diff --git a/butterfly/__init__.py b/butterfly/__init__.py
index 9cb59f4..f7608ad 100644
--- a/butterfly/__init__.py
+++ b/butterfly/__init__.py
@@ -14,15 +14,22 @@
 #
 # You should have received a copy of the GNU General Public License
 # along with this program.  If not, see <http://www.gnu.org/licenses/>.
-__version__ = '3.0.0'
-
-
 import os
 import tornado.web
 import tornado.options
 import tornado.web
 from logging import getLogger
 
+try:
+    import pkg_resources
+except ImportError:
+    __version__ = "pkg_resources not found on PYTHON_PATH"
+else:
+    try:
+        __version__ = pkg_resources.require('butterfly')[0].version
+    except pkg_resources.DistributionNotFound:
+        __version__ = "butterfly is not installed"
+
 log = getLogger('butterfly')
 
 
diff --git a/setup.py b/setup.py
index 7e87fa8..161c89d 100644
--- a/setup.py
+++ b/setup.py
@@ -4,13 +4,9 @@
 """
 Butterfly - A sleek web based terminal emulator
 """
-import os
-import re
 from setuptools import setup
 
-ROOT = os.path.dirname(__file__)
-with open(os.path.join(ROOT, 'butterfly', '__init__.py')) as fd:
-    __version__ = re.search("__version__ = '([^']+)'", fd.read()).group(1)
+__version__ = '3.0.1'
 
 options = dict(
     name="butterfly",