Unable to create syncdb

I am trying to install a new instance of Graphite 0.10.0-alpha. Python: 2.6.9, django: 1.6.8

I installed all of the dependencies and going through the steps.

cd /opt/graphite/webapp/graphite
python manage.py syncdb

gives me this error:

Traceback (most recent call last):
  File "manage.py", line 11, in <module>
    execute_from_command_line(sys.argv)
  File "/usr/local/lib64/python2.6/site-packages/django/core/management/__init__.py", line 399, in execute_from_command_line
    utility.execute()
  File "/usr/local/lib64/python2.6/site-packages/django/core/management/__init__.py", line 392, in execute
    self.fetch_command(subcommand).run_from_argv(self.argv)
  File "/usr/local/lib64/python2.6/site-packages/django/core/management/__init__.py", line 261, in fetch_command
    commands = get_commands()
  File "/usr/local/lib64/python2.6/site-packages/django/core/management/__init__.py", line 107, in get_commands
    apps = settings.INSTALLED_APPS
  File "/usr/local/lib64/python2.6/site-packages/django/conf/__init__.py", line 54, in __getattr__
    self._setup(name)
  File "/usr/local/lib64/python2.6/site-packages/django/conf/__init__.py", line 49, in _setup
    self._wrapped = Settings(settings_module)
  File "/usr/local/lib64/python2.6/site-packages/django/conf/__init__.py", line 132, in __init__
    % (self.SETTINGS_MODULE, e)
ImportError: Could not import settings 'graphite.settings' (Is it on sys.path? Is there an import error in the settings file?): No module named graphite.settings

Any ideas what might be causing this?