diff --git a/.changeset/witty-lamps-laugh.md b/.changeset/witty-lamps-laugh.md
new file mode 100644
index 0000000000..1ca4f4e4dc
--- /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/backend/package.json b/packages/backend/package.json
index 4cfdc81c45..44544703d8 100644
--- a/packages/backend/package.json
+++ b/packages/backend/package.json
@@ -60,7 +60,7 @@
     "@octokit/rest": "^18.5.3",
     "azure-devops-node-api": "^11.0.1",
     "dockerode": "^3.3.1",
-    "example-app": "^0.2.62",
+    "example-app": "file:../app",
     "express": "^4.17.1",
     "express-promise-router": "^4.1.0",
     "express-prom-bundle": "^6.3.6",
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 96dc724a1e..2288b475a9 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'}}",
diff --git a/yarn.lock b/yarn.lock
index 5d684c26cc..ee92b9f917 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -11401,6 +11401,73 @@ evp_bytestokey@^1.0.0, evp_bytestokey@^1.0.3:
     md5.js "^1.3.4"
     safe-buffer "^5.1.1"
 
+"example-app@file:packages/app":
+  version "0.2.62"
+  dependencies:
+    "@backstage/app-defaults" "^0.1.5"
+    "@backstage/catalog-model" "^0.9.10"
+    "@backstage/cli" "^0.13.0"
+    "@backstage/core-app-api" "^0.5.1"
+    "@backstage/core-components" "^0.8.6"
+    "@backstage/core-plugin-api" "^0.6.0"
+    "@backstage/integration-react" "^0.1.19"
+    "@backstage/plugin-airbrake" "^0.1.1"
+    "@backstage/plugin-apache-airflow" "^0.1.4"
+    "@backstage/plugin-api-docs" "^0.7.0"
+    "@backstage/plugin-azure-devops" "^0.1.12"
+    "@backstage/plugin-badges" "^0.2.20"
+    "@backstage/plugin-catalog" "^0.7.10"
+    "@backstage/plugin-catalog-graph" "^0.2.8"
+    "@backstage/plugin-catalog-import" "^0.7.10"
+    "@backstage/plugin-catalog-react" "^0.6.12"
+    "@backstage/plugin-circleci" "^0.2.35"
+    "@backstage/plugin-cloudbuild" "^0.2.33"
+    "@backstage/plugin-code-coverage" "^0.1.23"
+    "@backstage/plugin-cost-insights" "^0.11.18"
+    "@backstage/plugin-explore" "^0.3.27"
+    "@backstage/plugin-gcp-projects" "^0.3.15"
+    "@backstage/plugin-github-actions" "^0.4.33"
+    "@backstage/plugin-gocd" "^0.1.2"
+    "@backstage/plugin-graphiql" "^0.2.28"
+    "@backstage/plugin-home" "^0.4.12"
+    "@backstage/plugin-jenkins" "^0.5.18"
+    "@backstage/plugin-kafka" "^0.2.26"
+    "@backstage/plugin-kubernetes" "^0.5.5"
+    "@backstage/plugin-lighthouse" "^0.2.35"
+    "@backstage/plugin-newrelic" "^0.3.14"
+    "@backstage/plugin-newrelic-dashboard" "^0.1.4"
+    "@backstage/plugin-org" "^0.4.0"
+    "@backstage/plugin-pagerduty" "0.3.23"
+    "@backstage/plugin-rollbar" "^0.3.24"
+    "@backstage/plugin-scaffolder" "^0.12.0"
+    "@backstage/plugin-search" "^0.6.0"
+    "@backstage/plugin-sentry" "^0.3.34"
+    "@backstage/plugin-shortcuts" "^0.1.20"
+    "@backstage/plugin-tech-insights" "^0.1.6"
+    "@backstage/plugin-tech-radar" "^0.5.3"
+    "@backstage/plugin-techdocs" "^0.13.1"
+    "@backstage/plugin-todo" "^0.1.20"
+    "@backstage/plugin-user-settings" "^0.3.17"
+    "@backstage/search-common" "^0.2.2"
+    "@backstage/theme" "^0.2.14"
+    "@material-ui/core" "^4.12.2"
+    "@material-ui/icons" "^4.9.1"
+    "@material-ui/lab" "4.0.0-alpha.57"
+    "@octokit/rest" "^18.5.3"
+    "@roadiehq/backstage-plugin-buildkite" "^1.3.4"
+    "@roadiehq/backstage-plugin-github-insights" "^1.4.2"
+    "@roadiehq/backstage-plugin-github-pull-requests" "^1.3.2"
+    "@roadiehq/backstage-plugin-travis-ci" "^1.3.2"
+    history "^5.0.0"
+    prop-types "^15.7.2"
+    react "^17.0.2"
+    react-dom "^17.0.2"
+    react-hot-loader "^4.13.0"
+    react-router "6.0.0-beta.0"
+    react-router-dom "6.0.0-beta.0"
+    react-use "^17.2.4"
+    zen-observable "^0.8.15"
+
 exec-sh@^0.3.2:
   version "0.3.4"
   resolved "https://registry.npmjs.org/exec-sh/-/exec-sh-0.3.4.tgz#3a018ceb526cc6f6df2bb504b2bfe8e3a4934ec5"