diff --git a/MANIFEST.in b/MANIFEST.in
index 66a9ec1..51a4500 100644
--- a/MANIFEST.in
+++ b/MANIFEST.in
@@ -7,4 +7,3 @@ recursive-include dpaste/templates *
 recursive-include dpaste/static *
 recursive-include docs *
 recursive-exclude docs/_build *
-exclude dpaste/settings/local.py
diff --git a/setup.cfg b/setup.cfg
index b243fee..d9d890c 100644
--- a/setup.cfg
+++ b/setup.cfg
@@ -45,6 +45,12 @@ install_requires =
     tox
     coverage
 
+[options.packages.find]
+where = .
+exclude =
+    dpaste/settings/local.py
+
+
 [isort]
 known_first_party = dpaste
 default_section = THIRDPARTY