diff --git a/CHANGELOG.md b/CHANGELOG.md
index 3a92bf10a..558376855 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,6 +1,14 @@
 Change log
 ==========
 
+1.16.1 (2017-09-01)
+-------------------
+
+### Bugfixes
+
+- Fixed bug that prevented using `extra_hosts` in several configuration files.
+
+
 1.16.0 (2017-08-31)
 -------------------
 
diff --git a/compose/__init__.py b/compose/__init__.py
index 02c325eb8..2e41ca896 100644
--- a/compose/__init__.py
+++ b/compose/__init__.py
@@ -1,4 +1,4 @@
 from __future__ import absolute_import
 from __future__ import unicode_literals
 
-__version__ = '1.16.0'
+__version__ = '1.16.1'
diff --git a/script/run/run.sh b/script/run/run.sh
index bf9a26cb8..f1754d05a 100755
--- a/script/run/run.sh
+++ b/script/run/run.sh
@@ -15,7 +15,7 @@
 
 set -e
 
-VERSION="1.16.0"
+VERSION="1.16.1"
 IMAGE="docker/compose:$VERSION"