diff --git a/pw_watch/py/setup.py b/pw_watch/py/setup.py
index 82f4c17..44d3234 100644
--- a/pw_watch/py/setup.py
+++ b/pw_watch/py/setup.py
@@ -26,11 +26,10 @@
     zip_safe=False,
     install_requires=[
         'pw_cli',
-        # Fixes the watchdog version to 0.10.3, released 2020-06-25
-        # as versions later than this ignore the 'recursive' argument
-        # on MacOS. This was causing us to trigger on any file within
-        # the source tree, even those that should have been ignored.
+        # Versions of watchdog after 0.10.3 but before 2.1.0 ignore the
+        # 'recursive' argument on MacOS. This was causing us to trigger on any
+        # file within the source tree, even those that should have been ignored.
         # See https://github.com/gorakhargosh/watchdog/issues/771.
-        'watchdog==0.10.3',
+        'watchdog>=2.1.0',
     ],
 )