diff --git a/hatch.toml b/hatch.toml
new file mode 100644
index 000000000..488fcb111
--- /dev/null
+++ b/hatch.toml
@@ -0,0 +1,12 @@
+[build.targets.sdist]
+include = [
+  'hooks/*.py',
+]
+exclude = [
+  'hooks/*.sh',
+]
+
+[build.targets.wheel]
+packages = [
+  'hooks/',
+]
diff --git a/pyproject.toml b/pyproject.toml
new file mode 100644
index 000000000..85c4b8809
--- /dev/null
+++ b/pyproject.toml
@@ -0,0 +1,38 @@
+[build-system]
+requires = [
+  'hatchling',
+]
+build-backend = 'hatchling.build'
+
+[project]
+name = 'pre-commit-terraform'
+version = '0.0.0'
+# version_format = '{tag}+{gitsha}'
+classifiers = [
+  'License :: OSI Approved :: MIT License',
+  'Programming Language :: Python :: 2',
+  'Programming Language :: Python :: 2.7',
+  'Programming Language :: Python :: 3',
+  'Programming Language :: Python :: 3.6',
+  'Programming Language :: Python :: 3.7',
+  'Programming Language :: Python :: Implementation :: CPython',
+  'Programming Language :: Python :: Implementation :: PyPy',
+]
+description = 'Pre-commit hooks for terraform_docs_replace'
+dependencies = [
+  'setuptools-git-version',
+]
+
+[[project.authors]]
+name = 'Contributors'  # FIXME
+# email = 'степан@криївка.укр'
+
+[project.urls]
+'GitHub: repo' = 'https://github.com/antonbabenko/pre-commit-terraform'
+
+[project.readme]
+file = 'README.md'
+content-type = 'text/markdown'
+
+[project.scripts]
+terraform_docs_replace = 'hooks.terraform_docs_replace:main'
diff --git a/setup.py b/setup.py
deleted file mode 100644
index 2d88425b9..000000000
--- a/setup.py
+++ /dev/null
@@ -1,33 +0,0 @@
-from setuptools import find_packages
-from setuptools import setup
-
-
-setup(
-    name='pre-commit-terraform',
-    description='Pre-commit hooks for terraform_docs_replace',
-    url='https://github.com/antonbabenko/pre-commit-terraform',
-    version_format='{tag}+{gitsha}',
-
-    author='Contributors',
-
-    classifiers=[
-        'License :: OSI Approved :: MIT License',
-        'Programming Language :: Python :: 2',
-        'Programming Language :: Python :: 2.7',
-        'Programming Language :: Python :: 3',
-        'Programming Language :: Python :: 3.6',
-        'Programming Language :: Python :: 3.7',
-        'Programming Language :: Python :: Implementation :: CPython',
-        'Programming Language :: Python :: Implementation :: PyPy',
-    ],
-
-    packages=find_packages(exclude=('tests*', 'testing*')),
-    install_requires=[
-        'setuptools-git-version',
-    ],
-    entry_points={
-        'console_scripts': [
-            'terraform_docs_replace = hooks.terraform_docs_replace:main',
-        ],
-    },
-)