Compute local package dir when pip install

jupyterlite_xeus_python/build.py

@@ -240,9 +240,11 @@ def build_and_pack_emscripten_env(
 
     # Process environment.yml file
     if environment_file and Path(environment_file).exists():
+        env_file = Path(environment_file)
+
         bail_early = False
 
-        with open(Path(environment_file)) as f:
+        with open(env_file) as f:
             env_data = yaml.safe_load(f)
 
         if env_data.get("name") is not None:
@@ -260,7 +262,11 @@ def build_and_pack_emscripten_env(
                 if isinstance(dependency, str) and dependency not in specs:
                     specs.append(dependency)
                 elif isinstance(dependency, dict) and dependency.get("pip") is not None:
-                    pip_dependencies = dependency["pip"]
+                    # If it's a local Python package, make its path relative to the environment file
+                    pip_dependencies = [
+                        ((env_file.parent / pip_dep).resolve() if os.path.isdir(env_file.parent / pip_dep) else pip_dep)
+                        for pip_dep in dependency["pip"]
+                    ]
 
     # Bail early if there is nothing to do
     if bail_early and not force:

tests/test_package/environment-3.yml

@@ -0,0 +1,8 @@
+name: xeus-python-kernel-3
+channels:
+  - https://repo.mamba.pm/emscripten-forge
+  - https://repo.mamba.pm/conda-forge
+dependencies:
+  - numpy
+  - pip:
+    - .

tests/test_package/pyproject.toml

@@ -0,0 +1,3 @@
+[project]
+name = "test-package"
+version = "0.1.0"

tests/test_package/test_package/hey.py

@@ -0,0 +1 @@
+print('Hey')

tests/test_xeus_python_env.py

@@ -90,6 +90,28 @@ def test_python_env_from_file_1():
     os.remove(Path(addon.cwd.name) / "empack_env_meta.json")
 
 
+def test_python_env_from_file_3():
+    app = LiteStatusApp(log_level="DEBUG")
+    app.initialize()
+    manager = app.lite_manager
+
+    addon = XeusPythonEnv(manager)
+    addon.environment_file = "test_package/environment-3.yml"
+
+    for step in addon.post_build(manager):
+        pass
+
+    # Test
+    assert os.path.isdir(
+        "/tmp/xeus-python-kernel/envs/xeus-python-kernel-3/lib/python3.10/site-packages/test_package"
+    )
+    assert os.path.isfile(
+        "/tmp/xeus-python-kernel/envs/xeus-python-kernel-3/lib/python3.10/site-packages/test_package/hey.py"
+    )
+
+    os.remove(Path(addon.cwd.name) / "empack_env_meta.json")
+
+
 def test_python_env_from_file_2():
     app = LiteStatusApp(log_level="DEBUG")
     app.initialize()