diff --git a/tests/test_cli.py b/tests/test_cli.py
index d8a973c60..eda277138 100644
--- a/tests/test_cli.py
+++ b/tests/test_cli.py
@@ -63,6 +63,22 @@ def test_command_line_overrides_pip_conf(pip_conf):
         assert 'Using indexes:\n  http://override.com' in out.output
 
 
+def test_command_line_setuptools_read(pip_conf):
+
+    runner = CliRunner()
+    with runner.isolated_filesystem():
+        package = open('setup.py', 'w')
+        package.write(dedent("""\
+            from setuptools import setup
+            setup(install_requires=[])
+        """))
+        package.close()
+        out = runner.invoke(cli)
+
+        # check that pip-compile generated a configuration
+        assert 'This file is autogenerated by pip-compile' in out.output
+
+
 def test_find_links_option(pip_conf):
 
     assert os.path.exists(pip_conf)