error in setup.cfg: command 'nosetests' has no such option 'with_pylons'

When running nosetests, if you see error in setup.cfg: command 'nosetests' has no such option 'with_pylons' or Error reading config file 'setup.cfg': no such option 'with-pylons', it could be because you have Pylons==1.0* installed. Pylons==1.0* does not register itself as a nose plugin (https://github.com/Pylons/pylons/issues/13). Use following work arounds:

1. For "python setup.py nosetests":
   Add the following to your projects "setup.py -> entry_points" and ".egg-info/entry_points.txt"

       [nose.plugins]
       pylons = pylons.test:PylonsPlugin
   

2. For "nosetests --version":
   

   sudo vim `which nosetests`
   

   Make it look something like:

   #!/usr/bin/python
   # EASY-INSTALL-ENTRY-SCRIPT: 'nose==1.3.0','console_scripts','nosetests'
   __requires__ = 'nose==1.3.0'
   import sys
   from pkg_resources import load_entry_point
   
   addplugins = []
   
   try:
       import pylons
       if pylons.__version__[0] == '1':
           from pylons.test import PylonsPlugin
           addplugins.append(PylonsPlugin())
   except ImportError:
       pass
   
   if __name__ == '__main__':
       sys.exit(
           load_entry_point('nose==1.3.0', 'console_scripts', 'nosetests')(addplugins=addplugins)
       )
   

   now you should be able to run it as nosetests --version