diff --git a/pluggy.py b/pluggy/__init__.py
similarity index 100%
rename from pluggy.py
rename to pluggy/__init__.py
diff --git a/setup.py b/setup.py
index 8d74319d..836fe5e6 100644
--- a/setup.py
+++ b/setup.py
@@ -20,7 +20,7 @@
 
 def get_version():
     p = os.path.join(os.path.dirname(
-                     os.path.abspath(__file__)), "pluggy.py")
+                     os.path.abspath(__file__)), "pluggy/__init__.py")
     with open(p) as f:
         for line in f.readlines():
             if "__version__" in line:
@@ -40,7 +40,7 @@ def main():
         author_email='holger at merlinux.eu',
         url='https://github.com/pytest-dev/pluggy',
         classifiers=classifiers,
-        py_modules=['pluggy'],
+        packages=['pluggy'],
     )