diff --git a/NEWS.rst b/NEWS.rst
index 6582033..93c4526 100644
--- a/NEWS.rst
+++ b/NEWS.rst
@@ -20,6 +20,13 @@
 along with Postorius. If not, see <http://www.gnu.org/licenses/>.
 
 
+1.0 alpha 2
+===========
+(2012-XX-XX)
+
+* dev setup fix for Django 1.4 contributed by Rohan Jain
+
+
 1.0 alpha 1 -- "Space Farm"
 ===========================
 (2012-03-23)
diff --git a/dev_setup/settings.py b/dev_setup/settings.py
index 93da6e9..1e86370 100644
--- a/dev_setup/settings.py
+++ b/dev_setup/settings.py
@@ -46,8 +46,12 @@
 
 MANAGERS = ADMINS
 
-DATABASE_ENGINE = 'sqlite3'
-DATABASE_NAME = os.path.join(PROJECT_PATH, 'mmtest.db')
+DATABASES = {
+    'default': {
+        'ENGINE': 'django.db.backends.sqlite3',
+        'NAME': 'mmtest.db'
+    }
+}
 
 # Local time zone for this installation. Choices can be found here:
 # http://en.wikipedia.org/wiki/List_of_tz_zones_by_name
@@ -85,8 +89,8 @@
 
 # List of callables that know how to import templates from various sources.
 TEMPLATE_LOADERS = (
-    'django.template.loaders.filesystem.load_template_source',
-    'django.template.loaders.app_directories.load_template_source',
+    'django.template.loaders.filesystem.Loader',
+    'django.template.loaders.app_directories.Loader',
 )
 
 AUTHENTICATION_BACKENDS = (
diff --git a/src/postorius/doc/news.rst b/src/postorius/doc/news.rst
index 81a30f2..328c5a2 100644
--- a/src/postorius/doc/news.rst
+++ b/src/postorius/doc/news.rst
@@ -20,6 +20,13 @@
 along with postorius. If not, see <http://www.gnu.org/licenses/>.
 
 
+1.0 alpha 2
+===========
+(2012-XX-XX)
+
+* dev setup fix for Django 1.4 contributed by Rohan Jain
+
+
 1.0 alpha 1 -- "Space Farm"
 ===========================
 (2012-03-23)