diff --git a/.gitignore b/.gitignore
index f3f3ebd3..d8f72e09 100644
--- a/.gitignore
+++ b/.gitignore
@@ -22,3 +22,6 @@ build
 
 # Documentation
 docs/build/
+
+# setuptools-scm
+xskillscore/_version.py
diff --git a/CHANGELOG.rst b/CHANGELOG.rst
index 08dc3687..8bdf55fd 100644
--- a/CHANGELOG.rst
+++ b/CHANGELOG.rst
@@ -18,6 +18,8 @@ Internal Changes
   :py:func:`warnings.filterwarnings`. (:pr:`426`) `Trevor James Smith`_
 - The minimum supported versions for several dependencies have been
   updated. (:pr:`426`) `Trevor James Smith`_
+- `xskillscore` now uses `setuptools-scm` to automatically determine the
+  version number. (:pr:`427`) `Trevor James Smith`_
 
 
 xskillscore v0.0.26 (2024-03-10)
diff --git a/docs/source/contributors.rst b/docs/source/contributors.rst
index 5ded3539..b3c2237e 100644
--- a/docs/source/contributors.rst
+++ b/docs/source/contributors.rst
@@ -8,6 +8,7 @@ Contributors
 * mcsitter (`github <https://github.com/mcsitter/>`__)
 * Ray Bell (`github <https://github.com/raybellwaves/>`__
 * Riley X. Brady (`github <https://github.com/bradyrx/>`__)
+* Trevor James Smith (`github <https://github.com/Zeitsperre/>`__)
 * Zachary Blackwood (`github <https://github.com/blackary/>`__)
 
 For a list of all the contributions, see the github
diff --git a/pyproject.toml b/pyproject.toml
index 6061a3f5..a4ebfda2 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -1,10 +1,9 @@
 [build-system]
-requires = ["setuptools", "setuptools-scm"]
+requires = ["setuptools>=64", "setuptools-scm>=8"]
 build-backend = "setuptools.build_meta"
 
 [project]
 name = "xskillscore"
-version = "0.0.26"
 dependencies = [
   "dask[array] >=2023.4.0",
   "numpy >=1.24",
@@ -33,15 +32,14 @@ classifiers = [
 ]
 requires-python = ">=3.9"
 license = {file = "LICENSE.txt"}
-dynamic = ["readme"]
+dynamic = ["readme", "version"]
 
 [project.optional-dependencies]
-accel = ["bottleneck", "numba>=0.52"]
+accel = ["bottleneck", "numba >=0.57"]
 test = [
-    "bottleneck",
+    "xskillscore[accel]",
     "cftime",
     "matplotlib",
-    "numba >=0.57",
     "pre-commit",
     "pytest",
     "pytest-cov",
@@ -73,6 +71,7 @@ packages = ["xskillscore"]
 
 [tool.setuptools_scm]
 fallback_version = "9999"
+version_file = "xskillscore/_version.py"
 
 [tool.setuptools.dynamic]
 readme = {file = ["README.rst"], content-type = "text/markdown"}
diff --git a/xskillscore/__init__.py b/xskillscore/__init__.py
index 1e64730c..d51f7855 100644
--- a/xskillscore/__init__.py
+++ b/xskillscore/__init__.py
@@ -1,3 +1,5 @@
+from importlib.metadata import version, PackageNotFoundError
+
 # ruff: noqa
 from xskillscore.core import resampling
 from xskillscore.core.accessor import XSkillScoreAccessor
@@ -37,4 +39,8 @@
 from xskillscore.core.stattests import multipletests
 from xskillscore.versioning.print_versions import show_versions
 
-__version__ = "0.0.26"
+try:
+    __version__ = version("xskillscore")
+except PackageNotFoundError:
+    # package is not installed
+    pass