diff --git a/Version.hs b/Version.hs
index 947af8cef5..72d06f6639 100644
--- a/Version.hs
+++ b/Version.hs
@@ -20,13 +20,13 @@ import Config
 type Version = String
 
 defaultVersion :: Version
-defaultVersion = "2"
+defaultVersion = "3"
 
 supportedVersions :: [Version]
 supportedVersions = [defaultVersion]
 
 upgradableVersions :: [Version]
-upgradableVersions = ["0", "1"]
+upgradableVersions = ["0", "1", "2"]
 
 versionField :: String
 versionField = "annex.version"
diff --git a/doc/upgrades.mdwn b/doc/upgrades.mdwn
index 0a07ef7aa8..516e5b3bb8 100644
--- a/doc/upgrades.mdwn
+++ b/doc/upgrades.mdwn
@@ -45,6 +45,10 @@ Example upgrade process:
 
 ## Upgrade events, so far
 
+### v2 -> v3 (git-annex version 0.20110610 to version 0.20110622)
+
+Involved moving the .git-annex/ directory into a separate git-annex branch.
+
 ### v1 -> v2 (git-annex version 0.23 to version 0.20110316)
 
 Involved adding hashing to .git/annex/ and changing the names of all keys.