diff --git a/.github/workflows/release.yml b/.github/workflows/release.yml
index 06843b8..c8edb4f 100644
--- a/.github/workflows/release.yml
+++ b/.github/workflows/release.yml
@@ -25,9 +25,8 @@ jobs:
 
       - name: Determine new version
         id: determine-new-version
-        # We get output of this action inside a PYPI_VERSION file.
-        # It is unrelated to PyPI. We simply use it to determine the new version for the release
-        run: echo "version=$(cat PYPI_VERSION)" >> "$GITHUB_OUTPUT"
+        # We get output of this action inside a VERSION file.
+        run: echo "version=$(cat VERSION)" >> "$GITHUB_OUTPUT"
 
       - name: generate GitHub App token
         uses: actions/create-github-app-token@bcd2ba49218906704ab6c1aa796996da409d3eb1 # v3.2.0
diff --git a/.github/workflows/test-action.yml b/.github/workflows/test-action.yml
index 68c430e..daedf2f 100644
--- a/.github/workflows/test-action.yml
+++ b/.github/workflows/test-action.yml
@@ -24,10 +24,10 @@ jobs:
     steps:
       - uses: actions/checkout@3d3c42e5aac5ba805825da76410c181273ba90b1 # v7.0.1
 
-      - name: Set PyPI Version
+      - name: Set Version
         uses: ./
         with:
           token: ${{ secrets.GITHUB_TOKEN }}
 
       - name: Show latest version
-        run: cat PYPI_VERSION
+        run: cat VERSION
diff --git a/action.yml b/action.yml
index 10a2129..73df336 100644
--- a/action.yml
+++ b/action.yml
@@ -3,7 +3,7 @@
 # SPDX-License-Identifier: MPL-2.0
 
 name: Bump Version
-description: Retrieve the latest release tag, run the Bash script to bump version, and save the new version to PYPI_VERSION.
+description: Retrieve the latest release tag, run the Bash script to bump version, and save (possibly overwriting) the new version to the VERSION file.
 
 inputs: # actions don't have secrets, so we use inputs instead
   token:
@@ -65,5 +65,5 @@ runs:
 
         # Run the bump_version function with the latest tag
         new_version=$(bump_version "${{ steps.fetch_tag.outputs.release }}")
-        # Save the new version to PYPI_VERSION file
-        echo "$new_version" > PYPI_VERSION
+        # Save the new version to VERSION file, will overwrite the existing file
+        echo "$new_version" > VERSION