diff --git a/.changeset/witty-lamps-laugh.md b/.changeset/witty-lamps-laugh.md
new file mode 100644
index 0000000000000..1ca4f4e4dc183
--- /dev/null
+++ b/.changeset/witty-lamps-laugh.md
@@ -0,0 +1,13 @@
+---
+'@backstage/create-app': patch
+---
+
+Switched the `app` dependency in the backend to use a file target rather than version.
+
+To apply this change to an existing app, make the following change to `packages/backend/package.json`:
+
+```diff
+   "dependencies": {
+-    "app": "0.0.0",
++    "app": "file:../app",
+```
diff --git a/packages/create-app/templates/default-app/packages/backend/package.json.hbs b/packages/create-app/templates/default-app/packages/backend/package.json.hbs
index 96dc724a1e8f7..2288b475a9827 100644
--- a/packages/create-app/templates/default-app/packages/backend/package.json.hbs
+++ b/packages/create-app/templates/default-app/packages/backend/package.json.hbs
@@ -14,7 +14,7 @@
     "migrate:create": "knex migrate:make -x ts"
   },
   "dependencies": {
-    "app": "0.0.0",
+    "app": "file:../app",
     "@backstage/backend-common": "^{{version '@backstage/backend-common'}}",
     "@backstage/backend-tasks": "^{{version '@backstage/backend-tasks'}}",
     "@backstage/catalog-model": "^{{version '@backstage/catalog-model'}}",