diff --git a/CHANGES.md b/CHANGES.md
index 277a188a3..78e629b89 100644
--- a/CHANGES.md
+++ b/CHANGES.md
@@ -1,6 +1,51 @@
 Change log
 ==========
 
+1.3.0 (2015-06-18)
+------------------
+
+Firstly, two important notes:
+
+- **This release contains breaking changes, and you will need to either remove or migrate your existing containers before running your app** - see the [upgrading section of the install docs](https://github.com/docker/compose/blob/1.3.0rc1/docs/install.md#upgrading) for details.
+
+- Compose now requires Docker 1.6.0 or later.
+
+We've done a lot of work in this release to remove hacks and make Compose more stable:
+
+- Compose now uses container labels, rather than names, to keep track of containers. This makes Compose both faster and easier to integrate with your own tools.
+
+- Compose no longer uses "intermediate containers" when recreating containers for a service. This makes `docker-compose up` less complex and more resilient to failure.
+
+There are some new features:
+
+- `docker-compose up` has an **experimental** new behaviour: it will only recreate containers for services whose configuration has changed in `docker-compose.yml`. This will eventually become the default, but for now you can take it for a spin:
+
+        $ docker-compose up --x-smart-recreate
+
+- When invoked in a subdirectory of a project, `docker-compose` will now climb up through parent directories until it finds a `docker-compose.yml`.
+
+Several new configuration keys have been added to `docker-compose.yml`:
+
+- `dockerfile`, like `docker build --file`, lets you specify an alternate Dockerfile to use with `build`.
+- `labels`, like `docker run --labels`, lets you add custom metadata to containers.
+- `extra_hosts`, like `docker run --add-host`, lets you add entries to a container's `/etc/hosts` file.
+- `pid: host`, like `docker run --pid=host`, lets you reuse the same PID namespace as the host machine.
+- `cpuset`, like `docker run --cpuset-cpus`, lets you specify which CPUs to allow execution in.
+- `read_only`, like `docker run --read-only`, lets you mount a container's filesystem as read-only.
+- `security_opt`, like `docker run --security-opt`, lets you specify [security options](https://docs.docker.com/reference/run/#security-configuration).
+- `log_driver`, like `docker run --log-driver`, lets you specify a [log driver](https://docs.docker.com/reference/run/#logging-drivers-log-driver).
+
+Many bugs have been fixed, including the following:
+
+- The output of `docker-compose run` was sometimes truncated, especially when running under Jenkins.
+- A service's volumes would sometimes not update after volume configuration was changed in `docker-compose.yml`.
+- Authenticating against third-party registries would sometimes fail.
+- `docker-compose run --rm` would fail to remove the container if the service had a `restart` policy in place.
+- `docker-compose scale` would refuse to scale a service beyond 1 container if it exposed a specific port number on the host.
+- Compose would refuse to create multiple volume entries with the same host path.
+
+Thanks @ahromis, @albers, @aleksandr-vin, @antoineco, @ccverak, @chernjie, @dnephin, @edmorley, @fordhurley, @josephpage, @KyleJamesWalker, @lsowen, @mchasal, @noironetworks, @sdake, @sdurrheimer, @sherter, @stephenlawrence, @thaJeztah, @thieman, @turtlemonvh, @twhiteman, @vdemeester, @xuxinkun and @zwily!
+
 1.2.0 (2015-04-16)
 ------------------
 
diff --git a/compose/__init__.py b/compose/__init__.py
index 045e79144..0d464ee86 100644
--- a/compose/__init__.py
+++ b/compose/__init__.py
@@ -1,3 +1,3 @@
 from __future__ import unicode_literals
 
-__version__ = '1.3.0dev'
+__version__ = '1.4.0dev'