diff --git a/.github/workflows/python-publish.yml b/.github/workflows/python-publish.yml
index df4d463..561a738 100644
--- a/.github/workflows/python-publish.yml
+++ b/.github/workflows/python-publish.yml
@@ -21,9 +21,9 @@ jobs:
     - name: Install dependencies
       run: |
         python -m pip install --upgrade pip
-        pip install setuptools wheel
+        pip install build
     - name: Build package
-      run: python setup.py sdist bdist_wheel
+      run: python -m build
     - name: Publish package
       uses: pypa/gh-action-pypi-publish@release/v1
       with:
diff --git a/VERSION b/VERSION
deleted file mode 100644
index adc97d8..0000000
--- a/VERSION
+++ /dev/null
@@ -1 +0,0 @@
-1.18
diff --git a/anakinls/__main__.py b/anakinls/__main__.py
index e1ea589..61c9de5 100644
--- a/anakinls/__main__.py
+++ b/anakinls/__main__.py
@@ -18,7 +18,7 @@
 import logging
 
 from .server import server
-from .version import __version__
+from ._version import version
 
 logging.basicConfig(level=logging.INFO)
 logging.getLogger('pygls.protocol').setLevel(logging.WARN)
@@ -56,7 +56,7 @@ def main():
     args = parser.parse_args()
 
     if args.version:
-        print(inspect.cleandoc(f'''anakinls v{__version__}
+        print(inspect.cleandoc(f'''anakinls v{version}
           Copyright (C) 2020 Andrii Kolomoiets
           This is free software; see the source for copying conditions.
           There is NO warranty; not even for MERCHANTABILITY or FITNESS FOR A
diff --git a/anakinls/_version.py b/anakinls/_version.py
new file mode 100644
index 0000000..7d1afe0
--- /dev/null
+++ b/anakinls/_version.py
@@ -0,0 +1,2 @@
+# Will be generated by setuptools_scm
+version = '1'
diff --git a/anakinls/server.py b/anakinls/server.py
index 72f946a..c109502 100644
--- a/anakinls/server.py
+++ b/anakinls/server.py
@@ -40,7 +40,7 @@
 from pygls.protocol import LanguageServerProtocol, lsp_method
 from pygls.uris import to_fs_path
 
-from .version import __version__  # type: ignore
+from ._version import version
 
 RE_WORD = re.compile(r'\w*')
 
@@ -128,7 +128,7 @@ def get_attr(o, *attrs):
 
 server = LanguageServer(
     name='anakinls',
-    version=__version__,
+    version=version,
     protocol_cls=AnakinLanguageServerProtocol
 )
 
diff --git a/anakinls/version.py b/anakinls/version.py
deleted file mode 100644
index bf63db1..0000000
--- a/anakinls/version.py
+++ /dev/null
@@ -1,22 +0,0 @@
-# Copyright (C) 2020  Andrii Kolomoiets <andreyk.mad@gmail.com>
-#
-# This program is free software: you can redistribute it and/or modify
-# it under the terms of the GNU General Public License as published by
-# the Free Software Foundation, either version 3 of the License, or
-# (at your option) any later version.
-#
-# This program is distributed in the hope that it will be useful,
-# but WITHOUT ANY WARRANTY; without even the implied warranty of
-# MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
-# GNU General Public License for more details.
-#
-# You should have received a copy of the GNU General Public License
-# along with this program.  If not, see <https://www.gnu.org/licenses/>.
-
-from pathlib import Path
-
-
-__all__ = ['__version__']
-
-
-__version__ = (Path(__file__).parents[1] / 'VERSION').read_text().strip()
diff --git a/pyproject.toml b/pyproject.toml
new file mode 100644
index 0000000..67ba90c
--- /dev/null
+++ b/pyproject.toml
@@ -0,0 +1,37 @@
+[project]
+name = "anakin-language-server"
+dynamic = ["version"]
+description = "Yet another Jedi Python language server"
+readme = "README.md"
+requires-python = ">=3.7.16"
+dependencies = [
+  "jedi>=0.19.0",
+  "pygls>=1.1,<1.2",
+  "pyflakes~=2.2",
+  "pycodestyle~=2.5",
+  "yapf~=0.30",
+]
+license = {file = "LICENSE"}
+authors = [{name = "Andrii Kolomoiets", email = "andreyk.mad@gmail.com"}]
+classifiers = [
+  "Development Status :: 5 - Production/Stable",
+  "Intended Audience :: Developers",
+  "License :: OSI Approved :: GNU General Public License v3 (GPLv3)",
+  "Operating System :: OS Independent",
+  "Programming Language :: Python :: 3",
+  "Topic :: Text Editors :: Integrated Development Environments (IDE)",
+]
+
+[project.urls]
+"Homepage" = "https://github.com/muffinmad/anakin-language-server"
+"Bug Reports" = "https://github.com/muffinmad/anakin-language-server/issues"
+"Source" = "https://github.com/muffinmad/anakin-language-server"
+
+[project.scripts]
+anakinls = "anakinls.__main__:main"
+
+[tool.setuptools_scm]
+version_file = "anakinls/_version.py"
+
+[build-system]
+requires = ["setuptools>=64", "setuptools_scm>=8"]
diff --git a/setup.py b/setup.py
deleted file mode 100644
index be53be4..0000000
--- a/setup.py
+++ /dev/null
@@ -1,38 +0,0 @@
-from pathlib import Path
-from setuptools import setup  # type: ignore
-
-from anakinls import version
-
-
-setup(
-    name='anakin-language-server',
-    version=version.__version__,
-    author='Andrii Kolomoiets',
-    author_email='andreyk.mad@gmail.com',
-    description='Yet another Jedi Python language server',
-    long_description=Path('README.md').read_text(),
-    long_description_content_type='text/markdown',
-    url='https://github.com/muffinmad/anakin-language-server',
-    packages=['anakinls'],
-    python_requires='>=3.6',
-    install_requires=[
-        'jedi>=0.19.0',
-        'pygls>=1.1,<1.2',
-        'pyflakes~=2.2',
-        'pycodestyle~=2.5',
-        'yapf~=0.30'
-    ],
-    entry_points={
-        'console_scripts': [
-            'anakinls=anakinls.__main__:main'
-        ]
-    },
-    classifiers=[
-        "Development Status :: 5 - Production/Stable",
-        "Intended Audience :: Developers",
-        "License :: OSI Approved :: GNU General Public License v3 (GPLv3)",
-        "Operating System :: OS Independent",
-        "Programming Language :: Python :: 3",
-        "Topic :: Text Editors :: Integrated Development Environments (IDE)"
-    ]
-)