diff --git a/Devel.hs b/Devel.hs
--- a/Devel.hs
+++ b/Devel.hs
@@ -422,7 +422,7 @@
     exitFailure
 
 checkFileList :: FileList -> D.Library -> [FilePath]
-checkFileList fl lib = filter isUnlisted . filter isSrcFile $ sourceFiles
+checkFileList fl lib = filter (not . isSetup) . filter isUnlisted . filter isSrcFile $ sourceFiles
   where
     al = allModules lib
     -- a file is only a possible 'module file' if all path pieces start with a capital letter
@@ -431,6 +431,12 @@
                      in  all (isUpper . head) dirs && (takeExtension file `elem` [".hs", ".lhs"])
     isUnlisted file = not (toModuleName file `Set.member` al)
     toModuleName = L.intercalate "." . filter (/=".") . splitDirectories . dropExtension
+
+    isSetup "Setup.hs" = True
+    isSetup "./Setup.hs" = True
+    isSetup "Setup.lhs" = True
+    isSetup "./Setup.lhs" = True
+    isSetup _ = False
 
 allModules :: D.Library -> Set.Set String
 allModules lib = Set.fromList $ map toString $ D.exposedModules lib ++ (D.otherModules . D.libBuildInfo) lib
diff --git a/yesod-bin.cabal b/yesod-bin.cabal
--- a/yesod-bin.cabal
+++ b/yesod-bin.cabal
@@ -1,5 +1,5 @@
 name:            yesod-bin
-version:         1.2.9.3
+version:         1.2.9.4
 license:         MIT
 license-file:    LICENSE
 author:          Michael Snoyman <michael@snoyman.com>
@@ -95,7 +95,7 @@
                      , data-default-class
                      , streaming-commons
 
-    ghc-options:       -Wall -threaded
+    ghc-options:       -Wall -threaded -rtsopts
     main-is:           main.hs
     other-modules:     Scaffolding.Scaffolder
                        Devel