diff --git a/configure.ac b/configure.ac
index 148c1fd1..16440dfa 100644
--- a/configure.ac
+++ b/configure.ac
@@ -3,7 +3,7 @@ dnl
 dnl SEE RELEASE.md FOR INSTRUCTIONS ON HOW TO DO A RELEASE.
 dnl
 m4_define([year_version], [2021])
-m4_define([release_version], [2])
+m4_define([release_version], [3])
 m4_define([package_version], [year_version.release_version])
 AC_INIT([rpm-ostree], [package_version], [coreos@lists.fedoraproject.org])
 AC_CONFIG_HEADER([config.h])
diff --git a/packaging/rpm-ostree.spec.in b/packaging/rpm-ostree.spec.in
index a9748434..b0fcc62e 100644
--- a/packaging/rpm-ostree.spec.in
+++ b/packaging/rpm-ostree.spec.in
@@ -3,7 +3,7 @@
 
 Summary: Hybrid image/package system
 Name: rpm-ostree
-Version: 2021.2
+Version: 2021.3
 Release: 1%{?dist}
 License: LGPLv2+
 URL: https://github.com/coreos/rpm-ostree