Look at this complete example https://github.com/marcindulak/python-mycli of a small python package. It is based on packaging recommendations from https://packaging.python.org/en/latest/distributing.html, uses setup.py with distutils and in addition shows how to create RPM and deb packages.
The project's setup.py is included below (see the repo for the full source):
#!/usr/bin/env python
import os
import sys
from distutils.core import setup
name = "mycli"
rootdir = os.path.abspath(os.path.dirname(__file__))
# Restructured text project description read from file
long_description = open(os.path.join(rootdir, 'README.md')).read()
# Python 2.4 or later needed
if sys.version_info < (2, 4, 0, 'final', 0):
    raise SystemExit, 'Python 2.4 or later is required!'
# Build a list of all project modules
packages = []
for dirname, dirnames, filenames in os.walk(name):
        if '__init__.py' in filenames:
            packages.append(dirname.replace('/', '.'))
package_dir = {name: name}
# Data files used e.g. in tests
package_data = {name: [os.path.join(name, 'tests', 'prt.txt')]}
# The current version number - MSI accepts only version X.X.X
exec(open(os.path.join(name, 'version.py')).read())
# Scripts
scripts = []
for dirname, dirnames, filenames in os.walk('scripts'):
    for filename in filenames:
        if not filename.endswith('.bat'):
            scripts.append(os.path.join(dirname, filename))
# Provide bat executables in the tarball (always for Win)
if 'sdist' in sys.argv or os.name in ['ce', 'nt']:
    for s in scripts[:]:
        scripts.append(s + '.bat')
# Data_files (e.g. doc) needs (directory, files-in-this-directory) tuples
data_files = []
for dirname, dirnames, filenames in os.walk('doc'):
        fileslist = []
        for filename in filenames:
            fullname = os.path.join(dirname, filename)
            fileslist.append(fullname)
        data_files.append(('share/' + name + '/' + dirname, fileslist))
setup(name='python-' + name,
      version=version,  # PEP440
      description='mycli - shows some argparse features',
      long_description=long_description,
      url='https://github.com/marcindulak/python-mycli',
      author='Marcin Dulak',
      author_email='X.Y@Z.com',
      license='ASL',
      # https://pypi.python.org/pypi?%3Aaction=list_classifiers
      classifiers=[
          'Development Status :: 1 - Planning',
          'Environment :: Console',
          'License :: OSI Approved :: Apache Software License',
          'Natural Language :: English',
          'Operating System :: OS Independent',
          'Programming Language :: Python :: 2',
          'Programming Language :: Python :: 2.4',
          'Programming Language :: Python :: 2.5',
          'Programming Language :: Python :: 2.6',
          'Programming Language :: Python :: 2.7',
          'Programming Language :: Python :: 3',
          'Programming Language :: Python :: 3.2',
          'Programming Language :: Python :: 3.3',
          'Programming Language :: Python :: 3.4',
      ],
      keywords='argparse distutils cli unittest RPM spec deb',
      packages=packages,
      package_dir=package_dir,
      package_data=package_data,
      scripts=scripts,
      data_files=data_files,
      )
and and RPM spec file which more or less follows Fedora/EPEL packaging guidelines may look like:
# Failsafe backport of Python2-macros for RHEL <= 6
%{!?python_sitelib: %global python_sitelib      %(%{__python} -c "from distutils.sysconfig import get_python_lib; print(get_python_lib())")}
%{!?python_sitearch:    %global python_sitearch     %(%{__python} -c "from distutils.sysconfig import get_python_lib; print(get_python_lib(1))")}
%{!?python_version: %global python_version      %(%{__python} -c "import sys; sys.stdout.write(sys.version[:3])")}
%{!?__python2:      %global __python2       %{__python}}
%{!?python2_sitelib:    %global python2_sitelib     %{python_sitelib}}
%{!?python2_sitearch:   %global python2_sitearch    %{python_sitearch}}
%{!?python2_version:    %global python2_version     %{python_version}}
%{!?python2_minor_version: %define python2_minor_version %(%{__python} -c "import sys ; print sys.version[2:3]")}
%global upstream_name mycli
Name:           python-%{upstream_name}
Version:        0.0.1
Release:        1%{?dist}
Summary:        A Python program that demonstrates usage of argparse
%{?el5:Group:       Applications/Scientific}
License:        ASL 2.0
URL:            https://github.com/marcindulak/%{name}
Source0:        https://github.com/marcindulak/%{name}/%{name}-%{version}.tar.gz
%{?el5:BuildRoot:   %(mktemp -ud %{_tmppath}/%{name}-%{version}-%{release}-XXXXXX)}
BuildArch:      noarch
%if 0%{?suse_version}
BuildRequires:      python-devel
%else
BuildRequires:      python2-devel
%endif
%description
A Python program that demonstrates usage of argparse.
%prep
%setup -qn %{name}-%{version}
%build
%{__python2} setup.py build
%install
%{?el5:rm -rf $RPM_BUILD_ROOT}
%{__python2} setup.py install --skip-build --prefix=%{_prefix} \
   --optimize=1 --root $RPM_BUILD_ROOT
%check
export PYTHONPATH=`pwd`/build/lib
export PATH=`pwd`/build/scripts-%{python2_version}:${PATH}
%if 0%{python2_minor_version} >= 7
%{__python2} -m unittest discover -s %{upstream_name}/tests -p '*.py'
%endif
%clean
%{?el5:rm -rf $RPM_BUILD_ROOT}
%files
%doc LICENSE README.md
%{_bindir}/*
%{python2_sitelib}/%{upstream_name}
%{?!el5:%{python2_sitelib}/*.egg-info}
%changelog
* Wed Jan 14 2015 Marcin Dulak <X.Y@Z.com> - 0.0.1-1
- initial version