diff --git a/flask/__init__.py b/flask/__init__.py
index 19560123..1c5e3ba2 100644
--- a/flask/__init__.py
+++ b/flask/__init__.py
@@ -10,7 +10,7 @@
     :license: BSD, see LICENSE for more details.
 """
 
-__version__ = '0.7'
+__version__ = '0.8-dev'
 
 # utilities we import from Werkzeug and Jinja2 that are unused
 # in the module but are exported as public interface.
diff --git a/setup.py b/setup.py
index d2a9266b..1809e05e 100644
--- a/setup.py
+++ b/setup.py
@@ -86,7 +86,7 @@ def run_tests():
 
 setup(
     name='Flask',
-    version='0.7',
+    version='0.8-dev',
     url='http://github.com/mitsuhiko/flask/',
     license='BSD',
     author='Armin Ronacher',