diff --git a/.gitignore b/.gitignore
index 65ed3f37..0ddcf2a3 100644
--- a/.gitignore
+++ b/.gitignore
@@ -3,8 +3,8 @@
 .coverage
 .idea
 docs/_build
-local_settings.py
 pip-log.txt
+mopidy/settings/local.py
 spotify_appkey.key
 src/
 tmp/
diff --git a/docs/installation.rst b/docs/installation.rst
index 004454e8..4f15f101 100644
--- a/docs/installation.rst
+++ b/docs/installation.rst
@@ -147,9 +147,8 @@ Test your libspotify setup::
 Spotify settings
 ================
 
-Create a file name ``local_settings.py`` in the same directory as
-``settings.py``. Enter your Spotify Premium account's username and password
-into the file, like this::
+Create a file named ``local.py`` in the directory ``mopidy/settings/``. Enter
+your Spotify Premium account's username and password into the file, like this::
 
     SPOTIFY_USERNAME = u'myusername'
     SPOTIFY_PASSWORD = u'mysecret'
@@ -157,11 +156,11 @@ into the file, like this::
 Currently the despotify backend is the default. If you want to use the
 libspotify backend, copy the Spotify application key to
 ``mopidy/spotify_appkey.key``, and add the following to
-``mopidy/mopidy/local_settings.py``::
+``mopidy/mopidy/settings/local.py``::
 
-    BACKEND = u'mopidy.backends.libspotify.LibspotifyBackend'
+    BACKENDS = (u'mopidy.backends.libspotify.LibspotifyBackend',)
 
-For a full list of available settings, see :mod:`mopidy.settings`.
+For a full list of available settings, see :mod:`mopidy.settings.default`.
 
 
 Running Mopidy
diff --git a/docs/settings.rst b/docs/settings.rst
index b449b247..7e67de50 100644
--- a/docs/settings.rst
+++ b/docs/settings.rst
@@ -2,7 +2,7 @@
 Settings
 ********
 
-.. automodule:: mopidy.settings
+.. automodule:: mopidy.settings.default
     :synopsis: Available settings and their default values.
     :members:
     :undoc-members:
diff --git a/mopidy/__init__.py b/mopidy/__init__.py
index 9cd068a6..0c54ab33 100644
--- a/mopidy/__init__.py
+++ b/mopidy/__init__.py
@@ -1,8 +1,8 @@
-from mopidy import settings
 from mopidy.exceptions import ConfigError
+from mopidy import settings
 
 def get_version():
-    return u'0'
+    return u'0.1.dev'
 
 def get_mpd_protocol_version():
     return u'0.15.0'
diff --git a/mopidy/settings/__init__.py b/mopidy/settings/__init__.py
new file mode 100644
index 00000000..58715fd0
--- /dev/null
+++ b/mopidy/settings/__init__.py
@@ -0,0 +1,6 @@
+from mopidy.settings.default import *
+
+try:
+    from mopidy.settings.local import *
+except ImportError:
+    pass
diff --git a/mopidy/settings.py b/mopidy/settings/default.py
similarity index 91%
rename from mopidy/settings.py
rename to mopidy/settings/default.py
index fc335ae3..e07bde02 100644
--- a/mopidy/settings.py
+++ b/mopidy/settings/default.py
@@ -4,7 +4,7 @@ Available settings and their default values.
 .. warning:: To users
 
     Do *not* change settings here. Instead, add a file called
-    ``mopidy/local_settings.py`` and redefine settings there.
+    ``mopidy/settings/local.py`` and redefine settings there.
 
 .. note:: To developers
 
@@ -47,8 +47,3 @@ SPOTIFY_USERNAME = u''
 
 #: Your Spotify Premium password. Used by all Spotify backends.
 SPOTIFY_PASSWORD = u''
-
-try:
-    from mopidy.local_settings import *
-except ImportError:
-    pass