disutils, project structure & developing - n00b question

[Wells]

So I have my project partitioned like so:

./setup.py
./pymlb/
./pymlb/fetcher.py
./demos
./demos/demo.py

In demo.py I have:

from pymlb import fetcher

However, it fails b/c pymlb is up a folder. It's also NOT installed as
a module in my module directory because it's a development effort and
I don't want to run setup.py to install them. See what I mean?

What's the work around here?