If ANSIBLE_KEEP_REMOTE_FILES=1 is set as an environment file, remote files will not be deleted, which is useful only for development debugging purposes.

setup.py

@@ -1,16 +1,19 @@
 #!/usr/bin/env python
 
-# NOTE: setup.py does NOT install the contents of the library dir
-# for you, you should go through "make install" or "make RPMs"
-# for that, or manually copy modules over.
-
 import os
 import sys
+from glob import glob
 
 sys.path.insert(0, os.path.abspath('lib'))
 from ansible import __version__, __author__
 from distutils.core import setup
 
+# find library modules
+from ansible.constants import DEFAULT_MODULE_PATH
+data_files = [ (DEFAULT_MODULE_PATH, glob('./library/*')) ]
+
+print "DATA FILES=%s" % data_files
+
 setup(name='ansible',
       version=__version__,
       description='Minimal SSH command and control',
@@ -31,5 +34,6 @@ setup(name='ansible',
          'bin/ansible',
          'bin/ansible-playbook',
          'bin/ansible-pull'
-      ]
+      ],
+      data_files=data_files
 )