diff --git a/python/MANIFEST.in b/python/MANIFEST.in
new file mode 100644
index 0000000000..7059ad2822
--- /dev/null
+++ b/python/MANIFEST.in
@@ -0,0 +1,3 @@
+include VERSION
+include PACKAGE.rst
+exclude README.rst
diff --git a/python/README.rst b/python/README.rst
index 38b0c83f32..0099646ae2 100644
--- a/python/README.rst
+++ b/python/README.rst
@@ -33,6 +33,8 @@ Files in this directory
 -----------------------
 
 - ``qemu/`` Python package source directory.
+- ``MANIFEST.in`` is read by python setuptools, it specifies additional files
+  that should be included by a source distribution.
 - ``PACKAGE.rst`` is used as the README file that is visible on PyPI.org.
 - ``README.rst`` you are here!
 - ``VERSION`` contains the PEP-440 compliant version used to describe