Module found by manage.p but not by django-admin.py

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I am trying to get a django second site running on Dreamhost. I kept the set up almost exactly the same as my first site, which works, but I cannot get collect static to work. When I run manage.py validate it returns no errors but django-admin gives this

    ...
  File "/home/username/<virtualenv>/lib/python2.7/site-packages/django/conf/__init__.py", line 134, in __init__
    raise ImportError("Could not import settings '%s' (Is it on sys.path?): %s" % (self.SETTINGS_MODULE, e))
ImportError: Could not import settings '<project>.settings.production' (Is it on sys.path?): No module named <project>.settings.production

I have set the DJANGO_SETTINGS_MODULE to <project>.settings.production and in the passenger_wsgi.py I have added the settings directory to the path.

I am using django 1.5.5. Could this be due to multiple sites?

EDIT Collectstatic is not available under either of the 2 methods.

EDIT I just noticed that the wsgi.py has not been compiled. Could this be part of the problem?

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bruno desthuilliers On

Since you set DJANGO_SETTINGS_MODULE to <project>.settings.production what you need to add tou your sys.path is not the settings directory path but the path to <project>'s parent directory.