diff --git a/NEWS.rst b/NEWS.rst
index 945a7d4..d8b3e5e 100644
--- a/NEWS.rst
+++ b/NEWS.rst
@@ -1,11 +1,18 @@
 Release History
 ---------------
 
+0.4.0 (2012-05-??)
+~~~~~~~~~~~~~~~~~~
+
+* TBD
+
+
 0.3.1 (2012-01-17)
 ~~~~~~~~~~~~~~~~~~
 
 * Issue #7: Add MANIFEST.in so PyPI package contains all relevant files
 
+
 0.3 (2012-01-04)
 ~~~~~~~~~~~~~~~~
 
diff --git a/VERSION.txt b/VERSION.txt
index a2268e2..60a2d3e 100644
--- a/VERSION.txt
+++ b/VERSION.txt
@@ -1 +1 @@
-0.3.1
\ No newline at end of file
+0.4.0
\ No newline at end of file