diff --git a/VERSION.yml b/VERSION.yml
index 86c8e45b..5a846718 100644
--- a/VERSION.yml
+++ b/VERSION.yml
@@ -2,4 +2,4 @@
 :major: 0
 :minor: 10
 :patch: 4
-:build: pre.2
+:build: pre.3
diff --git a/doc-src/content/CHANGELOG.markdown b/doc-src/content/CHANGELOG.markdown
index 8ec601fb..6335b7a4 100644
--- a/doc-src/content/CHANGELOG.markdown
+++ b/doc-src/content/CHANGELOG.markdown
@@ -7,6 +7,10 @@ layout: article
 COMPASS CHANGELOG
 =================
 
+0.10.4.pre.3 (8/5/2010)
+-----------------------
+
+* [Rails] Fixed a bug introduced in 0.10.3 that caused rails applications using the old configuration file (config/compass.config) to break.
 
 0.10.4.pre.2 (8/5/2010)
 -----------------------