diff --git a/.gitignore b/.gitignore
index 5a92b6b..808420e 100644
--- a/.gitignore
+++ b/.gitignore
@@ -29,6 +29,7 @@ share/python-wheels/
 .installed.cfg
 *.egg
 MANIFEST
+**/_version.py
 
 # PyInstaller
 #  Usually these files are written by a python script from a template
diff --git a/pyproject.toml b/pyproject.toml
index 48d1d9a..0a1e6d3 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -1,9 +1,12 @@
 [build-system]
-requires = ["hatchling"]
+requires = ["hatchling", "hatch-vcs"]
 build-backend = "hatchling.build"
 
 [tool.hatch.version]
-path = "tango/pyaml/__init__.py"
+source = "vcs"
+
+[tool.hatch.build.hooks.vcs]
+version-file = "tango/pyaml/_version.py"
 
 [tool.hatch.build.targets.sdist]
 exclude = [
diff --git a/tango/pyaml/__init__.py b/tango/pyaml/__init__.py
index a459ed4..a73e0e9 100644
--- a/tango/pyaml/__init__.py
+++ b/tango/pyaml/__init__.py
@@ -1,8 +1,8 @@
-__version__ = "0.4.0"
-
 import logging.config
 import os
 
+from ._version import __version__ as __version__
+
 config_file = os.getenv("TANGO_PYAML_LOG_CONFIG", "tango_pyaml_logging.conf")
 
 if os.path.exists(config_file):