diff --git a/setup.py b/setup.py
index ae2caae0..f72d924f 100755
--- a/setup.py
+++ b/setup.py
@@ -139,7 +139,7 @@ def main():
 
     else:
         # e.g. install from GitHub
-        if os.path.isfile(GENERATOR_DIR):
+        if os.path.isdir(GENERATOR_DIR):
             generate(['tl', 'errors'])
 
         # Get the long description from the README file
diff --git a/telethon/sessions/sqlite.py b/telethon/sessions/sqlite.py
index 3bad4a28..c1cbbbd2 100644
--- a/telethon/sessions/sqlite.py
+++ b/telethon/sessions/sqlite.py
@@ -12,7 +12,7 @@ from ..tl.types import (
 )
 
 EXTENSION = '.session'
-CURRENT_VERSION = 3  # database version
+CURRENT_VERSION = 4  # database version
 
 
 class SQLiteSession(MemorySession):
@@ -93,6 +93,14 @@ class SQLiteSession(MemorySession):
                     hash integer,
                     primary key(md5_digest, file_size, type)
                 )"""
+                ,
+                """update_state (
+                    id integer primary key,
+                    pts integer,
+                    qts integer,
+                    date integer,
+                    seq integer
+                )"""
             )
             c.execute("insert into version values (?)", (CURRENT_VERSION,))
             # Migrating from JSON -> new table and may have entities
@@ -135,18 +143,30 @@ class SQLiteSession(MemorySession):
 
     def _upgrade_database(self, old):
         c = self._cursor()
-        # old == 1 doesn't have the old sent_files so no need to drop
+        if old == 1:
+            old += 1
+            # old == 1 doesn't have the old sent_files so no need to drop
         if old == 2:
+            old += 1
             # Old cache from old sent_files lasts then a day anyway, drop
             c.execute('drop table sent_files')
-        self._create_table(c, """sent_files (
-            md5_digest blob,
-            file_size integer,
-            type integer,
-            id integer,
-            hash integer,
-            primary key(md5_digest, file_size, type)
-        )""")
+            self._create_table(c, """sent_files (
+                md5_digest blob,
+                file_size integer,
+                type integer,
+                id integer,
+                hash integer,
+                primary key(md5_digest, file_size, type)
+            )""")
+        if old == 3:
+            old += 1
+            self._create_table(c, """update_state (
+                id integer primary key,
+                pts integer,
+                qts integer,
+                date integer,
+                seq integer
+            )""")
         c.close()
 
     @staticmethod