diff --git a/Makefile b/Makefile
index 2f9f622..90f171e 100644
--- a/Makefile
+++ b/Makefile
@@ -167,9 +167,17 @@
 SRCDIR_INSTALL_READONLY	:= Version
 SRCDIR_INSTALL_TARGETS	:= $(SRCDIR_INSTALL_SCRIPTS) $(SRCDIR_INSTALL_READONLY)
 
-# Save space. We only need the first line in ChangeLog for runltp*.
-Version: $(top_srcdir)/ChangeLog
-	head -n 1 "$^" > "$@"
+# 
+# If we are in git repository, use git describe to indentify current version,
+# otherwise if downloaded as tarball use VERSION file.
+#
+.PHONY: Version
+Version:
+	if git describe &> /dev/null; then \
+		git describe > "$@"; \
+	else \
+		cp VERSION "$@"; \
+	fi
 
 $(INSTALL_DIR)/Version: Version
 	install -m 00644 "$(top_builddir)/$(@F)" "$@"