It is possible to deploy web.py with nginx using a uWSGI 2.0.11 or later. Note that earlier versions available in the repository (such as 1.9.17) may not work! uWSGI is available via python's pip installer. Nginx natively supports uWSGI since 0.8.40. The following is for python 2.7.
sudo apt-get install python-pip nginx python-webpy python-dev libpcre3-dev zlib1g-dev libssl-dev libjansson-dev
sudo apt-get remove uwsgi uwsgi-core
sudo pip install uwsgi
Create the folders and set ownership: