diff --git a/doc/release_notes.rst b/doc/release_notes.rst
index e2636ecad..1f9267494 100644
--- a/doc/release_notes.rst
+++ b/doc/release_notes.rst
@@ -16,6 +16,8 @@ E.g. if a new rule becomes available describe how to use it `snakemake -j1 run_t
 
 * Improve network simplification routine to account for representation HVDC as Line component `PR #743 <https://github.com/pypsa-meets-earth/pypsa-earth/pull/743>`__
 
+* Remove deprecated pypsa.networkclustering approach and replace by pypsa.clustering.spatial `PR #786 <https://github.com/pypsa-meets-earth/pypsa-earth/pull/786>`__
+
 PyPSA-Earth 0.2.2
 =================
 
diff --git a/envs/environment.yaml b/envs/environment.yaml
index d0795f374..0fe0751c0 100644
--- a/envs/environment.yaml
+++ b/envs/environment.yaml
@@ -12,7 +12,7 @@ dependencies:
 - pip
 - mamba   # esp for windows build
 
-- pypsa>=0.21.3
+- pypsa>=0.23, <0.25
 # - atlite>=0.2.4  # until https://github.com/PyPSA/atlite/issues/244 is not merged
 - dask
 - powerplantmatching>=0.5.7
diff --git a/scripts/_helpers.py b/scripts/_helpers.py
index 3a1047f65..328382e58 100644
--- a/scripts/_helpers.py
+++ b/scripts/_helpers.py
@@ -340,7 +340,7 @@ def get_aggregation_strategies(aggregation_strategies):
         from pypsa.clustering.spatial import _make_consense
     except Exception:
         # TODO: remove after new release and update minimum pypsa version
-        from pypsa.networkclustering import _make_consense
+        from pypsa.clustering.spatial import _make_consense
 
     bus_strategies = dict(country=_make_consense("Bus", "country"))
     bus_strategies.update(aggregation_strategies.get("buses", {}))
diff --git a/scripts/cluster_network.py b/scripts/cluster_network.py
index 86c16aac1..3e66534d6 100644
--- a/scripts/cluster_network.py
+++ b/scripts/cluster_network.py
@@ -88,7 +88,7 @@
     **Is it possible to run the model without the** ``simplify_network`` **rule?**
 
         No, the network clustering methods in the PyPSA module
-        `pypsa.networkclustering <https://github.com/PyPSA/PyPSA/blob/master/pypsa/networkclustering.py>`_
+        `pypsa.clustering.spatial <https://github.com/PyPSA/PyPSA/blob/master/pypsa/networkclustering.py>`_
         do not work reliably with multiple voltage levels and transformers.
 
 .. tip::
@@ -141,7 +141,7 @@
 )
 from add_electricity import load_costs
 from build_shapes import add_gdp_data, add_population_data, get_GADM_layer
-from pypsa.networkclustering import (
+from pypsa.clustering.spatial import (
     busmap_by_greedy_modularity,
     busmap_by_hac,
     busmap_by_kmeans,
@@ -694,7 +694,7 @@ def cluster_regions(busmaps, inputs, output):
         # Fast-path if no clustering is necessary
         busmap = n.buses.index.to_series()
         linemap = n.lines.index.to_series()
-        clustering = pypsa.networkclustering.Clustering(
+        clustering = pypsa.clustering.spatial.Clustering(
             n, busmap, linemap, linemap, pd.Series(dtype="O")
         )
     elif len(n.buses) < n_clusters:
diff --git a/scripts/simplify_network.py b/scripts/simplify_network.py
index 11e59b5d2..d529d798d 100644
--- a/scripts/simplify_network.py
+++ b/scripts/simplify_network.py
@@ -96,13 +96,13 @@
 from _helpers import configure_logging, get_aggregation_strategies, update_p_nom_max
 from add_electricity import load_costs
 from cluster_network import cluster_regions, clustering_for_n_clusters
-from pypsa.io import import_components_from_dataframe, import_series_from_dataframe
-from pypsa.networkclustering import (
+from pypsa.clustering.spatial import (
     aggregategenerators,
     aggregateoneport,
     busmap_by_stubs,
     get_clustering_from_busmap,
 )
+from pypsa.io import import_components_from_dataframe, import_series_from_dataframe
 from scipy.sparse.csgraph import connected_components, dijkstra
 
 sys.settrace