diff --git a/doc/changelog.txt b/doc/changelog.txt
index d4e9dfca..dc23b3c7 100644
--- a/doc/changelog.txt
+++ b/doc/changelog.txt
@@ -9,6 +9,9 @@ Fixes:
 - checking: Properly detect case where IPv6 is not supported.
   Closes: SF bug #3167249
 
+Changes:
+- gui: Detect local or development versions in update check.
+
 
 6.2 "Despicable Me" (released 6.1.2011)
 
diff --git a/linkcheck/gui/updater.py b/linkcheck/gui/updater.py
index 66f60d9b..bb3586ec 100644
--- a/linkcheck/gui/updater.py
+++ b/linkcheck/gui/updater.py
@@ -54,12 +54,17 @@ class UpdateDialog (QtGui.QMessageBox):
                          '%(app)s is installed.')
                 attrs = dict(app=configuration.App)
             else:
-                # display update link
                 version, url = value
-                text = _('A new version %(version)s of %(app)s is '
-                         'available for <a href="%(url)s">download</a>.')
+                if url is None:
+                    # current version is newer than online version
+                    text = _('Detected local or development version %(currentversion)s. '
+                             'Available version of %(app)s is %(version)s.')
+                else:
+                    # display update link
+                    text = _('A new version %(version)s of %(app)s is '
+                             'available for <a href="%(url)s">download</a>.')
                 attrs = dict(version=version, app=configuration.AppName,
-                             url=url)
+                             url=url, currentversion=configuration.Version)
         else:
             # value is an error message or None if UpdateThread has been
             # terminated
diff --git a/linkcheck/updater.py b/linkcheck/updater.py
index de47029f..144465eb 100644
--- a/linkcheck/updater.py
+++ b/linkcheck/updater.py
@@ -19,7 +19,7 @@ Function to check for updates.
 """
 
 import os
-from .configuration import Version
+from .configuration import Version as CurrentVersion
 from .url import get_content
 from distutils.version import StrictVersion
 
@@ -34,19 +34,27 @@ else:
 
 
 def check_update ():
-    """Return new version and URL, None if there is no update, or
-    an error message if there was an error."""
-    version, value = get_current_version()
+    """Return the following values:
+       (False, errmsg) - online version could not be determined
+       (True, None) - user has newest version
+       (True, (version, url string)) - update available
+       (True, (version, None)) - current version is newer than online version
+    """
+    version, value = get_online_version()
     if version is None:
         # value is an error message
         return False, value
+    if version == CurrentVersion:
+        # user has newest version
+        return True, None
     if is_newer_version(version):
         # value is an URL linking to the update package
         return True, (version, value)
-    return True, None
+    # user is running a local or development version
+    return True, (version, None)
 
 
-def get_current_version ():
+def get_online_version ():
     """Download update info and parse it."""
     info, content = get_content(UPDATE_URL)
     if info is None:
@@ -63,4 +71,4 @@ def get_current_version ():
 
 def is_newer_version (version):
     """Check if given version is newer than current version."""
-    return StrictVersion(version) > StrictVersion(Version)
+    return StrictVersion(version) > StrictVersion(CurrentVersion)
diff --git a/tests/test_updater.py b/tests/test_updater.py
index a5f6e0f0..559bfe5b 100644
--- a/tests/test_updater.py
+++ b/tests/test_updater.py
@@ -28,9 +28,14 @@ class TestUpdater (unittest.TestCase):
 
     @need_network
     def test_updater (self):
-        res, url = linkcheck.updater.check_update()
+        res, value = linkcheck.updater.check_update()
         self.assertTrue(type(res) == bool)
         if res:
-            self.assertTrue(url is None or isinstance(url, basestring))
+            self.assertTrue(value is None or isinstance(value, tuple))
+            if isinstance(value, tuple):
+                self.assertEqual(len(value), 2)
+                version, url = value
+                self.assertTrue(isinstance(version, basestring))
+                self.assertTrue(url is None or isinstance(url, basestring))
         else:
-            self.assertTrue(isinstance(url, unicode))
+            self.assertTrue(isinstance(value, unicode))