diff --git a/.github/workflows/ci.yml b/.github/workflows/ci.yml
index b0ef4e2..4a9fa74 100644
--- a/.github/workflows/ci.yml
+++ b/.github/workflows/ci.yml
@@ -44,6 +44,8 @@ jobs:
     steps:
       - name: Checkout repository
         uses: actions/checkout@v4
+        with:
+          fetch-depth: 0  # Fetch all history for setuptools-scm to detect version from tags
 
       - name: Set up Python
         uses: actions/setup-python@v5
diff --git a/README.md b/README.md
index 43674b7..3ee673a 100644
--- a/README.md
+++ b/README.md
@@ -313,6 +313,45 @@ meshcore-proxy --serial /dev/ttyUSB0 --port 5001
 - Python 3.10+
 - MeshCore companion radio with USB or BLE firmware
 
+## Development
+
+### Building from Source
+
+```bash
+git clone --recursive https://github.com/rgregg/meshcore-proxy.git
+cd meshcore-proxy
+pip install -e ".[dev]"
+```
+
+### Running Tests
+
+```bash
+pytest
+```
+
+### Creating a Release
+
+This project uses [setuptools-scm](https://github.com/pypa/setuptools-scm) for automatic versioning based on git tags.
+
+**Version format:** Tags should follow the pattern `vX.Y.Z` or `vX.Y.Z-alpha` (e.g., `v0.4.0`, `v0.4.0-alpha`)
+
+**Release process:**
+
+1. Ensure all changes are committed and pushed
+2. Create and push a version tag:
+   ```bash
+   git tag v0.4.0-alpha
+   git push origin v0.4.0-alpha
+   ```
+3. GitHub Actions will automatically:
+   - Build the package with the version from the tag
+   - Publish to PyPI
+   - Build and publish Docker images to GHCR
+
+**Version resolution:**
+- On a tagged commit: uses the exact tag version (e.g., `v0.4.0-alpha` → `0.4.0a0`)
+- Between tags: uses a dev version (e.g., `0.4.0a1.dev2` for 2 commits after `v0.4.0-alpha`)
+
 ## License
 
 MIT
diff --git a/pyproject.toml b/pyproject.toml
index 31d64b2..9e02842 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -1,10 +1,10 @@
 [build-system]
-requires = ["setuptools>=61.0", "wheel"]
+requires = ["setuptools>=61.0", "wheel", "setuptools-scm>=8.0"]
 build-backend = "setuptools.build_meta"
 
 [project]
 name = "meshcore-proxy"
-version = "0.1.0"
+dynamic = ["version"]
 description = "TCP proxy for MeshCore companion radios"
 readme = "README.md"
 license = {text = "MIT"}
@@ -54,3 +54,10 @@ select = ["E", "F", "W", "I", "N", "UP", "B", "C4"]
 [tool.pytest.ini_options]
 asyncio_mode = "auto"
 testpaths = ["tests"]
+
+[tool.setuptools_scm]
+# Use guess-next-dev for versions between tags
+# On a tagged commit, this will use the exact tag version
+version_scheme = "guess-next-dev"
+local_scheme = "no-local-version"
+tag_regex = "^v(?P<version>[0-9]+\\.[0-9]+\\.[0-9]+(-alpha|-beta|-rc[0-9]+)?)$"
diff --git a/src/meshcore_proxy/__init__.py b/src/meshcore_proxy/__init__.py
index f0f2436..1e1a157 100644
--- a/src/meshcore_proxy/__init__.py
+++ b/src/meshcore_proxy/__init__.py
@@ -1,3 +1,9 @@
 """MeshCore Proxy - TCP proxy for MeshCore companion radios."""
 
-__version__ = "0.1.0"
+from importlib.metadata import version, PackageNotFoundError
+
+try:
+    __version__ = version("meshcore-proxy")
+except PackageNotFoundError:
+    # Package is not installed
+    __version__ = "0.0.0.dev0"