diff --git a/PCbuild/pyproject.vsprops b/PCbuild/pyproject.vsprops
index 3633aeb..eb6ab32 100644
--- a/PCbuild/pyproject.vsprops
+++ b/PCbuild/pyproject.vsprops
@@ -78,7 +78,7 @@
 	/>
 	<UserMacro
 		Name="bz2Dir"
-		Value="$(externalsDir)\bzip2-1.0.3"
+		Value="$(externalsDir)\bzip2-1.0.5"
 	/>
 	<UserMacro
 		Name="opensslDir"
diff --git a/PCbuild/readme.txt b/PCbuild/readme.txt
index a55c1f1..f56828d 100644
--- a/PCbuild/readme.txt
+++ b/PCbuild/readme.txt
@@ -121,21 +121,21 @@
     Download the source from the python.org copy into the dist
     directory:
 
-    svn export http://svn.python.org/projects/external/bzip2-1.0.3
+    svn export http://svn.python.org/projects/external/bzip2-1.0.5
 
     ** NOTE: if you use the Tools\buildbot\external(-amd64).bat approach for
     obtaining external sources then you don't need to manually get the source
     above via subversion. **
 
     A custom pre-link step in the bz2 project settings should manage to
-    build bzip2-1.0.3\libbz2.lib by magic before bz2.pyd (or bz2_d.pyd) is
+    build bzip2-1.0.5\libbz2.lib by magic before bz2.pyd (or bz2_d.pyd) is
     linked in PCbuild\.
     However, the bz2 project is not smart enough to remove anything under
-    bzip2-1.0.3\ when you do a clean, so if you want to rebuild bzip2.lib
-    you need to clean up bzip2-1.0.3\ by hand.
+    bzip2-1.0.5\ when you do a clean, so if you want to rebuild bzip2.lib
+    you need to clean up bzip2-1.0.5\ by hand.
 
     All of this managed to build libbz2.lib in 
-    bzip2-1.0.3\$platform-$configuration\, which the Python project links in.
+    bzip2-1.0.5\$platform-$configuration\, which the Python project links in.
 
 _ssl
     Python wrapper for the secure sockets library.