diff --git a/discord/client.py b/discord/client.py
index ca5bd80d7..714fd0455 100644
--- a/discord/client.py
+++ b/discord/client.py
@@ -97,7 +97,7 @@ class Client(object):
             'on_message_edit': _null_event,
             'on_status': _null_event,
             'on_channel_delete': _null_event,
-            'on_channel_creation': _null_event,
+            'on_channel_create': _null_event,
         }
 
         self.ws = WebSocketClient(endpoints.WEBSOCKET_HUB, protocols=['http-only', 'chat'])
@@ -214,8 +214,22 @@ class Client(object):
                 channel = next((c for c in server.channels if c.id == channel_id), None)
                 server.channels.remove(channel)
                 self._invoke_event('on_channel_delete', channel)
+        elif event == 'CHANNEL_CREATE':
+            is_private = data.get('is_private', False)
+            channel = None
+            if is_private:
+                recipient = User(**data.get('recipient'))
+                pm_id = data.get('id')
+                channel = PrivateChannel(id=pm_id, user=recipient)
+                self.private_channels.append(channel)
+            else:
+                guild_id = data.get('guild_id')
+                server = next((s for s in self.servers if s.id == guild_id), None)
+                if server is not None:
+                    channel = Channel(server=server, **data)
+                    server.channels.append(channel)
 
-
+            self._invoke_event('on_channel_create', channel)
 
     def _opened(self):
         print('Opened at {}'.format(int(time.time())))
diff --git a/docs/api.rst b/docs/api.rst
index 79a58cd82..9909bcd17 100644
--- a/docs/api.rst
+++ b/docs/api.rst
@@ -64,12 +64,15 @@ All events are 'sandboxed', in that if an exception is thrown while the event is
     :param game_id: The game ID that the user is playing. Can be None.
 
 .. function:: on_channel_delete(channel)
+              on_channel_create(channel)
 
-    Called whenever a channel is removed from a server.
+    Called whenever a channel is removed or added from a server.
 
     Note that you can get the server from :attr:`Channel.server`.
+    :func:`on_channel_create` could also pass in a :class:`PrivateChannel` depending
+    on the value of :attr:`Channel.is_private`.
 
-    :param channel: The :class:`Channel` that got deleted.
+    :param channel: The :class:`Channel` that got added or deleted.
 
 Data Classes
 --------------
diff --git a/setup.py b/setup.py
index 20245d043..a76f466f1 100644
--- a/setup.py
+++ b/setup.py
@@ -1,9 +1,10 @@
 from setuptools import setup
 import re
 
-requirements = ''
-with open('requirements.txt') as f:
-    requirements = f.read().splitlines()
+requirements = [
+  'ws4py',
+  'requests'
+]
 
 version = ''
 with open('discord/__init__.py') as f: