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The versioneer script does not allow the creation of python modules which are sub-directories of a git repository.
ex:
repo/ .git module1/ setup.py versioneer.py module1/ __init__.py stuff.py module2/ setup.py versioneer.py module2/ __init__.py morestuff.py
While this directory structure may not be a best practice, it can be a useful construct when building rapid prototypes.