diff --git a/conda-recipe/bld.bat b/conda-recipe/bld.bat
index 6d4389b93dd0..8ec6c1fb1587 100644
--- a/conda-recipe/bld.bat
+++ b/conda-recipe/bld.bat
@@ -2,6 +2,13 @@ REM A workaround for activate-dpcpp.bat issue to be addressed in 2021.4
 set "LIB=%BUILD_PREFIX%\Library\lib;%BUILD_PREFIX%\compiler\lib;%LIB%"
 SET "INCLUDE=%BUILD_PREFIX%\include;%INCLUDE%"
 
+REM Since the 60.0.0 release, setuptools includes a local, vendored copy
+REM of distutils (from late copies of CPython) that is enabled by default.
+REM It breaks build for Windows, so use distutils from "stdlib" as before.
+REM @TODO: remove the setting, once transition to build backend on Windows
+REM to cmake is complete.
+SET "SETUPTOOLS_USE_DISTUTILS=stdlib"
+
 IF DEFINED DPLROOT (
     ECHO "Sourcing DPLROOT"
     SET "INCLUDE=%DPLROOT%\include;%INCLUDE%"