diff --git a/ldm/__init__.py b/ldm/__init__.py
new file mode 100644
index 0000000..1cc20f6
--- /dev/null
+++ b/ldm/__init__.py
@@ -0,0 +1,20 @@
+import os
+
+
+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 `ldm` 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 LDM configs in {candidates}")
diff --git a/ldm/__version__.py b/ldm/__version__.py
new file mode 100644
index 0000000..58039f5
--- /dev/null
+++ b/ldm/__version__.py
@@ -0,0 +1 @@
+__version__ = "2.1.1"
diff --git a/pyproject.toml b/pyproject.toml
new file mode 100644
index 0000000..4e85a0a
--- /dev/null
+++ b/pyproject.toml
@@ -0,0 +1,37 @@
+[build-system]
+requires = ["hatchling"]
+build-backend = "hatchling.build"
+
+[project]
+name = "stable-diffusion"
+dynamic = ["version"]
+description = "Stable Diffusion is a latent text-to-image diffusion model."
+readme = "README.md"
+license = "MIT"
+requires-python = ">=3.8" # based on environment.yaml
+zip-safe = false # we need to be read the YAMLs from disk
+dependencies = [
+    "numpy",
+    "torch",
+    "tqdm",
+]
+
+[tool.hatch.version]
+path = "ldm/__version__.py"
+
+[tool.hatch.build]
+# This needs to be explicitly set so the configuration files
+# grafted into the `ldm` directory get included in the wheel's
+# RECORD file.
+include = [
+    "ldm",
+]
+# The force-include configurations below make Hatch copy
+# the configs/ directory (containing the various YAML files required
+# to stably diffuse) into the source distribution and the wheel.
+
+[tool.hatch.build.targets.sdist.force-include]
+"./configs" = "ldm/configs"
+
+[tool.hatch.build.targets.wheel.force-include]
+"./configs" = "ldm/configs"
diff --git a/setup.py b/setup.py
deleted file mode 100644
index 00f5b4d..0000000
--- a/setup.py
+++ /dev/null
@@ -1,13 +0,0 @@
-from setuptools import setup, find_packages
-
-setup(
-    name='stable-diffusion',
-    version='0.0.1',
-    description='',
-    packages=find_packages(),
-    install_requires=[
-        'torch',
-        'numpy',
-        'tqdm',
-    ],
-)
\ No newline at end of file