diff --git a/{{cookiecutter.repo_name}}/pyproject.toml b/{{cookiecutter.repo_name}}/pyproject.toml
index 04fd0c3..41482c7 100644
--- a/{{cookiecutter.repo_name}}/pyproject.toml
+++ b/{{cookiecutter.repo_name}}/pyproject.toml
@@ -1,7 +1,7 @@
 [project]
 name = "{{cookiecutter.project_name}}"
 description = "{{cookiecutter.description}}"
-version = "0.0.0"
+dynamic = ["version"]
 readme = "README.md"
 requires-python = ">=3.11"
 dependencies = []
@@ -16,11 +16,14 @@ dev = [
 ]
 
 [build-system]
-requires = ["setuptools~=69.1", "wheel~=0.42"]
+requires = ["setuptools~=69.1", "setuptools_scm~=8.0", "wheel~=0.42"]
 
 [tool.setuptools.packages.find]
 where = ["."]
 exclude = ["tests*", "node_modules*", "build*"]
+# enable setuptools_scm to set the version based on git tags
+[tool.setuptools_scm]
+fallback_version = "0.0.0"
 
 [tool.pyright]
 venvPath = "."