We present release 2.0 of the ALPS (Algorithms and Libraries for Physics Simulations)project, an open source software project to develop libraries and application programs forthe simulation of strongly correlated quantum lattice models such as quantum magnets,lattice bosons, and strongly correlated fermion systems. The code development is centeredon common XML and HDF5 data formats, libraries to simplify and speed up codedevelopment, common evaluation and plotting tools, and simulation programs. Theprograms enable non-experts to start carrying out serial or parallel numerical simulationsby providing basic implementations of the important algorithms for quantum latticemodels: classical and quantum Monte Carlo (QMC) using non-local updates,extended ensemble simulations, exact and full diagonalization (ED), the densitymatrix renormalization group (DMRG) both in a static version and a dynamictime-evolving block decimation (TEBD) code, and quantum Monte Carlo solvers fordynamical mean field theory (DMFT). The ALPS libraries provide a powerfulframework for programmers to develop their own applications, which, for instance,greatly simplify the steps of porting a serial code onto a parallel, distributedmemory machine. Major changes in release 2.0 include the use of HDF5 for binarydata, evaluation tools in Python, support for the Windows operating system,the use of CMake as build system and binary installation packages for Mac OSX and Windows, and integration with the VisTrails workflow provenance tool.The software is available from our web server at http://alps.comp-phys.org/.