diff --git a/heat/service.py b/heat/service.py
index 4ea5ba0d2d..5552444046 100644
--- a/heat/service.py
+++ b/heat/service.py
@@ -116,7 +116,7 @@ class Service(object):
         self.timers = []
 
     def start(self):
-        vcs_string = version.version_string_with_vcs()
+        vcs_string = version.version_string(type='long')
         LOG.info(_('Starting %(topic)s node (version %(vcs_string)s)'),
                   {'topic': self.topic, 'vcs_string': vcs_string})
         # TODO do we need this ? -> utils.cleanup_file_locks()
diff --git a/heat/version.py b/heat/version.py
index 82f0aaa12f..2c75971aef 100644
--- a/heat/version.py
+++ b/heat/version.py
@@ -13,33 +13,52 @@
 #    License for the specific language governing permissions and limitations
 #    under the License.
 
+
+try:
+    import git
+except ImportError:
+    git = None
+
 try:
     from heat.vcsversion import version_info
 except ImportError:
-    version_info = {'branch_nick': u'LOCALBRANCH',
-                    'revision_id': 'LOCALREVISION',
-                    'revno': 0}
-
-HEAT_VERSION = ['7']
-REVISION = HEAT_VERSION
+    version_info = {'sha': ''}
 
+HEAT_VERSION = '7'
 FINAL = False   # This becomes true at Release Candidate time
 
 
-def canonical_version_string():
-    return '.'.join(filter(None, HEAT_VERSION))
+def get_git_sha():
+    if not git:
+        return version_info['sha']
+
+    try:
+        repo = git.Repo('.')
+    except InvalidGitRepositoryError:
+        return version_info['sha']
+    return repo.head.commit.hexsha
 
 
-def version_string():
-    if FINAL:
-        return canonical_version_string()
-    else:
-        return '%s-dev' % (canonical_version_string(),)
+def write_git_sha():
+    if not git:
+        return
+
+    sha = get_git_sha()
+
+    if sha:
+        with open('heat/vcsversion.py', 'w') as version_file:
+            version_file.write("""
+# This file is automatically generated by heat's setup.py, so don't edit it. :)
+version_info = {
+    'sha': '%s'
+}
+""" % (sha))
 
 
-def vcs_version_string():
-    return "%s:%s" % (version_info['branch_nick'], version_info['revision_id'])
-
-
-def version_string_with_vcs():
-    return "%s-%s" % (canonical_version_string(), vcs_version_string())
+def version_string(type='short'):
+    version = HEAT_VERSION
+    if not FINAL:
+        version += '-dev ' + get_git_sha()
+    elif type != 'short':
+        version += ' ' + get_git_sha()
+    return version
diff --git a/setup.py b/setup.py
index 72b1d95683..4503489e08 100755
--- a/setup.py
+++ b/setup.py
@@ -21,12 +21,12 @@ import setuptools
 
 from heat.openstack.common import setup
 
-# import this after write_vcsversion because version imports vcsversion
 from heat import version
+version.write_git_sha()
 
 setuptools.setup(
     name='heat',
-    version=version.canonical_version_string(),
+    version=version.HEAT_VERSION,
     description='The heat project provides services for provisioning '
                 'virtual machines',
     license='Apache License (2.0)',