diff --git a/CHANGELOG.md b/CHANGELOG.md
index d0681e8a..e9f466b3 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,6 +1,14 @@
 Change log
 ==========
 
+1.11.1 (2017-02-09)
+-------------------
+
+### Bugfixes
+
+- Fixed a bug where the 3.1 file format was not being recognized as valid
+  by the Compose parser
+
 1.11.0 (2017-02-08)
 -------------------
 
diff --git a/compose/__init__.py b/compose/__init__.py
index d7468af2..8caa1fd2 100644
--- a/compose/__init__.py
+++ b/compose/__init__.py
@@ -1,4 +1,4 @@
 from __future__ import absolute_import
 from __future__ import unicode_literals
 
-__version__ = '1.11.0'
+__version__ = '1.11.1'
diff --git a/compose/config/config.py b/compose/config/config.py
index ae85674b..09a717be 100644
--- a/compose/config/config.py
+++ b/compose/config/config.py
@@ -186,11 +186,6 @@ class ConfigFile(namedtuple('_ConfigFile', 'filename config')):
         if version == '3':
             version = V3_0
 
-        if version not in (V2_0, V2_1, V3_0):
-            raise ConfigurationError(
-                'Version in "{}" is unsupported. {}'
-                .format(self.filename, VERSION_EXPLANATION))
-
         return version
 
     def get_service(self, name):
@@ -479,7 +474,7 @@ def process_config_file(config_file, environment, service_name=None):
         'service',
         environment)
 
-    if config_file.version in (V2_0, V2_1, V3_0):
+    if config_file.version in (V2_0, V2_1, V3_0, V3_1):
         processed_config = dict(config_file.config)
         processed_config['services'] = services
         processed_config['volumes'] = interpolate_config_section(
@@ -495,7 +490,9 @@ def process_config_file(config_file, environment, service_name=None):
     elif config_file.version == V1:
         processed_config = services
     else:
-        raise Exception("Unsupported version: {}".format(repr(config_file.version)))
+        raise ConfigurationError(
+            'Version in "{}" is unsupported. {}'
+            .format(config_file.filename, VERSION_EXPLANATION))
 
     config_file = config_file._replace(config=processed_config)
     validate_against_config_schema(config_file)
diff --git a/docker-compose.spec b/docker-compose.spec
index ec5a2039..ef0e2593 100644
--- a/docker-compose.spec
+++ b/docker-compose.spec
@@ -37,6 +37,11 @@ exe = EXE(pyz,
                 'compose/config/config_schema_v3.0.json',
                 'DATA'
             ),
+            (
+                'compose/config/config_schema_v3.1.json',
+                'compose/config/config_schema_v3.1.json',
+                'DATA'
+            ),
             (
                 'compose/GITSHA',
                 'compose/GITSHA',
diff --git a/script/run/run.sh b/script/run/run.sh
index b45630f0..77ee0a01 100755
--- a/script/run/run.sh
+++ b/script/run/run.sh
@@ -15,7 +15,7 @@
 
 set -e
 
-VERSION="1.11.0"
+VERSION="1.11.1"
 IMAGE="docker/compose:$VERSION"
 
 
diff --git a/tests/unit/config/config_test.py b/tests/unit/config/config_test.py
index 666b21f2..ef57bb57 100644
--- a/tests/unit/config/config_test.py
+++ b/tests/unit/config/config_test.py
@@ -19,6 +19,7 @@ from compose.config.config import V1
 from compose.config.config import V2_0
 from compose.config.config import V2_1
 from compose.config.config import V3_0
+from compose.config.config import V3_1
 from compose.config.environment import Environment
 from compose.config.errors import ConfigurationError
 from compose.config.errors import VERSION_EXPLANATION
@@ -168,6 +169,9 @@ class ConfigTest(unittest.TestCase):
             cfg = config.load(build_config_details({'version': version}))
             assert cfg.version == V3_0
 
+        cfg = config.load(build_config_details({'version': '3.1'}))
+        assert cfg.version == V3_1
+
     def test_v1_file_version(self):
         cfg = config.load(build_config_details({'web': {'image': 'busybox'}}))
         assert cfg.version == V1