diff --git a/docs/conf.py b/docs/conf.py
index e37017b..1ba36ca 100644
--- a/docs/conf.py
+++ b/docs/conf.py
@@ -50,9 +50,9 @@ copyright = u'2011, Justin Driscoll, Bryan Veloso, Greg Newman, Chris Drackett &
 # built documents.
 #
 # The short X.Y version.
-version = '1.1.0'
+version = '2.0.0'
 # The full version, including alpha/beta/rc tags.
-release = '1.1.0'
+release = '2.0.0'
 
 # The language for content autogenerated by Sphinx. Refer to documentation
 # for a list of supported languages.
diff --git a/imagekit/__init__.py b/imagekit/__init__.py
index 1d7d570..1ce4055 100644
--- a/imagekit/__init__.py
+++ b/imagekit/__init__.py
@@ -1,4 +1,34 @@
 __title__ = 'django-imagekit'
 __author__ = 'Justin Driscoll, Bryan Veloso, Greg Newman, Chris Drackett, Matthew Tretter, Eric Eldredge'
-__version__ = (2, 0, 0, 'alpha', 1)
+__version__ = (2, 0, 0, 'rc', 1)
 __license__ = 'BSD'
+
+
+def get_version(version=None):
+    """Derives a PEP386-compliant version number from VERSION."""
+    if version is None:
+        version = __version__
+    assert len(version) == 5
+    assert version[3] in ('alpha', 'beta', 'rc', 'final')
+
+    # Now build the two parts of the version number:
+    # main = X.Y[.Z]
+    # sub = .devN - for pre-alpha releases
+    #     | {a|b|c}N - for alpha, beta and rc releases
+
+    parts = 2 if version[2] == 0 else 3
+    main = '.'.join(str(x) for x in version[:parts])
+
+    sub = ''
+    if version[3] == 'alpha' and version[4] == 0:
+        # At the toplevel, this would cause an import loop.
+        from django.utils.version import get_svn_revision
+        svn_revision = get_svn_revision()[4:]
+        if svn_revision != 'unknown':
+            sub = '.dev%s' % svn_revision
+
+    elif version[3] != 'final':
+        mapping = {'alpha': 'a', 'beta': 'b', 'rc': 'c'}
+        sub = mapping[version[3]] + str(version[4])
+
+    return main + sub
diff --git a/setup.py b/setup.py
index c43c172..6fdb8fb 100644
--- a/setup.py
+++ b/setup.py
@@ -11,9 +11,12 @@ if 'publish' in sys.argv:
 
 read = lambda filepath: codecs.open(filepath, 'r', 'utf-8').read()
 
+# Dynamically calculate the version based on imagekit.VERSION.
+version = __import__('imagekit').get_version()
+
 setup(
     name='django-imagekit',
-    version=':versiontools:imagekit:',
+    version=version,
     description='Automated image processing for Django models.',
     long_description=read(os.path.join(os.path.dirname(__file__), 'README.rst')),
     author='Justin Driscoll',