diff --git a/setup.py b/setup.py
index b862b0b..ddca93b 100755
--- a/setup.py
+++ b/setup.py
@@ -53,5 +53,8 @@ arbitrary commands.
         # to include things recursively
         'gitosis.templates': subdir_contents('gitosis/templates'),
     },
+
+    # templates need to be a real directory, for git init
+    zip_safe=False,
     )