diff --git a/sanic/__init__.py b/sanic/__init__.py
index b7be9aaf..618368d4 100644
--- a/sanic/__init__.py
+++ b/sanic/__init__.py
@@ -1,4 +1,6 @@
 from .sanic import Sanic
 from .blueprints import Blueprint
 
+__version__ = '0.1.6'
+
 __all__ = ['Sanic', 'Blueprint']
diff --git a/setup.py b/setup.py
index 2e4e67e7..60606ad4 100644
--- a/setup.py
+++ b/setup.py
@@ -1,11 +1,23 @@
 """
 Sanic
 """
+import codecs
+import os
+import re
 from setuptools import setup
 
+
+with codecs.open(os.path.join(os.path.abspath(os.path.dirname(
+        __file__)), 'sanic', '__init__.py'), 'r', 'latin1') as fp:
+    try:
+        version = re.findall(r"^__version__ = '([^']+)'\r?$",
+                             fp.read(), re.M)[0]
+    except IndexError:
+        raise RuntimeError('Unable to determine version.')
+
 setup(
     name='Sanic',
-    version="0.1.5",
+    version=version,
     url='http://github.com/channelcat/sanic/',
     license='MIT',
     author='Channel Cat',