diff --git a/Makefile b/Makefile
index 1ef2847c9c0b..217ebdb61df0 100644
--- a/Makefile
+++ b/Makefile
@@ -22,7 +22,7 @@ export KUBEBUILDER_CONTROLPLANE_START_TIMEOUT ?=60s
 export KUBEBUILDER_CONTROLPLANE_STOP_TIMEOUT ?=60s
 
 # Image URL to use all building/pushing image targets
-export CONTROLLER_IMG ?= gcr.io/k8s-cluster-api/cluster-api-controller:0.1.2
+export CONTROLLER_IMG ?= gcr.io/k8s-cluster-api/cluster-api-controller:0.1.3
 export EXAMPLE_PROVIDER_IMG ?= gcr.io/k8s-cluster-api/example-provider-controller:latest
 
 all: test manager clusterctl
diff --git a/config/default/manager_image_patch.yaml b/config/default/manager_image_patch.yaml
index b7be6a74950b..b01ec581b74c 100644
--- a/config/default/manager_image_patch.yaml
+++ b/config/default/manager_image_patch.yaml
@@ -7,5 +7,5 @@ spec:
   template:
     spec:
       containers:
-      - image: gcr.io/k8s-cluster-api/cluster-api-controller:0.1.2
+      - image: gcr.io/k8s-cluster-api/cluster-api-controller:0.1.3
         name: manager