diff --git a/CHANGELOG.md b/CHANGELOG.md
index 9ebaa2f2..891b2684 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,8 @@
 ## Unreleased
 
+## 0.16.1
+- Enable gzip compression by default
+
 ## 0.16.0
 - Update OpenTelemetry dependencies to 0.16.0
 
diff --git a/VERSION b/VERSION
index 04a373ef..2a0970ca 100644
--- a/VERSION
+++ b/VERSION
@@ -1 +1 @@
-0.16.0
+0.16.1
diff --git a/launcher/version.go b/launcher/version.go
index ad030216..d0d64722 100644
--- a/launcher/version.go
+++ b/launcher/version.go
@@ -14,4 +14,4 @@
 
 package launcher
 
-const version = "0.16.0"
+const version = "0.16.1"