diff --git a/cluster/addons/dns/kube2sky/Changelog b/cluster/addons/dns/kube2sky/Changelog
index b93a874f84b..4075602aaa2 100644
--- a/cluster/addons/dns/kube2sky/Changelog
+++ b/cluster/addons/dns/kube2sky/Changelog
@@ -1,3 +1,7 @@
 * Fri May 15 2015  Tim Hockin <thockin@google.com>
   - First Changelog entry
   - Current version is 1.4
+
+
+## Version 1.7 (May 25 2015 Vishnu Kannan <vishnuk@google.com>)
+- Adding support for headless services. All pods backing a headless service is addressible via DNS RR.
diff --git a/cluster/addons/dns/kube2sky/Makefile b/cluster/addons/dns/kube2sky/Makefile
index fa1c8b71256..2f565bc0bb4 100644
--- a/cluster/addons/dns/kube2sky/Makefile
+++ b/cluster/addons/dns/kube2sky/Makefile
@@ -4,7 +4,7 @@
 
 .PHONY: all kube2sky container push clean test
 
-TAG = 1.6
+TAG = 1.7
 PREFIX = gcr.io/google_containers
 
 all: container
diff --git a/cluster/addons/dns/kube2sky/README.md b/cluster/addons/dns/kube2sky/README.md
index d8e3229392e..09867534d3e 100644
--- a/cluster/addons/dns/kube2sky/README.md
+++ b/cluster/addons/dns/kube2sky/README.md
@@ -21,8 +21,13 @@ example, if this is set to `kubernetes.io`, then a service named "nifty" in the
 
 `-verbose`: Log additional information.
 
-'-etcd_mutation_timeout': For how long the application will keep retrying etcd 
+`-etcd_mutation_timeout`: For how long the application will keep retrying etcd 
 mutation (insertion or removal of a dns entry) before giving up and crashing.
 
+`--etcd-server`: The etcd server that is being used by skydns.
+
+`--kube_master_url`: URL of kubernetes master. Reuired if `--kubecfg_file` is not set.
+
+`--kubecfg_file`: Path to kubecfg file that contains the master URL and tokens to authenticate with the master.
 
 [![Analytics](https://kubernetes-site.appspot.com/UA-36037335-10/GitHub/cluster/addons/dns/kube2sky/README.md?pixel)]()
diff --git a/cluster/addons/dns/skydns-rc.yaml.in b/cluster/addons/dns/skydns-rc.yaml.in
index d4fa2614053..32d08db49fd 100644
--- a/cluster/addons/dns/skydns-rc.yaml.in
+++ b/cluster/addons/dns/skydns-rc.yaml.in
@@ -30,7 +30,7 @@ spec:
         - -initial-cluster-token
         - skydns-etcd
       - name: kube2sky
-        image: gcr.io/google_containers/kube2sky:1.6
+        image: gcr.io/google_containers/kube2sky:1.7
         args:
         # command = "/kube2sky"
         - -domain={{ pillar['dns_domain'] }}