add south to INSTALLED_APPS
"pip freeze > requirements.txt"
Separate apps into DEFAULT/THIRD_PARTY/LOCAL_APPS

Following aloing with the guide at:
http://www.jeffknupp.com/blog/2013/12/18/starting-a-django-16-project-the-right-way/
Add modslist to LOCAL_APPS
Add initial South migrations for modslist.

"./manage.py schemamigration modslist --initial"