diff --git a/CHANGELOG.md b/CHANGELOG.md
index 49dddb2d1..155c3d88c 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -4,8 +4,9 @@ Changelog
 NOTE: isort follows the [semver](https://semver.org/) versioning standard.
 Find out more about isort's release policy [here](https://pycqa.github.io/isort/docs/major_releases/release_policy/).
 
-### TBD
+### 5.9.0 TBD
   - Fixed (https://github.com/PyCQA/isort/pull/1695) added imports being added to doc string in some cases.
+  - Implemented #1697: Provisional support for PEP 582: skip `__pypackages__` directories by default.
 
 ### 5.8.0 March 20th 2021
   - Fixed #1631: as import comments can in some cases be duplicated.
diff --git a/isort/settings.py b/isort/settings.py
index d1fba4c20..bd8e631db 100644
--- a/isort/settings.py
+++ b/isort/settings.py
@@ -68,6 +68,7 @@
         ".pants.d",
         ".direnv",
         "node_modules",
+        "__pypackages__",
     }
 )