diff --git a/python/.gitignore b/.gitignore
similarity index 50%
rename from python/.gitignore
rename to .gitignore
index 0d20b64..8d2abce 100644
--- a/python/.gitignore
+++ b/.gitignore
@@ -1 +1,2 @@
+envs/
 *.pyc
diff --git a/CONTRIBUTING.md b/CONTRIBUTING.md
index 63670ca..bcdde4a 100644
--- a/CONTRIBUTING.md
+++ b/CONTRIBUTING.md
@@ -1,84 +1,91 @@
-# Contributing guide
+# Development process
 
-## How to add new functions
+Please read the Working Process/Quickstart Guide in README.md first.
 
-Try to put as little logic in the SQL extension as possible and
-just use it as a wrapper to the Python module functionality.
+For any modification of crankshaft, such as adding new features,
+refactoring or bug-fixing, topic branch must be created out of the `develop`
+branch and be used for the development process.
 
-Once a function is defined it should never change its signature in subsequent
-versions. To change a function's signature a new function with a different
-name must be created.
+Modifications are done inside `src/pg/sql` and `src/py/crankshaft`.
 
-### Version numbers
+Take into account:
 
-The version of both the SQL extension and the Python package shall
-follow the [Semantic Versioning 2.0](http://semver.org/) guidelines:
+*  Tests must be added for any new functionality
+   (inside `src/pg/test`, `src/py/crankshaft/test`) as well as to
+   detect any bugs that are being fixed.
+*  Add or modify the corresponding documentation files in the `doc` folder.
+   Since we expect to have highly technical functions here, an extense
+   background explanation would be of great help to users of this extension.
+*  Convention: snake case(i.e. `snake_case` and not `CamelCase`)
+   shall be used for all function names.
+   Prefix function names intended for public use with `cdb_`
+   and private functions (to be used only internally inside
+   the extension)  with `_cdb_`.
 
-* When backwards incompatibility is introduced the major number is incremented
-* When functionally is added (in a backwards-compatible manner) the minor number
-  is incremented
-* When only fixes are introduced (backwards-compatible) the patch number is
-  incremented
+Once the code is ready to be tested, update the local development installation
+with `sudo make install`.
+This will update the 'dev' version of the extension in `src/pg/` and
+make it available to PostgreSQL.
+It will also install the python package (crankshaft) in a virtual
+environment `env/dev`.
 
-### Python Package
+The version number of the Python package, defined in
+`src/pg/crankshaft/setup.py` will be overridden when
+the package is released and always match the extension version number,
+but for development it shall be kept as '0.0.0'.
 
-...
+Run the tests with `make test`.
 
-### SQL Extension
-
-* Generate a **new subfolder version** for `sql` and `test` folders to define
-  the new functions and tests
-  - Use symlinks to avoid file duplication between versions that don't update them
-  - Add new files or modify copies of the old files to add new functions or
-    modify existing functions (remember to rename a function if the signature
-    changes)
-  - Add or modify the corresponding documentation files in the `doc` folder.
-    Since we expect to have highly technical functions here, an extense
-    background explanation would be of great help to users of this extension.
-  - Create tests for the new functions/behaviour
-
-* Generate the **upgrade and downgrade files** for the extension
-
-* Update the control file and the Makefile to generate the complete SQL
-  file for the new created version. After running `make` a new
-  file `crankshaft--X.Y.Z.sql` will be created for the current version.
-  Additional files for migrating to/from the previous version A.B.Z should be
-  created:
-  - `crankshaft--X.Y.Z--A.B.C.sql`
-  - `crankshaft--A.B.C--X.Y.Z.sql`
-  All these new files must be added to git and pushed.
-
-* Update the public docs! ;-)
-
-## Conventions
-
-# SQL
-
-Use snake case (i.e. `snake_case` and not `CamelCase`) for all
-functions. Prefix functions intended for public use with `cdb_`
-and private functions (to be used only internally inside
-the extension)  with `_cdb_`.
-
-# Python
-
-...
-
-## Testing
-
-Running just the Python tests:
+To use the python extension for custom tests, activate the virtual
+environment with:
 
 ```
-(cd python && make test)
+source envs/dev/bin/activate
 ```
 
-Installing the Extension and running just the PostgreSQL tests:
+Update extension in a working database with:
+
+* `ALTER EXTENSION crankshaft VERSION TO 'current';`
+  `ALTER EXTENSION crankshaft VERSION TO 'dev';`
+
+Note: we keep the current development version install as 'dev' always;
+we update through the 'current' alias to allow changing the extension
+contents but not the version identifier. This will fail if the
+changes involve incompatible function changes such as a different
+return type; in that case the offending function (or the whole extension)
+should be dropped manually before the update.
+
+If the extension has not previously been installed in a database,
+it can be installed directly with:
+
+* `CREATE EXTENSION crankshaft WITH VERSION 'dev';`
+
+Note: the development extension uses the development python virtual
+environment automatically.
+
+Before proceeding to the release process peer code reviewing of the code is
+a must.
+
+Once the feature or bugfix is completed and all the tests are passing
+a Pull-Request shall be created on the topic branch, reviewed by a peer
+and then merged back into the `develop` branch when all CI tests pass.
+
+When the changes in the `develop` branch are to be released in a new
+version of the extension, a PR must be created on the `develop` branch.
+
+The release manage will take hold of the PR at this moment to proceed
+to the release process for a new revision of the extension.
+
+## Relevant development tasks available in the Makefile
 
 ```
-(cd pg && sudo make install && PGUSER=postgres make installcheck)
-```
+* `make help` show a short description of the available targets
 
-Installing and testing everything:
+* `sudo make install` will generate the extension scripts for the development
+  version ('dev'/'current') and install the python package into the
+  development virtual environment `envs/dev`.
+  Intended for use by developers.
 
-```
-sudo make install && PGUSER=postgres make testinstalled
+* `make test` will run the tests for the installed development extension.
+  Intended for use by developers.
 ```
diff --git a/DEPLOYING.md b/DEPLOYING.md
deleted file mode 100644
index 5b21f30..0000000
--- a/DEPLOYING.md
+++ /dev/null
@@ -1,43 +0,0 @@
-# Workflow
-
-... (branching/merging flow)
-
-# Deployment
-
-...
-
-Deployment to db servers: the next command will install both the Python
-package and the extension.
-
-```
-sudo make install
-```
-
-Installing only the Python package:
-
-```
-sudo pip install python/crankshaft --upgrade
-```
-
-Caveat: note that `pip install ./crankshaft` will install
-from local files, but `pip install crankshaft` will not.
-
-CI: Install and run the tests on the installed extension and package:
-
-```
-(sudo make install && PGUSER=postgres make testinstalled)
-```
-
-Installing the extension in user databases:
-Once installed in a server, the extension can be added
-to a database with the next SQL command:
-
-```
-CREATE EXTENSION crankshaft;
-```
-
-To upgrade the extension to an specific version X.Y.Z:
-
-```
-ALTER EXTENSION crankshaft UPGRADE TO 'X.Y.Z';
-```
diff --git a/Makefile b/Makefile
index d1d9734..6c3e219 100644
--- a/Makefile
+++ b/Makefile
@@ -1,13 +1,70 @@
-EXT_DIR = pg
-PYP_DIR = python
+include ./Makefile.global
+
+EXT_DIR = src/pg
+PYP_DIR = src/py
 
 .PHONY: install
 .PHONY: run_tests
+.PHONY: release
+.PHONY: deploy
 
-install:
+# Generate and install developmet versions of the extension
+# and python package.
+# The extension is named 'dev' with a 'current' alias for easily upgrading.
+# The Python package is installed in a virtual environment envs/dev/
+# Requires sudo.
+install: ## Generate and install development version of the extension; requires sudo.
 	$(MAKE) -C $(PYP_DIR) install
 	$(MAKE) -C $(EXT_DIR) install
 
-testinstalled:
-	$(MAKE) -C $(PYP_DIR) testinstalled
-	$(MAKE) -C $(EXT_DIR) installcheck
+# Run the tests for the installed development extension and
+# python package
+test:   ## Run the tests for the development version of the extension
+	$(MAKE) -C $(PYP_DIR) test
+	$(MAKE) -C $(EXT_DIR) test
+
+# Generate a new release into release
+release: ## Generate a new release of the extension. Only for telease manager
+	$(MAKE) -C $(EXT_DIR) release
+	$(MAKE) -C $(PYP_DIR) release
+
+# Install the current release.
+# The Python package is installed in a virtual environment envs/X.Y.Z/
+# Requires sudo.
+# Use the RELEASE_VERSION environment variable to deploy a specific version:
+#     sudo make deploy RELEASE_VERSION=1.0.0
+deploy: ## Deploy a released extension. Only for release manager. Requires sudo.
+	$(MAKE) -C $(EXT_DIR) deploy
+	$(MAKE) -C $(PYP_DIR) deploy
+
+# Cleanup development extension script files
+clean-dev: ## clean up development extension script files
+	rm -f src/pg/$(EXTENSION)--*.sql
+
+# Cleanup all releases
+clean-releases: ## clean up all releases
+	rm -rf release/python/*
+	rm -f release/$(EXTENSION)--*.sql
+	rm -f release/$(EXTENSION).control
+
+# Cleanup current/specific version
+clean-release: ## clean up current release
+	rm -rf release/python/$(RELEASE_VERSION)
+	rm -f release/$(RELEASE_VERSION)--*.sql
+
+# Cleanup all virtual environments
+clean-environments: ## clean up all virtual environments
+	rm -rf envs/*
+
+clean-all: clean-dev clean-release clean-environments
+
+help:
+	@IFS=$$'\n' ; \
+	help_lines=(`fgrep -h "##" $(MAKEFILE_LIST) | fgrep -v fgrep | sed -e 's/\\$$//'`); \
+	for help_line in $${help_lines[@]}; do \
+		IFS=$$'#' ; \
+		help_split=($$help_line) ; \
+		help_command=`echo $${help_split[0]} | sed -e 's/^ *//' -e 's/ *$$//'` ; \
+		help_info=`echo $${help_split[2]} | sed -e 's/^ *//' -e 's/ *$$//'` ; \
+		printf "%-30s %s\n" $$help_command $$help_info ; \
+	done
diff --git a/Makefile.global b/Makefile.global
new file mode 100644
index 0000000..77f6c69
--- /dev/null
+++ b/Makefile.global
@@ -0,0 +1,6 @@
+SELF_DIR         := $(dir $(lastword $(MAKEFILE_LIST)))
+EXTENSION        = crankshaft
+PACKAGE          = crankshaft
+EXTVERSION       = $(shell grep default_version $(SELF_DIR)/src/pg/$(EXTENSION).control | sed -e "s/default_version[[:space:]]*=[[:space:]]*'\([^']*\)'/\1/")
+RELEASE_VERSION ?= $(EXTVERSION)
+SED              = sed
diff --git a/NEWS.md b/NEWS.md
new file mode 100644
index 0000000..201da51
--- /dev/null
+++ b/NEWS.md
@@ -0,0 +1,3 @@
+0.0.1 (2016-03-15)
+------------------
+* Preliminar release
diff --git a/README.md b/README.md
index 61e8738..3ecb1d0 100644
--- a/README.md
+++ b/README.md
@@ -4,9 +4,68 @@ CartoDB Spatial Analysis extension for PostgreSQL.
 
 ## Code organization
 
-* *pg* contains the PostgreSQL extension source code
-* *python* Python module
+* *doc* documentation
+* *src* source code
+* - *src/pg* contains the PostgreSQL extension source code
+* - *src/py* Python module source code
+* *release* reseleased versions
+* *env* base directory for Python virtual environments
 
 ## Requirements
 
-* pip
+* pip, virtualenv, PostgreSQL
+* python-scipy system package (see src/py/README.md)
+
+# Working Process -- Quickstart Guide
+
+We distinguish two roles regarding the development cycle of crankshaft:
+
+* *developers* will implement new functionality and bugfixes into
+  the codebase and will request for new releases of the extension.
+* A *release manager* will attend these requests and will handle
+  the release process. The release process is sequential:
+  no concurrent releases will ever be in the works.
+
+We use the default `develop` branch as the basis for development.
+The `master` branch is used to merge and tag releases to be
+deployed in production.
+
+Developers shall create a new topic branch from `develop` for any new feature
+or bugfix and commit their changes to it and eventually merge back into
+the `develop` branch. When a new release is required a Pull Request
+will be open againt the `develop` branch.
+
+The `develop` pull requests will be handled by the release manage,
+who will merge into master where new releases are prepared and tagged.
+The `master` branch is the sole responsibility of the release masters
+and developers must not commit or merge into it.
+
+## Development Guidelines
+
+For a detailed description of the development process please see
+the CONTRIBUTING.md guide.
+
+Any modification to the source code (`src/pg/sql` for the SQL extension,
+`src/py/crankshaft` for the Python package) shall always be done
+in a topic branch created from the `develop` branch.
+
+Tests, documentation and peer code reviewing are required for all
+modifications.
+
+The tests (both for SQL and Pyhton) are executed by running,
+from the top directory:
+
+```
+sudo make install
+make test
+```
+
+To request a new release, which will be handled by them
+release manager, a Pull Request must be created in the `develop`
+branch.
+
+## Release
+
+The release and deployment process is described in the
+RELEASE.md guide and it is the responsibility of the designated
+release manager.
diff --git a/RELEASE.md b/RELEASE.md
new file mode 100644
index 0000000..0db48a2
--- /dev/null
+++ b/RELEASE.md
@@ -0,0 +1,93 @@
+# Release & Deployment Process
+
+Please read the Working Process/Quickstart Guide in README.md
+and the Development guidelines in CONTRIBUTING.md.
+
+The release process of a new version of the extension
+shall be performed by the designated *Release Manager*.
+
+Note that we expect to gradually automate more of this process.
+
+Having checked PR to be released it shall be
+merged back into the `master` branch to prepare the new release.
+
+The version number in `pg/cranckshaft.control` must first be updated.
+To do so [Semantic Versioning 2.0](http://semver.org/) is in order.
+
+Thew `NEWS.md` will be updated.
+
+We now will explain the process for the case of backwards-compatible
+releases (updating the minor or patch version numbers).
+
+TODO: document the complex case of major releases.
+
+The next command must be executed to produce the main installation
+script for the new release, `release/cranckshaft--X.Y.Z.sql` and
+also to copy the python package to `release/python/X.Y.Z/crankshaft`.
+
+```
+make release
+```
+
+Then, the release manager shall produce upgrade and downgrade scripts
+to migrate to/from the previous release. In the case of minor/patch
+releases this simply consist in extracting the functions that have changed
+and placing them in the proper `release/cranckshaft--X.Y.Z--A.B.C.sql`
+file.
+
+The new release can be deployed for staging/smoke tests with this command:
+
+```
+sudo make deploy
+```
+
+This will copy the current 'X.Y.Z' released version of the extension to
+PostgreSQL. The corresponding Python extension will be installed in a
+virtual environment in `envs/X.Y.Z`.
+
+It can be activated with:
+
+```
+source envs/X.Y.Z/bin/activate
+```
+
+But note that this is needed only for using the package directly;
+the 'X.Y.Z' version of the extension will automatically use the
+python package from this virtual environment.
+
+The `sudo make deploy` operation can be also used for installing
+the new version after it has been released.
+
+To install a specific version 'X.Y.Z' different from the current one
+(which must be present in `releases/`) you can:
+
+```
+sudo make deploy RELEASE_VERSION=X.Y.Z
+```
+
+TODO: testing procedure for the new release.
+
+TODO: procedure for staging deployment.
+
+TODO: procedure for merging to master, tagging and deploying
+in production.
+
+## Relevant release & deployment tasks available in the Makefile
+
+```
+* `make help` show a short description of the available targets
+
+* `make release` will generate a new release (version number defined in
+  `src/pg/crankshaft.control`) into `release/`.
+  Intended for use by the release manager.
+
+* `sudo make deploy` will install the current release X.Y.Z from the
+  `release/` files into PostgreSQL and a Python virtual environment
+  `envs/X.Y.Z`.
+  Intended for use by the release manager and deployment jobs.
+
+* `sudo make deploy RELEASE_VERSION=X.Y.Z` will install specified version
+  previously generated in `release/`
+  into PostgreSQL and a Python virtual environment `envs/X.Y.Z`.
+  Intended for use by the release manager and deployment jobs.
+```
diff --git a/TODO.md b/TODO.md
deleted file mode 100644
index 8a708e2..0000000
--- a/TODO.md
+++ /dev/null
@@ -1,9 +0,0 @@
-* [x] Support versioning
-* [x] Test use of `plpy` from python Package
-* [x] Add `pysal` etc. dependencies
-* [x] Define documentation practices (general, per extension/package?)
-* [x] Add initial function set (WIP)
-* Unify style of function comments
-* [x] Add integration tests
-* Make target to open a new version development (create symlinks, etc.)
-* [x] Should add cartodb ext. as a dependency?
diff --git a/pg/doc/02_moran.md b/doc/02_moran.md
similarity index 100%
rename from pg/doc/02_moran.md
rename to doc/02_moran.md
diff --git a/pg/doc/03_overlap_sum.md b/doc/03_overlap_sum.md
similarity index 100%
rename from pg/doc/03_overlap_sum.md
rename to doc/03_overlap_sum.md
diff --git a/pg/.gitignore b/pg/.gitignore
deleted file mode 100644
index 820df46..0000000
--- a/pg/.gitignore
+++ /dev/null
@@ -1,3 +0,0 @@
-regression.diffs
-regression.out
-results/
diff --git a/pg/Makefile b/pg/Makefile
deleted file mode 100644
index 99605f5..0000000
--- a/pg/Makefile
+++ /dev/null
@@ -1,33 +0,0 @@
-# Makefile to generate the extension out of separate sql source files.
-# Once a version is released, it is not meant to be changed. E.g: once version 0.0.1 is out, it SHALL NOT be changed.
-
-EXTENSION    = crankshaft
-EXTVERSION   = $(shell grep default_version $(EXTENSION).control | sed -e "s/default_version[[:space:]]*=[[:space:]]*'\([^']*\)'/\1/")
-
-# The new version to be generated from templates
-NEW_EXTENSION_ARTIFACT = $(EXTENSION)--$(EXTVERSION).sql
-
-# DATA is a special variable used by postgres build infrastructure
-# These are the files to be installed in the server shared dir,
-# for installation from scratch, upgrades and downgrades.
-# @see http://www.postgresql.org/docs/current/static/extend-pgxs.html
-DATA =  $(NEW_EXTENSION_ARTIFACT)
-
-SOURCES_DATA_DIR = sql/$(EXTVERSION)
-SOURCES_DATA = $(wildcard sql/$(EXTVERSION)/*.sql)
-
-# The extension installation artifacts are stored in the base subdirectory
-$(NEW_EXTENSION_ARTIFACT): $(SOURCES_DATA)
-	rm -f $@
-	cat $(SOURCES_DATA_DIR)/*.sql >> $@
-
-REGRESS = $(notdir $(basename $(wildcard test/$(EXTVERSION)/sql/*test.sql)))
-TEST_DIR = test/$(EXTVERSION)
-REGRESS_OPTS = --inputdir='$(TEST_DIR)' --outputdir='$(TEST_DIR)'
-
-PG_CONFIG = pg_config
-PGXS := $(shell $(PG_CONFIG) --pgxs)
-include $(PGXS)
-
-# This seems to be needed at least for PG 9.3.11
-all: $(DATA)
diff --git a/pg/README.md b/pg/README.md
deleted file mode 100644
index 511fdae..0000000
--- a/pg/README.md
+++ /dev/null
@@ -1,7 +0,0 @@
-
-# Running the tests:
-
-```
-sudo make install
-PGUSER=postgres make installcheck
-```
diff --git a/pg/crankshaft--0.0.1.sql b/pg/crankshaft--0.0.1.sql
deleted file mode 100644
index 436beea..0000000
--- a/pg/crankshaft--0.0.1.sql
+++ /dev/null
@@ -1,148 +0,0 @@
---DO NOT MODIFY THIS FILE, IT IS GENERATED AUTOMATICALLY FROM SOURCES
--- Complain if script is sourced in psql, rather than via CREATE EXTENSION
-\echo Use "CREATE EXTENSION crankshaft" to load this file. \quit
--- Internal function.
--- Set the seeds of the RNGs (Random Number Generators)
--- used internally.
-CREATE OR REPLACE FUNCTION
-_cdb_random_seeds (seed_value INTEGER) RETURNS VOID
-AS $$
-  from crankshaft import random_seeds
-  random_seeds.set_random_seeds(seed_value)
-$$ LANGUAGE plpythonu;
--- Moran's I
-CREATE OR REPLACE FUNCTION
-  cdb_moran_local (
-      t TEXT,
-  	  attr TEXT,
-  	  significance float DEFAULT 0.05,
-  	  num_ngbrs INT DEFAULT 5,
-  	  permutations INT DEFAULT 99,
-  	  geom_column TEXT DEFAULT 'the_geom',
-  	  id_col TEXT DEFAULT 'cartodb_id',
-      w_type TEXT DEFAULT 'knn')
-RETURNS TABLE (moran FLOAT, quads TEXT, significance FLOAT, ids INT)
-AS $$
-  from crankshaft.clustering import moran_local
-  # TODO: use named parameters or a dictionary
-  return moran_local(t, attr, significance, num_ngbrs, permutations, geom_column, id_col, w_type)
-$$ LANGUAGE plpythonu;
-
--- Moran's I Local Rate
-CREATE OR REPLACE FUNCTION
-  cdb_moran_local_rate(t TEXT,
-		 numerator TEXT,
-		 denominator TEXT,
-		 significance FLOAT DEFAULT 0.05,
-		 num_ngbrs INT DEFAULT 5,
-		 permutations INT DEFAULT 99,
-		 geom_column TEXT DEFAULT 'the_geom',
-		 id_col TEXT DEFAULT 'cartodb_id',
-		 w_type TEXT DEFAULT 'knn')
-RETURNS TABLE(moran FLOAT, quads TEXT, significance FLOAT, ids INT, y numeric)
-AS $$
-  from crankshaft.clustering import moran_local_rate
-  # TODO: use named parameters or a dictionary
-  return moran_local_rate(t, numerator, denominator, significance, num_ngbrs, permutations, geom_column, id_col, w_type)
-$$ LANGUAGE plpythonu;
--- Function by Stuart Lynn for a simple interpolation of a value
--- from a polygon table over an arbitrary polygon
--- (weighted by the area proportion overlapped)
--- Aereal weighting is a very simple form of aereal interpolation.
---
--- Parameters:
---   * geom a Polygon geometry which defines the area where a value will be
---     estimated as the area-weighted sum of a given table/column
---   * target_table_name table name of the table that provides the values
---   * target_column column name of the column that provides the values
---   * schema_name optional parameter to defina the schema the target table
---     belongs to, which is necessary if its not in the search_path.
---     Note that target_table_name should never include the schema in it.
--- Return value:
---   Aereal-weighted interpolation of the column values over the geometry
-CREATE OR REPLACE
-FUNCTION cdb_overlap_sum(geom geometry, target_table_name text, target_column text, schema_name text DEFAULT NULL)
-  RETURNS numeric AS
-$$
-DECLARE
-	result numeric;
-  qualified_name text;
-BEGIN
-  IF schema_name IS NULL THEN
-    qualified_name := Format('%I', target_table_name);
-  ELSE
-    qualified_name := Format('%I.%s', schema_name, target_table_name);
-  END IF;
-  EXECUTE Format('
-    SELECT sum(%I*ST_Area(St_Intersection($1, a.the_geom))/ST_Area(a.the_geom))
-    FROM %s AS a
-    WHERE $1 && a.the_geom
-  ', target_column, qualified_name)
-  USING geom
-  INTO result;
-  RETURN result;
-END;
-$$ LANGUAGE plpgsql;
---
--- Creates N points randomly distributed arround the polygon
---
--- @param g - the geometry to be turned in to points
---
--- @param no_points - the number of points to generate
---
--- @params max_iter_per_point - the function generates points in the polygon's bounding box
--- and discards points which don't lie in the polygon. max_iter_per_point specifies how many
--- misses per point the funciton accepts before giving up.
---
--- Returns: Multipoint with the requested points
-CREATE OR REPLACE FUNCTION cdb_dot_density(geom geometry , no_points Integer, max_iter_per_point Integer DEFAULT 1000)
-RETURNS GEOMETRY AS $$
-DECLARE
-  extent GEOMETRY;
-  test_point Geometry;
-  width                NUMERIC;
-  height               NUMERIC;
-  x0                   NUMERIC;
-  y0                   NUMERIC;
-  xp                   NUMERIC;
-  yp                   NUMERIC;
-  no_left              INTEGER;
-  remaining_iterations INTEGER;
-  points               GEOMETRY[];
-  bbox_line            GEOMETRY;
-  intersection_line    GEOMETRY;
-BEGIN
-  extent  := ST_Envelope(geom);
-  width   := ST_XMax(extent) - ST_XMIN(extent);
-  height  := ST_YMax(extent) - ST_YMIN(extent);
-  x0 	  := ST_XMin(extent);
-  y0 	  := ST_YMin(extent);
-  no_left := no_points;
-
-  LOOP
-    if(no_left=0) THEN
-      EXIT;
-    END IF;
-    yp = y0 + height*random();
-    bbox_line  = ST_MakeLine(
-      ST_SetSRID(ST_MakePoint(yp, x0),4326),
-      ST_SetSRID(ST_MakePoint(yp, x0+width),4326)
-    );
-    intersection_line = ST_Intersection(bbox_line,geom);
-  	test_point = ST_LineInterpolatePoint(st_makeline(st_linemerge(intersection_line)),random());
-	  points := points || test_point;
-	  no_left = no_left - 1 ;
-  END LOOP;
-  RETURN ST_Collect(points);
-END;
-$$
-LANGUAGE plpgsql VOLATILE;
--- Make sure by default there are no permissions for publicuser
--- NOTE: this happens at extension creation time, as part of an implicit transaction.
--- REVOKE ALL PRIVILEGES ON SCHEMA cdb_crankshaft FROM PUBLIC, publicuser CASCADE;
-
--- Grant permissions on the schema to publicuser (but just the schema)
-GRANT USAGE ON SCHEMA cdb_crankshaft TO publicuser;
-
--- Revoke execute permissions on all functions in the schema by default
--- REVOKE EXECUTE ON ALL FUNCTIONS IN SCHEMA cdb_crankshaft FROM PUBLIC, publicuser;
diff --git a/pg/test/0.0.1/results/01_install_test.out b/pg/test/0.0.1/results/01_install_test.out
deleted file mode 100644
index c14537c..0000000
--- a/pg/test/0.0.1/results/01_install_test.out
+++ /dev/null
@@ -1,6 +0,0 @@
--- Install dependencies
-CREATE EXTENSION plpythonu;
-CREATE EXTENSION postgis;
-CREATE EXTENSION cartodb;
--- Install the extension
-CREATE EXTENSION crankshaft;
diff --git a/python/Makefile b/python/Makefile
deleted file mode 100644
index 07b41dd..0000000
--- a/python/Makefile
+++ /dev/null
@@ -1,11 +0,0 @@
-# Install the package (needs root privileges)
-install:
-	pip install ./crankshaft --upgrade
-
-# Test from source code
-test:
-	(cd crankshaft && nosetests test/)
-
-# Test currently installed package
-testinstalled:
-	nosetests crankshaft/test/
diff --git a/python/README.md b/python/README.md
deleted file mode 100644
index f342bf2..0000000
--- a/python/README.md
+++ /dev/null
@@ -1,9 +0,0 @@
-# Crankshaft Python Package
-
-...
-### Run the tests
-
-```bash
-cd crankshaft
-nosetests test/
-```
diff --git a/release/.gitignore b/release/.gitignore
new file mode 100644
index 0000000..e69de29
diff --git a/release/python/.gitignore b/release/python/.gitignore
new file mode 100644
index 0000000..e69de29
diff --git a/src/pg/.gitignore b/src/pg/.gitignore
new file mode 100644
index 0000000..b58a014
--- /dev/null
+++ b/src/pg/.gitignore
@@ -0,0 +1,6 @@
+regression.diffs
+regression.out
+results/
+crankshaft--dev.sql
+crankshaft--dev--current.sql
+crankshaft--current--dev.sql
diff --git a/src/pg/Makefile b/src/pg/Makefile
new file mode 100644
index 0000000..8a745c4
--- /dev/null
+++ b/src/pg/Makefile
@@ -0,0 +1,60 @@
+include ../../Makefile.global
+
+# Development tasks:
+#
+# * install generates the control & script files into src/pg/
+#   and installs then into the PostgreSQL extensions directory;
+#   requires sudo. In additionof the current development version
+#   named 'dev', an alias 'current' is generating for ease of
+#   update (upgrade to 'current', then to 'dev').
+#   the python module is installed in a virtualenv in envs/dev/
+# * test runs the tests for the currently generated Development
+#   extension.
+
+DATA         = $(EXTENSION)--dev.sql \
+	             $(EXTENSION)--current--dev.sql \
+	             $(EXTENSION)--dev--current.sql
+
+SOURCES_DATA_DIR = sql
+SOURCES_DATA = $(wildcard $(SOURCES_DATA_DIR)/*.sql)
+
+VIRTUALENV_PATH = $(realpath ../../envs)
+ESC_VIRVIRTUALENV_PATH = $(subst /,\/,$(VIRTUALENV_PATH))
+
+REPLACEMENTS = -e 's/@@VERSION@@/$(EXTVERSION)/g' \
+               -e 's/@@VIRTUALENV_PATH@@/$(ESC_VIRVIRTUALENV_PATH)/g'
+
+$(DATA): $(SOURCES_DATA)
+	$(SED) $(REPLACEMENTS) $(SOURCES_DATA_DIR)/*.sql > $@
+
+TEST_DIR = test
+REGRESS = $(notdir $(basename $(wildcard $(TEST_DIR)/sql/*test.sql)))
+REGRESS_OPTS = --inputdir='$(TEST_DIR)' --outputdir='$(TEST_DIR)'
+
+PG_CONFIG = pg_config
+PGXS := $(shell $(PG_CONFIG) --pgxs)
+include $(PGXS)
+
+# This seems to be needed at least for PG 9.3.11
+all: $(DATA)
+
+test: export PGUSER=postgres
+test: installcheck
+
+# Release tasks
+
+../../release/$(EXTENSION).control: $(EXTENSION).control
+	cp $< $@
+
+# Prepare new release from the currently installed development version,
+# for the current version X.Y.Z (defined in the control file)
+# producing the extension script and control files in releases/
+# and the python package in releases/python/X.Y.Z/crankshaft/
+release: ../../release/$(EXTENSION).control $(SOURCES_DATA)
+	$(SED) $(REPLACEMENTS) $(SOURCES_DATA_DIR)/*.sql > ../../release/$(EXTENSION)--$(EXTVERSION).sql
+
+# Install the current relese into the PostgreSQL extensions directory
+# and the Python package in a virtual environment envs/X.Y.Z
+deploy:
+	$(INSTALL_DATA) ../../release/$(EXTENSION).control '$(DESTDIR)$(datadir)/extension/'
+	$(INSTALL_DATA) ../../release/*.sql '$(DESTDIR)$(datadir)/extension/'
diff --git a/pg/crankshaft.control b/src/pg/crankshaft.control
similarity index 100%
rename from pg/crankshaft.control
rename to src/pg/crankshaft.control
diff --git a/pg/sql/0.0.1/00_header.sql b/src/pg/sql/00_header.sql
similarity index 100%
rename from pg/sql/0.0.1/00_header.sql
rename to src/pg/sql/00_header.sql
diff --git a/src/pg/sql/01_version.sql b/src/pg/sql/01_version.sql
new file mode 100644
index 0000000..f73c764
--- /dev/null
+++ b/src/pg/sql/01_version.sql
@@ -0,0 +1,12 @@
+-- Version number of the extension release
+CREATE OR REPLACE FUNCTION cdb_crankshaft_version()
+RETURNS text AS $$
+  SELECT '@@VERSION@@'::text;
+$$ language 'sql' STABLE STRICT;
+
+-- Internal identifier of the installed extension instence
+-- e.g. 'dev' for current development version
+CREATE OR REPLACE FUNCTION _cdb_crankshaft_internal_version()
+RETURNS text AS $$
+  SELECT installed_version FROM pg_available_extensions where name='crankshaft' and pg_available_extensions IS NOT NULL;
+$$ language 'sql' STABLE STRICT;
diff --git a/src/pg/sql/02_py.sql b/src/pg/sql/02_py.sql
new file mode 100644
index 0000000..7da5f47
--- /dev/null
+++ b/src/pg/sql/02_py.sql
@@ -0,0 +1,23 @@
+CREATE OR REPLACE FUNCTION _cdb_crankshaft_virtualenvs_path()
+RETURNS text
+AS $$
+  BEGIN
+    -- RETURN '/opt/virtualenvs/crankshaft';
+    RETURN '@@VIRTUALENV_PATH@@';
+  END;
+$$ language plpgsql IMMUTABLE STRICT;
+
+-- Use the crankshaft python module
+CREATE OR REPLACE FUNCTION _cdb_crankshaft_activate_py()
+RETURNS VOID
+AS $$
+    import os
+    # plpy.notice('%',str(os.environ))
+    # activate virtualenv
+    crankshaft_version = plpy.execute('SELECT cdb_crankshaft._cdb_crankshaft_internal_version()')[0]['_cdb_crankshaft_internal_version']
+    base_path = plpy.execute('SELECT cdb_crankshaft._cdb_crankshaft_virtualenvs_path()')[0]['_cdb_crankshaft_virtualenvs_path']
+    default_venv_path = os.path.join(base_path, crankshaft_version)
+    venv_path =  os.environ.get('CRANKSHAFT_VENV', default_venv_path)
+    activate_path = venv_path + '/bin/activate_this.py'
+    exec(open(activate_path).read(), dict(__file__=activate_path))
+$$ LANGUAGE plpythonu;
diff --git a/pg/sql/0.0.1/01_random_seeds.sql b/src/pg/sql/03_random_seeds.sql
similarity index 80%
rename from pg/sql/0.0.1/01_random_seeds.sql
rename to src/pg/sql/03_random_seeds.sql
index 2b62be3..9a0cca6 100644
--- a/pg/sql/0.0.1/01_random_seeds.sql
+++ b/src/pg/sql/03_random_seeds.sql
@@ -4,6 +4,7 @@
 CREATE OR REPLACE FUNCTION
 _cdb_random_seeds (seed_value INTEGER) RETURNS VOID
 AS $$
+  plpy.execute('SELECT cdb_crankshaft._cdb_crankshaft_activate_py()')
   from crankshaft import random_seeds
   random_seeds.set_random_seeds(seed_value)
 $$ LANGUAGE plpythonu;
diff --git a/pg/sql/0.0.1/02_moran.sql b/src/pg/sql/10_moran.sql
similarity index 89%
rename from pg/sql/0.0.1/02_moran.sql
rename to src/pg/sql/10_moran.sql
index d061b45..49c70c2 100644
--- a/pg/sql/0.0.1/02_moran.sql
+++ b/src/pg/sql/10_moran.sql
@@ -11,6 +11,7 @@ CREATE OR REPLACE FUNCTION
       w_type TEXT DEFAULT 'knn')
 RETURNS TABLE (moran FLOAT, quads TEXT, significance FLOAT, ids INT)
 AS $$
+  plpy.execute('SELECT cdb_crankshaft._cdb_crankshaft_activate_py()')
   from crankshaft.clustering import moran_local
   # TODO: use named parameters or a dictionary
   return moran_local(t, attr, significance, num_ngbrs, permutations, geom_column, id_col, w_type)
@@ -29,6 +30,7 @@ CREATE OR REPLACE FUNCTION
 		 w_type TEXT DEFAULT 'knn')
 RETURNS TABLE(moran FLOAT, quads TEXT, significance FLOAT, ids INT, y numeric)
 AS $$
+  plpy.execute('SELECT cdb_crankshaft._cdb_crankshaft_activate_py()')
   from crankshaft.clustering import moran_local_rate
   # TODO: use named parameters or a dictionary
   return moran_local_rate(t, numerator, denominator, significance, num_ngbrs, permutations, geom_column, id_col, w_type)
diff --git a/pg/sql/0.0.1/03_overlap_sum.sql b/src/pg/sql/20_overlap_sum.sql
similarity index 100%
rename from pg/sql/0.0.1/03_overlap_sum.sql
rename to src/pg/sql/20_overlap_sum.sql
diff --git a/pg/sql/0.0.1/04_dot_density.sql b/src/pg/sql/30_dot_density.sql
similarity index 100%
rename from pg/sql/0.0.1/04_dot_density.sql
rename to src/pg/sql/30_dot_density.sql
diff --git a/pg/sql/0.0.1/90_permissions.sql b/src/pg/sql/90_permissions.sql
similarity index 100%
rename from pg/sql/0.0.1/90_permissions.sql
rename to src/pg/sql/90_permissions.sql
diff --git a/pg/test/0.0.1/expected/01_install_test.out b/src/pg/test/expected/01_install_test.out
similarity index 75%
rename from pg/test/0.0.1/expected/01_install_test.out
rename to src/pg/test/expected/01_install_test.out
index c14537c..e40d267 100644
--- a/pg/test/0.0.1/expected/01_install_test.out
+++ b/src/pg/test/expected/01_install_test.out
@@ -3,4 +3,4 @@ CREATE EXTENSION plpythonu;
 CREATE EXTENSION postgis;
 CREATE EXTENSION cartodb;
 -- Install the extension
-CREATE EXTENSION crankshaft;
+CREATE EXTENSION crankshaft VERSION 'dev';
diff --git a/pg/test/0.0.1/expected/02_moran_test.out b/src/pg/test/expected/02_moran_test.out
similarity index 100%
rename from pg/test/0.0.1/expected/02_moran_test.out
rename to src/pg/test/expected/02_moran_test.out
diff --git a/pg/test/0.0.1/expected/03_overlap_sum_test.out b/src/pg/test/expected/03_overlap_sum_test.out
similarity index 100%
rename from pg/test/0.0.1/expected/03_overlap_sum_test.out
rename to src/pg/test/expected/03_overlap_sum_test.out
diff --git a/pg/test/0.0.1/expected/04_dot_density_test.out b/src/pg/test/expected/04_dot_density_test.out
similarity index 100%
rename from pg/test/0.0.1/expected/04_dot_density_test.out
rename to src/pg/test/expected/04_dot_density_test.out
diff --git a/pg/test/fixtures/polyg_values.sql b/src/pg/test/fixtures/polyg_values.sql
similarity index 100%
rename from pg/test/fixtures/polyg_values.sql
rename to src/pg/test/fixtures/polyg_values.sql
diff --git a/pg/test/fixtures/ppoints.sql b/src/pg/test/fixtures/ppoints.sql
similarity index 100%
rename from pg/test/fixtures/ppoints.sql
rename to src/pg/test/fixtures/ppoints.sql
diff --git a/pg/test/fixtures/ppoints2.sql b/src/pg/test/fixtures/ppoints2.sql
similarity index 100%
rename from pg/test/fixtures/ppoints2.sql
rename to src/pg/test/fixtures/ppoints2.sql
diff --git a/pg/test/0.0.1/sql/01_install_test.sql b/src/pg/test/sql/01_install_test.sql
similarity index 75%
rename from pg/test/0.0.1/sql/01_install_test.sql
rename to src/pg/test/sql/01_install_test.sql
index 54117e5..fc3ea80 100644
--- a/pg/test/0.0.1/sql/01_install_test.sql
+++ b/src/pg/test/sql/01_install_test.sql
@@ -4,4 +4,4 @@ CREATE EXTENSION postgis;
 CREATE EXTENSION cartodb;
 
 -- Install the extension
-CREATE EXTENSION crankshaft;
+CREATE EXTENSION crankshaft VERSION 'dev';
diff --git a/pg/test/0.0.1/sql/02_moran_test.sql b/src/pg/test/sql/02_moran_test.sql
similarity index 100%
rename from pg/test/0.0.1/sql/02_moran_test.sql
rename to src/pg/test/sql/02_moran_test.sql
diff --git a/pg/test/0.0.1/sql/03_overlap_sum_test.sql b/src/pg/test/sql/03_overlap_sum_test.sql
similarity index 100%
rename from pg/test/0.0.1/sql/03_overlap_sum_test.sql
rename to src/pg/test/sql/03_overlap_sum_test.sql
diff --git a/pg/test/0.0.1/sql/04_dot_density_test.sql b/src/pg/test/sql/04_dot_density_test.sql
similarity index 100%
rename from pg/test/0.0.1/sql/04_dot_density_test.sql
rename to src/pg/test/sql/04_dot_density_test.sql
diff --git a/pg/test/0.0.1/sql/90_permissions.sql b/src/pg/test/sql/90_permissions.sql
similarity index 100%
rename from pg/test/0.0.1/sql/90_permissions.sql
rename to src/pg/test/sql/90_permissions.sql
diff --git a/src/py/Makefile b/src/py/Makefile
new file mode 100644
index 0000000..90b22b8
--- /dev/null
+++ b/src/py/Makefile
@@ -0,0 +1,22 @@
+include ../../Makefile.global
+
+# Install the package locally for development
+install:
+	virtualenv --system-site-packages ../../envs/dev
+	# source ../../envs/dev/bin/activate
+	../../envs/dev/bin/pip install -I ./crankshaft
+	../../envs/dev/bin/pip install -I nose
+
+# Test develpment install
+test:
+	../../envs/dev/bin/nosetests crankshaft/test/
+
+release: ../../release/$(EXTENSION).control $(SOURCES_DATA)
+	mkdir -p ../../release/python/$(EXTVERSION)
+	cp -r ./$(PACKAGE) ../../release/python/$(EXTVERSION)/
+	$(SED) -i -r 's/version='"'"'[0-9]+\.[0-9]+\.[0-9]+'"'"'/version='"'"'$(EXTVERSION)'"'"'/g'  ../../release/python/$(EXTVERSION)/$(PACKAGE)/setup.py
+
+deploy:
+	virtualenv --system-site-packages $(VIRTUALENV_PATH)/$(RELEASE_VERSION)
+	$(VIRTUALENV_PATH)/$(RELEASE_VERSION)/bin/pip install -I -U ../../release/python/$(RELEASE_VERSION)/$(PACKAGE)
+	$(VIRTUALENV_PATH)/$(RELEASE_VERSION)/bin/pip install -I nose
diff --git a/src/py/README.md b/src/py/README.md
new file mode 100644
index 0000000..b9bf64d
--- /dev/null
+++ b/src/py/README.md
@@ -0,0 +1,88 @@
+# Crankshaft Python Package
+
+...
+### Run the tests
+
+```bash
+cd crankshaft
+nosetests test/
+```
+
+## Notes about python dependencies
+* This extension is targeted at production databases. Therefore certain restrictions must be assumed about the production environment vs other experimental environments.
+* We're using `pip` and `virtualenv` to generate a suitable isolated environment for python code that has  all the dependencies
+* Every dependency should be:
+  - Added to the `setup.py` file
+  - Installed through it
+  - Tested, when they have a test suite.
+  - Fixed in the `requirements.txt`
+* At present we use Python version 2.7.3
+
+---
+
+To avoid troublesome compilations/linkings we will use
+the available system package `python-scipy`.
+This package and its dependencies provide numpy 1.6.1
+and scipy 0.9.0. To be able to use these versions we cannot
+PySAL 1.10 or later, so we'll stick to 1.9.1.
+
+```
+apt-get install -y python-scipy
+```
+
+We'll use virtual environments to install our packages,
+but configued to use also system modules so that the
+mentioned scipy and numpy are used.
+
+    # Create a virtual environment for python
+    $ virtualenv --system-site-packages dev
+
+    # Activate the virtualenv
+    $ source dev/bin/activate
+
+    # Install all the requirements
+    # expect this to take a while, as it will trigger a few compilations
+    (dev) $ pip install -I ./crankshaft
+
+#### Test the libraries with that virtual env
+
+##### Test numpy library dependency:
+
+    import numpy
+    numpy.test('full')
+
+##### Run scipy tests
+
+    import scipy
+    scipy.test('full')
+
+##### Testing pysal
+
+See [http://pysal.readthedocs.org/en/latest/developers/testing.html]
+
+This will require putting this into `dev/lib/python2.7/site-packages/setup.cfg`:
+
+```
+[nosetests]
+ignore-files=collection
+exclude-dir=pysal/contrib
+
+[wheel]
+universal=1
+```
+
+And copying some files before executing the tests:
+(we'll use a temporary directory from where the tests will be executed because
+some tests expect some files in the current directory). Next must be executed
+from
+
+```
+cp dev/lib/python2.7/site-packages/pysal/examples/geodanet/* dev/local/lib/python2.7/site-packages/pysal/examples
+mkdir -p test_tmp && cd test_tmp && cp ../dev/lib/python2.7/site-packages/pysal/examples/geodanet/* ./
+```
+
+Then, execute the tests with:
+
+    import pysal
+    import nose
+    nose.runmodule('pysal')
diff --git a/python/crankshaft/crankshaft/__init__.py b/src/py/crankshaft/crankshaft/__init__.py
similarity index 100%
rename from python/crankshaft/crankshaft/__init__.py
rename to src/py/crankshaft/crankshaft/__init__.py
diff --git a/python/crankshaft/crankshaft/clustering/__init__.py b/src/py/crankshaft/crankshaft/clustering/__init__.py
similarity index 100%
rename from python/crankshaft/crankshaft/clustering/__init__.py
rename to src/py/crankshaft/crankshaft/clustering/__init__.py
diff --git a/python/crankshaft/crankshaft/clustering/moran.py b/src/py/crankshaft/crankshaft/clustering/moran.py
similarity index 100%
rename from python/crankshaft/crankshaft/clustering/moran.py
rename to src/py/crankshaft/crankshaft/clustering/moran.py
diff --git a/python/crankshaft/crankshaft/random_seeds.py b/src/py/crankshaft/crankshaft/random_seeds.py
similarity index 100%
rename from python/crankshaft/crankshaft/random_seeds.py
rename to src/py/crankshaft/crankshaft/random_seeds.py
diff --git a/python/crankshaft/setup.py b/src/py/crankshaft/setup.py
similarity index 89%
rename from python/crankshaft/setup.py
rename to src/py/crankshaft/setup.py
index c0f8c50..8d5e622 100644
--- a/python/crankshaft/setup.py
+++ b/src/py/crankshaft/setup.py
@@ -10,7 +10,7 @@ from setuptools import setup, find_packages
 setup(
     name='crankshaft',
 
-    version='0.0.1',
+    version='0.0.0',
 
     description='CartoDB Spatial Analysis Python Library',
 
@@ -40,9 +40,9 @@ setup(
 
     # The choice of component versions is dictated by what's
     # provisioned in the production servers.
-    install_requires=['pysal==1.11.0','numpy==1.6.1','scipy==0.17.0'],
+    install_requires=['pysal==1.9.1'],
 
-    requires=['pysal', 'numpy'],
+    requires=['pysal', 'numpy' ],
 
     test_suite='test'
 )
diff --git a/python/crankshaft/test/fixtures/moran.json b/src/py/crankshaft/test/fixtures/moran.json
similarity index 100%
rename from python/crankshaft/test/fixtures/moran.json
rename to src/py/crankshaft/test/fixtures/moran.json
diff --git a/python/crankshaft/test/fixtures/neighbors.json b/src/py/crankshaft/test/fixtures/neighbors.json
similarity index 100%
rename from python/crankshaft/test/fixtures/neighbors.json
rename to src/py/crankshaft/test/fixtures/neighbors.json
diff --git a/python/crankshaft/test/helper.py b/src/py/crankshaft/test/helper.py
similarity index 100%
rename from python/crankshaft/test/helper.py
rename to src/py/crankshaft/test/helper.py
diff --git a/python/crankshaft/test/mock_plpy.py b/src/py/crankshaft/test/mock_plpy.py
similarity index 100%
rename from python/crankshaft/test/mock_plpy.py
rename to src/py/crankshaft/test/mock_plpy.py
diff --git a/python/crankshaft/test/test_clustering_moran.py b/src/py/crankshaft/test/test_clustering_moran.py
similarity index 100%
rename from python/crankshaft/test/test_clustering_moran.py
rename to src/py/crankshaft/test/test_clustering_moran.py