diff --git a/pyproject.toml b/pyproject.toml
index 0555b53..73c3363 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -6,11 +6,11 @@
 # ---------------------------------------------------------------------------
 [build-system]
 build-backend = "hatchling.build"
-requires = [ "hatchling" ]
+requires = [ "hatchling", "hatch-vcs" ]
 
 [project]
 name = "embpy"
-version = "0.0.1"
+dynamic = [ "version" ]
 description = "A package for biological embeddings in the perturbation experimental space"
 readme = "README.md"
 license = { file = "LICENSE" }
@@ -214,6 +214,11 @@ urls.Source = "https://github.com/theislab/embpy"
 [tool.hatch.metadata]
 allow-direct-references = true
 
+# Derive the package version from git tags (e.g. tag `v0.1.0` -> version 0.1.0).
+# No need to bump a version string by hand anymore.
+[tool.hatch.version]
+source = "vcs"
+
 # ---------------------------------------------------------------------------
 # uv (https://docs.astral.sh/uv/) configuration.
 #