diff --git a/.travis.yml b/.travis.yml
index a9cbc64..015dd75 100644
--- a/.travis.yml
+++ b/.travis.yml
@@ -1,15 +1,11 @@
 language: python 
 python:
-  - "2.6"
-  - "2.7"
+  - 2.6
+  - 2.7
+  - pypy
 before_install:
   - sudo apt-get update -qq
   - sudo apt-get install -qq libevent-dev python-gevent
   - pip install gevent
-  - pip install simplejson
 script:
   - python test.py
-branches:
- only:
-   - master
-   - dev
diff --git a/LICENSE b/LICENSE
new file mode 100644
index 0000000..0d9e69a
--- /dev/null
+++ b/LICENSE
@@ -0,0 +1,21 @@
+Shadowsocks
+
+Copyright (c) 2013 clowwindy
+
+Permission is hereby granted, free of charge, to any person obtaining a copy
+of this software and associated documentation files (the "Software"), to deal
+in the Software without restriction, including without limitation the rights
+to use, copy, modify, merge, publish, distribute, sublicense, and/or sell
+copies of the Software, and to permit persons to whom the Software is
+furnished to do so, subject to the following conditions:
+
+The above copyright notice and this permission notice shall be included in
+all copies or substantial portions of the Software.
+
+THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR
+IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY,
+FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE
+AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER
+LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM,
+OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE
+SOFTWARE.
\ No newline at end of file
diff --git a/README.md b/README.md
index 51e6ef1..4090cce 100644
--- a/README.md
+++ b/README.md
@@ -2,7 +2,7 @@ shadowsocks
 ===========
 
 [![Build Status](https://travis-ci.org/clowwindy/shadowsocks.png)](https://travis-ci.org/clowwindy/shadowsocks)
-Current version: 1.2.3
+Current version: 1.3.0
 
 shadowsocks is a lightweight tunnel proxy which can help you get through firewalls
 
@@ -15,20 +15,35 @@ First, make sure you have Python 2.6 or 2.7.
 
     $ python --version
     Python 2.6.8
+    
+Install Shadowsocks.
 
+    pip install shadowsocks
+    
+Create a file named `config.json`, with the following content.
 
-Then edit `config.json`, change the following values:
+    {
+        "server":"my_server_ip",
+        "server_port":8388,
+        "local_port":1080,
+        "password":"barfoo!",
+        "timeout":600,
+        "method":null
+    }
 
-    server          your server ip or hostname
+Explaination of the fields:
+
+    server          your server IP (IPv4/IPv6), notice that your server will listen to this IP
     server_port     server port
     local_port      local port
     password        a password used to encrypt transfer
+    timeout         in seconds
     method          encryption method, "bf-cfb", "aes-256-cfb", "des-cfb", "rc4", etc. Default is table
 
+`cd` into the directory of `config.json`. Run `ssserver` on your server. To run it in the background, run
+`nohup ssserver > log &`.
 
-Put all the files on your server. Run `python server.py` on your server. To run it in the background, run `nohup python server.py > log &`.
-
-Put all the files on your client machine. Run `python local.py` on your client machine.
+On your client machine, run `sslocal`.
 
 Change the proxy setting in your browser into
 
@@ -36,6 +51,15 @@ Change the proxy setting in your browser into
     hostname: 127.0.0.1
     port:     your local_port
 
+Command line args
+------------------
+
+You can use args to override settings from `config.json`.
+
+    sslocal -s server_name -p server_port -l local_port -k password -m bf-cfb
+    ssserver -p server_port -k password -m bf-cfb
+    ssserver -c /etc/shadowsocks/config.json
+
 Encryption
 ------------
 
@@ -49,15 +73,6 @@ Others:
 
     pip install M2Crypto
 
-
-Command line args
------------------
-
-You can use args to override settings from `config.json`.
-
-    python local.py -s server_name -p server_port -l local_port -k password -m bf-cfb -b bind_address -6
-    python server.py -p server_port -k password -m bf-cfb -6
-
 Performance
 ------------
 
diff --git a/setup.py b/setup.py
new file mode 100644
index 0000000..ca13248
--- /dev/null
+++ b/setup.py
@@ -0,0 +1,21 @@
+from setuptools import setup, find_packages
+
+setup(
+    name = "shadowsocks",
+    version = "1.3.0",
+    license = 'MIT',
+    description = "a lightweight tunnel proxy",
+    author = 'clowwindy42@gmail.com',
+    url = 'https://github.com/clowwindy/shadowsocks',
+    packages = ['shadowsocks'],
+    package_data={
+        'shadowsocks': ['README.md', 'LICENSE', 'config.json']
+    },
+    install_requires = ['setuptools',
+                        ],
+    entry_points="""
+    [console_scripts]
+    sslocal = shadowsocks.local:main
+    ssserver = shadowsocks.server:main
+    """,
+)
diff --git a/shadowsocks/__init__.py b/shadowsocks/__init__.py
new file mode 100644
index 0000000..013e4b7
--- /dev/null
+++ b/shadowsocks/__init__.py
@@ -0,0 +1 @@
+#!/usr/bin/python
diff --git a/encrypt.py b/shadowsocks/encrypt.py
similarity index 100%
rename from encrypt.py
rename to shadowsocks/encrypt.py
diff --git a/local.py b/shadowsocks/local.py
similarity index 83%
rename from local.py
rename to shadowsocks/local.py
index bd40e62..e73c299 100755
--- a/local.py
+++ b/shadowsocks/local.py
@@ -1,6 +1,6 @@
 #!/usr/bin/env python
 
-# Copyright (c) 2012 clowwindy
+# Copyright (c) 2013 clowwindy
 #
 # Permission is hereby granted, free of charge, to any person obtaining a copy
 # of this software and associated documentation files (the "Software"), to deal
@@ -43,6 +43,7 @@ import os
 import logging
 import getopt
 import encrypt
+import utils
 
 
 def send_all(sock, data):
@@ -142,28 +143,48 @@ class Socks5Server(SocketServer.StreamRequestHandler):
             logging.warn(e)
 
 
-if __name__ == '__main__':
+def main():
+    global SERVER, REMOTE_PORT, PORT, KEY, METHOD, LOCAL, IPv6
+    
+    logging.basicConfig(level=logging.DEBUG,
+                        format='%(asctime)s %(levelname)-8s %(message)s',
+                        datefmt='%Y-%m-%d %H:%M:%S', filemode='a+')
+
+    # fix py2exe
+    if hasattr(sys, "frozen") and sys.frozen in \
+            ("windows_exe", "console_exe"):
+        p = os.path.dirname(os.path.abspath(sys.executable))
+        os.chdir(p)
+    version = ''
     try:
-        os.chdir(os.path.dirname(__file__) or '.')
-    except NameError:
-        # fix py2exe
-        if hasattr(sys, "frozen") and sys.frozen in \
-                ("windows_exe", "console_exe"):
-            p = os.path.dirname(os.path.abspath(sys.executable))
-            os.chdir(p)
-    print 'shadowsocks v1.2.3'
+        import pkg_resources
+        version = pkg_resources.get_distribution('shadowsocks').version
+    except ImportError:
+        pass
+    print 'shadowsocks %s' % version
 
-    with open('config.json', 'rb') as f:
-        config = json.load(f)
-    SERVER = config['server']
-    REMOTE_PORT = config['server_port']
-    PORT = config['local_port']
-    KEY = config['password']
-    METHOD = config.get('method', None)
-    LOCAL = config.get('local', '')
+    METHOD = None
+    LOCAL = ''
     IPv6 = False
+    
+    config_path = utils.find_config()
+    optlist, args = getopt.getopt(sys.argv[1:], 's:b:p:k:l:m:c:6')
+    for key, value in optlist:
+        if key == '-c':
+            config_path = value
 
-    optlist, args = getopt.getopt(sys.argv[1:], 's:b:p:k:l:m:6')
+    if config_path:
+        logging.info('loading config from %s' % config_path)
+        with open(config_path, 'rb') as f:
+            config = json.load(f)
+        SERVER = config['server']
+        REMOTE_PORT = config['server_port']
+        PORT = config['local_port']
+        KEY = config['password']
+        METHOD = config.get('method', None)
+        LOCAL = config.get('local', '')
+
+    optlist, args = getopt.getopt(sys.argv[1:], 's:b:p:k:l:m:c:6')
     for key, value in optlist:
         if key == '-p':
             REMOTE_PORT = int(value)
@@ -180,10 +201,6 @@ if __name__ == '__main__':
         elif key == '-6':
             IPv6 = True
 
-    logging.basicConfig(level=logging.DEBUG,
-                        format='%(asctime)s %(levelname)-8s %(message)s',
-                        datefmt='%Y-%m-%d %H:%M:%S', filemode='a+')
-
     encrypt.init_table(KEY, METHOD)
 
     try:
@@ -197,3 +214,6 @@ if __name__ == '__main__':
     except KeyboardInterrupt:
         server.shutdown()
         sys.exit(0)
+        
+if __name__ == '__main__':
+    main()
diff --git a/server.py b/shadowsocks/server.py
similarity index 86%
rename from server.py
rename to shadowsocks/server.py
index d656733..0a20428 100755
--- a/server.py
+++ b/shadowsocks/server.py
@@ -1,6 +1,6 @@
 #!/usr/bin/env python
 
-# Copyright (c) 2012 clowwindy
+# Copyright (c) 2013 clowwindy
 #
 # Permission is hereby granted, free of charge, to any person obtaining a copy
 # of this software and associated documentation files (the "Software"), to deal
@@ -43,6 +43,7 @@ import os
 import logging
 import getopt
 import encrypt
+import utils
 
 
 def send_all(sock, data):
@@ -123,21 +124,40 @@ class Socks5Server(SocketServer.StreamRequestHandler):
         except socket.error, e:
             logging.warn(e)
 
-if __name__ == '__main__':
-    os.chdir(os.path.dirname(__file__) or '.')
-
-    print 'shadowsocks v1.2.3'
+def main():
+    global SERVER, PORT, KEY, METHOD, IPv6
+ 
+    logging.basicConfig(level=logging.DEBUG,
+                        format='%(asctime)s %(levelname)-8s %(message)s',
+                        datefmt='%Y-%m-%d %H:%M:%S', filemode='a+')
+   
+    version = ''
+    try:
+        import pkg_resources
+        version = pkg_resources.get_distribution('shadowsocks').version
+    except ImportError:
+        pass
+    print 'shadowsocks %s' % version
 
+    METHOD = None
+    IPv6 = False
+ 
+    config_path = utils.find_config()
+    optlist, args = getopt.getopt(sys.argv[1:], 'p:k:m:c:6')
+    for key, value in optlist:
+        if key == '-c':
+            config_path = value
     with open('config.json', 'rb') as f:
         config = json.load(f)
 
-    SERVER = config['server']
-    PORT = config['server_port']
-    KEY = config['password']
-    METHOD = config.get('method', None)
-    IPv6 = False
+    if config_path:
+        logging.info('loading config from %s' % config_path)
+        SERVER = config['server']
+        PORT = config['server_port']
+        KEY = config['password']
+        METHOD = config.get('method', None)
 
-    optlist, args = getopt.getopt(sys.argv[1:], 'p:k:m:6')
+    optlist, args = getopt.getopt(sys.argv[1:], 'p:k:m:c:6')
     for key, value in optlist:
         if key == '-p':
             PORT = int(value)
@@ -148,10 +168,6 @@ if __name__ == '__main__':
         elif key == '-6':
             IPv6 = True
 
-    logging.basicConfig(level=logging.DEBUG,
-                        format='%(asctime)s %(levelname)-8s %(message)s',
-                        datefmt='%Y-%m-%d %H:%M:%S', filemode='a+')
-
     encrypt.init_table(KEY, METHOD)
     if IPv6:
         ThreadingTCPServer.address_family = socket.AF_INET6
@@ -161,3 +177,6 @@ if __name__ == '__main__':
         server.serve_forever()
     except socket.error, e:
         logging.error(e)
+
+if __name__ == '__main__':
+    main()
diff --git a/shadowsocks/utils.py b/shadowsocks/utils.py
new file mode 100644
index 0000000..79d6589
--- /dev/null
+++ b/shadowsocks/utils.py
@@ -0,0 +1,14 @@
+#!/usr/bin/python
+# -*- coding: utf-8 -*-
+
+import os
+
+
+def find_config():
+    config_path = 'config.json'
+    if os.path.exists(config_path):
+        return config_path
+    config_path = os.path.join(os.path.dirname(__file__), '../', 'config.json')
+    if os.path.exists(config_path):
+        return config_path
+    return None
diff --git a/test.py b/test.py
index ab3bbda..4e32676 100755
--- a/test.py
+++ b/test.py
@@ -82,9 +82,9 @@ decrypt_table = string.maketrans(encrypt_table, string.maketrans('', ''))
 for i in range(0, 256):
     assert(target2[0][i] == ord(encrypt_table[i]))
     assert(target2[1][i] == ord(decrypt_table[i]))
-p1 = Popen(['python', 'server.py'], shell=False, bufsize=0, stdin=PIPE, 
+p1 = Popen(['python', 'shadowsocks/server.py'], shell=False, bufsize=0, stdin=PIPE, 
     stdout=PIPE, stderr=PIPE, close_fds=True)
-p2 = Popen(['python', 'local.py'], shell=False, bufsize=0, stdin=PIPE,
+p2 = Popen(['python', 'shadowsocks/local.py'], shell=False, bufsize=0, stdin=PIPE,
     stdout=PIPE, stderr=PIPE, close_fds=True)
 p3 = None