Trying to install an old python app, getting a libevent error

There is an old python app that I want to install on ubuntu.

When I run:

python setup.py install

I get this error:

/tmp/easy_install-s6CQJl/event-0.4.2/setup.py:23: UserWarning: Could not find libevent
  warnings.warn("Could not find libevent")
event.c:4:20: fatal error: Python.h: No such file or directory

I have installed

build-essential
python-setuptools
libevent-dev

Is there something else I am missing?

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