diff --git a/gradle.properties b/gradle.properties
index 7062ba0724e..325a1d0056e 100644
--- a/gradle.properties
+++ b/gradle.properties
@@ -16,7 +16,7 @@
 group=org.apache.kafka
 # NOTE: When you change this version number, you should also make sure to update
 # the version numbers in tests/kafkatest/__init__.py and kafka-merge-pr.py.
-version=1.1.0-SNAPSHOT
+version=1.2.0-SNAPSHOT
 scalaVersion=2.11.12
 task=build
 org.gradle.jvmargs=-XX:MaxPermSize=512m -Xmx1024m -Xss2m
diff --git a/kafka-merge-pr.py b/kafka-merge-pr.py
index 90fcf22b810..02cf6e02a3c 100755
--- a/kafka-merge-pr.py
+++ b/kafka-merge-pr.py
@@ -70,7 +70,7 @@ TEMP_BRANCH_PREFIX = "PR_TOOL"
 
 DEV_BRANCH_NAME = "trunk"
 
-DEFAULT_FIX_VERSION = os.environ.get("DEFAULT_FIX_VERSION", "1.1.0")
+DEFAULT_FIX_VERSION = os.environ.get("DEFAULT_FIX_VERSION", "1.2.0")
 
 def get_json(url):
     try:
diff --git a/streams/quickstart/java/pom.xml b/streams/quickstart/java/pom.xml
index 70c14161e72..fed2bbc46a7 100644
--- a/streams/quickstart/java/pom.xml
+++ b/streams/quickstart/java/pom.xml
@@ -26,7 +26,7 @@
     <parent>
         <groupId>org.apache.kafka</groupId>
         <artifactId>streams-quickstart</artifactId>
-        <version>1.1.0-SNAPSHOT</version>
+        <version>1.2.0-SNAPSHOT</version>
         <relativePath>..</relativePath>
     </parent>
 
diff --git a/streams/quickstart/java/src/main/resources/archetype-resources/pom.xml b/streams/quickstart/java/src/main/resources/archetype-resources/pom.xml
index f2b8a8f2afe..6da81a76594 100644
--- a/streams/quickstart/java/src/main/resources/archetype-resources/pom.xml
+++ b/streams/quickstart/java/src/main/resources/archetype-resources/pom.xml
@@ -29,7 +29,7 @@
 
     <properties>
         <project.build.sourceEncoding>UTF-8</project.build.sourceEncoding>
-        <kafka.version>1.1.0-SNAPSHOT</kafka.version>
+        <kafka.version>1.2.0-SNAPSHOT</kafka.version>
         <slf4j.version>1.7.7</slf4j.version>
         <log4j.version>1.2.17</log4j.version>
     </properties>
diff --git a/streams/quickstart/pom.xml b/streams/quickstart/pom.xml
index d348e641b40..b14a9ab65f7 100644
--- a/streams/quickstart/pom.xml
+++ b/streams/quickstart/pom.xml
@@ -22,7 +22,7 @@
     <groupId>org.apache.kafka</groupId>
     <artifactId>streams-quickstart</artifactId>
     <packaging>pom</packaging>
-    <version>1.1.0-SNAPSHOT</version>
+    <version>1.2.0-SNAPSHOT</version>
 
     <name>Kafka Streams :: Quickstart</name>
 
diff --git a/tests/kafkatest/__init__.py b/tests/kafkatest/__init__.py
index 80824f91606..935f20d236f 100644
--- a/tests/kafkatest/__init__.py
+++ b/tests/kafkatest/__init__.py
@@ -22,4 +22,4 @@
 # Instead, in development branches, the version should have a suffix of the form ".devN"
 #
 # For example, when Kafka is at version 1.0.0-SNAPSHOT, this should be something like "1.0.0.dev0"
-__version__ = '1.1.0.dev0'
+__version__ = '1.2.0.dev0'