diff --git a/build.sh b/build.sh
index 5c785c1dc..225828d87 100755
--- a/build.sh
+++ b/build.sh
@@ -1,5 +1,27 @@
 #!/bin/bash -e
 composer install
 
-git rev-parse HEAD > VERSION
+git_build=""
+if [ -d .git ]; then
+    echo " * Building from Git"
+    git_build="y"
+fi
+
+if [ "${git_build}" = "y" ]; then
+    git_version=`git tag --points-at HEAD`
+    echo " * Version from tag: ${git_version}"
+    if [ "${git_version}" = "" ]; then
+        git_version=`git rev-parse --short HEAD`
+        echo " * Overriding empty version with sha1 commit-ish: ${git_version}"
+    fi
+    echo ${git_version} > VERSION
+else
+    # if no file was in tarball we create one letting the user know
+    # travis should release tarballs with a pre-written VERSION file
+    # at some stage
+    if [ ! -f VERSION ]; then
+        folder_name=$(basename `pwd`)
+        echo "tarball install from folder ${folder_name}" > VERSION
+    fi
+fi