diff --git a/VERSION.txt b/VERSION.txt
new file mode 100644
index 0000000..2f45361
--- /dev/null
+++ b/VERSION.txt
@@ -0,0 +1 @@
+0.2
\ No newline at end of file
diff --git a/docs/conf.py b/docs/conf.py
index 8791d73..a660283 100644
--- a/docs/conf.py
+++ b/docs/conf.py
@@ -16,7 +16,7 @@ import sys, os
 # If extensions (or modules to document with autodoc) are in another directory,
 # add these directories to sys.path here. If the directory is relative to the
 # documentation root, use os.path.abspath to make it absolute, like shown here.
-#sys.path.insert(0, os.path.abspath('.'))
+# sys.path.insert(0, os.path.abspath('..'))
 
 # -- General configuration -----------------------------------------------------
 
@@ -48,9 +48,10 @@ copyright = u'2011, Nick Coghlan'
 # built documents.
 #
 # The short X.Y version.
-version = '0.1'
+with open('../VERSION.txt') as f:
+    version = f.read().strip()
 # The full version, including alpha/beta/rc tags.
-release = '0.1'
+release = version
 
 # The language for content autogenerated by Sphinx. Refer to documentation
 # for a list of supported languages.
diff --git a/setup.py b/setup.py
index a30c65c..1544eef 100755
--- a/setup.py
+++ b/setup.py
@@ -3,7 +3,7 @@ from distutils.core import setup
 
 setup(
     name='contextlib2',
-    version='0.2',
+    version=open('VERSION.txt').read().strip(),
     py_modules=['contextlib2'],
     license='PSF License',
     description='Backports and enhancements for the contextlib module',