diff --git a/src/main/java/com/googlesource/gerrit/plugins/multisite/event/EventModule.java b/src/main/java/com/googlesource/gerrit/plugins/multisite/event/EventModule.java
index 8889935..1c0c644 100644
--- a/src/main/java/com/googlesource/gerrit/plugins/multisite/event/EventModule.java
+++ b/src/main/java/com/googlesource/gerrit/plugins/multisite/event/EventModule.java
@@ -17,6 +17,7 @@
 import com.google.gerrit.extensions.registration.DynamicSet;
 import com.google.gerrit.lifecycle.LifecycleModule;
 import com.google.gerrit.server.events.EventListener;
+import com.googlesource.gerrit.plugins.multisite.validation.ProjectVersionRefUpdate;
 import java.util.concurrent.Executor;
 
 public class EventModule extends LifecycleModule {
@@ -26,5 +27,6 @@
     bind(Executor.class).annotatedWith(EventExecutor.class).toProvider(EventExecutorProvider.class);
     listener().to(EventExecutorProvider.class);
     DynamicSet.bind(binder(), EventListener.class).to(EventHandler.class);
+    DynamicSet.bind(binder(), EventListener.class).to(ProjectVersionRefUpdate.class);
   }
 }
diff --git a/src/main/java/com/googlesource/gerrit/plugins/multisite/validation/ProjectVersionRefUpdate.java b/src/main/java/com/googlesource/gerrit/plugins/multisite/validation/ProjectVersionRefUpdate.java
new file mode 100644
index 0000000..a4866ea
--- /dev/null
+++ b/src/main/java/com/googlesource/gerrit/plugins/multisite/validation/ProjectVersionRefUpdate.java
@@ -0,0 +1,235 @@
+// Copyright (C) 2020 The Android Open Source Project
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+// http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+package com.googlesource.gerrit.plugins.multisite.validation;
+
+import static java.nio.charset.StandardCharsets.UTF_8;
+import static org.eclipse.jgit.lib.Constants.OBJ_BLOB;
+
+import com.gerritforge.gerrit.globalrefdb.GlobalRefDbSystemError;
+import com.google.common.collect.ImmutableSet;
+import com.google.common.flogger.FluentLogger;
+import com.google.gerrit.reviewdb.client.Project;
+import com.google.gerrit.server.events.Event;
+import com.google.gerrit.server.events.EventListener;
+import com.google.gerrit.server.events.RefUpdatedEvent;
+import com.google.gerrit.server.git.GitRepositoryManager;
+import com.google.inject.Inject;
+import com.googlesource.gerrit.plugins.multisite.SharedRefDatabaseWrapper;
+import com.googlesource.gerrit.plugins.multisite.forwarder.Context;
+import com.googlesource.gerrit.plugins.replication.RefReplicatedEvent;
+import java.io.IOException;
+import java.util.Set;
+import org.eclipse.jgit.lib.ObjectId;
+import org.eclipse.jgit.lib.ObjectIdRef;
+import org.eclipse.jgit.lib.ObjectInserter;
+import org.eclipse.jgit.lib.Ref;
+import org.eclipse.jgit.lib.RefUpdate;
+import org.eclipse.jgit.lib.Repository;
+import org.eclipse.jgit.revwalk.RevCommit;
+import org.eclipse.jgit.revwalk.RevWalk;
+import org.eclipse.jgit.transport.RemoteRefUpdate;
+
+public class ProjectVersionRefUpdate implements EventListener {
+  private static final FluentLogger logger = FluentLogger.forEnclosingClass();
+  public static final String MULTI_SITE_VERSIONING_REF = "refs/multi-site/version";
+  public static final String SEQUENCE_REF_PREFIX = "refs/sequences/";
+  private static final Ref NULL_PROJECT_VERSION_REF =
+      new ObjectIdRef.Unpeeled(Ref.Storage.NETWORK, MULTI_SITE_VERSIONING_REF, ObjectId.zeroId());
+  private static final Set<RefUpdate.Result> SUCCESSFUL_RESULTS =
+      ImmutableSet.of(RefUpdate.Result.NEW, RefUpdate.Result.FORCED, RefUpdate.Result.NO_CHANGE);
+
+  protected final SharedRefDatabaseWrapper sharedRefDb;
+  private final GitRepositoryManager gitRepositoryManager;
+
+  @Inject
+  public ProjectVersionRefUpdate(
+      GitRepositoryManager gitRepositoryManager, SharedRefDatabaseWrapper sharedRefDb) {
+    this.gitRepositoryManager = gitRepositoryManager;
+    this.sharedRefDb = sharedRefDb;
+  }
+
+  @Override
+  public void onEvent(Event event) {
+    logger.atFine().log("Processing event type: " + event.type);
+    // Producer of the Event use RefUpdatedEvent to trigger the version update
+    if (!Context.isForwardedEvent() && event instanceof RefUpdatedEvent) {
+      updateProducerProjectVersionUpdate((RefUpdatedEvent) event);
+    }
+
+    // Consumers of the Event use RefReplicatedEvent to trigger the version update
+    if (Context.isForwardedEvent() && event instanceof RefReplicatedEvent) {
+      updateConsumerProjectVersion((RefReplicatedEvent) event);
+    }
+  }
+
+  private void updateConsumerProjectVersion(RefReplicatedEvent refReplicatedEvent) {
+    Project.NameKey projectNameKey = refReplicatedEvent.getProjectNameKey();
+    if (!refReplicatedEvent.refStatus.equals(RemoteRefUpdate.Status.OK)) {
+      logger.atFine().log(
+          String.format(
+              "Skipping version update for %s. RefReplicatedEvent failed with %s",
+              projectNameKey.get(), refReplicatedEvent.refStatus));
+      return;
+    }
+    if (refReplicatedEvent.getRefName().startsWith(SEQUENCE_REF_PREFIX)) {
+      logger.atFine().log("Found Sequence ref, skipping update for " + projectNameKey.get());
+      return;
+    }
+    try {
+      updateLocalProjectVersion(projectNameKey, refReplicatedEvent.getRefName());
+    } catch (LocalProjectVersionUpdateException e) {
+      logger.atSevere().withCause(e).log(
+          "Issue encountered when updating version for project " + projectNameKey);
+    }
+  }
+
+  private void updateProducerProjectVersionUpdate(RefUpdatedEvent refUpdatedEvent) {
+    if (refUpdatedEvent.getRefName().startsWith(SEQUENCE_REF_PREFIX)) {
+      logger.atFine().log(
+          "Found Sequence ref, skipping update for " + refUpdatedEvent.getProjectNameKey().get());
+      return;
+    }
+    try {
+      Project.NameKey projectNameKey = refUpdatedEvent.getProjectNameKey();
+      Ref currentProjectVersionRef = getLocalProjectVersionRef(refUpdatedEvent.getProjectNameKey());
+      ObjectId newProjectVersionObjectId =
+          updateLocalProjectVersion(projectNameKey, refUpdatedEvent.getRefName());
+      updateSharedProjectVersion(
+          projectNameKey, currentProjectVersionRef, newProjectVersionObjectId);
+    } catch (LocalProjectVersionUpdateException | SharedProjectVersionUpdateException e) {
+      logger.atSevere().withCause(e).log(
+          "Issue encountered when updating version for project "
+              + refUpdatedEvent.getProjectNameKey());
+    }
+  }
+
+  private RefUpdate getProjectVersionRefUpdate(Repository repository, Long version)
+      throws IOException {
+    RefUpdate refUpdate = repository.getRefDatabase().newUpdate(MULTI_SITE_VERSIONING_REF, false);
+    refUpdate.setNewObjectId(getNewId(repository, version));
+    refUpdate.setForceUpdate(true);
+    return refUpdate;
+  }
+
+  private ObjectId getNewId(Repository repository, Long version) throws IOException {
+    ObjectInserter ins = repository.newObjectInserter();
+    ObjectId newId = ins.insert(OBJ_BLOB, Long.toString(version).getBytes(UTF_8));
+    ins.flush();
+    return newId;
+  }
+
+  private Ref getLocalProjectVersionRef(Project.NameKey projectNameKey)
+      throws LocalProjectVersionUpdateException {
+    try (Repository repository = gitRepositoryManager.openRepository(projectNameKey)) {
+      Ref ref = repository.findRef(MULTI_SITE_VERSIONING_REF);
+      return ref != null ? ref : NULL_PROJECT_VERSION_REF;
+    } catch (IOException e) {
+      String message =
+          String.format("Error while getting current version for %s", projectNameKey.get());
+      logger.atSevere().withCause(e).log(message);
+      throw new LocalProjectVersionUpdateException(message);
+    }
+  }
+
+  private Long getLastRefUpdatedTimestamp(Project.NameKey projectNameKey, String refName)
+      throws LocalProjectVersionUpdateException {
+    logger.atFine().log(
+        String.format(
+            "Getting last ref updated time for project %s, ref %s", projectNameKey.get(), refName));
+    try (Repository repository = gitRepositoryManager.openRepository(projectNameKey)) {
+      Ref ref = repository.findRef(refName);
+      try (RevWalk walk = new RevWalk(repository)) {
+        RevCommit commit = walk.parseCommit(ref.getObjectId());
+        return Integer.toUnsignedLong(commit.getCommitTime());
+      }
+    } catch (IOException ioe) {
+      String message =
+          String.format(
+              "Error while getting last ref updated time for project %s, ref %s",
+              projectNameKey.get(), refName);
+      logger.atSevere().withCause(ioe).log(message);
+      throw new LocalProjectVersionUpdateException(message);
+    }
+  }
+
+  private void updateSharedProjectVersion(
+      Project.NameKey projectNameKey, Ref currentRef, ObjectId newObjectId)
+      throws SharedProjectVersionUpdateException {
+    logger.atFine().log(
+        String.format(
+            "Updating shared project version for %s. Current value %s, new value: %s",
+            projectNameKey.get(), currentRef.getObjectId(), newObjectId));
+    try {
+      boolean success = sharedRefDb.compareAndPut(projectNameKey, currentRef, newObjectId);
+      String message =
+          String.format(
+              "Project version update failed for %s. Current value %s, new value: %s",
+              projectNameKey.get(), currentRef.getObjectId(), newObjectId);
+      if (!success) {
+        logger.atSevere().log(message);
+        throw new SharedProjectVersionUpdateException(message);
+      }
+    } catch (GlobalRefDbSystemError refDbSystemError) {
+      String message =
+          String.format(
+              "Error while updating shared project version for %s. Current value %s, new value: %s. Error: %s",
+              projectNameKey.get(),
+              currentRef.getObjectId(),
+              newObjectId,
+              refDbSystemError.getMessage());
+      logger.atSevere().withCause(refDbSystemError).log(message);
+      throw new SharedProjectVersionUpdateException(message);
+    }
+  }
+
+  private ObjectId updateLocalProjectVersion(Project.NameKey projectNameKey, String refName)
+      throws LocalProjectVersionUpdateException {
+    Long lastRefUpdatedTimestamp = getLastRefUpdatedTimestamp(projectNameKey, refName);
+    logger.atFine().log("Updating local version for project " + projectNameKey.get());
+    try (Repository repository = gitRepositoryManager.openRepository(projectNameKey)) {
+      RefUpdate refUpdate = getProjectVersionRefUpdate(repository, lastRefUpdatedTimestamp);
+      RefUpdate.Result result = refUpdate.update();
+      if (!isSuccessful(result)) {
+        String message =
+            String.format(
+                "RefUpdate failed with result %s for: project=%s, version=%d",
+                result.name(), projectNameKey.get(), lastRefUpdatedTimestamp);
+        logger.atSevere().log(message);
+        throw new LocalProjectVersionUpdateException(message);
+      }
+      return refUpdate.getNewObjectId();
+    } catch (IOException e) {
+      String message = "Cannot create versioning command for " + projectNameKey.get();
+      logger.atSevere().withCause(e).log(message);
+      throw new LocalProjectVersionUpdateException(message);
+    }
+  }
+
+  private Boolean isSuccessful(RefUpdate.Result result) {
+    return SUCCESSFUL_RESULTS.contains(result);
+  }
+
+  public static class LocalProjectVersionUpdateException extends Exception {
+    public LocalProjectVersionUpdateException(String projectName) {
+      super("Cannot update local project version of " + projectName);
+    }
+  }
+
+  public static class SharedProjectVersionUpdateException extends Exception {
+    public SharedProjectVersionUpdateException(String projectName) {
+      super("Cannot update shared project version of " + projectName);
+    }
+  }
+}
diff --git a/src/main/java/com/googlesource/gerrit/plugins/multisite/validation/RefUpdateValidator.java b/src/main/java/com/googlesource/gerrit/plugins/multisite/validation/RefUpdateValidator.java
index 1f87b77..b23b65a 100644
--- a/src/main/java/com/googlesource/gerrit/plugins/multisite/validation/RefUpdateValidator.java
+++ b/src/main/java/com/googlesource/gerrit/plugins/multisite/validation/RefUpdateValidator.java
@@ -86,7 +86,8 @@
   public RefUpdate.Result executeRefUpdate(
       RefUpdate refUpdate, NoParameterFunction<RefUpdate.Result> refUpdateFunction)
       throws IOException {
-    if (refEnforcement.getPolicy(projectName) == EnforcePolicy.IGNORED) {
+    if (isProjectVersionUpdate(refUpdate.getName())
+        || refEnforcement.getPolicy(projectName) == EnforcePolicy.IGNORED) {
       return refUpdateFunction.invoke();
     }
 
@@ -105,6 +106,13 @@
     return null;
   }
 
+  private Boolean isProjectVersionUpdate(String refName) {
+    Boolean isProjectVersionUpdate =
+        refName.equals(ProjectVersionRefUpdate.MULTI_SITE_VERSIONING_REF);
+    logger.atFine().log("Is project version update? " + isProjectVersionUpdate);
+    return isProjectVersionUpdate;
+  }
+
   private <T extends Throwable> void softFailBasedOnEnforcement(T e, EnforcePolicy policy)
       throws T {
     logger.atWarning().withCause(e).log(
@@ -257,7 +265,9 @@
 
     @Override
     public void close() {
-      elements.values().stream()
+      elements
+          .values()
+          .stream()
           .forEach(
               closeable -> {
                 try {
diff --git a/src/test/java/com/googlesource/gerrit/plugins/multisite/validation/ProjectVersionRefUpdateTest.java b/src/test/java/com/googlesource/gerrit/plugins/multisite/validation/ProjectVersionRefUpdateTest.java
new file mode 100644
index 0000000..ff1c31c
--- /dev/null
+++ b/src/test/java/com/googlesource/gerrit/plugins/multisite/validation/ProjectVersionRefUpdateTest.java
@@ -0,0 +1,187 @@
+// Copyright (C) 2020 The Android Open Source Project
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+// http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+package com.googlesource.gerrit.plugins.multisite.validation;
+
+import static com.google.common.truth.Truth.assertThat;
+import static org.mockito.ArgumentMatchers.any;
+import static org.mockito.Mockito.*;
+
+import com.google.gerrit.reviewdb.client.Project;
+import com.google.gerrit.server.events.RefUpdatedEvent;
+import com.google.gerrit.server.project.ProjectConfig;
+import com.google.gerrit.testing.InMemoryRepositoryManager;
+import com.google.gerrit.testing.InMemoryTestEnvironment;
+import com.google.inject.Inject;
+import com.googlesource.gerrit.plugins.multisite.SharedRefDatabaseWrapper;
+import com.googlesource.gerrit.plugins.multisite.forwarder.Context;
+import com.googlesource.gerrit.plugins.multisite.validation.dfsrefdb.RefFixture;
+import com.googlesource.gerrit.plugins.replication.RefReplicatedEvent;
+import com.googlesource.gerrit.plugins.replication.ReplicationState;
+import java.io.IOException;
+import java.nio.charset.StandardCharsets;
+import org.apache.commons.io.IOUtils;
+import org.eclipse.jgit.internal.storage.dfs.InMemoryRepository;
+import org.eclipse.jgit.junit.TestRepository;
+import org.eclipse.jgit.lib.ObjectId;
+import org.eclipse.jgit.lib.ObjectLoader;
+import org.eclipse.jgit.lib.Ref;
+import org.eclipse.jgit.revwalk.RevCommit;
+import org.eclipse.jgit.transport.RemoteRefUpdate;
+import org.junit.After;
+import org.junit.Before;
+import org.junit.Rule;
+import org.junit.Test;
+import org.junit.runner.RunWith;
+import org.mockito.Mock;
+import org.mockito.junit.MockitoJUnitRunner;
+
+@RunWith(MockitoJUnitRunner.class)
+public class ProjectVersionRefUpdateTest implements RefFixture {
+
+  @Rule public InMemoryTestEnvironment testEnvironment = new InMemoryTestEnvironment();
+
+  @Mock RefUpdatedEvent refUpdatedEvent;
+  @Mock SharedRefDatabaseWrapper sharedRefDb;
+
+  @Inject private ProjectConfig.Factory projectConfigFactory;
+  @Inject private InMemoryRepositoryManager repoManager;
+
+  private TestRepository<InMemoryRepository> repo;
+  private ProjectConfig project;
+  private RevCommit masterCommit;
+
+  @Before
+  public void setUp() throws Exception {
+    InMemoryRepository inMemoryRepo = repoManager.createRepository(A_TEST_PROJECT_NAME_KEY);
+    project = projectConfigFactory.create(A_TEST_PROJECT_NAME_KEY);
+    project.load(inMemoryRepo);
+    repo = new TestRepository<>(inMemoryRepo);
+    masterCommit = repo.branch("master").commit().create();
+  }
+
+  @After
+  public void tearDown() {
+    Context.unsetForwardedEvent();
+  }
+
+  @Test
+  public void producerShouldUpdateProjectVersionUponRefUpdatedEvent() throws IOException {
+    Context.setForwardedEvent(false);
+    when(sharedRefDb.compareAndPut(any(Project.NameKey.class), any(Ref.class), any(ObjectId.class)))
+        .thenReturn(true);
+    when(refUpdatedEvent.getProjectNameKey()).thenReturn(A_TEST_PROJECT_NAME_KEY);
+    when(refUpdatedEvent.getRefName()).thenReturn(A_TEST_REF_NAME);
+
+    new ProjectVersionRefUpdate(repoManager, sharedRefDb).onEvent(refUpdatedEvent);
+
+    Ref ref = repo.getRepository().findRef(ProjectVersionRefUpdate.MULTI_SITE_VERSIONING_REF);
+
+    verify(sharedRefDb, atMost(1))
+        .compareAndPut(any(Project.NameKey.class), any(Ref.class), any(ObjectId.class));
+
+    assertThat(ref).isNotNull();
+
+    ObjectLoader loader = repo.getRepository().open(ref.getObjectId());
+    String storedVersion = IOUtils.toString(loader.openStream(), StandardCharsets.UTF_8.name());
+    assertThat(Long.parseLong(storedVersion)).isEqualTo(masterCommit.getCommitTime());
+  }
+
+  @Test
+  public void producerShouldNotUpdateProjectVersionUponSequenceRefUpdatedEvent()
+      throws IOException {
+    Context.setForwardedEvent(false);
+    when(refUpdatedEvent.getProjectNameKey()).thenReturn(A_TEST_PROJECT_NAME_KEY);
+    when(refUpdatedEvent.getRefName()).thenReturn("refs/sequences/changes");
+
+    new ProjectVersionRefUpdate(repoManager, sharedRefDb).onEvent(refUpdatedEvent);
+
+    Ref ref = repo.getRepository().findRef(ProjectVersionRefUpdate.MULTI_SITE_VERSIONING_REF);
+    assertThat(ref).isNull();
+  }
+
+  @Test
+  public void shouldNotUpdateProjectVersionWhenProjectDoesntExist() throws IOException {
+    Context.setForwardedEvent(false);
+    when(refUpdatedEvent.getProjectNameKey())
+        .thenReturn(new Project.NameKey("aNonExistentProject"));
+    when(refUpdatedEvent.getRefName()).thenReturn(A_TEST_REF_NAME);
+
+    new ProjectVersionRefUpdate(repoManager, sharedRefDb).onEvent(refUpdatedEvent);
+
+    Ref ref = repo.getRepository().findRef(ProjectVersionRefUpdate.MULTI_SITE_VERSIONING_REF);
+    assertThat(ref).isNull();
+  }
+
+  @Test
+  public void consumerShouldUpdateProjectVersionUponRefReplicatedEvent() throws IOException {
+    Context.setForwardedEvent(true);
+    RefReplicatedEvent refReplicatedEvent =
+        new RefReplicatedEvent(
+            A_TEST_PROJECT_NAME,
+            A_TEST_REF_NAME,
+            "targetNode",
+            ReplicationState.RefPushResult.SUCCEEDED,
+            RemoteRefUpdate.Status.OK);
+
+    new ProjectVersionRefUpdate(repoManager, sharedRefDb).onEvent(refReplicatedEvent);
+
+    Ref ref = repo.getRepository().findRef(ProjectVersionRefUpdate.MULTI_SITE_VERSIONING_REF);
+    assertThat(ref).isNotNull();
+
+    verify(sharedRefDb, never())
+        .compareAndPut(any(Project.NameKey.class), any(Ref.class), any(ObjectId.class));
+
+    ObjectLoader loader = repo.getRepository().open(ref.getObjectId());
+    String storedVersion = IOUtils.toString(loader.openStream(), StandardCharsets.UTF_8.name());
+    assertThat(Long.parseLong(storedVersion))
+        .isEqualTo(Integer.toUnsignedLong(masterCommit.getCommitTime()));
+  }
+
+  @Test
+  public void consumerShouldNotUpdateProjectVersionUponFailedRefReplicatedEvent()
+      throws IOException {
+    Context.setForwardedEvent(true);
+    RefReplicatedEvent refReplicatedEvent =
+        new RefReplicatedEvent(
+            A_TEST_PROJECT_NAME,
+            A_TEST_REF_NAME,
+            "targetNode",
+            ReplicationState.RefPushResult.SUCCEEDED,
+            RemoteRefUpdate.Status.REJECTED_OTHER_REASON);
+
+    new ProjectVersionRefUpdate(repoManager, sharedRefDb).onEvent(refReplicatedEvent);
+
+    Ref ref = repo.getRepository().findRef(ProjectVersionRefUpdate.MULTI_SITE_VERSIONING_REF);
+    assertThat(ref).isNull();
+  }
+
+  @Test
+  public void consumerShouldNotUpdateProjectVersionUponSequenceRefReplicatedEvent()
+      throws IOException {
+    Context.setForwardedEvent(true);
+    RefReplicatedEvent refReplicatedEvent =
+        new RefReplicatedEvent(
+            A_TEST_PROJECT_NAME,
+            "refs/sequences/groups",
+            "targetNode",
+            ReplicationState.RefPushResult.SUCCEEDED,
+            RemoteRefUpdate.Status.OK);
+
+    new ProjectVersionRefUpdate(repoManager, sharedRefDb).onEvent(refReplicatedEvent);
+
+    Ref ref = repo.getRepository().findRef(ProjectVersionRefUpdate.MULTI_SITE_VERSIONING_REF);
+    assertThat(ref).isNull();
+  }
+}