENT_MACOS: PMD_MPL_BACKEND=TkAgg PYTHON_CROSSENV=true SETUPTOOLS_USE_DISTUTILS=${{ env.SETUPTOOLS_USE_DISTUTILS }}
           CIBW_ENVIRONMENT_PASS_LINUX: GITHUB_REF
           # No support for pypy or musl
           CIBW_SKIP: "pp* *-musllinux_*"
diff --git a/build_tools/circle/build_wheel.sh b/build_tools/circle/build_wheel.sh
index d74c6de25..8785a1745 100755
--- a/build_tools/circle/build_wheel.sh
+++ b/build_tools/circle/build_wheel.sh
@@ -15,6 +15,13 @@ function build_wheel {
         ucs_tag="${ucs_tag}u"
     fi
 
+    distutils_version=""
+    if [ "$pyver" = "3.12" ]; then
+      distutils_version="local"
+    else
+      distutils_version="stdlib"
+    fi
+
     ML_PYTHON_VERSION=$(python -c \
         "print('cp{maj}{min}-cp{maj}{min}{ucs}'.format( \
                maj='${pyver}'.split('.')[0], \
@@ -33,6 +40,7 @@ function build_wheel {
         -v `pwd`:/io \
         -e "PYTHON_VERSION=${ML_PYTHON_VERSION}" \
         -e "PMDARIMA_VERSION=${PMDARIMA_VERSION}" \
+        -e "SETUPTOOLS_USE_DISTUTILS=${distutils_version}" \
         "${ML_IMAGE}" "/io/build_tools/circle/dind/build_manylinux_wheel.sh"
     sudo docker cp "${DOCKER_CONTAINER_NAME}:/io/dist/." "${_root}/dist/"
     docker rm $(docker ps -a -f status=exited -q)
diff --git a/setup.py b/setup.py
index d624c6dc2..1d82068d6 100644
--- a/setup.py
+++ b/setup.py
@@ -323,6 +323,9 @@ def do_setup():
             from setuptools import setup
             print("Setting up with setuptools")
 
+            # Needs to be unset when building sdist
+            os.environ.pop("SETUPTOOLS_USE_DISTUTILS", None)
+
             # TODO: distutils is removed in Python 3.12+, so this should probably be the default
             if IS_PYTHON_312:
                 from setuptools import Extension