diff --git a/CHANGES b/CHANGES
index 501461e93..35bf8efd8 100644
--- a/CHANGES
+++ b/CHANGES
@@ -1,3 +1,6 @@
+Release 0.7 (in development)
+============================
+
 Release 0.6 (Mar 24, 2009)
 ==========================
 
diff --git a/sphinx/__init__.py b/sphinx/__init__.py
index 4e1d6924f..725faef72 100644
--- a/sphinx/__init__.py
+++ b/sphinx/__init__.py
@@ -13,8 +13,8 @@ import sys
 from os import path
 
 __revision__ = '$Revision$'
-__version__ = '0.6'
-__released__ = '0.6'
+__version__ = '0.7'
+__released__ = '0.7 (hg)'
 
 package_dir = path.abspath(path.dirname(__file__))