Let\'s say you have a project called proj and in this project you have the following structure:
proj/
dists/
doc/
src/
__init__.py
This is due to a bug in setuptools reported here: https://github.com/pypa/setuptools/issues/250
Basically, it does work but not in dev mode. Now on you have 3 solutions:
src package as proj (and ignore it when comitting), it will works out of the box but is dirtysrc to projproj in src and use the following options:
packages=['proj'],
package_dir={'proj': 'src/proj'},