``parent.three`` will execute ``parent/two/__init__.py`` and
``parent/three/__init__.py`` respectively.
+A subdirectory inside a regular package that does not contain an
+``__init__.py`` file is treated as an implicit
+:ref:`namespace package <reference-namespace-package>` (a "namespace
+subpackage") rooted in that parent. See :pep:`420` for the underlying
+specification.
+
.. _reference-namespace-package:
namespace package for the top-level ``parent`` package whenever it or one of
its subpackages is imported.
+Namespace packages may also be nested inside a regular package. When the
+import system searches a regular package's ``__path__`` and encounters a
+subdirectory that does not contain an ``__init__.py`` file, that
+subdirectory becomes a :term:`portion` contributing to a namespace
+subpackage of the enclosing regular package.
+
See also :pep:`420` for the namespace package specification.