Tarek Ziade explained this, and related software packaging tools, in this article (broken original link) called Writing a Package in Python.
Basically, it creates a simple package by creating a release tree where everything needed to run the package is copied. This tree is then archived in one or many archived files (often, it just creates one tar ball). The archive is basically a copy of the source tree.
Answer from Michael Dillon on Stack OverflowTarek Ziade explained this, and related software packaging tools, in this article (broken original link) called Writing a Package in Python.
Basically, it creates a simple package by creating a release tree where everything needed to run the package is copied. This tree is then archived in one or many archived files (often, it just creates one tar ball). The archive is basically a copy of the source tree.
the "sdist" command is for creating a "source" distribution of a package. Usually, one would combine this command with the "upload" command to distribute the package through Pypi (for example).