How to include package data with setuptools/distutils?

I realize that this is an old question, but for people finding their way here via Google: package_data is a low-down, dirty lie. It is only used when building binary packages (python setup.py bdist ...) but not when building source packages (python setup.py sdist ...). This is, of course, ridiculous — one would expect that building a source distribution would result in a collection of files that could be sent to someone else to built the binary distribution.

In any case, using MANIFEST.in will work both for binary and for source distributions.

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