diff --git a/bin/ansible-playbook b/bin/ansible-playbook
index 3d05d8e29c8..91fd279b62a 100755
--- a/bin/ansible-playbook
+++ b/bin/ansible-playbook
@@ -25,6 +25,14 @@ import sys
 import os
 import stat
 
+# Augment PYTHONPATH to find Python modules relative to this file path
+# This is so that we can find the modules when running from a local checkout
+# installed as editable with `pip install -e ...` or `python setup.py develop`
+local_module_path = os.path.abspath(
+    os.path.join(os.path.dirname(__file__), '..', 'lib')
+)
+sys.path.append(local_module_path)
+
 import ansible.playbook
 import ansible.constants as C
 import ansible.utils.template
diff --git a/lib/ansible/constants.py b/lib/ansible/constants.py
index fb3e2420e95..e1a631e3237 100644
--- a/lib/ansible/constants.py
+++ b/lib/ansible/constants.py
@@ -94,6 +94,14 @@ if getattr(sys, "real_prefix", None):
 else:
     DIST_MODULE_PATH = '/usr/share/ansible/'
 
+# Look for modules relative to this file path
+# This is so that we can find the modules when running from a local checkout
+# installed as editable with `pip install -e ...` or `python setup.py develop`
+local_module_path = os.path.abspath(
+    os.path.join(os.path.dirname(__file__), '..', '..', 'library')
+)
+DIST_MODULE_PATH = os.pathsep.join([DIST_MODULE_PATH, local_module_path])
+
 # check all of these extensions when looking for yaml files for things like
 # group variables -- really anything we can load
 YAML_FILENAME_EXTENSIONS = [ "", ".yml", ".yaml", ".json" ]