diff --git a/CHANGELOG.md b/CHANGELOG.md
index c5657636508..19ea421e2ec 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,3 +1,10 @@
+## 1.0.7 (November 17, 2010)
+
+Bugfixes:
+
+  - Remove Bundler version from the lockfile because it broke
+    backwards compatibility with 1.0.0-1.0.5. Sorry. :(
+
 ## 1.0.6 (November 16, 2010)
 
 Bugfixes:
diff --git a/lib/bundler/version.rb b/lib/bundler/version.rb
index 411cc9aba4a..069ac68978d 100644
--- a/lib/bundler/version.rb
+++ b/lib/bundler/version.rb
@@ -2,5 +2,5 @@ module Bundler
   # We're doing this because we might write tests that deal
   # with other versions of bundler and we are unsure how to
   # handle this better.
-  VERSION = "1.0.6" unless defined?(::Bundler::VERSION)
+  VERSION = "1.0.7" unless defined?(::Bundler::VERSION)
 end