diff --git a/RELEASING.md b/RELEASING.md
new file mode 100644
index 0000000..76978e2
--- /dev/null
+++ b/RELEASING.md
@@ -0,0 +1,47 @@
+Creating a release
+==================
+
+This file contains instructions for maintainers on how to release new versions of podman-compose.
+
+Step 1: Initialize variables for subsequent steps
+-------------------------------------------------
+
+```
+export VERSION=1.2.3
+```
+
+Step 2: Release notes PR
+------------------------
+
+Open a new branch (e.g. `release`) and run the following:
+
+```
+./scripts/make_release_notes.sh $VERSION
+```
+
+This collects the release notes using the `towncrier` tool and then commits the result.
+This step is done as a PR so that CI can check for spelling errors and similar issues.
+
+Certain file names are not properly supported by the `towncrier` tool and it ignores them.
+Check `newsfragments` directory for any forgotten release notes
+
+Step 3: Merge the release notes PR
+----------------------------------
+
+Step 4: Perform actual release
+------------------------------
+
+Pull the merge commit created on the `main` branch during the step 2.
+Then run:
+
+```
+./scripts/make_release.sh
+```
+
+This will create release commit, tag and push everything.
+
+Step 5: Create a release on Github
+----------------------------------
+
+The release notes must be added manually by drafting a release on the GitHub UI at
+https://github.com/containers/podman-compose/releases.
diff --git a/docs/Changelog-1.3.0.md b/docs/Changelog-1.3.0.md
new file mode 100644
index 0000000..f494765
--- /dev/null
+++ b/docs/Changelog-1.3.0.md
@@ -0,0 +1,38 @@
+Version 1.3.0 (2025-01-07)
+==========================
+
+Bug fixes
+---------
+
+- Fixed support for de-facto alternative `Dockerfile` names (e.g. `Containerfile`)
+- Fixed a bug that caused attempts to create already existing pods multiple times.
+- Fixed compatibility with docker-compose in how symlinks to docker-compose.yml are handled.
+- Fixed freeze caused by too long log lines without a newline.
+- Fixed support for `network_mode: none`.
+- Improved error detection by rejecting service definitions that contain both `network_mode` and
+  `networks` keys, which is not allowed.
+
+
+Features
+--------
+
+- Added support for build labels.
+- Added support for "platform" property in the build command.
+- Added support for "ssh" property in the build command.
+- Added support for cache_from and cache_to fields in build section.
+- Added support for honoring the condition in the depends_on section of the service, if stated.
+- Added `x-podman.no_hosts` setting to pass `--no-hosts` to podman run
+- Added support for compatibility with docker compose for default network behavior when no network
+  defined in service. This is controlled via `default_net_behavior_compat` feature flag.
+- Added a way to get compatibility of default network names with docker compose.
+  This is selected by setting `default_net_name_compat: true` on `x-podman` global dictionary.
+- Added support for the `device_cgroup_rules` property in services.
+- Added support for removing networks in `podman-compose down`.
+- Added support for network scoped service aliases.
+- Added support for network level `mac_address` attribute.
+- Added ability to substitute variables with the environment of the service.
+
+Misc
+----
+
+- Declared compatibility with Python 3.13.
diff --git a/newsfragments/978.bugfix b/newsfragments/978.bugfix
deleted file mode 100644
index 6b155a3..0000000
--- a/newsfragments/978.bugfix
+++ /dev/null
@@ -1 +0,0 @@
-Fixed support for de-facto alternative `Dockerfile` names (e.g. `Containerfile`)
diff --git a/newsfragments/build-labels.feature b/newsfragments/build-labels.feature
deleted file mode 100644
index a0c3afe..0000000
--- a/newsfragments/build-labels.feature
+++ /dev/null
@@ -1 +0,0 @@
-Added support for build labels.
diff --git a/newsfragments/build-platform.feature b/newsfragments/build-platform.feature
deleted file mode 100644
index d19de68..0000000
--- a/newsfragments/build-platform.feature
+++ /dev/null
@@ -1 +0,0 @@
-Added support for "platform" property in the build command.
diff --git a/newsfragments/build-ssh.feature b/newsfragments/build-ssh.feature
deleted file mode 100644
index d74711f..0000000
--- a/newsfragments/build-ssh.feature
+++ /dev/null
@@ -1 +0,0 @@
-Added support for "ssh" property in the build command.
diff --git a/newsfragments/cache-fields-support.feature b/newsfragments/cache-fields-support.feature
deleted file mode 100644
index 34a3c47..0000000
--- a/newsfragments/cache-fields-support.feature
+++ /dev/null
@@ -1 +0,0 @@
-Added support for cache_from and cache_to fields in build section.
diff --git a/newsfragments/check-if-pod-exists.bugfix b/newsfragments/check-if-pod-exists.bugfix
deleted file mode 100644
index 8c4a472..0000000
--- a/newsfragments/check-if-pod-exists.bugfix
+++ /dev/null
@@ -1 +0,0 @@
-Fixed a bug that caused attempts to create already existing pods multiple times.
diff --git a/newsfragments/conditional-dependencies.feature b/newsfragments/conditional-dependencies.feature
deleted file mode 100644
index 5e0b22a..0000000
--- a/newsfragments/conditional-dependencies.feature
+++ /dev/null
@@ -1 +0,0 @@
-Added support for honoring the condition in the depends_on section of the service, if stated.
diff --git a/newsfragments/container-no-hosts.feature b/newsfragments/container-no-hosts.feature
deleted file mode 100644
index 27125fb..0000000
--- a/newsfragments/container-no-hosts.feature
+++ /dev/null
@@ -1 +0,0 @@
-Add x-podman.no_hosts setting to pass --no-hosts to podman run
diff --git a/newsfragments/default_net_behavior_compat.feature b/newsfragments/default_net_behavior_compat.feature
deleted file mode 100644
index 133e996..0000000
--- a/newsfragments/default_net_behavior_compat.feature
+++ /dev/null
@@ -1,2 +0,0 @@
-Support docker-compose like default network behavior when no network defined in service via `default_net_behavior_compat` feature flag.
-
diff --git a/newsfragments/default_net_name_compat.feature b/newsfragments/default_net_name_compat.feature
deleted file mode 100644
index d64d527..0000000
--- a/newsfragments/default_net_name_compat.feature
+++ /dev/null
@@ -1 +0,0 @@
-Added a way to get compatibility of default network names with docker compose. This is selected by setting `default_net_name_compat: true` on `x-podman` global dictionary.
diff --git a/newsfragments/device_cgroup_rules.feature b/newsfragments/device_cgroup_rules.feature
deleted file mode 100644
index 66420d4..0000000
--- a/newsfragments/device_cgroup_rules.feature
+++ /dev/null
@@ -1 +0,0 @@
-Added support for the "device_cgroup_rules" property in services.
diff --git a/newsfragments/dont-resolve-links-to-compose-file.bugfix b/newsfragments/dont-resolve-links-to-compose-file.bugfix
deleted file mode 100644
index 6f36b83..0000000
--- a/newsfragments/dont-resolve-links-to-compose-file.bugfix
+++ /dev/null
@@ -1 +0,0 @@
-Fix compatibility with docker-compose in how symlinks to docker-compose.yml are handled.
diff --git a/newsfragments/down-removes-network.feature b/newsfragments/down-removes-network.feature
deleted file mode 100644
index 17ac9f0..0000000
--- a/newsfragments/down-removes-network.feature
+++ /dev/null
@@ -1 +0,0 @@
-podman-compose down removes networks.
diff --git a/newsfragments/long-log-lines.bugfix b/newsfragments/long-log-lines.bugfix
deleted file mode 100644
index c5f2c95..0000000
--- a/newsfragments/long-log-lines.bugfix
+++ /dev/null
@@ -1 +0,0 @@
-Fix freeze caused by too long log lines without a newline.
diff --git a/newsfragments/network-mode-none.bugfix b/newsfragments/network-mode-none.bugfix
deleted file mode 100644
index e1a7266..0000000
--- a/newsfragments/network-mode-none.bugfix
+++ /dev/null
@@ -1 +0,0 @@
-Fix support for `network_mode: none`.
diff --git a/newsfragments/network-scoped-aliases.feature b/newsfragments/network-scoped-aliases.feature
deleted file mode 100644
index 49058fe..0000000
--- a/newsfragments/network-scoped-aliases.feature
+++ /dev/null
@@ -1 +0,0 @@
-Support network scoped service aliases.
diff --git a/newsfragments/network_level_mac_address.feature b/newsfragments/network_level_mac_address.feature
deleted file mode 100644
index 2a4c69c..0000000
--- a/newsfragments/network_level_mac_address.feature
+++ /dev/null
@@ -1 +0,0 @@
-Support network level mac_address attribute.
diff --git a/newsfragments/network_mode_networks.bugfix b/newsfragments/network_mode_networks.bugfix
deleted file mode 100644
index 18ca32b..0000000
--- a/newsfragments/network_mode_networks.bugfix
+++ /dev/null
@@ -1,2 +0,0 @@
-Improved error detection by rejecting service definitions that contain both "network_mode" and
-"networks" keys, which is not allowed.
diff --git a/newsfragments/python313.misc b/newsfragments/python313.misc
deleted file mode 100644
index 452f2b5..0000000
--- a/newsfragments/python313.misc
+++ /dev/null
@@ -1 +0,0 @@
-Declared compatibility with Python 3.13.
diff --git a/newsfragments/substitution-with-service-environment.feature b/newsfragments/substitution-with-service-environment.feature
deleted file mode 100644
index 205d3f6..0000000
--- a/newsfragments/substitution-with-service-environment.feature
+++ /dev/null
@@ -1 +0,0 @@
-Add ability to substitute variables with the environment of the service.
diff --git a/pyproject.toml b/pyproject.toml
index b6a8360..282edfb 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -13,3 +13,43 @@ force-single-line = true
 [tool.ruff.format]
 preview = true # needed for quote-style
 quote-style = "preserve"
+
+[tool.towncrier]
+    package = "podman_compose"
+    package_dir = "master"
+    directory = "newsfragments"
+    filename = "docs/Changelog-new.md"
+    template = "scripts/Changelog-template.jinja"
+    title_format = "Version {version} ({project_date})"
+    [[tool.towncrier.section]]
+        path = ""
+
+    [[tool.towncrier.type]]
+        directory = "feature"
+        name = "Features"
+        showcontent = true
+
+    [[tool.towncrier.type]]
+        directory = "change"
+        name = "Changes"
+        showcontent = true
+
+    [[tool.towncrier.type]]
+        directory = "bugfix"
+        name = "Bug fixes"
+        showcontent = true
+
+    [[tool.towncrier.type]]
+        directory = "doc"
+        name = "Improved Documentation"
+        showcontent = true
+
+    [[tool.towncrier.type]]
+        directory = "removal"
+        name = "Deprecations and Removals"
+        showcontent = true
+
+    [[tool.towncrier.type]]
+        directory = "misc"
+        name = "Misc"
+        showcontent = true
diff --git a/scripts/Changelog-template.jinja b/scripts/Changelog-template.jinja
new file mode 100644
index 0000000..531adc6
--- /dev/null
+++ b/scripts/Changelog-template.jinja
@@ -0,0 +1,33 @@
+{% for section, _ in sections|dictsort(by='key') %}
+{% set underline = "-" %}
+{% if section %}
+{{section}}
+{{ underline * section|length }}{% set underline = "~" %}
+
+{% endif %}
+{% if sections[section] %}
+{% for category, val in definitions|dictsort if category in sections[section]%}
+
+{{ definitions[category]['name'] }}
+{{ underline * definitions[category]['name']|length }}
+
+{% for text, values in sections[section][category]|dictsort(by='value') %}
+- {{ text }}
+{% endfor %}
+
+{% if sections[section][category]|length == 0 %}
+
+No significant changes.
+
+
+{% else %}
+{% endif %}
+{% endfor %}
+{% else %}
+
+No significant changes.
+
+
+{% endif %}
+{% endfor %}
+(venv) p12@exec-desktop:~/cod
diff --git a/scripts/make_release.sh b/scripts/make_release.sh
index 507bbee..a6c6cec 100755
--- a/scripts/make_release.sh
+++ b/scripts/make_release.sh
@@ -1,6 +1,18 @@
-#!/usr/bin/env bash
-./scripts/uninstall.sh
-./scripts/clean_up.sh
-python3 setup.py register
-python3 setup.py sdist bdist_wheel
-twine upload dist/*
+#!/bin/bash
+
+set -e
+
+if [ $# -ne 1 ]; then
+    echo "Usage: make_release.sh VERSION"
+    exit 1
+fi
+
+VERSION=$1
+
+sed "s/__version__ = .*/__version__ = \"$VERSION\"/g" -i podman_compose.py
+git add podman_compose.py
+git commit -m "Release $VERSION"
+
+git tag "v$VERSION" -m "v$VERSION" -s
+
+git push ssh://github.com/containers/podman-compose main "v$VERSION"
diff --git a/scripts/make_release_notes.sh b/scripts/make_release_notes.sh
new file mode 100755
index 0000000..302161b
--- /dev/null
+++ b/scripts/make_release_notes.sh
@@ -0,0 +1,14 @@
+#!/bin/bash
+
+set -e
+
+if [ $# -ne 1 ]; then
+    echo "Usage: make_release_notes.sh VERSION"
+    exit 1
+fi
+
+VERSION=$1
+towncrier build --version "$VERSION" --yes
+git mv "docs/Changelog-new.md" "docs/Changelog-$VERSION.md"
+git add "newsfragments/"
+git commit -m "Release notes for $VERSION"
diff --git a/scripts/make_release_upload.sh b/scripts/make_release_upload.sh
new file mode 100755
index 0000000..507bbee
--- /dev/null
+++ b/scripts/make_release_upload.sh
@@ -0,0 +1,6 @@
+#!/usr/bin/env bash
+./scripts/uninstall.sh
+./scripts/clean_up.sh
+python3 setup.py register
+python3 setup.py sdist bdist_wheel
+twine upload dist/*