diff --git a/doc/builders/special.xml b/doc/builders/special.xml
index 525eb71abfe7..c97113481981 100644
--- a/doc/builders/special.xml
+++ b/doc/builders/special.xml
@@ -6,6 +6,7 @@
   This chapter describes several special builders.
  </para>
  <xi:include href="special/fhs-environments.section.xml" />
+ <xi:include href="special/makesetuphook.section.xml" />
  <xi:include href="special/mkshell.section.xml" />
  <xi:include href="special/darwin-builder.section.xml" />
 </chapter>
diff --git a/doc/builders/special/makesetuphook.section.md b/doc/builders/special/makesetuphook.section.md
new file mode 100644
index 000000000000..90d75c5491cf
--- /dev/null
+++ b/doc/builders/special/makesetuphook.section.md
@@ -0,0 +1,37 @@
+# pkgs.makeSetupHook {#sec-pkgs.makeSetupHook}
+
+`pkgs.makeSetupHook` is a builder that produces hooks that go in to `nativeBuildInputs`
+
+## Usage {#sec-pkgs.makeSetupHook-usage}
+
+```nix
+pkgs.makeSetupHook {
+  name = "something-hook";
+  propagatedBuildInputs = [ pkgs.commandsomething ];
+  depsTargetTargetPropagated = [ pkgs.libsomething ];
+} ./script.sh
+```
+
+#### setup hook that depends on the hello package and runs hello and @shell@ is substituted with path to bash
+
+```nix
+pkgs.makeSetupHook {
+    name = "run-hello-hook";
+    propagatedBuildInputs = [ pkgs.hello ];
+    substitutions = { shell = "${pkgs.bash}/bin/bash"; };
+    passthru.tests.greeting = callPackage ./test { };
+    meta.platforms = lib.platforms.linux;
+} (writeScript "run-hello-hook.sh" ''
+    #!@shell@
+    hello
+'')
+```
+
+## Attributes
+
+* `name` Set the name of the hook.
+* `propagatedBuildInputs` Runtime dependencies (such as binaries) of the hook.
+* `depsTargetTargetPropagated` Non-binary dependencies.
+* `meta`
+* `passthru`
+* `substitutions` Variables for `substituteAll`
diff --git a/pkgs/applications/editors/vim/plugins/vim-utils.nix b/pkgs/applications/editors/vim/plugins/vim-utils.nix
index 4235aa5e929e..5c7f6f64a7c3 100644
--- a/pkgs/applications/editors/vim/plugins/vim-utils.nix
+++ b/pkgs/applications/editors/vim/plugins/vim-utils.nix
@@ -363,7 +363,7 @@ rec {
   vimGenDocHook = callPackage ({ vim }:
     makeSetupHook {
       name = "vim-gen-doc-hook";
-      deps = [ vim ];
+      propagatedBuildInputs = [ vim ];
       substitutions = {
         vimBinary = "${vim}/bin/vim";
         inherit rtpPath;
@@ -373,7 +373,7 @@ rec {
   vimCommandCheckHook = callPackage ({ neovim-unwrapped }:
     makeSetupHook {
       name = "vim-command-check-hook";
-      deps = [ neovim-unwrapped ];
+      propagatedBuildInputs = [ neovim-unwrapped ];
       substitutions = {
         vimBinary = "${neovim-unwrapped}/bin/nvim";
         inherit rtpPath;
@@ -383,7 +383,7 @@ rec {
   neovimRequireCheckHook = callPackage ({ neovim-unwrapped }:
     makeSetupHook {
       name = "neovim-require-check-hook";
-      deps = [ neovim-unwrapped ];
+      propagatedBuildInputs = [ neovim-unwrapped ];
       substitutions = {
         nvimBinary = "${neovim-unwrapped}/bin/nvim";
         inherit rtpPath;
diff --git a/pkgs/build-support/dotnet/build-dotnet-module/hooks/default.nix b/pkgs/build-support/dotnet/build-dotnet-module/hooks/default.nix
index bce3d799fbb1..a72f0291a872 100644
--- a/pkgs/build-support/dotnet/build-dotnet-module/hooks/default.nix
+++ b/pkgs/build-support/dotnet/build-dotnet-module/hooks/default.nix
@@ -20,7 +20,7 @@ in
   dotnetConfigureHook = callPackage ({ }:
     makeSetupHook {
       name = "dotnet-configure-hook";
-      deps = [ dotnet-sdk nuget-source ];
+      propagatedBuildInputs = [ dotnet-sdk nuget-source ];
       substitutions = {
         nugetSource = nuget-source;
         inherit runtimeId;
@@ -30,7 +30,7 @@ in
   dotnetBuildHook = callPackage ({ }:
     makeSetupHook {
       name = "dotnet-build-hook";
-      deps = [ dotnet-sdk ];
+      propagatedBuildInputs = [ dotnet-sdk ];
       substitutions = {
         inherit buildType runtimeId;
       };
@@ -39,7 +39,7 @@ in
   dotnetCheckHook = callPackage ({ }:
     makeSetupHook {
       name = "dotnet-check-hook";
-      deps = [ dotnet-test-sdk ];
+      propagatedBuildInputs = [ dotnet-test-sdk ];
       substitutions = {
         inherit buildType libraryPath;
         disabledTests = lib.optionalString (disabledTests != [])
@@ -54,7 +54,7 @@ in
   dotnetInstallHook = callPackage ({ }:
     makeSetupHook {
       name = "dotnet-install-hook";
-      deps = [ dotnet-sdk ];
+      propagatedBuildInputs = [ dotnet-sdk ];
       substitutions = {
         inherit buildType runtimeId;
       };
@@ -63,7 +63,7 @@ in
   dotnetFixupHook = callPackage ({ }:
     makeSetupHook {
       name = "dotnet-fixup-hook";
-      deps = [ dotnet-runtime ];
+      propagatedBuildInputs = [ dotnet-runtime ];
       substitutions = {
         dotnetRuntime = dotnet-runtime;
         runtimeDeps = libraryPath;
diff --git a/pkgs/build-support/node/build-npm-package/hooks/default.nix b/pkgs/build-support/node/build-npm-package/hooks/default.nix
index 65ac661cea51..e5c93f1f7784 100644
--- a/pkgs/build-support/node/build-npm-package/hooks/default.nix
+++ b/pkgs/build-support/node/build-npm-package/hooks/default.nix
@@ -26,7 +26,7 @@
   npmInstallHook = makeSetupHook
     {
       name = "npm-install-hook";
-      deps = [ buildPackages.makeWrapper ];
+      propagatedBuildInputs = [ buildPackages.makeWrapper ];
       substitutions = {
         hostNode = "${nodejs}/bin/node";
         jq = "${buildPackages.jq}/bin/jq";
diff --git a/pkgs/build-support/rust/hooks/default.nix b/pkgs/build-support/rust/hooks/default.nix
index 9989e582d2e9..b4034120103e 100644
--- a/pkgs/build-support/rust/hooks/default.nix
+++ b/pkgs/build-support/rust/hooks/default.nix
@@ -31,7 +31,7 @@ in {
   cargoBuildHook = callPackage ({ }:
     makeSetupHook {
       name = "cargo-build-hook.sh";
-      deps = [ cargo ];
+      propagatedBuildInputs = [ cargo ];
       substitutions = {
         inherit ccForBuild ccForHost cxxForBuild cxxForHost
           rustBuildPlatform rustTargetPlatform rustTargetPlatformSpec;
@@ -41,7 +41,7 @@ in {
   cargoCheckHook = callPackage ({ }:
     makeSetupHook {
       name = "cargo-check-hook.sh";
-      deps = [ cargo ];
+      propagatedBuildInputs = [ cargo ];
       substitutions = {
         inherit rustTargetPlatformSpec;
       };
@@ -50,7 +50,7 @@ in {
   cargoInstallHook = callPackage ({ }:
     makeSetupHook {
       name = "cargo-install-hook.sh";
-      deps = [ ];
+      propagatedBuildInputs = [ ];
       substitutions = {
         inherit shortTarget;
       };
@@ -59,7 +59,7 @@ in {
   cargoNextestHook = callPackage ({ }:
     makeSetupHook {
       name = "cargo-nextest-hook.sh";
-      deps = [ cargo cargo-nextest ];
+      propagatedBuildInputs = [ cargo cargo-nextest ];
       substitutions = {
         inherit rustTargetPlatformSpec;
       };
@@ -68,7 +68,7 @@ in {
   cargoSetupHook = callPackage ({ }:
     makeSetupHook {
       name = "cargo-setup-hook.sh";
-      deps = [ ];
+      propagatedBuildInputs = [ ];
       substitutions = {
         defaultConfig = ../fetchcargo-default-config.toml;
 
@@ -117,7 +117,7 @@ in {
   maturinBuildHook = callPackage ({ }:
     makeSetupHook {
       name = "maturin-build-hook.sh";
-      deps = [ cargo maturin rustc ];
+      propagatedBuildInputs = [ cargo maturin rustc ];
       substitutions = {
         inherit ccForBuild ccForHost cxxForBuild cxxForHost
           rustBuildPlatform rustTargetPlatform rustTargetPlatformSpec;
diff --git a/pkgs/build-support/setup-hooks/make-binary-wrapper/default.nix b/pkgs/build-support/setup-hooks/make-binary-wrapper/default.nix
index c81a253b0de8..17b97b1082e9 100644
--- a/pkgs/build-support/setup-hooks/make-binary-wrapper/default.nix
+++ b/pkgs/build-support/setup-hooks/make-binary-wrapper/default.nix
@@ -11,8 +11,7 @@
 
 makeSetupHook {
   name = "make-binary-wrapper-hook";
-
-  deps = [ dieHook ]
+  propagatedBuildInputs = [ dieHook ]
     # https://github.com/NixOS/nixpkgs/issues/148189
     ++ lib.optional (stdenv.isDarwin && stdenv.isAarch64) cc;
 
diff --git a/pkgs/build-support/setup-hooks/wrap-gapps-hook/default.nix b/pkgs/build-support/setup-hooks/wrap-gapps-hook/default.nix
index 5ef613838856..99633a3c7c9a 100644
--- a/pkgs/build-support/setup-hooks/wrap-gapps-hook/default.nix
+++ b/pkgs/build-support/setup-hooks/wrap-gapps-hook/default.nix
@@ -9,12 +9,15 @@
 , dconf
 , callPackage
 , wrapGAppsHook
-, writeTextFile
+, targetPackages
 }:
 
 makeSetupHook {
   name = "wrap-gapps-hook";
-  deps = lib.optionals (!stdenv.isDarwin) [
+  propagatedBuildInputs = [
+    # We use the wrapProgram function.
+    makeWrapper
+  ] ++ lib.optionals (!stdenv.isDarwin) [
     # It is highly probable that a program will use GSettings,
     # at minimum through GTK file chooser dialogue.
     # Let’s add a GIO module for “dconf” GSettings backend
@@ -23,19 +26,22 @@ makeSetupHook {
     # Unfortunately, it also requires the user to have dconf
     # D-Bus service enabled globally (e.g. through a NixOS module).
     dconf.lib
+
   ] ++ lib.optionals isGraphical [
     # TODO: remove this, packages should depend on GTK explicitly.
     gtk3
 
+    librsvg
+  ];
+
+  # depsTargetTargetPropagated will essentially be buildInputs when wrapGAppsHook is placed into nativeBuildInputs
+  # the librsvg above should be removed but kept to not break anything that implicitly depended on its binaries
+  depsTargetTargetPropagated = assert (lib.assertMsg (!targetPackages ? raw) "wrapGAppsHook must be in nativeBuildInputs"); lib.optionals isGraphical [
     # librsvg provides a module for gdk-pixbuf to allow rendering
     # SVG icons. Most icon themes are SVG-based and so are some
     # graphics in GTK (e.g. cross for closing window in window title bar)
     # so it is pretty much required for applications using GTK.
     librsvg
-  ] ++ [
-
-    # We use the wrapProgram function.
-    makeWrapper
   ];
   passthru = {
     tests = let
@@ -65,6 +71,15 @@ makeSetupHook {
         ''
       );
 
+      basic-contains-gdk-pixbuf = let
+        tested = basic;
+      in testLib.runTest "basic-contains-gdk-pixbuf" (
+        testLib.skip stdenv.isDarwin ''
+          ${expectSomeLineContainingYInFileXToMentionZ "${tested}/bin/foo" "GDK_PIXBUF_MODULE_FILE" "${lib.getLib librsvg}/lib/gdk-pixbuf-2.0/2.10.0/loaders.cache"}
+          ${expectSomeLineContainingYInFileXToMentionZ "${tested}/libexec/bar" "GDK_PIXBUF_MODULE_FILE" "${lib.getLib librsvg}/lib/gdk-pixbuf-2.0/2.10.0/loaders.cache"}
+        ''
+      );
+
       # Simple derivation containing a gobject-introspection typelib.
       typelib-Mahjong = stdenv.mkDerivation {
         name = "typelib-Mahjong";
diff --git a/pkgs/build-support/setup-hooks/wrap-gapps-hook/tests/lib.nix b/pkgs/build-support/setup-hooks/wrap-gapps-hook/tests/lib.nix
index 42866c3419dd..59fa9de24f9d 100644
--- a/pkgs/build-support/setup-hooks/wrap-gapps-hook/tests/lib.nix
+++ b/pkgs/build-support/setup-hooks/wrap-gapps-hook/tests/lib.nix
@@ -1,7 +1,7 @@
 { lib, runCommand }:
 
 rec {
-  runTest = name: body: runCommand name { } ''
+  runTest = name: body: runCommand name { strictDeps = true; } ''
     set -o errexit
     ${body}
     touch $out
diff --git a/pkgs/build-support/trivial-builders.nix b/pkgs/build-support/trivial-builders.nix
index 7318d13f6bab..413ed65852f5 100644
--- a/pkgs/build-support/trivial-builders.nix
+++ b/pkgs/build-support/trivial-builders.nix
@@ -593,45 +593,28 @@ rec {
     in linkFarm name (map mkEntryFromDrv drvs);
 
 
-  /*
-    Make a package that just contains a setup hook with the given contents.
-    This setup hook will be invoked by any package that includes this package
-    as a buildInput. Optionally takes a list of substitutions that should be
-    applied to the resulting script.
-
-    Examples:
-    # setup hook that depends on the hello package and runs ./myscript.sh
-    myhellohook = makeSetupHook { deps = [ hello ]; } ./myscript.sh;
-
-    # writes a Linux-exclusive setup hook where @bash@ myscript.sh is substituted for the
-    # bash interpreter.
-    myhellohookSub = makeSetupHook {
-                   name = "myscript-hook";
-                   deps = [ hello ];
-                   substitutions = { bash = "${pkgs.bash}/bin/bash"; };
-                   meta.platforms = lib.platforms.linux;
-                 } ./myscript.sh;
-
-    # setup hook with a package test
-    myhellohookTested = makeSetupHook {
-                   name = "myscript-hook";
-                   deps = [ hello ];
-                   substitutions = { bash = "${pkgs.bash}/bin/bash"; };
-                   meta.platforms = lib.platforms.linux;
-                   passthru.tests.greeting = callPackage ./test { };
-                 } ./myscript.sh;
-   */
+  # docs in doc/builders/special/makesetuphook.section.md
   makeSetupHook =
     { name ? lib.warn "calling makeSetupHook without passing a name is deprecated." "hook"
-    , deps ? []
-    , substitutions ? {}
-    , meta ? {}
-    , passthru ? {}
+    , deps ? [ ]
+      # hooks go in nativeBuildInput so these will be nativeBuildInput
+    , propagatedBuildInputs ? [ ]
+      # these will be buildInputs
+    , depsTargetTargetPropagated ? [ ]
+    , meta ? { }
+    , passthru ? { }
+    , substitutions ? { }
     }:
     script:
     runCommand name
       (substitutions // {
         inherit meta;
+        inherit depsTargetTargetPropagated;
+        propagatedBuildInputs =
+          # remove list conditionals before 23.11
+          lib.warnIf (!lib.isList deps) "'deps' argument to makeSetupHook must be a list. content of deps: ${toString deps}"
+            (lib.warnIf (deps != [ ]) "'deps' argument to makeSetupHook is deprecated and will be removed in release 23.11., Please use propagatedBuildInputs instead. content of deps: ${toString deps}"
+              propagatedBuildInputs ++ (if lib.isList deps then deps else [ deps ]));
         strictDeps = true;
         # TODO 2023-01, no backport: simplify to inherit passthru;
         passthru = passthru
@@ -642,8 +625,7 @@ rec {
       (''
         mkdir -p $out/nix-support
         cp ${script} $out/nix-support/setup-hook
-      '' + lib.optionalString (deps != []) ''
-        printWords ${toString deps} > $out/nix-support/propagated-build-inputs
+        recordPropagatedDependencies
       '' + lib.optionalString (substitutions != {}) ''
         substituteAll ${script} $out/nix-support/setup-hook
       '');
diff --git a/pkgs/development/interpreters/lua-5/hooks/default.nix b/pkgs/development/interpreters/lua-5/hooks/default.nix
index fc92c59bb910..6c303f770dec 100644
--- a/pkgs/development/interpreters/lua-5/hooks/default.nix
+++ b/pkgs/development/interpreters/lua-5/hooks/default.nix
@@ -27,7 +27,7 @@ in {
   luarocksCheckHook = callPackage ({ luarocks }:
     makeSetupHook {
       name = "luarocks-check-hook";
-      deps = [ luarocks ];
+      propagatedBuildInputs = [ luarocks ];
     } ./luarocks-check-hook.sh) {};
 
   # luarocks installs data in a non-overridable location. Until a proper luarocks patch,
@@ -35,6 +35,6 @@ in {
   luarocksMoveDataFolder = callPackage ({ }:
     makeSetupHook {
       name = "luarocks-move-rock";
-      deps = [ ];
+      propagatedBuildInputs = [ ];
     } ./luarocks-move-data.sh) {};
 }
diff --git a/pkgs/development/interpreters/lua-5/wrap-lua.nix b/pkgs/development/interpreters/lua-5/wrap-lua.nix
index c9ef151bea3c..43ececd1e794 100644
--- a/pkgs/development/interpreters/lua-5/wrap-lua.nix
+++ b/pkgs/development/interpreters/lua-5/wrap-lua.nix
@@ -8,7 +8,7 @@
 # imported as wrapLua in lua-packages.nix and passed to build-lua-derivation to be used as buildInput
 makeSetupHook {
   name = "wrap-lua-hook";
-  deps = makeWrapper;
+  propagatedBuildInputs = [ makeWrapper ];
   substitutions.executable = lua.interpreter;
   substitutions.lua = lua;
   substitutions.LuaPathSearchPaths = lib.escapeShellArgs lua.LuaPathSearchPaths;
diff --git a/pkgs/development/interpreters/octave/wrap-octave.nix b/pkgs/development/interpreters/octave/wrap-octave.nix
index 1e4616136a1b..2317a479f0e2 100644
--- a/pkgs/development/interpreters/octave/wrap-octave.nix
+++ b/pkgs/development/interpreters/octave/wrap-octave.nix
@@ -10,7 +10,7 @@
 # Each of the substitutions is available in the wrap.sh script as @thingSubstituted@
 makeSetupHook {
   name = "${octave.name}-pkgs-setup-hook";
-  deps = makeWrapper;
+  propagatedBuildInputs = [ makeWrapper ];
   substitutions.executable = octave.interpreter;
   substitutions.octave = octave;
 } ./wrap.sh
diff --git a/pkgs/development/interpreters/python/hooks/default.nix b/pkgs/development/interpreters/python/hooks/default.nix
index 08dc3ea61ab7..001e477b9185 100644
--- a/pkgs/development/interpreters/python/hooks/default.nix
+++ b/pkgs/development/interpreters/python/hooks/default.nix
@@ -11,7 +11,7 @@ in {
   condaInstallHook = callPackage ({ makePythonHook, gnutar, lbzip2 }:
     makePythonHook {
       name = "conda-install-hook";
-      deps = [ gnutar lbzip2 ];
+      propagatedBuildInputs = [ gnutar lbzip2 ];
       substitutions = {
         inherit pythonSitePackages;
       };
@@ -20,19 +20,19 @@ in {
   condaUnpackHook = callPackage ({ makePythonHook }:
     makePythonHook {
       name = "conda-unpack-hook";
-      deps = [];
+      propagatedBuildInputs = [];
     } ./conda-unpack-hook.sh) {};
 
   eggBuildHook = callPackage ({ makePythonHook }:
     makePythonHook {
       name = "egg-build-hook.sh";
-      deps = [ ];
+      propagatedBuildInputs = [ ];
     } ./egg-build-hook.sh) {};
 
   eggInstallHook = callPackage ({ makePythonHook, setuptools }:
     makePythonHook {
       name = "egg-install-hook.sh";
-      deps = [ setuptools ];
+      propagatedBuildInputs = [ setuptools ];
       substitutions = {
         inherit pythonInterpreter pythonSitePackages;
       };
@@ -41,13 +41,13 @@ in {
   eggUnpackHook = callPackage ({ makePythonHook, }:
     makePythonHook {
       name = "egg-unpack-hook.sh";
-      deps = [ ];
+      propagatedBuildInputs = [ ];
     } ./egg-unpack-hook.sh) {};
 
   flitBuildHook = callPackage ({ makePythonHook, flit }:
     makePythonHook {
       name = "flit-build-hook";
-      deps = [ flit ];
+      propagatedBuildInputs = [ flit ];
       substitutions = {
         inherit pythonInterpreter;
       };
@@ -56,7 +56,7 @@ in {
   pipBuildHook = callPackage ({ makePythonHook, pip, wheel }:
     makePythonHook {
       name = "pip-build-hook.sh";
-      deps = [ pip wheel ];
+      propagatedBuildInputs = [ pip wheel ];
       substitutions = {
         inherit pythonInterpreter pythonSitePackages;
       };
@@ -65,7 +65,7 @@ in {
   pipInstallHook = callPackage ({ makePythonHook, pip }:
     makePythonHook {
       name = "pip-install-hook";
-      deps = [ pip ];
+      propagatedBuildInputs = [ pip ];
       substitutions = {
         inherit pythonInterpreter pythonSitePackages;
       };
@@ -74,7 +74,7 @@ in {
   pytestCheckHook = callPackage ({ makePythonHook, pytest }:
     makePythonHook {
       name = "pytest-check-hook";
-      deps = [ pytest ];
+      propagatedBuildInputs = [ pytest ];
       substitutions = {
         inherit pythonCheckInterpreter;
       };
@@ -123,7 +123,7 @@ in {
   pythonRelaxDepsHook = callPackage ({ makePythonHook, wheel }:
     makePythonHook {
       name = "python-relax-deps-hook";
-      deps = [ wheel ];
+      propagatedBuildInputs = [ wheel ];
       substitutions = {
         inherit pythonInterpreter;
       };
@@ -145,7 +145,7 @@ in {
   setuptoolsBuildHook = callPackage ({ makePythonHook, setuptools, wheel }:
     makePythonHook {
       name = "setuptools-setup-hook";
-      deps = [ setuptools wheel ];
+      propagatedBuildInputs = [ setuptools wheel ];
       substitutions = {
         inherit pythonInterpreter pythonSitePackages setuppy;
       };
@@ -154,7 +154,7 @@ in {
   setuptoolsCheckHook = callPackage ({ makePythonHook, setuptools }:
     makePythonHook {
       name = "setuptools-check-hook";
-      deps = [ setuptools ];
+      propagatedBuildInputs = [ setuptools ];
       substitutions = {
         inherit pythonCheckInterpreter setuppy;
       };
@@ -171,7 +171,7 @@ in {
   venvShellHook = disabledIf (!isPy3k) (callPackage ({ makePythonHook, ensureNewerSourcesForZipFilesHook }:
     makePythonHook {
       name = "venv-shell-hook";
-      deps = [ ensureNewerSourcesForZipFilesHook ];
+      propagatedBuildInputs = [ ensureNewerSourcesForZipFilesHook ];
       substitutions = {
         inherit pythonInterpreter;
       };
@@ -180,7 +180,7 @@ in {
   wheelUnpackHook = callPackage ({ makePythonHook, wheel }:
     makePythonHook {
       name = "wheel-unpack-hook.sh";
-      deps = [ wheel ];
+      propagatedBuildInputs = [ wheel ];
     } ./wheel-unpack-hook.sh) {};
 
   wrapPython = callPackage ../wrap-python.nix {
@@ -190,6 +190,6 @@ in {
   sphinxHook = callPackage ({ makePythonHook, sphinx, installShellFiles }:
     makePythonHook {
       name = "python${python.pythonVersion}-sphinx-hook";
-      deps = [ sphinx installShellFiles ];
+      propagatedBuildInputs = [ sphinx installShellFiles ];
     } ./sphinx-hook.sh) {};
 }
diff --git a/pkgs/development/interpreters/python/wrap-python.nix b/pkgs/development/interpreters/python/wrap-python.nix
index 83da013bfd2d..c67a8e088514 100644
--- a/pkgs/development/interpreters/python/wrap-python.nix
+++ b/pkgs/development/interpreters/python/wrap-python.nix
@@ -5,7 +5,7 @@
 
 makePythonHook {
       name = "wrap-python-hook";
-      deps = makeWrapper;
+      propagatedBuildInputs = [ makeWrapper ];
       substitutions.sitePackages = python.sitePackages;
       substitutions.executable = python.interpreter;
       substitutions.python = python.pythonForBuild;
diff --git a/pkgs/development/interpreters/tcl/generic.nix b/pkgs/development/interpreters/tcl/generic.nix
index 6351a08c1c07..6ce6e35189bf 100644
--- a/pkgs/development/interpreters/tcl/generic.nix
+++ b/pkgs/development/interpreters/tcl/generic.nix
@@ -53,7 +53,7 @@ let
         libdir = "lib/${libPrefix}";
         tclPackageHook = callPackage ({ buildPackages }: makeSetupHook {
           name = "tcl-package-hook";
-          deps = [ buildPackages.makeWrapper ];
+          propagatedBuildInputs = [ buildPackages.makeWrapper ];
         } ./tcl-package-hook.sh) {};
       };
     };
diff --git a/pkgs/development/libraries/qt-5/5.15/default.nix b/pkgs/development/libraries/qt-5/5.15/default.nix
index 7d876d884b37..31de73b25edc 100644
--- a/pkgs/development/libraries/qt-5/5.15/default.nix
+++ b/pkgs/development/libraries/qt-5/5.15/default.nix
@@ -211,7 +211,7 @@ let
 
       qmake = makeSetupHook {
         name = "qmake-hook";
-        deps = [ self.qtbase.dev ];
+        propagatedBuildInputs = [ self.qtbase.dev ];
         substitutions = {
           inherit debug;
           fix_qmake_libtool = ../hooks/fix-qmake-libtool.sh;
@@ -220,7 +220,7 @@ let
 
       wrapQtAppsHook = makeSetupHook {
         name = "wrap-qt5-apps-hook";
-        deps = [ self.qtbase.dev buildPackages.makeWrapper ]
+        propagatedBuildInputs = [ self.qtbase.dev buildPackages.makeWrapper ]
           ++ lib.optional stdenv.isLinux self.qtwayland.dev;
       } ../hooks/wrap-qt-apps-hook.sh;
     };
diff --git a/pkgs/development/libraries/qt-6/default.nix b/pkgs/development/libraries/qt-6/default.nix
index b09521e34e3c..2577806b5c43 100644
--- a/pkgs/development/libraries/qt-6/default.nix
+++ b/pkgs/development/libraries/qt-6/default.nix
@@ -141,12 +141,12 @@ let
 
       wrapQtAppsHook = makeSetupHook {
         name = "wrap-qt6-apps-hook";
-          deps = [ buildPackages.makeWrapper ];
+        propagatedBuildInputs = [ buildPackages.makeWrapper ];
         } ./hooks/wrap-qt-apps-hook.sh;
 
       qmake = makeSetupHook {
         name = "qmake6-hook";
-        deps = [ self.qtbase.dev ];
+        propagatedBuildInputs = [ self.qtbase.dev ];
         substitutions = {
           inherit debug;
           fix_qmake_libtool = ./hooks/fix-qmake-libtool.sh;
diff --git a/pkgs/development/tools/poetry2nix/poetry2nix/hooks/default.nix b/pkgs/development/tools/poetry2nix/poetry2nix/hooks/default.nix
index a503ea594fb4..513d17fbbc2f 100644
--- a/pkgs/development/tools/poetry2nix/poetry2nix/hooks/default.nix
+++ b/pkgs/development/tools/poetry2nix/poetry2nix/hooks/default.nix
@@ -18,7 +18,7 @@ let
         makeSetupHook
           {
             name = "remove-path-dependencies.sh";
-            deps = [ ];
+            propagatedBuildInputs = [ ];
             substitutions = {
               # NOTE: We have to use a non-overlayed Python here because otherwise we run into an infinite recursion
               # because building of tomlkit and its dependencies also use these hooks.
@@ -50,7 +50,7 @@ in
       makeSetupHook
         {
           name = "pip-build-hook.sh";
-          deps = [ pip wheel ];
+          propagatedBuildInputs = [ pip wheel ];
           substitutions = {
             inherit pythonInterpreter pythonSitePackages;
           };
@@ -64,7 +64,7 @@ in
       makeSetupHook
         {
           name = "fixup-hook.sh";
-          deps = [ ];
+          propagatedBuildInputs = [ ];
           substitutions = {
             inherit pythonSitePackages;
             filenames = builtins.concatStringsSep " " [
@@ -84,7 +84,7 @@ in
       makeSetupHook
         {
           name = "wheel-unpack-hook.sh";
-          deps = [ ];
+          propagatedBuildInputs = [ ];
         } ./wheel-unpack-hook.sh
     )
     { };
diff --git a/pkgs/servers/x11/xorg/overrides.nix b/pkgs/servers/x11/xorg/overrides.nix
index 565e8c188b76..1b4b5e000b78 100644
--- a/pkgs/servers/x11/xorg/overrides.nix
+++ b/pkgs/servers/x11/xorg/overrides.nix
@@ -26,7 +26,7 @@ self: super:
 {
   wrapWithXFileSearchPathHook = callPackage ({ makeBinaryWrapper, makeSetupHook, writeScript }: makeSetupHook {
       name = "wrapWithXFileSearchPathHook";
-      deps = [ makeBinaryWrapper ];
+      propagatedBuildInputs = [ makeBinaryWrapper ];
     } (writeScript "wrapWithXFileSearchPathHook.sh" ''
       wrapWithXFileSearchPath() {
         paths=(
diff --git a/pkgs/stdenv/generic/setup.sh b/pkgs/stdenv/generic/setup.sh
index 6ea44a641cef..1a637bf13fdd 100644
--- a/pkgs/stdenv/generic/setup.sh
+++ b/pkgs/stdenv/generic/setup.sh
@@ -995,6 +995,39 @@ stripHash() {
 }
 
 
+recordPropagatedDependencies() {
+    # Propagate dependencies into the development output.
+    declare -ra flatVars=(
+        # Build
+        depsBuildBuildPropagated
+        propagatedNativeBuildInputs
+        depsBuildTargetPropagated
+        # Host
+        depsHostHostPropagated
+        propagatedBuildInputs
+        # Target
+        depsTargetTargetPropagated
+    )
+    declare -ra flatFiles=(
+        "${propagatedBuildDepFiles[@]}"
+        "${propagatedHostDepFiles[@]}"
+        "${propagatedTargetDepFiles[@]}"
+    )
+
+    local propagatedInputsIndex
+    for propagatedInputsIndex in "${!flatVars[@]}"; do
+        local propagatedInputsSlice="${flatVars[$propagatedInputsIndex]}[@]"
+        local propagatedInputsFile="${flatFiles[$propagatedInputsIndex]}"
+
+        [[ "${!propagatedInputsSlice}" ]] || continue
+
+        mkdir -p "${!outputDev}/nix-support"
+        # shellcheck disable=SC2086
+        printWords ${!propagatedInputsSlice} > "${!outputDev}/nix-support/$propagatedInputsFile"
+    done
+}
+
+
 unpackCmdHooks+=(_defaultUnpack)
 _defaultUnpack() {
     local fn="$1"
@@ -1379,36 +1412,8 @@ fixupPhase() {
     done
 
 
-    # Propagate dependencies & setup hook into the development output.
-    declare -ra flatVars=(
-        # Build
-        depsBuildBuildPropagated
-        propagatedNativeBuildInputs
-        depsBuildTargetPropagated
-        # Host
-        depsHostHostPropagated
-        propagatedBuildInputs
-        # Target
-        depsTargetTargetPropagated
-    )
-    declare -ra flatFiles=(
-        "${propagatedBuildDepFiles[@]}"
-        "${propagatedHostDepFiles[@]}"
-        "${propagatedTargetDepFiles[@]}"
-    )
-
-    local propagatedInputsIndex
-    for propagatedInputsIndex in "${!flatVars[@]}"; do
-        local propagatedInputsSlice="${flatVars[$propagatedInputsIndex]}[@]"
-        local propagatedInputsFile="${flatFiles[$propagatedInputsIndex]}"
-
-        [[ "${!propagatedInputsSlice}" ]] || continue
-
-        mkdir -p "${!outputDev}/nix-support"
-        # shellcheck disable=SC2086
-        printWords ${!propagatedInputsSlice} > "${!outputDev}/nix-support/$propagatedInputsFile"
-    done
-
+    # record propagated dependencies & setup hook into the development output.
+    recordPropagatedDependencies
 
     if [ -n "${setupHook:-}" ]; then
         mkdir -p "${!outputDev}/nix-support"
diff --git a/pkgs/top-level/all-packages.nix b/pkgs/top-level/all-packages.nix
index 34130446731d..b0f0bd890dd2 100644
--- a/pkgs/top-level/all-packages.nix
+++ b/pkgs/top-level/all-packages.nix
@@ -160,14 +160,14 @@ with pkgs;
   ### BUILD SUPPORT
 
   auditBlasHook = makeSetupHook
-    { name = "auto-blas-hook"; deps = [ blas lapack ]; }
+    { name = "auto-blas-hook"; propagatedBuildInputs = [ blas lapack ]; }
     ../build-support/setup-hooks/audit-blas.sh;
 
   autoreconfHook = callPackage (
     { makeSetupHook, autoconf, automake, gettext, libtool }:
     makeSetupHook {
       name = "autoreconf-hook";
-      deps = [ autoconf automake gettext libtool ];
+      propagatedBuildInputs = [ autoconf automake gettext libtool ];
     } ../build-support/setup-hooks/autoreconf.sh
   ) { };
 
@@ -184,7 +184,7 @@ with pkgs;
 
   autoPatchelfHook = makeSetupHook {
     name = "auto-patchelf-hook";
-    deps = [ bintools ];
+    propagatedBuildInputs = [ bintools ];
     substitutions = {
       pythonInterpreter = "${python3.withPackages (ps: [ ps.pyelftools ])}/bin/python";
       autoPatchelfScript = ../build-support/setup-hooks/auto-patchelf.py;
@@ -356,7 +356,7 @@ with pkgs;
 
   gogUnpackHook = makeSetupHook {
     name = "gog-unpack-hook";
-    deps = [ innoextract file-rename ]; }
+    propagatedBuildInputs = [ innoextract file-rename ]; }
     ../build-support/setup-hooks/gog-unpack.sh;
 
   buildEnv = callPackage ../build-support/buildenv { }; # not actually a package
@@ -1014,7 +1014,7 @@ with pkgs;
 
   makeShellWrapper = makeSetupHook {
     name = "make-shell-wrapper-hook";
-    deps = [ dieHook ];
+    propagatedBuildInputs = [ dieHook ];
     substitutions = {
       # targetPackages.runtimeShell only exists when pkgs == targetPackages (when targetPackages is not  __raw)
       shell = if targetPackages ? runtimeShell then targetPackages.runtimeShell else throw "makeWrapper/makeShellWrapper must be in nativeBuildInputs";
@@ -1067,7 +1067,7 @@ with pkgs;
 
   shortenPerlShebang = makeSetupHook {
     name = "shorten-perl-shebang-hook";
-    deps = [ dieHook ];
+    propagatedBuildInputs = [ dieHook ];
   } ../build-support/setup-hooks/shorten-perl-shebang.sh;
 
   singularity-tools = callPackage ../build-support/singularity-tools { };
@@ -1119,7 +1119,7 @@ with pkgs;
 
   desktopToDarwinBundle = makeSetupHook {
     name = "desktop-to-darwin-bundle-hook";
-    deps = [ writeDarwinBundle librsvg imagemagick python3Packages.icnsutil ];
+    propagatedBuildInputs = [ writeDarwinBundle librsvg imagemagick python3Packages.icnsutil ];
   } ../build-support/setup-hooks/desktop-to-darwin-bundle.sh;
 
   keepBuildTree = makeSetupHook {
@@ -1132,7 +1132,7 @@ with pkgs;
 
   makeGCOVReport = makeSetupHook {
     name = "make-gcov-report-hook";
-    deps = [ lcov enableGCOVInstrumentation ];
+    propagatedBuildInputs = [ lcov enableGCOVInstrumentation ];
   } ../build-support/setup-hooks/make-coverage-analysis-report.sh;
 
   makeHardcodeGsettingsPatch = callPackage ../build-support/make-hardcode-gsettings-patch { };
@@ -1167,7 +1167,7 @@ with pkgs;
   iconConvTools = callPackage ../build-support/icon-conv-tools {};
 
   validatePkgConfig = makeSetupHook
-    { name = "validate-pkg-config"; deps = [ findutils pkg-config ]; }
+    { name = "validate-pkg-config"; propagatedBuildInputs = [ findutils pkg-config ]; }
     ../build-support/setup-hooks/validate-pkg-config.sh;
 
   patchPpdFilesHook = callPackage ../build-support/setup-hooks/patch-ppd-files {};
@@ -18793,13 +18793,13 @@ with pkgs;
   xcbuild = xcodebuild;
   xcbuildHook = makeSetupHook {
     name = "xcbuild-hook";
-    deps = [ xcbuild ];
+    propagatedBuildInputs = [ xcbuild ];
   } ../development/tools/xcbuild/setup-hook.sh  ;
 
   # xcbuild with llvm 6
   xcbuild6Hook = makeSetupHook {
     name = "xcbuild6-hook";
-    deps = [ xcodebuild6 ];
+    propagatedBuildInputs = [ xcodebuild6 ];
   } ../development/tools/xcbuild/setup-hook.sh  ;
 
   xcpretty = callPackage ../development/tools/xcpretty { };
@@ -22075,7 +22075,7 @@ with pkgs;
   memorymapping = callPackage ../development/libraries/memorymapping { };
   memorymappingHook = makeSetupHook {
     name = "memorymapping-hook";
-    deps = [ memorymapping ];
+    propagatedBuildInputs = [ memorymapping ];
   } ../development/libraries/memorymapping/setup-hook.sh;
 
   memray = callPackage ../development/tools/memray { };
@@ -22083,7 +22083,7 @@ with pkgs;
   memstream = callPackage ../development/libraries/memstream { };
   memstreamHook = makeSetupHook {
     name = "memstream-hook";
-    deps = [ memstream ];
+    propagatedBuildInputs = [ memstream ];
   } ../development/libraries/memstream/setup-hook.sh;
 
   menu-cache = callPackage ../development/libraries/menu-cache { };
diff --git a/pkgs/top-level/cuda-packages.nix b/pkgs/top-level/cuda-packages.nix
index c57e486406e1..2044d74cab79 100644
--- a/pkgs/top-level/cuda-packages.nix
+++ b/pkgs/top-level/cuda-packages.nix
@@ -50,7 +50,7 @@ let
     autoAddOpenGLRunpathHook = final.callPackage ( { makeSetupHook, addOpenGLRunpath }:
       makeSetupHook {
         name = "auto-add-opengl-runpath-hook";
-        deps = [
+        propagatedBuildInputs = [
           addOpenGLRunpath
         ];
       } ../development/compilers/cudatoolkit/auto-add-opengl-runpath-hook.sh
diff --git a/pkgs/top-level/darwin-packages.nix b/pkgs/top-level/darwin-packages.nix
index b067f5cbbc1e..4ee606ae5e76 100644
--- a/pkgs/top-level/darwin-packages.nix
+++ b/pkgs/top-level/darwin-packages.nix
@@ -121,7 +121,7 @@ impure-cmds // appleSourcePackages // chooseLibs // {
 
   checkReexportsHook = pkgs.makeSetupHook {
     name = "darwin-check-reexports-hook";
-    deps = [ pkgs.darwin.print-reexports ];
+    propagatedBuildInputs = [ pkgs.darwin.print-reexports ];
   } ../os-specific/darwin/print-reexports/setup-hook.sh;
 
   sigtool = callPackage ../os-specific/darwin/sigtool { };
@@ -142,7 +142,7 @@ impure-cmds // appleSourcePackages // chooseLibs // {
 
   autoSignDarwinBinariesHook = pkgs.makeSetupHook {
     name = "auto-sign-darwin-binaries-hook";
-    deps = [ self.signingUtils ];
+    propagatedBuildInputs = [ self.signingUtils ];
   } ../os-specific/darwin/signing-utils/auto-sign-hook.sh;
 
   maloader = callPackage ../os-specific/darwin/maloader {