diff --git a/VERSION b/VERSION
index 810ee4e91e..d3bdbdf1fd 100644
--- a/VERSION
+++ b/VERSION
@@ -1 +1 @@
-1.6
+1.7
diff --git a/lib/ansible/__init__.py b/lib/ansible/__init__.py
index 69fb825bda..7d01332c53 100644
--- a/lib/ansible/__init__.py
+++ b/lib/ansible/__init__.py
@@ -14,5 +14,5 @@
 #
 # You should have received a copy of the GNU General Public License
 # along with Ansible.  If not, see <http://www.gnu.org/licenses/>.
-__version__ = '1.6'
+__version__ = '1.7'
 __author__ = 'Michael DeHaan'