diff --git a/Makefile b/Makefile
index 0f950d7ef2..9ed6c74574 100644
--- a/Makefile
+++ b/Makefile
@@ -17,8 +17,8 @@ GIT_TREE_STATE=$(shell if [[ -z "`git status --porcelain`" ]]; then echo "clean"
 DOCKER_PUSH?=false
 DOCKER_BUILD_ARGS?=
 IMAGE_NAMESPACE?=quay.io/numaproj
-VERSION?=latest
-BASE_VERSION:=latest
+VERSION?=v1.2.0-rc1
+BASE_VERSION:=v1.2.0-rc1
 
 override LDFLAGS += \
   -X ${PACKAGE}.version=${VERSION} \
diff --git a/api/openapi-spec/swagger.json b/api/openapi-spec/swagger.json
index bb0db10138..09f6629172 100644
--- a/api/openapi-spec/swagger.json
+++ b/api/openapi-spec/swagger.json
@@ -2,7 +2,7 @@
   "swagger": "2.0",
   "info": {
     "title": "Numaflow",
-    "version": "latest"
+    "version": "v1.2.0-rc1"
   },
   "paths": {},
   "definitions": {
diff --git a/config/advanced-install/namespaced-controller-wo-crds.yaml b/config/advanced-install/namespaced-controller-wo-crds.yaml
index 41fb7acec6..f54abfe695 100644
--- a/config/advanced-install/namespaced-controller-wo-crds.yaml
+++ b/config/advanced-install/namespaced-controller-wo-crds.yaml
@@ -306,7 +306,7 @@ spec:
         - controller
         env:
         - name: NUMAFLOW_IMAGE
-          value: quay.io/numaproj/numaflow:latest
+          value: quay.io/numaproj/numaflow:v1.2.0-rc1
         - name: NAMESPACE
           valueFrom:
             fieldRef:
@@ -329,7 +329,7 @@ spec:
               key: controller.disable.leader.election
               name: numaflow-cmd-params-config
               optional: true
-        image: quay.io/numaproj/numaflow:latest
+        image: quay.io/numaproj/numaflow:v1.2.0-rc1
         imagePullPolicy: Always
         livenessProbe:
           httpGet:
diff --git a/config/advanced-install/namespaced-controller/kustomization.yaml b/config/advanced-install/namespaced-controller/kustomization.yaml
index 1b1a45fa61..278b5851e0 100644
--- a/config/advanced-install/namespaced-controller/kustomization.yaml
+++ b/config/advanced-install/namespaced-controller/kustomization.yaml
@@ -12,7 +12,7 @@ resources:
 
 images:
   - name: quay.io/numaproj/numaflow
-    newTag: latest
+    newTag: v1.2.0-rc1
 
 patchesStrategicMerge:
   # For release scripts
@@ -28,7 +28,7 @@ patchesStrategicMerge:
             - name: controller-manager
               env:
                 - name: NUMAFLOW_IMAGE
-                  value: quay.io/numaproj/numaflow:latest
+                  value: quay.io/numaproj/numaflow:v1.2.0-rc1
   - |
     apiVersion: v1
     kind: ConfigMap
diff --git a/config/advanced-install/namespaced-numaflow-server.yaml b/config/advanced-install/namespaced-numaflow-server.yaml
index cc56671591..7e35ef490b 100644
--- a/config/advanced-install/namespaced-numaflow-server.yaml
+++ b/config/advanced-install/namespaced-numaflow-server.yaml
@@ -247,7 +247,7 @@ spec:
               key: server.address
               name: numaflow-cmd-params-config
               optional: true
-        image: quay.io/numaproj/numaflow:latest
+        image: quay.io/numaproj/numaflow:v1.2.0-rc1
         imagePullPolicy: Always
         livenessProbe:
           httpGet:
@@ -283,7 +283,7 @@ spec:
               key: server.base.href
               name: numaflow-cmd-params-config
               optional: true
-        image: quay.io/numaproj/numaflow:latest
+        image: quay.io/numaproj/numaflow:v1.2.0-rc1
         imagePullPolicy: Always
         name: server-init
         volumeMounts:
@@ -296,7 +296,7 @@ spec:
           valueFrom:
             fieldRef:
               fieldPath: metadata.namespace
-        image: quay.io/numaproj/numaflow:latest
+        image: quay.io/numaproj/numaflow:v1.2.0-rc1
         imagePullPolicy: Always
         name: server-secrets-init
       securityContext:
diff --git a/config/advanced-install/namespaced-numaflow-server/kustomization.yaml b/config/advanced-install/namespaced-numaflow-server/kustomization.yaml
index 6ef9d6cefd..3e54b1eefc 100644
--- a/config/advanced-install/namespaced-numaflow-server/kustomization.yaml
+++ b/config/advanced-install/namespaced-numaflow-server/kustomization.yaml
@@ -12,7 +12,7 @@ resources:
 
 images:
   - name: quay.io/numaproj/numaflow
-    newTag: latest
+    newTag: v1.2.0-rc1
 
 patchesStrategicMerge:
   - |
diff --git a/config/advanced-install/numaflow-server.yaml b/config/advanced-install/numaflow-server.yaml
index 0ad97ef67e..4cb3c8eafb 100644
--- a/config/advanced-install/numaflow-server.yaml
+++ b/config/advanced-install/numaflow-server.yaml
@@ -258,7 +258,7 @@ spec:
               key: server.address
               name: numaflow-cmd-params-config
               optional: true
-        image: quay.io/numaproj/numaflow:latest
+        image: quay.io/numaproj/numaflow:v1.2.0-rc1
         imagePullPolicy: Always
         livenessProbe:
           httpGet:
@@ -294,7 +294,7 @@ spec:
               key: server.base.href
               name: numaflow-cmd-params-config
               optional: true
-        image: quay.io/numaproj/numaflow:latest
+        image: quay.io/numaproj/numaflow:v1.2.0-rc1
         imagePullPolicy: Always
         name: server-init
         volumeMounts:
@@ -307,7 +307,7 @@ spec:
           valueFrom:
             fieldRef:
               fieldPath: metadata.namespace
-        image: quay.io/numaproj/numaflow:latest
+        image: quay.io/numaproj/numaflow:v1.2.0-rc1
         imagePullPolicy: Always
         name: server-secrets-init
       securityContext:
diff --git a/config/advanced-install/numaflow-server/kustomization.yaml b/config/advanced-install/numaflow-server/kustomization.yaml
index 129e9ef931..ef2e6ea993 100644
--- a/config/advanced-install/numaflow-server/kustomization.yaml
+++ b/config/advanced-install/numaflow-server/kustomization.yaml
@@ -14,5 +14,5 @@ namespace: numaflow-system
 
 images:
   - name: quay.io/numaproj/numaflow
-    newTag: latest
+    newTag: v1.2.0-rc1
 
diff --git a/config/base/kustomization.yaml b/config/base/kustomization.yaml
index 25b140b60e..7bd9b1d7f5 100644
--- a/config/base/kustomization.yaml
+++ b/config/base/kustomization.yaml
@@ -10,7 +10,7 @@ resources:
 
 images:
   - name: quay.io/numaproj/numaflow
-    newTag: latest
+    newTag: v1.2.0-rc1
 
 patchesStrategicMerge:
   - |-
@@ -25,4 +25,4 @@ patchesStrategicMerge:
             - name: controller-manager
               env:
                 - name: NUMAFLOW_IMAGE
-                  value: quay.io/numaproj/numaflow:latest
+                  value: quay.io/numaproj/numaflow:v1.2.0-rc1
diff --git a/config/extensions/webhook/kustomization.yaml b/config/extensions/webhook/kustomization.yaml
index d0baf4140b..1127b1854d 100644
--- a/config/extensions/webhook/kustomization.yaml
+++ b/config/extensions/webhook/kustomization.yaml
@@ -11,5 +11,5 @@ namespace: numaflow-system
 
 images:
   - name: quay.io/numaproj/numaflow
-    newTag: latest
+    newTag: v1.2.0-rc1
 
diff --git a/config/install.yaml b/config/install.yaml
index 3ce65c0c17..a4b74153de 100644
--- a/config/install.yaml
+++ b/config/install.yaml
@@ -17362,7 +17362,7 @@ spec:
         - controller
         env:
         - name: NUMAFLOW_IMAGE
-          value: quay.io/numaproj/numaflow:latest
+          value: quay.io/numaproj/numaflow:v1.2.0-rc1
         - name: NAMESPACE
           valueFrom:
             fieldRef:
@@ -17385,7 +17385,7 @@ spec:
               key: controller.disable.leader.election
               name: numaflow-cmd-params-config
               optional: true
-        image: quay.io/numaproj/numaflow:latest
+        image: quay.io/numaproj/numaflow:v1.2.0-rc1
         imagePullPolicy: Always
         livenessProbe:
           httpGet:
@@ -17484,7 +17484,7 @@ spec:
               key: server.base.href
               name: numaflow-cmd-params-config
               optional: true
-        image: quay.io/numaproj/numaflow:latest
+        image: quay.io/numaproj/numaflow:v1.2.0-rc1
         imagePullPolicy: Always
         name: dex-init
         volumeMounts:
@@ -17582,7 +17582,7 @@ spec:
               key: server.address
               name: numaflow-cmd-params-config
               optional: true
-        image: quay.io/numaproj/numaflow:latest
+        image: quay.io/numaproj/numaflow:v1.2.0-rc1
         imagePullPolicy: Always
         livenessProbe:
           httpGet:
@@ -17618,7 +17618,7 @@ spec:
               key: server.base.href
               name: numaflow-cmd-params-config
               optional: true
-        image: quay.io/numaproj/numaflow:latest
+        image: quay.io/numaproj/numaflow:v1.2.0-rc1
         imagePullPolicy: Always
         name: server-init
         volumeMounts:
@@ -17631,7 +17631,7 @@ spec:
           valueFrom:
             fieldRef:
               fieldPath: metadata.namespace
-        image: quay.io/numaproj/numaflow:latest
+        image: quay.io/numaproj/numaflow:v1.2.0-rc1
         imagePullPolicy: Always
         name: server-secrets-init
       securityContext:
diff --git a/config/namespace-install.yaml b/config/namespace-install.yaml
index b937cffc03..e9b916a868 100644
--- a/config/namespace-install.yaml
+++ b/config/namespace-install.yaml
@@ -17256,7 +17256,7 @@ spec:
         - controller
         env:
         - name: NUMAFLOW_IMAGE
-          value: quay.io/numaproj/numaflow:latest
+          value: quay.io/numaproj/numaflow:v1.2.0-rc1
         - name: NAMESPACE
           valueFrom:
             fieldRef:
@@ -17279,7 +17279,7 @@ spec:
               key: controller.disable.leader.election
               name: numaflow-cmd-params-config
               optional: true
-        image: quay.io/numaproj/numaflow:latest
+        image: quay.io/numaproj/numaflow:v1.2.0-rc1
         imagePullPolicy: Always
         livenessProbe:
           httpGet:
@@ -17377,7 +17377,7 @@ spec:
               key: server.base.href
               name: numaflow-cmd-params-config
               optional: true
-        image: quay.io/numaproj/numaflow:latest
+        image: quay.io/numaproj/numaflow:v1.2.0-rc1
         imagePullPolicy: Always
         name: dex-init
         volumeMounts:
@@ -17474,7 +17474,7 @@ spec:
               key: server.address
               name: numaflow-cmd-params-config
               optional: true
-        image: quay.io/numaproj/numaflow:latest
+        image: quay.io/numaproj/numaflow:v1.2.0-rc1
         imagePullPolicy: Always
         livenessProbe:
           httpGet:
@@ -17510,7 +17510,7 @@ spec:
               key: server.base.href
               name: numaflow-cmd-params-config
               optional: true
-        image: quay.io/numaproj/numaflow:latest
+        image: quay.io/numaproj/numaflow:v1.2.0-rc1
         imagePullPolicy: Always
         name: server-init
         volumeMounts:
@@ -17523,7 +17523,7 @@ spec:
           valueFrom:
             fieldRef:
               fieldPath: metadata.namespace
-        image: quay.io/numaproj/numaflow:latest
+        image: quay.io/numaproj/numaflow:v1.2.0-rc1
         imagePullPolicy: Always
         name: server-secrets-init
       securityContext:
diff --git a/config/validating-webhook-install.yaml b/config/validating-webhook-install.yaml
index d018657882..8577858016 100644
--- a/config/validating-webhook-install.yaml
+++ b/config/validating-webhook-install.yaml
@@ -135,7 +135,7 @@ spec:
           value: numaflow-webhook
         - name: CLUSTER_ROLE_NAME
           value: numaflow-webhook
-        image: quay.io/numaproj/numaflow:latest
+        image: quay.io/numaproj/numaflow:v1.2.0-rc1
         imagePullPolicy: Always
         name: webhook
       serviceAccountName: numaflow-webhook-sa