diff --git a/news/174.bugfix b/news/174.bugfix
new file mode 100644
index 0000000000000000000000000000000000000000..ebe2acb824398c93bac3b220bf9e4c8574c9a508
--- /dev/null
+++ b/news/174.bugfix
@@ -0,0 +1 @@
+Ensure `setuptools` is installed before invoking editable install script.
diff --git a/pdm/installers/installers.py b/pdm/installers/installers.py
index 7260181498cdd3db3c4560044f49825efb9c0d44..d48cc06f8ceed0fbbf1524b618e09844a91103a3 100644
--- a/pdm/installers/installers.py
+++ b/pdm/installers/installers.py
@@ -9,7 +9,7 @@ from pip._vendor.pkg_resources import EggInfoDistribution
 from pip_shims import shims
 
 from pdm.iostream import stream
-from pdm.models.builders import log_subprocessor
+from pdm.models.builders import EnvBuilder
 from pdm.models.requirements import parse_requirement
 
 if TYPE_CHECKING:
@@ -84,9 +84,12 @@ class Installer:  # pragma: no cover
             paths["purelib"],
             paths["scripts"],
         ]
-        with self.environment.activate(True):
+        with EnvBuilder(ireq.unpacked_source_directory, self.environment) as builder:
+            builder.install(["setuptools"])
             extra_env = {"INJECT_SITE": "1"} if not self.environment.is_global else None
-            log_subprocessor(install_args, ireq.unpacked_source_directory, extra_env)
+            builder.subprocess_runner(
+                install_args, ireq.unpacked_source_directory, extra_env
+            )
 
     def uninstall(self, dist: Distribution) -> None:
         req = parse_requirement(dist.project_name)