I am trying to create a Python package, and I have a directory structure like this:
mypkg/
├── __init__.py
├── module1
│   ├── x.py
│   ├── y.py
│   └── z.txt
└── module2
    ├── a.py
    └── b.py
Then I added all the files in MANIFEST.in and when I check the created archive, it had all the files. 
When I do python setup.py install in the dist-packages/mypkg/module1. I see only the Python files and not z.txt.
I have z.txt in both MANIFEST.in and setup.py:
setup (
    packages = [
        'mypkg',
        'mypkg.module1',
        'mypkg.module2',
    ],
    package_data = {
        'mypkg': ['module1/z.txt']
    },
    include_package_data = True, 
    ...
)
I tried adding the file as data_files as well but that created a directory in /usr/local. I want to keep it inside the source code directory as the code uses that data.
I have read the posts listed below but I keep getting confused about what is the right way to keep z.txt in the right location after setup.py install.
 
     
    