diff --git a/.github/workflows/packages.yaml b/.github/workflows/packages.yaml
index e5e1b9876..581b888d2 100644
--- a/.github/workflows/packages.yaml
+++ b/.github/workflows/packages.yaml
@@ -11,6 +11,8 @@ jobs:
     runs-on: ubuntu-18.04
     steps:
     - uses: actions/checkout@v2.3.4
+      with:
+          fetch-depth: 0
     - name: Set up Python 3.8
       uses: actions/setup-python@v2.2.2
       with:
@@ -40,6 +42,8 @@ jobs:
     runs-on: ubuntu-18.04
     steps:
     - uses: actions/checkout@v2.3.4
+      with:
+        fetch-depth: 0
     - name: Set up Python 3.8
       uses: actions/setup-python@v2.2.2
       with:
@@ -69,6 +73,8 @@ jobs:
     runs-on: macos-10.15
     steps:
     - uses: actions/checkout@v2.3.4
+      with:
+        fetch-depth: 0
     - name: Set up Python 3.8
       uses: actions/setup-python@v2.2.2
       with:
@@ -101,6 +107,8 @@ jobs:
     runs-on: windows-2019
     steps:
     - uses: actions/checkout@v2.3.4
+      with:
+        fetch-depth: 0
     - name: Set up Python 3.8
       uses: actions/setup-python@v2.2.2
       with:
@@ -129,6 +137,8 @@ jobs:
     runs-on: ubuntu-18.04
     steps:
     - uses: actions/checkout@v2.3.4
+      with:
+        fetch-depth: 0
     - name: Set up Python 3.7
       uses: actions/setup-python@v2.2.2
       with:
@@ -136,7 +146,9 @@ jobs:
     - name: Install
       run: pip install ".[all,tests]"
     - name: Build packages
-      run: ./scripts/build_package.sh
+      run: |
+        pip install -U pip
+        ./scripts/build_package.sh
     - name: Publish packages to PyPI
       if: github.event_name == 'release'
       uses: pypa/gh-action-pypi-publish@master
diff --git a/.github/workflows/tests.yaml b/.github/workflows/tests.yaml
index 7456ea9e5..71ece2d94 100644
--- a/.github/workflows/tests.yaml
+++ b/.github/workflows/tests.yaml
@@ -21,6 +21,8 @@ jobs:
       with:
         access_token: ${{ github.token }}
     - uses: actions/checkout@v2.3.4
+      with:
+        fetch-depth: 0
     - name: Set up Python 3.8
       uses: actions/setup-python@v2.2.2
       with:
@@ -50,6 +52,8 @@ jobs:
             pyv: "3.10"
     steps:
     - uses: actions/checkout@v2.3.4
+      with:
+        fetch-depth: 0
     - name: Set up Python
       uses: actions/setup-python@v2.2.2
       with:
diff --git a/.gitignore b/.gitignore
index 91becd9ad..30fd2dc95 100644
--- a/.gitignore
+++ b/.gitignore
@@ -38,3 +38,4 @@ scripts/ci/gcp-creds.json
 .gcp-creds.json
 
 *~
+/dvc/_version.py
diff --git a/.pre-commit-config.yaml b/.pre-commit-config.yaml
index 2fc1a86d6..a987e27d4 100644
--- a/.pre-commit-config.yaml
+++ b/.pre-commit-config.yaml
@@ -7,6 +7,11 @@ repos:
         language_version: python3
     repo: https://github.com/ambv/black
     rev: 21.9b0
+  - repo: https://github.com/pre-commit/pre-commit-hooks
+    rev: v4.0.1
+    hooks:
+      - id: check-toml
+      - id: check-yaml
   - hooks:
       - id: codespell
         args: 
diff --git a/MANIFEST.in b/MANIFEST.in
index 03d2f17a9..1aba38f67 100644
--- a/MANIFEST.in
+++ b/MANIFEST.in
@@ -1,2 +1 @@
-include fastentrypoints.py
 include LICENSE
diff --git a/dvc/version.py b/dvc/version.py
index e54b7ad56..3611fbee6 100644
--- a/dvc/version.py
+++ b/dvc/version.py
@@ -1,74 +1,6 @@
-# Used in setup.py, so don't pull any additional dependencies
-#
-# Based on:
-#   - https://github.com/python/mypy/blob/master/mypy/version.py
-#   - https://github.com/python/mypy/blob/master/mypy/git.py
-import os
-import subprocess
-
-_BASE_VERSION = "2.8.1"
-
-
-def _generate_version(base_version):
-    """Generate a version with information about the Git repository."""
-    pkg_dir = os.path.dirname(os.path.dirname(os.path.abspath(__file__)))
-
-    if not _is_git_repo(pkg_dir) or not _have_git():
-        return base_version
-
-    if _is_release(pkg_dir, base_version) and not _is_dirty(pkg_dir):
-        return base_version
-
-    return "{base_version}+{short_sha}{dirty}".format(
-        base_version=base_version,
-        short_sha=_git_revision(pkg_dir).decode("utf-8")[0:6],
-        dirty=".mod" if _is_dirty(pkg_dir) else "",
-    )
-
-
-def _is_git_repo(dir_path):
-    """Is the given directory version-controlled with Git?"""
-    return os.path.exists(os.path.join(dir_path, ".git"))
-
-
-def _have_git():
-    """Can we run the git executable?"""
-    try:
-        subprocess.check_output(["git", "--help"])
-        return True
-    except subprocess.CalledProcessError:
-        return False
-    except OSError:
-        return False
-
-
-def _is_release(dir_path, base_version):
-    try:
-        output = subprocess.check_output(
-            ["git", "describe", "--tags", "--exact-match"],
-            cwd=dir_path,
-            stderr=subprocess.STDOUT,
-        ).decode("utf-8")
-        tag = output.strip()
-        return tag == base_version
-    except subprocess.CalledProcessError:
-        return False
-
-
-def _git_revision(dir_path):
-    """Get SHA of the HEAD of a Git repository."""
-    return subprocess.check_output(
-        ["git", "rev-parse", "HEAD"], cwd=dir_path
-    ).strip()
-
-
-def _is_dirty(dir_path):
-    """Check whether a git repository has uncommitted changes."""
-    try:
-        subprocess.check_call(["git", "diff", "--quiet"], cwd=dir_path)
-        return False
-    except subprocess.CalledProcessError:
-        return True
-
-
-__version__ = _generate_version(_BASE_VERSION)
+# pylint: disable=unused-import
+try:
+    from ._version import version as __version__
+    from ._version import version_tuple  # noqa: F401
+except ImportError:
+    __version__ = "UNKNOWN"
diff --git a/fastentrypoints.py b/fastentrypoints.py
deleted file mode 100644
index 527f68624..000000000
--- a/fastentrypoints.py
+++ /dev/null
@@ -1,121 +0,0 @@
-# noqa: D300,D400
-# Copyright (c) 2016, Aaron Christianson
-# All rights reserved.
-#
-# Redistribution and use in source and binary forms, with or without
-# modification, are permitted provided that the following conditions are
-# met:
-#
-# 1. Redistributions of source code must retain the above copyright
-#    notice, this list of conditions and the following disclaimer.
-#
-# 2. Redistributions in binary form must reproduce the above copyright
-#    notice, this list of conditions and the following disclaimer in the
-#    documentation and/or other materials provided with the distribution.
-#
-# THIS SOFTWARE IS PROVIDED BY THE COPYRIGHT HOLDERS AND CONTRIBUTORS "AS
-# IS" AND ANY EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED
-# TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A
-# PARTICULAR PURPOSE ARE DISCLAIMED. IN NO EVENT SHALL THE COPYRIGHT
-# HOLDER OR CONTRIBUTORS BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL,
-# SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES (INCLUDING, BUT NOT LIMITED
-# TO, PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES; LOSS OF USE, DATA, OR
-# PROFITS; OR BUSINESS INTERRUPTION) HOWEVER CAUSED AND ON ANY THEORY OF
-# LIABILITY, WHETHER IN CONTRACT, STRICT LIABILITY, OR TORT (INCLUDING
-# NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF THE USE OF THIS
-# SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
-"""
-Monkey patch setuptools to write faster console_scripts with this format:
-
-    import sys
-    from mymodule import entry_function
-    sys.exit(entry_function())
-
-This is better.
-
-(c) 2016, Aaron Christianson
-http://github.com/ninjaaron/fast-entry_points
-"""
-import re
-
-from setuptools.command import easy_install
-
-TEMPLATE = r"""
-# -*- coding: utf-8 -*-
-# EASY-INSTALL-ENTRY-SCRIPT: '{3}','{4}','{5}'
-__requires__ = '{3}'
-import re
-import sys
-
-from {0} import {1}
-
-if __name__ == '__main__':
-    sys.argv[0] = re.sub(r'(-script\.pyw?|\.exe)?$', '', sys.argv[0])
-    sys.exit({2}())
-""".lstrip()
-
-
-@classmethod
-def get_args(cls, dist, header=None):  # noqa: D205,D400
-    """
-    Yield write_script() argument tuples for a distribution's
-    console_scripts and gui_scripts entry points.
-    """
-    if header is None:
-        # pylint: disable=E1101
-        header = cls.get_header()
-    spec = str(dist.as_requirement())
-    for type_ in "console", "gui":
-        group = type_ + "_scripts"
-        for name, ep in dist.get_entry_map(group).items():
-            # ensure_safe_name
-            if re.search(r"[\\/]", name):
-                raise ValueError("Path separators not allowed in script names")
-            script_text = TEMPLATE.format(
-                ep.module_name,
-                ep.attrs[0],
-                ".".join(ep.attrs),
-                spec,
-                group,
-                name,
-            )
-            # pylint: disable=E1101,protected-access
-            args = cls._get_script_args(type_, name, header, script_text)
-            yield from args
-
-
-# pylint: disable=E1101
-easy_install.ScriptWriter.get_args = get_args
-
-
-def main():
-    import os
-    import shutil
-    import sys
-
-    dests = sys.argv[1:] or ["."]
-    filename = re.sub(r"\.pyc$", ".py", __file__)
-
-    for dst in dests:
-        shutil.copy(filename, dst)
-        manifest_path = os.path.join(dst, "MANIFEST.in")
-        setup_path = os.path.join(dst, "setup.py")
-
-        # Insert the include statement to MANIFEST.in if not present
-        with open(manifest_path, "a+") as manifest:
-            manifest.seek(0)
-            manifest_content = manifest.read()
-            if "include fastentrypoints.py" not in manifest_content:
-                manifest.write(
-                    ("\n" if manifest_content else "")
-                    + "include fastentrypoints.py"
-                )
-
-        # Insert the import statement to setup.py if not present
-        with open(setup_path, "a+") as setup:
-            setup.seek(0)
-            setup_content = setup.read()
-            if "import fastentrypoints" not in setup_content:
-                setup.seek(0)
-                setup.truncate()
-                setup.write("import fastentrypoints\n" + setup_content)
diff --git a/pyproject.toml b/pyproject.toml
index a4fc8cbe3..1d05edf15 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -1,3 +1,17 @@
+[build-system]
+requires = [
+    "setuptools>=58.2",
+    "wheel",
+    "setuptools_scm[toml]>=6.3.1",
+    # Prevents pkg_resources import in entry point script,
+    # see https://github.com/ninjaaron/fast-entry_points.
+    # This saves about 200 ms on startup time for non-wheel installs.
+    "fastentrypoints>=0.12"
+]
+
+[tool.setuptools_scm]
+write_to = "dvc/_version.py"
+
 [tool.black]
 line-length = 79
 include = '\.pyi?$'
diff --git a/scripts/build_package.sh b/scripts/build_package.sh
index 8b6e5b5f9..f9d8511e8 100755
--- a/scripts/build_package.sh
+++ b/scripts/build_package.sh
@@ -10,5 +10,5 @@ fi
 
 echo 'PKG = "pip"' >dvc/utils/build.py
 
-python setup.py sdist
-python setup.py bdist_wheel
+python -m pip install -U build setuptools>=58.2
+python -m build --sdist --wheel --outdir dist/
diff --git a/scripts/pypi_upload.sh b/scripts/pypi_upload.sh
index 3afca8ca3..64ee9e36c 100755
--- a/scripts/pypi_upload.sh
+++ b/scripts/pypi_upload.sh
@@ -9,5 +9,6 @@ fi
 
 rm -rf dist/
 pip install twine
-python setup.py sdist bdist_wheel
+python -m pip install -U build setuptools>=58.2
+python -m build --sdist --wheel --outdir dist/
 twine upload dist/*
diff --git a/setup.cfg b/setup.cfg
index e48ba60cd..b4b1fb33e 100644
--- a/setup.cfg
+++ b/setup.cfg
@@ -26,10 +26,15 @@ classifiers =
     Programming Language :: Python :: 3.10
 
 [options]
+setup_requires =
+    setuptools>=58.2
+    setuptools_scm[toml]>=6.3.1
+    fastentrypoints>=0.12
 python_requires = >=3.6
 zip_safe = False
 packages = find:
 include_package_data = True
+use_scm_version = True
 install_requires =
     # See https://github.com/pyinstaller/pyinstaller/issues/1945
     ply>=3.9
diff --git a/setup.py b/setup.py
index ff9bfd763..606849326 100644
--- a/setup.py
+++ b/setup.py
@@ -1,66 +1,3 @@
-import importlib.util
-import os
-from pathlib import Path
-from textwrap import dedent
-
 from setuptools import setup
-from setuptools.command.build_py import build_py as _build_py
 
-# Prevents pkg_resources import in entry point script,
-# see https://github.com/ninjaaron/fast-entry_points.
-# This saves about 200 ms on startup time for non-wheel installs.
-try:
-    import fastentrypoints  # noqa: F401, pylint: disable=unused-import
-except ImportError:
-    pass  # not able to import when installing through pre-commit
-
-
-# Read package meta-data from version.py
-# see https://packaging.python.org/guides/single-sourcing-package-version/
-try:
-    pkg_dir = os.path.dirname(os.path.abspath(__file__))
-    version_path = os.path.join(pkg_dir, "dvc", "version.py")
-    spec = importlib.util.spec_from_file_location("dvc.version", version_path)
-    dvc_version = importlib.util.module_from_spec(spec)
-    spec.loader.exec_module(dvc_version)
-    version = dvc_version.__version__  # noqa: F821
-except Exception as exc:  # pylint: disable=broad-except
-    # Dependabot seem to stop working when we don't handle this except block.
-    # Most likely, it's because of the restrictions in execution of the module.
-    # We workaround it, and print the error message if it also happens on other
-    # installations (though this message may likely be suppressed by build
-    # tools, eg: pip only shows this message on `--verbose` mode).
-    import sys
-
-    print("Could not load version info: ", exc, file=sys.stderr)
-    version = "UNKNOWN"
-
-
-# To achieve consistency between the build version and the one provided
-# by your package during runtime, you need to **pin** the build version.
-#
-# This custom class will replace the version.py module with a **static**
-# `__version__` that your package can read at runtime, assuring consistency.
-#
-# References:
-#   - https://docs.python.org/3.7/distutils/extending.html
-#   - https://github.com/python/mypy
-class build_py(_build_py):
-    def pin_version(self):
-        ver_file = Path(self.build_lib) / "dvc" / "version.py"
-        self.mkpath(os.fspath(ver_file.parent))
-        ver_file.write_text(
-            dedent(
-                f"""\
-                # AUTOGENERATED at build time by setup.py
-                __version__ = "{version}"
-                """
-            )
-        )
-
-    def run(self):
-        self.execute(self.pin_version, ())
-        _build_py.run(self)
-
-
-setup(version=version, cmdclass={"build_py": build_py})
+setup()
diff --git a/tests/func/test_version.py b/tests/func/test_version.py
index 08937d649..b7dee992e 100644
--- a/tests/func/test_version.py
+++ b/tests/func/test_version.py
@@ -1,14 +1,18 @@
 import re
 
 from dvc.main import main
-from tests.unit.test_info import PYTHON_VERSION_REGEX, find_supported_remotes
+from tests.unit.test_info import (
+    DVC_VERSION_REGEX,
+    PYTHON_VERSION_REGEX,
+    find_supported_remotes,
+)
 
 
 def test_(tmp_dir, dvc, scm, capsys):
     assert main(["version"]) == 0
 
     out, _ = capsys.readouterr()
-    assert re.search(r"DVC version: \d+\.\d+\.\d+.*", out)
+    assert re.search(fr"DVC version: {DVC_VERSION_REGEX}", out)
     assert re.search(f"Platform: {PYTHON_VERSION_REGEX} on .*", out)
     assert find_supported_remotes(out)
     assert re.search(r"Cache types: .*", out)
diff --git a/tests/unit/test_info.py b/tests/unit/test_info.py
index 8f01b2c47..22455a54e 100644
--- a/tests/unit/test_info.py
+++ b/tests/unit/test_info.py
@@ -11,6 +11,7 @@ from dvc.info import get_dvc_info
 # `patch` is more than enough for the tests.
 # Refer PEP-0440 for complete regex just in-case.
 PYTHON_VERSION_REGEX = r"Python \d\.\d+\.\d+\S*"
+DVC_VERSION_REGEX = r"\d+\.\d+\.(\d+\.)?.*"
 
 
 def find_supported_remotes(string):
@@ -50,7 +51,7 @@ def test_info_in_repo(scm_init, tmp_dir):
 
     dvc_info = get_dvc_info()
 
-    assert re.search(r"DVC version: \d+\.\d+\.\d+.*", dvc_info)
+    assert re.search(fr"DVC version: {DVC_VERSION_REGEX}", dvc_info)
     assert re.search(f"Platform: {PYTHON_VERSION_REGEX} on .*", dvc_info)
     assert find_supported_remotes(dvc_info)
     assert re.search(r"Cache types: .*", dvc_info)
@@ -125,7 +126,7 @@ def test_fs_info_in_repo(tmp_dir, dvc, caplog):
 def test_info_outside_of_repo(tmp_dir, caplog):
     dvc_info = get_dvc_info()
 
-    assert re.search(r"DVC version: \d+\.\d+\.\d+.*", dvc_info)
+    assert re.search(fr"DVC version: {DVC_VERSION_REGEX}", dvc_info)
     assert re.search(f"Platform: {PYTHON_VERSION_REGEX} on .*", dvc_info)
     assert find_supported_remotes(dvc_info)
     assert not re.search(r"Cache types: .*", dvc_info)
@@ -134,7 +135,7 @@ def test_info_outside_of_repo(tmp_dir, caplog):
 
 def test_fs_info_outside_of_repo(tmp_dir, caplog):
     dvc_info = get_dvc_info()
-    assert re.search(r"DVC version: \d+\.\d+\.\d+.*", dvc_info)
+    assert re.search(fr"DVC version: {DVC_VERSION_REGEX}", dvc_info)
     assert re.search(f"Platform: {PYTHON_VERSION_REGEX} on .*", dvc_info)
     assert find_supported_remotes(dvc_info)
 
diff --git a/tests/unit/test_version.py b/tests/unit/test_version.py
deleted file mode 100644
index 7362ce54d..000000000
--- a/tests/unit/test_version.py
+++ /dev/null
@@ -1,20 +0,0 @@
-import subprocess
-
-import dvc.version
-
-
-def test_is_release(mocker):
-    m = mocker.patch.object(dvc.version.subprocess, "check_output")
-
-    m.side_effect = subprocess.CalledProcessError(1, "cmd")
-    ret = dvc.version._is_release(None, dvc.version._BASE_VERSION)
-    assert ret is False
-
-    m.side_effect = None
-    m.return_value = dvc.version._BASE_VERSION.encode("ascii")
-    ret = dvc.version._is_release(None, dvc.version._BASE_VERSION)
-    assert ret
-
-    m.return_value = b"630d1741c2d5dd89a3176bd15b63121b905d35c9"
-    ret = dvc.version._is_release(None, dvc.version._BASE_VERSION)
-    assert ret is False