title: Installing local package with "pip install -e ." does not update instalation
body: <p>I am working on a small package locally, and want to install it in editable mode so that when I make changes to it I don't have to reinstall after every change. When I install using <code>pip install .</code> everything works as expected, however when I change it to <code>pip install -e .</code>, the package does not update the modules contained in utils.py on install, nor when modules are changed. Here is my <strong>init</strong>.py:</p>
  <pre><code>from .utils import *
  </code></pre>
  <p>and my setup.py:</p>
  <pre><code>from setuptools import setup, find_packages
  
  with open(&quot;README.md&quot;, &quot;r&quot;, encoding=&quot;utf-8&quot;) as fh:
      long_description = fh.read()
  
  setup(
      name=&quot;mypackage&quot;,
      version=&quot;0.1.4&quot;,
      packages=find_packages(include=[&quot;mypackage&quot;]),
      include_package_data=True,
      author=&quot;myname&quot;,
      description=&quot;placeholder&quot;,
      long_description=long_description,
      url=&quot;github.here&quot;,
      license=&quot;GNU GPLv3&quot;,
      install_requires=[
          &quot;mypackage&quot;,
          &quot;pandas&quot;,
          &quot;matplotlib&quot;,
          &quot;numpy&quot;,
          &quot;ipykernel&quot;,
      ],
  )
  
  </code></pre>
  <p>I have already tried to change <code>packages=find_packages()</code>, and <code>install_requires=[&quot;pandas&quot;, &quot;matplotlib&quot;, &quot;numpy&quot;, &quot;ipykernel&quot;,]</code>, which did not fix the issue.</p>
  <p>edit: Here is the project file format-</p>
  <pre><code>mypackage
  |---mypackage
  |---|---__pycache__
  |---|---__init__.py
  |---|---utils.py
  |---mypackage.egg-info
  |---notebooks
  |---|---test.ipynb
  |---README.md
  |---.gitattributes
  |---setup.py
  </code></pre>