-- foo is a function
foo :: String -> String
It's foo is a function
> foo :: String -> StringEdit: I should have looked more closely, sorry.
My tool of choice for this is Emacs org-mode with noweb support. The source file is "tangled" (i.e. individual chunks of code are glued back together in a specified order) to create the source for the compiler to process.
Haskell itself has only limited support for literate programming. Most importantly it lacks the ability to reorder chunks of code. (noweb or org-mode babel can be used with Haskell, of course.)
The literate programming tangle process mainly exists to remove Pascal's order restrictions.
It can be nice to have a single document explaining the whole project, producing individual source files upon tangling. For this approach you need control over order and target files. "Literate Haskell" is hardly more than a reversal of the meaning of comments and code.