diff --git a/pep-0420.txt b/pep-0420.txt
index 62108357a..9103a36cc 100644
--- a/pep-0420.txt
+++ b/pep-0420.txt
@@ -122,8 +122,8 @@ for a module or package named "foo":
  * If not, but ``foo`` is found and is a directory, it is recorded.
 
 If the scan along the parent path completes without finding a module
-or package, then a namespace package is created.  The new namespace
-package:
+or package and at least one directory was recorded, then a namespace
+package is created.  The new namespace package:
 
  * Has a ``__file__`` attribute set to the first directory that was
    found during the scan, including the trailing path separator.