diff --git a/.pre-commit-config.yaml b/.pre-commit-config.yaml
index 59af3fc348..64e74445ac 100644
--- a/.pre-commit-config.yaml
+++ b/.pre-commit-config.yaml
@@ -1,6 +1,6 @@
 repos:
   - repo: https://github.com/charliermarsh/ruff-pre-commit
-    rev: v0.0.177
+    rev: v0.0.178
     hooks:
       - id: ruff
 
diff --git a/BREAKING_CHANGES.md b/BREAKING_CHANGES.md
new file mode 100644
index 0000000000..7cd8ca61e7
--- /dev/null
+++ b/BREAKING_CHANGES.md
@@ -0,0 +1,10 @@
+# Breaking Changes
+
+## 0.0.178
+
+### Configuration files are now resolved hierarchically ([#1190](https://github.com/charliermarsh/ruff/pull/1190))
+
+`pyproject.toml` files are now resolved hierarchically, such that for each Python file, we find
+the first `pyproject.toml` file in its path, and use that to determine its lint settings.
+
+See the [README](https://github.com/charliermarsh/ruff#pyprojecttoml-discovery) for more.
diff --git a/Cargo.lock b/Cargo.lock
index 638866184c..9686eb03eb 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -724,7 +724,7 @@ checksum = "0ce7134b9999ecaf8bcd65542e436736ef32ddca1b3e06094cb6ec5755203b80"
 
 [[package]]
 name = "flake8-to-ruff"
-version = "0.0.177-dev.0"
+version = "0.0.178-dev.0"
 dependencies = [
  "anyhow",
  "clap 4.0.29",
@@ -1827,7 +1827,7 @@ dependencies = [
 
 [[package]]
 name = "ruff"
-version = "0.0.177"
+version = "0.0.178"
 dependencies = [
  "annotate-snippets 0.9.1",
  "anyhow",
@@ -1881,7 +1881,7 @@ dependencies = [
 
 [[package]]
 name = "ruff_dev"
-version = "0.0.177"
+version = "0.0.178"
 dependencies = [
  "anyhow",
  "clap 4.0.29",
@@ -1899,7 +1899,7 @@ dependencies = [
 
 [[package]]
 name = "ruff_macros"
-version = "0.0.177"
+version = "0.0.178"
 dependencies = [
  "proc-macro2",
  "quote",
diff --git a/Cargo.toml b/Cargo.toml
index ac5594a310..293291747d 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -6,7 +6,7 @@ members = [
 
 [package]
 name = "ruff"
-version = "0.0.177"
+version = "0.0.178"
 edition = "2021"
 rust-version = "1.65.0"
 
@@ -42,7 +42,7 @@ quick-junit = { version = "0.3.2" }
 rayon = { version = "1.5.3" }
 regex = { version = "1.6.0" }
 ropey = { version = "1.5.0", features = ["cr_lines", "simd"], default-features = false }
-ruff_macros = { version = "0.0.177", path = "ruff_macros" }
+ruff_macros = { version = "0.0.178", path = "ruff_macros" }
 rustc-hash = { version = "1.1.0" }
 rustpython-ast = { features = ["unparse"], git = "https://github.com/RustPython/RustPython.git", rev = "2edd0d264c50c7807bcff03a52a6509e8b7f187f" }
 rustpython-common = { git = "https://github.com/RustPython/RustPython.git", rev = "2edd0d264c50c7807bcff03a52a6509e8b7f187f" }
diff --git a/README.md b/README.md
index 015c10cae8..b8868d9a81 100644
--- a/README.md
+++ b/README.md
@@ -155,7 +155,7 @@ Ruff also works with [pre-commit](https://pre-commit.com):
 ```yaml
 repos:
   - repo: https://github.com/charliermarsh/ruff-pre-commit
-    rev: v0.0.177
+    rev: v0.0.178
     hooks:
       - id: ruff
 ```
diff --git a/flake8_to_ruff/Cargo.lock b/flake8_to_ruff/Cargo.lock
index 2b1aaa7d19..70bbadf7a7 100644
--- a/flake8_to_ruff/Cargo.lock
+++ b/flake8_to_ruff/Cargo.lock
@@ -771,7 +771,7 @@ checksum = "0ce7134b9999ecaf8bcd65542e436736ef32ddca1b3e06094cb6ec5755203b80"
 
 [[package]]
 name = "flake8_to_ruff"
-version = "0.0.177"
+version = "0.0.178"
 dependencies = [
  "anyhow",
  "clap",
@@ -1975,7 +1975,7 @@ dependencies = [
 
 [[package]]
 name = "ruff"
-version = "0.0.177"
+version = "0.0.178"
 dependencies = [
  "anyhow",
  "bincode",
diff --git a/flake8_to_ruff/Cargo.toml b/flake8_to_ruff/Cargo.toml
index db543da554..a075f98572 100644
--- a/flake8_to_ruff/Cargo.toml
+++ b/flake8_to_ruff/Cargo.toml
@@ -1,6 +1,6 @@
 [package]
 name = "flake8-to-ruff"
-version = "0.0.177-dev.0"
+version = "0.0.178-dev.0"
 edition = "2021"
 
 [lib]
diff --git a/ruff_dev/Cargo.toml b/ruff_dev/Cargo.toml
index 8d27301471..8091856480 100644
--- a/ruff_dev/Cargo.toml
+++ b/ruff_dev/Cargo.toml
@@ -1,6 +1,6 @@
 [package]
 name = "ruff_dev"
-version = "0.0.177"
+version = "0.0.178"
 edition = "2021"
 
 [dependencies]
diff --git a/ruff_macros/Cargo.toml b/ruff_macros/Cargo.toml
index eb0ff9657a..f5b16bb61e 100644
--- a/ruff_macros/Cargo.toml
+++ b/ruff_macros/Cargo.toml
@@ -1,6 +1,6 @@
 [package]
 name = "ruff_macros"
-version = "0.0.177"
+version = "0.0.178"
 edition = "2021"
 
 [lib]