diff --git a/CHANGELOG.md b/CHANGELOG.md
index cd99bca8..77310e22 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,12 @@
 # Changelog
 
+## 0.3.1
+
+**Release date:** 2021-01-18
+
+This prerelease comes with updates to Kubernetes and Kustomize dependencies.
+The Kubernetes packages were updated to v1.20.2 and kyaml to v0.10.6.
+
 ## 0.3.0
 
 **Release date:** 2021-01-15
diff --git a/config/manager/kustomization.yaml b/config/manager/kustomization.yaml
index e69fd76f..7c76213c 100644
--- a/config/manager/kustomization.yaml
+++ b/config/manager/kustomization.yaml
@@ -5,4 +5,4 @@ resources:
 images:
 - name: fluxcd/image-automation-controller
   newName: fluxcd/image-automation-controller
-  newTag: v0.3.0
+  newTag: v0.3.1
diff --git a/go.mod b/go.mod
index 1fd47632..6adf1c74 100644
--- a/go.mod
+++ b/go.mod
@@ -8,7 +8,7 @@ replace github.com/fluxcd/image-automation-controller/api => ./api
 replace gopkg.in/yaml.v3 => gopkg.in/yaml.v3 v3.0.0-20200313102051-9f266ea9e77c
 
 require (
-	github.com/fluxcd/image-automation-controller/api v0.3.0
+	github.com/fluxcd/image-automation-controller/api v0.3.1
 	github.com/fluxcd/image-reflector-controller/api v0.3.0
 	github.com/fluxcd/pkg/apis/meta v0.6.0
 	github.com/fluxcd/pkg/gittestserver v0.1.0