Note that Compose 1.7.0 requires Docker Engine 1.10.0 or later for version 2 of the Compose File format, and Docker Engine 1.9.1 or later for version 1.

If you're a Mac or Windows user, the Docker Toolbox will install Compose 1.7.0 for you, alongside the latest versions of Docker Engine, Machine and Kitematic.

Alternatively, you can use the usual commands to install or upgrade:

curl -L https://github.com/docker/compose/releases/download/1.7.0/docker-compose-`uname -s`-`uname -m` > /usr/local/bin/docker-compose
chmod +x /usr/local/bin/docker-compose

See the install docs for more install options and instructions.

Here's what's new:

Breaking Changes

• docker-compose logs no longer follows log output by default. It now
  matches the behaviour of docker logs and exits after the current logs
  are printed. Use -f to get the old default behaviour.
• Booleans are no longer allows as values for mappings in the Compose file
  (for keys environment, labels and extra_hosts). Previously this
  was a warning. Boolean values should be quoted so they become string values.

New Features

• Compose now looks for a .env file in the directory where it's run and
  reads any environment variables defined inside, if they're not already
  set in the shell environment. This lets you easily set defaults for
  variables used in the Compose file, or for any of the COMPOSE_* or
  DOCKER_* variables.
• Added a --remove-orphans flag to both docker-compose up and
  docker-compose down to remove containers for services that were removed
  from the Compose file.
• Added a --all flag to docker-compose rm to include containers created
  by docker-compose run. This will become the default behavior in the next
  version of Compose.
• Added support for all the same TLS configuration flags used by the docker
  client: --tls, --tlscert, --tlskey, etc.
• Compose files now support the tmpfs and shm_size options.
• Added the --workdir flag to docker-compose run
• docker-compose logs now shows logs for new containers that are created
  after it starts.
• The COMPOSE_FILE environment variable can now contain multiple files,
  separated by the host system's standard path separator (: on Mac/Linux,
  ; on Windows).
• You can now specify a static IP address when connecting a service to a
  network with the ipv4_address and ipv6_address options.
• Added --follow, --timestamp, and --tail flags to the
  docker-compose logs command.
• docker-compose up, and docker-compose start will now start containers
  in parallel where possible.
• docker-compose stop now stops containers in reverse dependency order
  instead of all at once.
• Added the --build flag to docker-compose up to force it to build a new
  image. It now shows a warning if an image is automatically built when the
  flag is not used.
• Added the docker-compose exec command for executing a process in a running
  container.

Bug Fixes

• docker-compose down now removes containers created by
  docker-compose run.
• A more appropriate error is shown when a timeout is hit during up when
  using a tty.
• Fixed a bug in docker-compose down where it would abort if some resources
  had already been removed.
• Fixed a bug where changes to network aliases would not trigger a service
  to be recreated.
• Fix a bug where a log message was printed about creating a new volume
  when it already existed.
• Fixed a bug where interrupting up would not always shut down containers.
• Fixed a bug where log_opt and log_driver were not properly carried over
  when extending services in the v1 Compose file format.
• Fixed a bug where empty values for build args would cause file validation
  to fail.

Thanks @aanand, @shin-, @londoncalling, @albers, @seguins, @IlyaSkriblovsky, @cr7pt0gr4ph7, @clkao, @nubs, @moxiegirl, @AvdN, @yograterol, @TomasTomecek, @simonvanderveldt, @richardbann, @michael-k, @ltiao, @JesusTinoco, @humitos, @graingert, @flowrx, @dbonev, @bfirsh