diff --git a/python/ray/__init__.py b/python/ray/__init__.py
index 59bfebda1..9d0a68722 100644
--- a/python/ray/__init__.py
+++ b/python/ray/__init__.py
@@ -2,11 +2,20 @@ from __future__ import absolute_import
 from __future__ import division
 from __future__ import print_function
 
+import os
+import sys
+# Add the directory containing pyarrow to the Python path so that we find the
+# pyarrow version packaged with ray and not a pre-existing pyarrow.
+pyarrow_path = os.path.join(os.path.abspath(os.path.dirname(__file__)),
+                            "pyarrow_files")
+sys.path.insert(0, pyarrow_path)
+
 from ray.worker import (register_class, error_info, init, connect, disconnect,
                         get, put, wait, remote, log_event, log_span,
-                        flush_log, get_gpu_ids)
-from ray.worker import SCRIPT_MODE, WORKER_MODE, PYTHON_MODE, SILENT_MODE
-from ray.worker import global_state
+                        flush_log, get_gpu_ids)  # noqa: E402
+from ray.worker import (SCRIPT_MODE, WORKER_MODE, PYTHON_MODE,
+                        SILENT_MODE)  # noqa: E402
+from ray.worker import global_state  # noqa: E402
 # We import ray.actor because some code is run in actor.py which initializes
 # some functions in the worker.
 import ray.actor  # noqa: F401
@@ -20,7 +29,7 @@ __all__ = ["register_class", "error_info", "init", "connect", "disconnect",
            "flush_log", "actor", "get_gpu_ids", "SCRIPT_MODE", "WORKER_MODE",
            "PYTHON_MODE", "SILENT_MODE", "global_state", "__version__"]
 
-import ctypes
+import ctypes  # noqa: E402
 # Windows only
 if hasattr(ctypes, "windll"):
     # Makes sure that all child processes die when we die. Also makes sure that
diff --git a/python/ray/global_scheduler/test/test.py b/python/ray/global_scheduler/test/test.py
index 18634d768..91df772ea 100644
--- a/python/ray/global_scheduler/test/test.py
+++ b/python/ray/global_scheduler/test/test.py
@@ -10,14 +10,15 @@ import sys
 import time
 import unittest
 
-import pyarrow as pa
+# The ray import must come before the pyarrow import because ray modifies the
+# python path so that the right version of pyarrow is found.
 import ray.global_scheduler as global_scheduler
 import ray.local_scheduler as local_scheduler
 import ray.plasma as plasma
 from ray.plasma.utils import create_object
-
 from ray import services
 from ray.experimental import state
+import pyarrow as pa
 
 USE_VALGRIND = False
 PLASMA_STORE_MEMORY = 1000000000
diff --git a/python/ray/plasma/test/test.py b/python/ray/plasma/test/test.py
index dba6253d3..c5292d9df 100644
--- a/python/ray/plasma/test/test.py
+++ b/python/ray/plasma/test/test.py
@@ -13,12 +13,14 @@ import threading
 import time
 import unittest
 
-import pyarrow as pa
-import pyarrow.plasma as plasma
+# The ray import must come before the pyarrow import because ray modifies the
+# python path so that the right version of pyarrow is found.
 import ray
 from ray.plasma.utils import (random_object_id,
                               create_object_with_id, create_object)
 from ray import services
+import pyarrow as pa
+import pyarrow.plasma as plasma
 
 USE_VALGRIND = False
 PLASMA_STORE_MEMORY = 1000000000
diff --git a/python/ray/pyarrow_files/.gitkeep b/python/ray/pyarrow_files/.gitkeep
new file mode 100644
index 000000000..e69de29bb
diff --git a/python/setup.py b/python/setup.py
index 04bd430b9..372b2da06 100644
--- a/python/setup.py
+++ b/python/setup.py
@@ -10,35 +10,42 @@ import sys
 from setuptools import setup, find_packages, Distribution
 import setuptools.command.build_ext as _build_ext
 
-
-# This used to be the first line of the run method in the build_ext class.
-# However, we moved it here because the previous approach seemed to fail in
-# Docker. Inside of the build.sh script, we install the pyarrow Python module.
-# Something about calling "python setup.py install" inside of the build_ext
-# run method doesn't work (this is easily reproducible in Docker with just a
-# couple files to simulate two Python modules). The problem is that the pyarrow
-# module doesn't get added to the easy-install.pth file, so it never gets added
-# to the Python path even though the package is built and copied to the right
-# location. An alternative fix would be to manually modify the easy-install.pth
-# file. TODO(rkn): Fix all of this.
-#
-# Note: We are passing in sys.executable so that we use the same version of
-# Python to build pyarrow inside the build.sh script. Note that certain flags
-# will not be passed along such as --user or sudo. TODO(rkn): Fix this.
-subprocess.check_call(["../build.sh", sys.executable])
+# Ideally, we could include these files by putting them in a
+# MANIFEST.in or using the package_data argument to setup, but the
+# MANIFEST.in gets applied at the very beginning when setup.py runs
+# before these files have been created, so we have to move the files
+# manually.
+ray_files = [
+    "ray/core/src/common/thirdparty/redis/src/redis-server",
+    "ray/core/src/common/redis_module/libray_redis_module.so",
+    "ray/core/src/plasma/plasma_store",
+    "ray/core/src/plasma/plasma_manager",
+    "ray/core/src/local_scheduler/local_scheduler",
+    "ray/core/src/local_scheduler/liblocal_scheduler_library.so",
+    "ray/core/src/numbuf/libnumbuf.so",
+    "ray/core/src/global_scheduler/global_scheduler",
+    "ray/WebUI.ipynb"
+]
 
 
 class build_ext(_build_ext.build_ext):
     def run(self):
-        # The line below has been moved outside of the build_ext class. See the
-        # explanation there.
-        # subprocess.check_call(["../build.sh"])
+        # Note: We are passing in sys.executable so that we use the same
+        # version of Python to build pyarrow inside the build.sh script. Note
+        # that certain flags will not be passed along such as --user or sudo.
+        # TODO(rkn): Fix this.
+        subprocess.check_call(["../build.sh", sys.executable])
+
+        # We also need to install pyarrow along with Ray, so make sure that the
+        # relevant non-Python pyarrow files get copied.
+        pyarrow_files = [
+            os.path.join("ray/pyarrow_files/pyarrow", filename)
+            for filename in os.listdir("./ray/pyarrow_files/pyarrow")
+            if not os.path.isdir(os.path.join("ray/pyarrow_files/pyarrow",
+                                              filename))]
+
+        files_to_include = ray_files + pyarrow_files
 
-        # Ideally, we could include these files by putting them in a
-        # MANIFEST.in or using the package_data argument to setup, but the
-        # MANIFEST.in gets applied at the very beginning when setup.py runs
-        # before these files have been created, so we have to move the files
-        # manually.
         for filename in files_to_include:
             self.move_file(filename)
         # Copy over the autogenerated flatbuffer Python bindings.
@@ -62,19 +69,6 @@ class build_ext(_build_ext.build_ext):
         shutil.copy(source, destination)
 
 
-files_to_include = [
-    "ray/core/src/common/thirdparty/redis/src/redis-server",
-    "ray/core/src/common/redis_module/libray_redis_module.so",
-    "ray/core/src/plasma/plasma_store",
-    "ray/core/src/plasma/plasma_manager",
-    "ray/core/src/local_scheduler/local_scheduler",
-    "ray/core/src/local_scheduler/liblocal_scheduler_library.so",
-    "ray/core/src/numbuf/libnumbuf.so",
-    "ray/core/src/global_scheduler/global_scheduler",
-    "ray/WebUI.ipynb"
-]
-
-
 class BinaryDistribution(Distribution):
     def has_ext_modules(self):
         return True
diff --git a/src/thirdparty/build_thirdparty.sh b/src/thirdparty/build_thirdparty.sh
index c4f75e1c4..b60207b9a 100755
--- a/src/thirdparty/build_thirdparty.sh
+++ b/src/thirdparty/build_thirdparty.sh
@@ -62,4 +62,11 @@ cd $TP_DIR/arrow/python
 # We set PKG_CONFIG_PATH, which is important so that in cmake, pkg-config can
 # find plasma.
 ARROW_HOME=$TP_DIR/arrow/cpp/build/cpp-install
-PKG_CONFIG_PATH=$ARROW_HOME/lib/pkgconfig PYARROW_WITH_PLASMA=1 PYARROW_BUNDLE_ARROW_CPP=1 $PYTHON_EXECUTABLE setup.py install
+PKG_CONFIG_PATH=$ARROW_HOME/lib/pkgconfig PYARROW_WITH_PLASMA=1 PYARROW_BUNDLE_ARROW_CPP=1 $PYTHON_EXECUTABLE setup.py build
+PKG_CONFIG_PATH=$ARROW_HOME/lib/pkgconfig PYARROW_WITH_PLASMA=1 PYARROW_BUNDLE_ARROW_CPP=1 $PYTHON_EXECUTABLE setup.py build_ext
+# Find the pyarrow directory that was just built and copy it to ray/python/ray/
+# so that pyarrow can be packaged along with ray. TODO(rkn): This doesn't seem
+# very robust. Fix this.
+PYARROW_BUILD_LIB_DIR=$(find $TP_DIR/arrow/python/build -type d -maxdepth 1 -print | grep -m1 'lib')
+echo "copying pyarrow files from $PYARROW_BUILD_LIB_DIR/pyarrow"
+cp -r $PYARROW_BUILD_LIB_DIR/pyarrow $TP_DIR/../../python/ray/pyarrow_files/