diff --git a/GPy/VERSION b/GPy/VERSION
new file mode 100644
index 00000000..a3df0a69
--- /dev/null
+++ b/GPy/VERSION
@@ -0,0 +1 @@
+0.8.0
diff --git a/GPy/__init__.py b/GPy/__init__.py
index 34baf7d7..88e73d8c 100644
--- a/GPy/__init__.py
+++ b/GPy/__init__.py
@@ -21,7 +21,8 @@ from . import plotting
 from .core import Model
 from .core.parameterization import Param, Parameterized, ObsAr
 
-__version__ = '0.8.0'
+with open('VERSION', 'r') as f:
+    __version__ = f.read()
 
 #@nottest
 try:
diff --git a/setup.cfg b/setup.cfg
index 73d18f56..e08cd251 100644
--- a/setup.cfg
+++ b/setup.cfg
@@ -3,5 +3,4 @@ current_version = 0.8.0
 tag = True
 commit = True
 
-[bumpversion:file:setup.py]
-[bumpversion:file:GPy/__init__.py]
+[bumpversion:file:GPy/VERSION]
diff --git a/setup.py b/setup.py
index d25dc242..49144a69 100644
--- a/setup.py
+++ b/setup.py
@@ -6,12 +6,11 @@ import sys
 from setuptools import setup, Extension
 import numpy as np
 
-# Version number
-__version__ = '0.8.0'
-
 def read(fname):
     return open(os.path.join(os.path.dirname(__file__), fname)).read()
 
+__version__ = read('GPy/VERSION')
+
 #Mac OS X Clang doesn't support OpenMP th the current time.
 #This detects if we are building on a Mac
 def ismac():
@@ -72,7 +71,8 @@ setup(name = 'GPy',
       package_dir={'GPy': 'GPy'},
       package_data = {'GPy': ['defaults.cfg', 'installation.cfg',
                               'util/data_resources.json',
-                              'util/football_teams.json']},
+                              'util/football_teams.json',
+                              'VERSION']},
       include_package_data = True,
       py_modules = ['GPy.__init__'],
       test_suite = 'GPy.testing',