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@@ -24,6 +24,7 @@ implementation and the best practices to use them.
    isr_rules.rst
    speed_python.rst
    constrained.rst
+   packages.rst
 
 .. only:: port_pyboard
 
diff --git a/docs/reference/packages.rst b/docs/reference/packages.rst
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+Distribution packages, package management, and deploying applications
+=====================================================================
+
+Just as the "big" Python, MicroPython supports creation of "third party"
+packages, distributing them, and easily installing them in each user's
+environment. This chapter discusses how these actions are achieved.
+Some familiarity with Python packaging is recommended.
+
+Overview
+--------
+
+Steps below represent a high-level workflow when creating and consuming
+packages:
+
+1. Python modules and packages are turned into distribution package
+   archives, and published at the Python Package Index (PyPI).
+2. `upip` package manager can be used to install a distribution package
+   on a `MicroPython port` with networking capabilities (for example,
+   on the Unix port).
+3. For ports without networking capabilities, an "installation image"
+   can be prepared on the Unix port, and transferred to a device by
+   suitable means.
+4. For low-memory ports, the installation image can be frozen as the
+   bytecode into MicroPython executable, thus minimizing the memory
+   storage overheads.
+
+The sections below describe this process in details.
+
+Distribution packages
+---------------------
+
+Python modules and packages can be packaged into archives suitable for
+transfer between systems, storing at the well-known location (PyPI),
+and downloading on demand for deployment. These archives are known as
+*distribution packages* (to differentiate them from Python packages
+(means to organize Python source code)).
+
+The MicroPython distribution package format is a well-known tar.gz
+format, with some adaptations however. The Gzip compressor, used as
+an external wrapper for TAR archives, by default uses 32KB dictionary
+size, which means that to uncompress a compressed stream, 32KB of
+contguous memory needs to be allocated. This requirement may be not
+satisfiable on low-memory devices, which may have total memory available
+less than that amount, and even if not, a contiguous block like that
+may be hard to allocate due to `memory fragmentation`. To accommodate
+these constraints, MicroPython distribution packages use Gzip compression
+with the dictionary size of 4K, which should be a suitable compromise
+with still achieving some compression while being able to uncompressed
+even by the smallest devices.
+
+Besides the small compression dictionary size, MicroPython distribution
+packages also have other optimizations, like removing any files from
+the archive which aren't used by the installation process. In particular,
+`upip` package manager doesn't execute ``setup.py`` during installation
+(see below), and thus that file is not included in the archive.
+
+At the same time, these optimizations make MicroPython distribution
+packages not compatible with `CPython`'s package manager, ``pip``.
+This isn't considered a big problem, because:
+
+1. Packages can be installed with `upip`, and then can be used with
+   CPython (if they are compatible with it).
+2. In the other direction, majority of CPython packages would be
+   incompatible with MicroPython by various reasons, first of all,
+   the reliance on features not implemented by MicroPython.
+
+Summing up, the MicroPython distribution package archives are highly
+optimized for MicroPython's target environments, which are highly
+resource constrained devices.
+
+
+``upip`` package manager
+------------------------
+
+MicroPython distribution packages are intended to be installed using
+the `upip` package manager. `upip` is a Python application which is
+usually distributed (as frozen bytecode) with network-enabled
+`MicroPython ports <MicroPython port>`. At the very least,
+`upip` is available in the `MicroPython Unix port`.
+
+On any `MicroPython port` providing `upip`, it can be accessed as
+following::
+
+    import upip
+    upip.help()
+    upip.install(package_or_package_list, [path])
+
+Where *package_or_package_list* is the name of a distribution
+package to install, or a list of such names to install multiple
+packages. Optional *path* parameter specifies filesystem
+location to install under and defaults to the standard library
+location (see below).
+
+An example of installing a specific package and then using it::
+
+    >>> import upip
+    >>> upip.install("micropython-pystone_lowmem")
+    [...]
+    >>> import pystone_lowmem
+    >>> pystone_lowmem.main()
+
+Note that the name of Python package and the name of distribution
+package for it in general don't have to match, and oftentimes they
+don't. This is because PyPI provides a central package repository
+for all different Python implementations and versions, and thus
+distribution package names may need to be namespaced for a particular
+implementation. For example, all packages from `micropython-lib`
+follow this naming convention: for a Python module or package named
+``foo``, the distribution package name is ``micropython-foo``.
+
+For the ports which run MicroPython executable from the OS command
+prompts (like the Unix port), `upip` can be (and indeed, usually is)
+run from the command line instead of MicroPython's own REPL. The
+commands which corresponds to the example above are::
+
+    micropython -m upip -h
+    micropython -m upip install [-p <path>] <packages>...
+    micropython -m upip install micropython-pystone_lowmem
+
+[TODO: Describe installation path.]
+
+
+Cross-installing packages
+-------------------------
+
+For `MicroPython ports <MicroPython port>` without native networking
+capabilities, the recommend process is "cross-installing" them into a
+"directory image" using the `MicroPython Unix port`, and then
+transferring this image to a device by suitable means.
+
+Installing to a directory image involves using ``-p`` switch to `upip`::
+
+    micropython -m upip install -p install_image micropython-pystone_lowmem
+
+After this command, the package content (and contents of every depenency
+packages) will be available in the ``install_image/`` subdirectory. You
+would need to transfer contents of this directory (without the
+``install_image/`` prefix) to the device, at the suitable location, where
+it can be found by the Python ``import`` statement (see discussion of
+the `upip` installation path above).
+
+
+Cross-installing packages with freezing
+---------------------------------------
+
+For the low-memory `MicroPython ports <MicroPython port>`, the process
+described in the previous section does not provide the most efficient
+resource usage,because the packages are installed in the source form,
+so need to be compiled to the bytecome on each import. This compilation
+requires RAM, and the resulting bytecode is also stored in RAM, reducing
+its amount available for storing application data. Moreover, the process
+above requires presence of the filesystem on a device, and the most
+resource-constrained devices may not even have it.
+
+The bytecode freezing is a process which resolves all the issues
+mentioned above:
+
+* The source code is pre-compiled into bytecode and store as such.
+* The bytecode is stored in ROM, not RAM.
+* Filesystem is not required for frozen packages.
+
+Using frozen bytecode requires building the executable (firmware)
+for a given `MicroPython port` from the C source code. Consequently,
+the process is:
+
+1. Follow the instructions for a particular port on setting up a
+   toolchain and building the port. For example, for ESP8266 port,
+   study instructions in ``ports/esp8266/README.md`` and follow them.
+   Make sure you can build the port and deploy the resulting
+   executable/firmware successfully before proceeding to the next steps.
+2. Build `MicroPython Unix port` and make sure it is in your PATH and
+   you can execute ``micropython``.
+3. Change to port's directory (e.g. ``ports/esp8266/`` for ESP8266).
+4. Run ``make clean-frozen``. This step cleans up any previous
+   modules which were installed for freezing (consequently, you need
+   to skip this step to add additional modules, instead of starting
+   from scratch).
+5. Run ``micropython -m upip install -p modules <packages>...`` to
+   install packages you want to freeze.
+6. Run ``make clean``.
+7. Run ``make``.
+
+After this, you should have the executable/firmware with modules as
+the bytecode inside, which you can deploy the usual way.
+
+Few notes:
+
+1. Step 5 in the sequence above assumes that the distribution package
+   is available from PyPI. If that is not the case, you would need
+   to copy Python source files manually to ``modules/`` subdirectory
+   of the port port directory. (Note that upip does not support
+   installing from e.g. version control repositories).
+2. The firmware for baremetal devices usually has size restrictions,
+   so adding too many frozen modules may overflow it. Usually, you
+   would get a linking error if this happens. However, in some cases,
+   an image may be produced, which is not runnable on a device. Such
+   cases are in general bugs, and should be reported and further
+   investigated. If you face such a situation, as an initial step,
+   you may want to decrease the amount of frozen modules included.
+
+
+Application resources
+---------------------
+
+A complete application, besides the source code, oftentimes also consists
+of data files, e.g. web page templates, game images, etc. It's clear how
+to deal with those when application is installed manually - you just put
+those data files in the filesystem at some location and use the normal
+file access functions.
+
+The situation is different when deploying applications from packages - this
+is more advanced, streamlined and flexible way, but also requires more
+advanced approach to accessing data files. This approach is treating
+the data files as "resources", and abstracting away access to them.
+
+Python supports resource access using its "setuptools" library, using
+``pkg_resources`` module. MicroPython, following its usual approach,
+implements subset of the functionality of that module, specifically
+`pkg_resources.resource_stream(package, resource)` function.
+The idea is that an application calls this function, passing a
+resource identifier, which is a relative path to data file within
+the specified package (usually top-level application package). It
+returns a stream object which can be used to access resource contents.
+Thus, the ``resource_stream()`` emulates interface of the standard
+`open()` function.
+
+Implementation-wise, ``resource_stream()`` uses file operations
+underlyingly, if distribution package is install in the filesystem.
+However, it also supports functioning without the underlying filesystem,
+e.g. if the package is frozen as the bytecode. This however requires
+an extra intermediate step when packaging application - creation of
+"Python resource module".
+
+The idea of this module is to convert binary data to a Python bytes
+object, and put it into the dictionary, indexed by the resource name.
+This conversion is done using ``tools/mpy_bin2res.py`` script from
+the MicroPython distribution.
+
+Let's trace the complete process using the following example. Suppose
+your application has the following structure::
+
+    my_app/
+        __main__.py
+        utils.py
+        data/
+            page.html
+            image.png
+
+``__main__.py`` and ``utils.py`` should access resources using the
+following calls::
+
+    import pkg_resources
+
+    pkg_resources.resource_stream(__name__, "data/page.html")
+    pkg_resources.resource_stream(__name__, "data/image.png")
+
+You can develop and debug using the `MicroPython Unix port` as usual.
+When times come to make a distribution package out of it, you would
+need to run following command, with ``my_app/`` being the current
+directory (and assuming ``mpy_bin2res.py`` is in your path)::
+
+    mpy_bin2res.py data/page.html data/image.png
+
+This will produce a Python resource module named ``R.py``. Afterwards,
+you package the project for distribution as usual (using ``setup.py sdist``).
+Prepared like this, your application will work both when deployed to
+filesystem and as frozen bytecode.
+
+References
+----------
+
+* Python Packaging User Guide: https://packaging.python.org/
+* Setuptools documentation: https://setuptools.readthedocs.io/
+* Distutils documentation: https://docs.python.org/3/library/distutils.html