diff --git a/Makefile b/Makefile
index e5b49291..660cc50a 100644
--- a/Makefile
+++ b/Makefile
@@ -32,6 +32,7 @@ help:
 	@echo "  test-new    - Create new test file template"
 	@echo "  test-coverage       - Analyze test coverage"
 	@echo "  build       - Build the package"
+	@echo "  package     - Build distribution packages (wheel + sdist)"
 	@echo "  lint        - Run code linting"
 	@echo "  format      - Format code"
 	@echo ""
@@ -485,6 +486,22 @@ build: $(VENV)/bin/activate
 	$(VENV_PYTHON) -m build 2>/dev/null || \
 	$(VENV_PIP) install build && $(VENV_PYTHON) -m build
 
+# Build distribution packages with version info
+package: $(VENV)/bin/activate
+	@echo "📦 Building distribution packages..."
+	@echo ""
+	@echo "📍 Current version (setuptools-scm):"
+	@$(VENV_PYTHON) -m setuptools_scm 2>/dev/null || echo "   setuptools-scm not available"
+	@echo ""
+	@echo "🧹 Cleaning previous builds..."
+	@rm -rf build/ dist/ *.egg-info/ 2>/dev/null || true
+	@echo "🏗️  Building wheel and source distribution..."
+	@$(VENV_PIP) install build setuptools-scm >/dev/null 2>&1 || true
+	$(VENV_PYTHON) -m build --wheel --sdist
+	@echo ""
+	@echo "✅ Packages built successfully:"
+	@ls -lah dist/ 2>/dev/null || echo "   No packages found"
+
 # Release management (setuptools-scm)
 release-status:
 	@echo "🔍 Checking release status (setuptools-scm)..."
diff --git a/PACKAGE_PUBLISHING.md b/PACKAGE_PUBLISHING.md
index ba5f710b..f6163414 100644
--- a/PACKAGE_PUBLISHING.md
+++ b/PACKAGE_PUBLISHING.md
@@ -1,6 +1,6 @@
-# Package Publishing to Gitea
+# Package Publishing Guide
 
-This document explains how to publish MarkiTect packages to the Gitea package registry.
+This guide covers building, publishing, and distributing MarkiTect packages using our Gitea package registry and setuptools-scm version management.
 
 ## Prerequisites
 
@@ -17,40 +17,110 @@ export GITEA_API_TOKEN="your_gitea_api_token_here"
 echo "export GITEA_API_TOKEN=your_token" >> ~/.bashrc
 ```
 
-## Usage
+## Package Building
+
+### Quick Package Building
+
+```bash
+# Build distribution packages (recommended)
+make package
+
+# This will:
+# 1. Show current version (setuptools-scm)
+# 2. Clean previous builds
+# 3. Build both wheel and source distribution
+# 4. Show package details
+```
+
+### Manual Building
+
+```bash
+# Standard build
+make build
+
+# Using release script
+make release-build
+python release.py build
+
+# Manual Python build
+python -m build
+```
+
+## Publishing Workflow
+
+### Complete Release + Publishing
+
+```bash
+# 🚀 ONE-COMMAND RELEASE (recommended)
+make release-publish-gitea VERSION=0.8.0
+
+# This complete workflow:
+# 1. Creates git tag v0.8.0
+# 2. Builds packages (setuptools-scm uses tag for version 0.8.0)
+# 3. Uploads both wheel and source distribution to Gitea
+```
+
+### Step-by-Step Release
+
+```bash
+# 1. Check current status
+make release-status
+
+# 2. Validate release readiness
+make release-validate
+
+# 3. Create git tag
+make release-tag VERSION=0.8.0
+
+# 4. Build packages (version auto-detected from tag)
+make release-build
+
+# 5. Upload to Gitea registry
+make release-upload-gitea
+```
+
+### Development Package Testing
+
+```bash
+# Build current development version
+make package
+
+# Upload development packages for testing
+python release.py upload --dry-run  # Test first
+python release.py upload            # Upload development version
+```
+
+## Registry Management
 
 ### Check Registry Status
 
 ```bash
-# Check registry configuration and authentication
+# Comprehensive registry information
 make release-registry
-# or
-python release.py registry
+
+# Shows:
+# - Authentication status
+# - Registry URLs
+# - Existing packages
+# - Configuration details
 ```
 
-### Build and Upload Packages
+### Upload Existing Packages
 
 ```bash
-# Complete release workflow with Gitea upload
-make release-publish-gitea VERSION=0.8.0
-# or
-python release.py publish --version 0.8.0 --to-gitea
-
-# Upload existing packages
+# Upload packages in dist/ folder
 make release-upload-gitea
-# or
-python release.py upload
 
-# Dry run (test without uploading)
+# With dry-run testing
 python release.py upload --dry-run
+python release.py upload
 ```
 
-### Traditional Release (without Gitea)
+### Traditional Release (Git tags only)
 
 ```bash
 # Standard release without Gitea upload
 make release-publish VERSION=0.8.0
-python release.py publish --version 0.8.0
 ```
 
 ## Available Commands
diff --git a/VERSION_MANAGEMENT.md b/VERSION_MANAGEMENT.md
new file mode 100644
index 00000000..4b362725
--- /dev/null
+++ b/VERSION_MANAGEMENT.md
@@ -0,0 +1,309 @@
+# Version Management Guide
+
+MarkiTect uses **setuptools-scm** for automatic version management based on git tags. This eliminates manual version bumping and ensures versions are always in sync with git history.
+
+## How It Works
+
+### Version Calculation
+
+setuptools-scm automatically determines the version based on:
+
+1. **Git Tags**: The latest tag matching `v*` pattern (e.g., `v0.7.0`)
+2. **Commits Since Tag**: Number of commits since the latest tag
+3. **Current Commit**: Short commit hash
+4. **Dirty State**: Whether there are uncommitted changes
+
+### Version Examples
+
+| Git State | Version Output |
+|-----------|----------------|
+| `v0.7.0` tag (clean) | `0.7.0` |
+| `v0.7.0` + 3 commits | `0.7.1.dev3+g1a2b3c4d` |
+| `v0.7.0` + 3 commits + dirty | `0.7.1.dev3+g1a2b3c4d.d20251108` |
+| No tags + 10 commits | `0.1.dev10+g5e6f7g8h` |
+
+## Version Commands
+
+### Check Current Version
+
+```bash
+# Quick version check
+python -m setuptools_scm
+
+# Detailed version information
+make release-status
+python release.py status
+```
+
+### Access Version in Code
+
+```python
+from markitect.__version__ import __version__
+print(f"MarkiTect version: {__version__}")
+```
+
+## Creating Releases
+
+### Release Workflow
+
+1. **Ensure Clean State**:
+   ```bash
+   git status  # Should be clean
+   git pull    # Latest changes
+   ```
+
+2. **Validate Release Readiness**:
+   ```bash
+   make release-validate
+   ```
+
+3. **Create Release**:
+   ```bash
+   # Standard release
+   make release-publish VERSION=0.8.0
+
+   # Release with Gitea publishing
+   make release-publish-gitea VERSION=0.8.0
+   ```
+
+### Version Naming Conventions
+
+Follow [Semantic Versioning](https://semver.org/):
+
+- **Major Version** (`1.0.0`): Breaking changes
+- **Minor Version** (`0.8.0`): New features (backward compatible)
+- **Patch Version** (`0.7.1`): Bug fixes (backward compatible)
+- **Pre-release** (`0.8.0-rc1`): Release candidates
+- **Development** (`0.8.1.dev3+hash`): Automatic between releases
+
+### Git Tag Format
+
+Always use the format `vX.Y.Z`:
+
+```bash
+# Correct
+git tag v0.8.0
+git tag v1.0.0-rc1
+
+# Incorrect
+git tag 0.8.0      # Missing 'v' prefix
+git tag version-0.8.0  # Wrong format
+```
+
+## Development Versions
+
+### Understanding Development Versions
+
+Between releases, setuptools-scm generates development versions:
+
+```
+0.7.1.dev3+g1a2b3c4d.d20251108
+│   │  │  │ │        │
+│   │  │  │ │        └── Date (dirty state)
+│   │  │  │ └─────────── Commit hash
+│   │  │  └───────────── Commits since tag
+│   │  └──────────────── Dev marker
+│   └─────────────────── Next version
+└─────────────────────── Base version
+```
+
+### Working with Development Versions
+
+Development versions are automatically:
+- **Sorted correctly** by pip (dev versions < release versions)
+- **Excluded from releases** (only tagged versions are released)
+- **Unique** (each commit has a different version)
+
+## Configuration
+
+### setuptools-scm Configuration
+
+Configuration in `pyproject.toml`:
+
+```toml
+[tool.setuptools_scm]
+write_to = "markitect/_version.py"
+```
+
+### Version File Generation
+
+setuptools-scm automatically generates `markitect/_version.py`:
+
+```python
+# Auto-generated - do not edit
+__version__ = "0.7.1.dev3+g1a2b3c4d"
+__version_tuple__ = (0, 7, 1, 'dev3', 'g1a2b3c4d')
+```
+
+This file is:
+- ✅ **Auto-generated** during package builds
+- ✅ **Added to .gitignore** (never committed)
+- ✅ **Available at runtime** for version checks
+
+## Release Branches
+
+### Main Branch Strategy
+
+MarkiTect uses a simple branching strategy:
+
+- **`main`**: Primary development branch
+- **Tags**: Mark release points (`v0.7.0`, `v0.8.0`)
+- **Feature branches**: Merged via pull requests
+
+### Release Process
+
+1. **Development** happens on `main`
+2. **Release tags** created on `main` when ready
+3. **Hotfix tags** can be created on older commits if needed
+
+```bash
+# Standard release from main
+git checkout main
+git pull
+make release-publish-gitea VERSION=0.8.0
+
+# Hotfix release from older commit
+git checkout v0.7.0
+git cherry-pick <hotfix-commit>
+git tag v0.7.1
+git push origin v0.7.1
+```
+
+## Package Building
+
+### Build Commands
+
+```bash
+# Build packages with version info
+make package
+
+# Build using release script
+make release-build
+python release.py build
+
+# Manual build
+python -m build
+```
+
+### Build Output
+
+Packages are built to `dist/` directory:
+- **Wheel** (`.whl`): Binary distribution
+- **Source Distribution** (`.tar.gz`): Source code
+
+### Version in Package Names
+
+setuptools-scm ensures package names include correct versions:
+
+```
+dist/
+├── markitect-0.8.0-py3-none-any.whl      # Release
+├── markitect-0.8.0.tar.gz                # Release
+├── markitect-0.8.1.dev3+hash-py3-none-any.whl  # Development
+└── markitect-0.8.1.dev3+hash.tar.gz      # Development
+```
+
+## Troubleshooting
+
+### Common Issues
+
+1. **"No tags found"**:
+   ```bash
+   # Create initial tag
+   git tag v0.1.0
+   git push origin v0.1.0
+   ```
+
+2. **"Dirty working tree"**:
+   ```bash
+   # Commit or stash changes
+   git add . && git commit -m "Changes"
+   # Or
+   git stash
+   ```
+
+3. **"Version not updating"**:
+   ```bash
+   # Clear setuptools-scm cache
+   rm -rf build/ *.egg-info/
+   python -m setuptools_scm
+   ```
+
+4. **"Import error in __version__.py"**:
+   ```bash
+   # Rebuild package to generate _version.py
+   make package
+   ```
+
+### Debug Version Issues
+
+```bash
+# Verbose setuptools-scm output
+python -m setuptools_scm --debug
+
+# Check git state
+git describe --tags --dirty --always
+
+# Verify tag format
+git tag --list | grep "^v"
+```
+
+## Best Practices
+
+### Do's ✅
+
+- **Always use `vX.Y.Z` tag format**
+- **Create annotated tags**: `git tag -a v0.8.0 -m "Release 0.8.0"`
+- **Push tags to origin**: `git push origin v0.8.0`
+- **Keep clean working tree** for releases
+- **Follow semantic versioning**
+- **Test version detection** before releasing
+
+### Don'ts ❌
+
+- **Don't edit `_version.py`** manually (auto-generated)
+- **Don't commit version numbers** to source files
+- **Don't use non-standard tag formats**
+- **Don't create releases from dirty tree**
+- **Don't delete old tags** (breaks version history)
+
+### Version Strategy
+
+1. **Development**: Let setuptools-scm handle automatically
+2. **Pre-releases**: Use `-rc1`, `-alpha1`, `-beta1` suffixes
+3. **Releases**: Create tags only for stable releases
+4. **Hotfixes**: Tag from appropriate commit, not necessarily `main`
+
+## Integration with CI/CD
+
+### GitHub Actions Example
+
+```yaml
+name: Release
+on:
+  push:
+    tags: ['v*']
+jobs:
+  release:
+    runs-on: ubuntu-latest
+    steps:
+      - uses: actions/checkout@v3
+        with:
+          fetch-depth: 0  # Important for setuptools-scm
+
+      - name: Build packages
+        run: make package
+
+      - name: Upload to Gitea
+        env:
+          GITEA_API_TOKEN: ${{ secrets.GITEA_API_TOKEN }}
+        run: python release.py upload
+```
+
+### Key Points
+
+- **`fetch-depth: 0`**: Required for setuptools-scm to access git history
+- **Environment variables**: Use secrets for API tokens
+- **Tag-based triggers**: Only build releases for version tags
+
+This version management system provides automatic, reliable, and traceable versioning that scales with your development workflow.
\ No newline at end of file