diff --git a/build.gradle b/build.gradle
index 15fb205cf2d..43a24830b7c 100644
--- a/build.gradle
+++ b/build.gradle
@@ -14,7 +14,7 @@ buildscript {
 apply plugin: 'idea'
 
 ext {
-    grailsVersion = '2.0.4'
+    grailsVersion = '2.0.5.BUILD-SNAPSHOT'
     isBuildSnapshot = grailsVersion.endsWith(".BUILD-SNAPSHOT")
     antTraxVersion = "1.7.1"
     antVersion = "1.8.2"
diff --git a/build.properties b/build.properties
index 41e9f35458a..4d50be604b1 100644
--- a/build.properties
+++ b/build.properties
@@ -1,4 +1,4 @@
-grails.version=2.0.4
+grails.version=2.0.5.BUILD-SNAPSHOT
 
 # Bundlor dependency versions
 bundlor.javax.persistence.version=1.0.2.GA
diff --git a/grails-test-suite-uber/src/test/groovy/grails/util/GrailsUtilTests.java b/grails-test-suite-uber/src/test/groovy/grails/util/GrailsUtilTests.java
index 51029d65c2e..66a39e0f35f 100644
--- a/grails-test-suite-uber/src/test/groovy/grails/util/GrailsUtilTests.java
+++ b/grails-test-suite-uber/src/test/groovy/grails/util/GrailsUtilTests.java
@@ -35,7 +35,7 @@
 public class GrailsUtilTests extends TestCase {
 
     public void testGrailsVersion() {
-        assertEquals("2.0.4", GrailsUtil.getGrailsVersion());
+        assertEquals("2.0.5.BUILD-SNAPSHOT", GrailsUtil.getGrailsVersion());
     }
 
     @Override