diff --git a/setup.py b/setup.py
index 45484776d..51863ebb7 100644
--- a/setup.py
+++ b/setup.py
@@ -62,7 +62,7 @@
 builtins._ASTROPY_PACKAGE_NAME_ = PACKAGENAME
 
 # VERSION should be PEP386 compatible (http://www.python.org/dev/peps/pep-0386)
-VERSION = '0.4.1'
+VERSION = '0.5.0'
 
 # Indicates if this version is a release version
 RELEASE = 'dev' not in VERSION