diff --git a/rhodecode/__init__.py b/rhodecode/__init__.py
--- a/rhodecode/__init__.py
+++ b/rhodecode/__init__.py
@@ -27,9 +27,9 @@
 # MA  02110-1301, USA.
 
 
-VERSION = (1, 1, 0, 'beta')
+VERSION = (1, 2, 0, 'beta')
 __version__ = '.'.join((str(each) for each in VERSION[:4]))
-__dbversion__ = 2 #defines current db version for migrations
+__dbversion__ = 3 #defines current db version for migrations
 
 try:
     from rhodecode.lib.utils import get_current_revision