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setup.py + virtualenv = chicken and egg issue?

I'm a Java/Scala dev transitioning to Python for a work project. To dust off the cobwebs on the Python side of my brain, I wrote a webapp that acts as a front-end for Docker when doing local Docker work. I'm now working on packaging it up and, as such, am learning about setup.py and virtualenv. Coming from the JVM world, where dependencies aren't "installed" so much as downloaded to a repository and referenced when needed, the way pip handles things is a bit foreign. It seems like best practice for production Python work is to first create a virtual environment for your project, do your coding work, then package it up with setup.py.
My question is, what happens on the other end when someone needs to install what I've written? They too will have to create a virtual environment for the package but won't know how to set it up without inspecting the setup.py file to figure out what version of Python to use, etc. Is there a way for me to create a setup.py file that also creates the appropriate virtual environment as part of the install process? If not — or if that's considered a "no" as this respondent stated to this SO post — what is considered "best practice" in this situation?

You can think of virtualenv as an isolation for every package you install using pip. It is a simple way to handle different versions of python and packages. For instance you have two projects which use same packages but different versions of them. So, by using virtualenv you can isolate those two projects and install different version of packages separately, not on your working system.
Now, let's say, you want work on a project with your friend. In order to have the same packages installed you have to share somehow what versions and which packages your project depends on. If you are delivering a reusable package (a library) then you need to distribute it and here where setup.py helps. You can learn more in Quick Start
However, if you work on a web site, all you need is to put libraries versions into a separate file. Best practice is to create separate requirements for tests, development and production. In order to see the format of the file - write pip freeze. You will be presented with a list of packages installed on the system (or in the virtualenv) right now. Put it into the file and you can install it later on another pc, with completely clear virtualenv using pip install -r development.txt
And one more thing, please do not put strict versions of packages like pip freeze shows, most of time you want >= at least X.X version. And good news here is that pip handles dependencies by its own. It means you do not have to put dependent packages there, pip will sort it out.
Talking about deploy, you may want to check tox, a tool for managing virtualenvs. It helps a lot with deploy.

Python default package path always point to system environment, that need Administrator access to install. Virtualenv able to localised the installation to an isolated environment.
For deployment/distribution of package, you can choose to
Distribute by source code. User need to run python setup.py --install, or
Pack your python package and upload to Pypi or custom Devpi. So the user can simply use pip install <yourpackage>
However, as you notice the issue on top : without virtualenv, they user need administrator access to install any python package.
In addition, the Pypi package worlds contains a certain amount of badly tested package that doesn't work out of the box.
Note : virtualenv itself is actually a hack to achieve isolation.

How do you make quick edits to a pip installable library before commiting

I have an existing pip library, however I would like to make modifications to it over time. I have the pip library installed from a github project in a virtualenv. The only options I can think of for making edits before deciding a change is worth actually committing and pushing to the cloud is to edit the library directly within site-packages, which is particularly annoying as the virtualenv is stored within a docker container. Are there any short cuts or best practices to improve this workflow?

pip offers the -e option for editable installs. This is very similar to running setup.py develop to put a package in "development mode". This way you can keep your code where you want and change it as needed, without having to reinstall after fixing every syntax error and refactoring.

Find all unmet dependencies for a Python/Django project

I've been handed a dozen or so legacy Django applications to maintain. The first part of this process is moving them off their ancient Ubuntu 9.04 server (which is long out of support) onto something fresh and safe.
But the projects don't include any sort of dependency listing. From habit I'm used to generating a requirements.txt file as I develop a site and that makes redeployment a simple and automated process.
As it stands I would have to manually step through these projects, making sure to scrape every corner to find possible missing dependencies. Either that or I install everything.
Is there an automated code-analysis option here? Something that can use to scan the local project directories for each project to generate a list of packages it needs... ideally in PyPI formatted package names.

z3c.dependencychecker can be used for this purpose.
It's in the z3c namespace, but from what I know that's only because it has been developed with a Zope ecosystem in mind, but it can just as well be used for plain Python projects. Unless you want to run its tests, it does not have any dependencies on Zope packages.
It does however only consider dependencies declared in setup.py, not in requirements.txt. But it should be pretty easy to sync up missing dependencies for the full list of dependencies once they've been determined.
Usage:
Activate your virtualenv, and install z3c.dependencychecker, e.g. by doing pip install z3c.dependencychecker
Make sure you have run python setup.py develop for your project recently, so you have an up-to-date *.egg-info.
cd into your projects source directory
run dependencychecker
Note that z3c.dependencychecker isn't perfect (pretty much by definition, because of the way it works), so it can report some false positives. But in my experience it's a very good start, and it should be pretty easy to verify why it reported a particular dependency, and weed out false positives.

Howto deploy python applications inside corporate network

First let me explain the current situation:
We do have several python applications which depend on custom (not public released ones) as well as general known packages. These depedencies are all installed on the system python installation. Distribution of the application is done via git by source. All these computers are hidden inside a corporate network and don't have internet access.
This approach is bit pain in the ass since it has the following downsides:
Libs have to be installed manually on each computer :(
How to better deploy an application? I recently saw virtualenv which seems to be the solution but I don't see it yet.
virtualenv creates a clean python instance for my application. How exactly should I deploy this so that usesrs of the software can easily start it?
Should there be a startup script inside the application which creates the virtualenv during start?
The next problem is that the computers don't have internet access. I know that I can specify a custom location for packages (network share?) but is that the right approach? Or should I deploy the zipped packages too?
Would another approach would be to ship the whole python instance? So the user doesn't have to startup the virutalenv? In this python instance all necessary packages would be pre-installed.
Since our apps are fast growing we have a fast release cycle (2 weeks). Deploying via git was very easy. Users could pull from a stable branch via an update script to get the last release - would that be still possible or are there better approaches?
I know that there are a lot questions. Hopefully someone can answer me r give me some advice.

You can use pip to install directly from git:
pip install -e git+http://192.168.1.1/git/packagename#egg=packagename
This applies whether you use virtualenv (which you should) or not.
You can also create a requirements.txt file containing all the stuff you want installed:
-e git+http://192.168.1.1/git/packagename#egg=packagename
-e git+http://192.168.1.1/git/packagename2#egg=packagename2
And then you just do this:
pip install -r requirements.txt
So the deployment procedure would consist in getting the requirements.txt file and then executing the above command. Adding virtualenv would make it cleaner, not easier; without virtualenv you would pollute the systemwide Python installation. virtualenv is meant to provide a solution for running many apps each in its own distinct virtual Python environment; it doesn't have much to do with how to actually install stuff in that environment.

Migrating to pip+virtualenv from setuptools

So pip and virtualenv sound wonderful compared to setuptools. Being able to uninstall would be great. But my project is already using setuptools, so how do I migrate? The web sites I've been able to find so far are very vague and general. So here's an anthology of questions after reading the main web sites and trying stuff out:
First of all, are virtualenv and pip supposed to be in a usable state by now? If not, please disregard the rest as the ravings of a madman.
How should virtualenv be installed? I'm not quite ready to believe it's as convoluted as explained elsewhere.
Is there a set of tested instructions for how to install matplotlib in a virtual environment? For some reason it always wants to compile it here instead of just installing a package, and it always ends in failure (even after build-dep which took up 250 MB of disk space). After a whole bunch of warnings it prints src/mplutils.cpp:17: error: ‘vsprintf’ was not declared in this scope.
How does either tool interact with setup.py? pip is supposed to replace easy_install, but it's not clear whether it's a drop-in or more complicated relationship.
Is virtualenv only for development mode, or should the users also install it?
Will the resulting package be installed with the minimum requirements (like the current egg), or will it be installed with sources & binaries for all dependencies plus all the build tools, creating a gigabyte monster in the virtual environment?
Will the users have to modify their $PATH and $PYTHONPATH to run the resulting package if it's installed in a virtual environment?
Do I need to create a script from a text string for virtualenv like in the bad old days?
What is with the #egg=Package URL syntax? That's not part of the standard URL, so why isn't it a separate parameter?
Where is #rev included in the URL? At the end I suppose, but the documentation is not clear about this ("You can also include #rev in the URL").
What is supposed to be understood by using an existing requirements file as "as a sort of template for the new file"? This could mean any number of things.

Wow, that's quite a set of questions. Many of them would really deserve their own SO question with more details. I'll do my best:
First of all, are virtualenv and pip
supposed to be in a usable state by
now?
Yes, although they don't serve everyone's needs. Pip and virtualenv (along with everything else in Python package management) are far from perfect, but they are widely used and depended upon nonetheless.
How should virtualenv be installed?
I'm not quite ready to believe it's as
convoluted as explained elsewhere.
The answer you link is complex because it is trying to avoid making any changes at all to your global Python installation and install everything in ~/.local instead. This has some advantages, but is more complex to setup. It's also installing virtualenvwrapper, which is a set of convenience bash scripts for working with virtualenv, but is not necessary for using virtualenv.
If you are on Ubuntu, aptitude install python-setuptools followed by easy_install virtualenv should get you a working virtualenv installation without doing any damage to your global python environment (unless you also had the Ubuntu virtualenv package installed, which I don't recommend as it will likely be an old version).
Is there a set of tested instructions
for how to install matplotlib in a
virtual environment? For some reason
it always wants to compile it here
instead of just installing a package,
and it always ends in failure (even
after build-dep which took up 250 MB
of disk space). After a whole bunch of
warnings it prints
src/mplutils.cpp:17: error: ‘vsprintf’
was not declared in this scope.
It "always wants to compile" because pip, by design, installs only from source, it doesn't install pre-compiled binaries. This is a controversial choice, and is probably the primary reason why pip has seen widest adoption among Python web developers, who use more pure-Python packages and commonly develop and deploy in POSIX environments where a working compilation chain is standard.
The reason for the design choice is that providing precompiled binaries has a combinatorial explosion problem with different platforms and build architectures (including python version, UCS-2 vs UCS-4 python builds, 32 vs 64-bit...). The way easy_install finds the right binary package on PyPI sort of works, most of the time, but doesn't account for all these factors and can break. So pip just avoids that issue altogether (replacing it with a requirement that you have a working compilation environment).
In many cases, packages that require C compilation also have a slower-moving release schedule and it's acceptable to simply install OS packages for them instead. This doesn't allow working with different versions of them in different virtualenvs, though.
I don't know what's causing your compilation error, it works for me (on Ubuntu 10.10) with this series of commands:
virtualenv --no-site-packages tmp
. tmp/bin/activate
pip install numpy
pip install -f http://downloads.sourceforge.net/project/matplotlib/matplotlib/matplotlib-1.0.1/matplotlib-1.0.1.tar.gz matplotlib
The "-f" link is necessary to get the most recent version, due to matplotlib's unusual download URLs on PyPI.
How does either tool interact with
setup.py? pip is supposed to replace
easy_install, but it's not clear
whether it's a drop-in or more
complicated relationship.
The setup.py file is a convention of distutils, the Python standard library's package management "solution." distutils alone is missing some key features, and setuptools is a widely-used third-party package that "embraces and extends" distutils to provide some additional features. setuptools also uses setup.py. easy_install is the installer bundled with setuptools. Setuptools development stalled for several years, and distribute was a fork of setuptools to fix some longstanding bugs. Eventually the fork was resolved with a merge of distribute back into setuptools, and setuptools development is now active again (with a new maintainer).
distutils2 was a mostly-rewritten new version of distutils that attempted to incorporate the best ideas from setuptools/distribute, and was supposed to become part of the Python standard library. Unfortunately this effort failed, so for the time being setuptools remains the de facto standard for Python packaging.
Pip replaces easy_install, but it does not replace setuptools; it requires setuptools and builds on top of it. Thus it also uses setup.py.
Is virtualenv only for development
mode, or should the users also install
it?
There's no single right answer to that; it can be used either way. In the end it's really your user's choice, and your software ideally should be able to be installed inside or out of a virtualenv; though you might choose to document and emphasize one approach or the other. It depends very much on who your users are and what environments they are likely to need to install your software into.
Will the resulting package be
installed with the minimum
requirements (like the current egg),
or will it be installed with sources &
binaries for all dependencies plus all
the build tools, creating a gigabyte
monster in the virtual environment?
If a package that requires compilation is installed via pip, it will need to be compiled from source. That also applies to any dependencies that require compilation.
This is unrelated to the question of whether you use a virtualenv. easy_install is available by default in a virtualenv and works just fine there. It can install pre-compiled binary eggs, just like it does outside of a virtualenv.
Will the users have to modify their
$PATH and $PYTHONPATH to run the
resulting package if it's installed in
a virtual environment?
In order to use anything installed in a virtualenv, you need to use the python binary in the virtualenv's bin/ directory (or another script installed into the virtualenv that references this binary). The most common way to do this is to use the virtualenv's activate or activate.bat script to temporarily modify the shell PATH so the virtualenv's bin/ directory is first. Modifying PYTHONPATH is not generally useful or necessary with virtualenv.
Do I need to create a script from a
text string for virtualenv like in the
bad old days?
No.
What is with the #egg=Package URL
syntax? That's not part of the
standard URL, so why isn't it a
separate parameter?
The "#egg=projectname-version" URL fragment hack was first introduced by setuptools and easy_install. Since easy_install scrapes links from the web to find candidate distributions to install for a given package name and version, this hack allowed package authors to add links on PyPI that easy_install could understand, even if they didn't use easy_install's standard naming conventions for their files.
Where is #rev included in the URL? At
the end I suppose, but the
documentation is not clear about this
("You can also include #rev in the
URL").
A couple sentences after that quoted fragment there is a link to "read the requirements file format to learn about other features." The #rev feature is fully documented and demonstrated there.
What is supposed to be understood by
using an existing requirements file as
"as a sort of template for the new
file"? This could mean any number of
things.
The very next sentence says "it will keep the packages listed in devel-req.txt in order and preserve comments." I'm not sure what would be a better concise description.

I can't answer all your questions, but hopefully the following helps.
Both virtualenv and pip are very usable. Many Python devs use these everyday.
Since you have a working easy_install, the easiest way to install both is the following:
easy_install pip
easy_install virtualenv
Once you have virtualenv, just type virtualenv yourEnvName and you'll get your new python virtual environment in a directory named yourEnvName.
From there, it's as easy as source yourEnvName/bin/activate and the virtual python interpreter will be your active. I know nothing about matplotlib, but following the installation interactions should work out ok unless there are weird hard-coded path issues.
If you can install something via easy_install you can usually install it via pip. I haven't found anything that easy_install could do that pip couldn't.
I wouldn't count on users being able to install virtualenv (it depends on who your users are). Technically, a virtual python interpreter can be treated as a real one for most cases. It's main use is not cluttering up the real interpreter's site-packages and if you have two libraries/apps that require different and incompatible versions of the same library.
If you or a user install something in a virtualenv, it won't be available in other virtualenvs or the system Python interpreter. You'll need to use source /path/to/yourvirtualenv/bin/activate command to switch to a virtual environment you installed the library on.
What they mean by "as a sort of template for the new file" is that the pip freeze -r devel-req.txt > stable-req.txt command will create a new file stable-req.txt based on the existing file devel-req.txt. The only difference will be anything installed not already specified in the existing file will be in the new file.