Django cannot import LOCAL settings

Python 3.4 does not support implicit relative imports: from local_settings import * in Python 3 is an absolute import and would only search for a local_settings module in your sys.path, but NOT in the same directory where your settings.py module is. You need to use explicit relative import: from .local_settings import *; this would also work in Python 2.7.

Reference: PEP 328

In settings.py

import os
SITE_ROOT = os.path.realpath(os.path.dirname(__file__))

DEBUG = False
# delete TEMPLATE_DEBUG = DEBUG

at the bottom of settings.py

##################
# LOCAL SETTINGS #
##################

# Allow any settings to be defined in local_settings.py which should be
# ignored in your version control system allowing for settings to be
# defined per machine.
try:
    from local_settings import *
except ImportError:
    pass

In loacal_settings.py

# Grabs the site root setup in settings.py
# import os
# from settings import SITE_ROOT

from settings import *

DEBUG = True
TEMPLATE_DEBUG = DEBUG

# sqlite is the quick an easy development db
DATABASES = {
  'default': {
      'ENGINE': 'django.db.backends.sqlite3',
      'NAME': os.path.join(SITE_ROOT, 'djlocal.db'),
      'USER': '',             # Not used with sqlite3.
      'PASSWORD': '',         # Not used with sqlite3.
      'HOST': '',             # Not used with sqlite3.
      'PORT': '',             # Not used with sqlite3.
  }
}