As reported at https://github.com/usnistgov/fipy/issues/435:
The PySparse tarball downloaded by pip install is broken such that
gcc: pysparse/sparse/src/spmatrixmodule.c pysparse/sparse/src/spmatrixmodule.c:4:10: fatal error: 'spmatrix.h' file not found #include "spmatrix.h" ^ 1 error generated. pysparse/sparse/src/spmatrixmodule.c:4:10: fatal error: 'spmatrix.h' file not found #include "spmatrix.h" ^
Note that
pip install -e git+http://git.code.sf.net/p/pysparse/git#egg=PySparse
works.