diff --git a/.gitignore b/.gitignore
index 0c70c5e9..c0902eb8 100644
--- a/.gitignore
+++ b/.gitignore
@@ -1,7 +1,9 @@
+*.egg-info
+*.py[cod]
+.pt13
 .pt2
 .pt2_2
-.pt13
-*.egg-info
-build
+/checkpoints
+/dist
 /outputs
-/checkpoints
\ No newline at end of file
+build
diff --git a/README.md b/README.md
index 9293884b..2c779e5b 100644
--- a/README.md
+++ b/README.md
@@ -76,6 +76,23 @@ pip3 install wheel
 pip3 install -r requirements_pt2.txt
 ```
 
+## Packaging
+
+This repository uses PEP 517 compliant packaging using [Hatch](https://hatch.pypa.io/latest/).
+
+To build a distributable wheel, install `hatch` and run `hatch build`
+(specifying `-t wheel` will skip building a sdist, which is not necessary).
+
+```
+pip install hatch
+hatch build -t wheel
+```
+
+You will find the built package in `dist/`. You can install the wheel with `pip install dist/*.whl`.
+
+Note that the package does **not** currently specify dependencies; you will need to install the required packages,
+depending on your use case and PyTorch version, manually.
+
 ## Inference:
 
 We provide a [streamlit](https://streamlit.io/) demo for text-to-image and image-to-image sampling in `scripts/demo/sampling.py`. The following models are currently supported:
diff --git a/pyproject.toml b/pyproject.toml
new file mode 100644
index 00000000..3b790a8a
--- /dev/null
+++ b/pyproject.toml
@@ -0,0 +1,34 @@
+[build-system]
+requires = ["hatchling"]
+build-backend = "hatchling.build"
+
+[project]
+name = "sgm"
+dynamic = ["version"]
+description = "Stability Generative Models"
+readme = "README.md"
+license-files = { paths = ["LICENSE"] }
+requires-python = ">=3.8"
+
+[project.urls]
+Homepage = "https://github.com/Stability-AI/generative-models"
+
+[tool.hatch.version]
+path = "sgm/__init__.py"
+
+[tool.hatch.build]
+# This needs to be explicitly set so the configuration files
+# grafted into the `sgm` directory get included in the wheel's
+# RECORD file.
+include = [
+    "sgm",
+]
+# The force-include configurations below make Hatch copy
+# the configs/ directory (containing the various YAML files required
+# to generatively model) into the source distribution and the wheel.
+
+[tool.hatch.build.targets.sdist.force-include]
+"./configs" = "sgm/configs"
+
+[tool.hatch.build.targets.wheel.force-include]
+"./configs" = "sgm/configs"
diff --git a/setup.py b/setup.py
deleted file mode 100644
index 3117b885..00000000
--- a/setup.py
+++ /dev/null
@@ -1,13 +0,0 @@
-from setuptools import find_packages, setup
-
-setup(
-    name="sgm",
-    version="0.0.1",
-    packages=find_packages(),
-    python_requires=">=3.8",
-    py_modules=["sgm"],
-    description="Stability Generative Models",
-    long_description=open("README.md", "r", encoding="utf-8").read(),
-    long_description_content_type="text/markdown",
-    url="https://github.com/Stability-AI/generative-models",
-)
diff --git a/sgm/__init__.py b/sgm/__init__.py
index cc9c7dc5..f639416e 100644
--- a/sgm/__init__.py
+++ b/sgm/__init__.py
@@ -1,3 +1,5 @@
 from .data import StableDataModuleFromConfig
 from .models import AutoencodingEngine, DiffusionEngine
-from .util import instantiate_from_config
+from .util import instantiate_from_config, get_configs_path
+
+__version__ = "0.0.1"
diff --git a/sgm/util.py b/sgm/util.py
index 06f48a88..97713bf0 100644
--- a/sgm/util.py
+++ b/sgm/util.py
@@ -229,3 +229,21 @@ def load_model_from_config(config, ckpt, verbose=True, freeze=True):
 
     model.eval()
     return model
+
+
+def get_configs_path() -> str:
+    """
+    Get the `configs` directory.
+    For a working copy, this is the one in the root of the repository,
+    but for an installed copy, it's in the `sgm` package (see pyproject.toml).
+    """
+    this_dir = os.path.dirname(__file__)
+    candidates = (
+        os.path.join(this_dir, "configs"),
+        os.path.join(this_dir, "..", "configs"),
+    )
+    for candidate in candidates:
+        candidate = os.path.abspath(candidate)
+        if os.path.isdir(candidate):
+            return candidate
+    raise FileNotFoundError(f"Could not find SGM configs in {candidates}")