diff --git a/.github/workflows/test-oblt-cli-setup.yml b/.github/workflows/test-oblt-cli-setup.yml
index c3f3d0f9..6811f036 100644
--- a/.github/workflows/test-oblt-cli-setup.yml
+++ b/.github/workflows/test-oblt-cli-setup.yml
@@ -12,13 +12,73 @@ permissions:
 
 jobs:
   test:
+    needs:
+      - version
+      - version-file
+      - default-version
+    runs-on: ubuntu-latest
+    steps:
+      - id: check
+        uses: elastic/oblt-actions/check-dependent-jobs@v1
+        with:
+          jobs: ${{ toJSON(needs) }}
+      - run: ${{ steps.check.outputs.is-success }}
+
+  version:
+    runs-on: ubuntu-latest
+    steps:
+      - uses: actions/checkout@v4
+      - uses: ./oblt-cli/setup
+        with:
+          version: 7.2.2
+          github-token: ${{ secrets.OBLT_CLI_GITHUB_TOKEN }}
+      - name: Verify oblt-cli version
+        run: |
+          version=$(oblt-cli version 2>&1)
+          [[ "$version" == *"version 7.2.2"* ]]
+  version-file:
     runs-on: ubuntu-latest
     steps:
       - uses: actions/checkout@v4
+      - name: Setup version file
+        run: |
+          echo "7.2.5" > .oblt-cli-version
       - uses: ./oblt-cli/setup
         with:
           github-token: ${{ secrets.OBLT_CLI_GITHUB_TOKEN }}
+          version-file: .oblt-cli-version
+      - name: Verify oblt-cli version
+        run: |
+          version=$(oblt-cli version 2>&1)
+          [[ "$version" == *"version 7.2.5"* ]]
+  default-version:
+    runs-on: ubuntu-latest
+    steps:
+      - uses: actions/checkout@v4
+      - uses: ./oblt-cli/setup
+        with:
+          github-token: ${{ secrets.OBLT_CLI_GITHUB_TOKEN }}
+      - name: Verify oblt-cli version
+        run: |
+          oblt-cli version
+
+  tools-versions:
+    runs-on: ubuntu-latest
+    steps:
+      - uses: actions/checkout@v4
+      - name: Setup version file
+        run: |
+          cat <<EOF > .tool-versions
+          oblt-cli 7.2.5 # This is a comment that contains oblt-cli
+          # This is another comment that contains oblt-cli
+          ruby 2.5.3
+          nodejs 10.15.0
+          EOF
       - uses: ./oblt-cli/setup
         with:
           github-token: ${{ secrets.OBLT_CLI_GITHUB_TOKEN }}
-      - run: oblt-cli version
+          version-file: .tool-versions
+      - name: Verify oblt-cli version
+        run: |
+          version=$(oblt-cli version 2>&1)
+          [[ "$version" == *"version 7.2.5"* ]]
diff --git a/oblt-cli/setup/README.md b/oblt-cli/setup/README.md
index 14ccc920..df23d41a 100644
--- a/oblt-cli/setup/README.md
+++ b/oblt-cli/setup/README.md
@@ -9,12 +9,13 @@ Setup oblt-cli for use in GitHub Actions workflows.
 
 ## Inputs
 <!--inputs-->
-| Name            | Description                                                         | Required | Default            |
-|-----------------|---------------------------------------------------------------------|----------|--------------------|
-| `github-token`  | The GitHub access token.                                            | `true`   | ` `                |
-| `slack-channel` | The slack channel to notify the status.                             | `false`  | `#observablt-bots` |
-| `username`      | Username to show in the deployments with oblt-cli, format: [a-z0-9] | `false`  | `obltmachine`      |
-| `version`       | Install a specific version of oblt-cli                              | `false`  | `7.2.2`            |
+| Name            | Description                                                                                                                   | Required | Default            |
+|-----------------|-------------------------------------------------------------------------------------------------------------------------------|----------|--------------------|
+| `github-token`  | The GitHub access token.                                                                                                      | `true`   | ` `                |
+| `slack-channel` | The slack channel to notify the status.                                                                                       | `false`  | `#observablt-bots` |
+| `username`      | Username to show in the deployments with oblt-cli, format: [a-z0-9]                                                           | `false`  | `obltmachine`      |
+| `version`       | Install a specific version of oblt-cli                                                                                        | `false`  | `7.2.2`            |
+| `version-file`  | The file to read the version from. E.g. `.oblt-cli-version` or `.tool-versions`. This option takes precedence over `version`. | `false`  | ` `                |
 <!--/inputs-->
 
 ## Usage
diff --git a/oblt-cli/setup/action.yml b/oblt-cli/setup/action.yml
index 119feca3..742279b1 100644
--- a/oblt-cli/setup/action.yml
+++ b/oblt-cli/setup/action.yml
@@ -19,6 +19,9 @@ inputs:
     description: "Install a specific version of oblt-cli"
     default: "7.2.2"
     required: false
+  version-file:
+    description: "The file to read the version from. E.g. `.oblt-cli-version` or `.tool-versions`. This option takes precedence over `version`."
+    required: false
 
 runs:
   using: composite
@@ -28,6 +31,7 @@ runs:
       env:
         GH_TOKEN: ${{ inputs.github-token }}
         OBLT_CLI_VERSION: ${{ inputs.version }}
+        OBLT_CLI_VERSION_FILE: ${{ inputs.version-file }}
       shell: bash
     - name: Configure oblt-cli
       run: >
diff --git a/oblt-cli/setup/download.sh b/oblt-cli/setup/download.sh
index e7e2da6e..f43de5cf 100755
--- a/oblt-cli/setup/download.sh
+++ b/oblt-cli/setup/download.sh
@@ -29,6 +29,21 @@ else
   exit 1
 fi
 
+OBLT_CLI_VERSION_FILE=${OBLT_CLI_VERSION_FILE:-}
+
+if [[ -n "${OBLT_CLI_VERSION_FILE}" ]]; then
+  if [[ -f "${OBLT_CLI_VERSION_FILE}" ]]; then
+    if [[ "$(basename "$OBLT_CLI_VERSION_FILE")" == ".tool-versions" ]]; then
+      OBLT_CLI_VERSION=$(grep "^oblt-cli" "${OBLT_CLI_VERSION_FILE}" | awk '{ print $2 }')
+    else
+      OBLT_CLI_VERSION=$(< "${OBLT_CLI_VERSION_FILE}" tr -d '[:space:]')
+    fi
+  else
+    echo "[ERROR] ${OBLT_CLI_VERSION_FILE} file not found."
+    exit 1
+  fi
+fi
+
 # Downloads the latest release if OBLT_CLI_VERSION is not set
 gh release download "${OBLT_CLI_VERSION}" \
   --skip-existing \