title: Why does pip fail when installing local egg repository?
body: <p>I am working on Windows 7.I have created a python egg using distutils. Now I try to install this egg in a virtual environment using pip 1.0.2 using the following command:</p>
  
  <p>Then I create a virtual environment <em>myVirtualEnv</em> I activate it using activate.bat then execute the following command:</p>
  
  <p><code>pip install path_to_my_local_folder#eggName</code></p>
  
  <p>This creates a copy of my egg in my <em>myVirtualEnv\build</em> directory but I have the following error:</p>
  
  <blockquote>
    <p>IOError: [Errno 2] No such file or directory: path_of_my_virtualEnv\build\PyEqdR\setup.py</p>
  </blockquote>
  
  <p>Do you know why pip is looking for the setup.py file. Should I include it in the egg ?</p>