diff --git a/CHANGELOG.md b/CHANGELOG.md
index 6578f90..9a6285d 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,11 +1,14 @@
 # Changes
 
-Unreleased
+Unreleased (version 0.5.0)
 
 * Patch environment for VCS subprocesses rather than generating a new one
 * Fix `cwd` segment so it respects `max_depth` configuration
 * Fix Ruby segment for Python 3 compatibility
   ([@Blue-Dog-Archolite](https://github.com/b-ryan/powerline-shell/pull/366))
+* Configuration is now expected to be at
+  `~/.config/powerline-shell/config.json` ([@emansije and
+  @kc9jud](https://github.com/b-ryan/powerline-shell/pull/334))
 
 2018-02-19 (version 0.4.9)
 
diff --git a/README.md b/README.md
index 27a3468..046d7d5 100644
--- a/README.md
+++ b/README.md
@@ -153,8 +153,8 @@ alias precmd 'set prompt="`powerline-shell --shell tcsh $?`"'
 ### Config File
 
 Powerline-shell is customizable through the use of a config file. This file is
-expected to be located at `~/.powerline-shell.json`. You can generate the
-default config at this location using:
+expected to be located at `~/.config/powerline-shell/config.json`. You can
+generate the default config at this location using:
 
 ```
 powerline-shell --generate-config > ~/.powerline-shell.json
diff --git a/setup.py b/setup.py
index e79729e..880bea9 100755
--- a/setup.py
+++ b/setup.py
@@ -3,7 +3,7 @@ from setuptools import setup, find_packages
 
 setup(
     name="powerline-shell",
-    version="0.4.10.rc1",
+    version="0.5.0.rc1",
     description="A pretty prompt for your shell",
     author="Buck Ryan",
     url="https://github.com/banga/powerline-shell",