What are the best practices to organize Python modules?

Here is a sample project that shows a very good way to structure your projects: https://github.com/kennethreitz/samplemod. The project is about creating the "sample" module. The directory structure looks as follows:

README.rst
LICENSE
setup.py
requirements.txt
sample/__init__.py
sample/core.py
sample/helpers.py
docs/conf.py
docs/index.rst
tests/test_basic.py
tests/test_advanced.py

The README.rst file: This file is for giving a brief description of the module, how to set it up, how to use it, etc.

LICENSE: Contains license text and any copyright claims.

setup.py: It is Python's answer to a multi-platform installer and make file. If you’re familiar with command line installations, then make && make install translates to python setup.py build && python setup.py install. So it is used to build your project on user machine.

requirements.txt: A Pip requirements file should specify the dependencies required to contribute to the project: testing, building, and generating documentation. If your project has no development dependencies, or you prefer development environment setup via setup.py, this file is unnecessary.

docs/: This directory contains the documentation for your project.

tests/: All your tests should reside in this directory. Initially you'll have a single test file. As they start to grow, you can structure your tests like your module directory.

sample/: This directory contains your actual module code. If your module consists of only a single file, you can place it directly in the root of your repository as sample.py. Your library does not belong in an ambiguous src or python subdirectory. This will contain a __init__.py file if you want this module to reside within a package.