diff --git a/GITALY_SERVER_VERSION b/GITALY_SERVER_VERSION
index 8f0916f768f..a918a2aa18d 100644
--- a/GITALY_SERVER_VERSION
+++ b/GITALY_SERVER_VERSION
@@ -1 +1 @@
-0.5.0
+0.6.0
diff --git a/doc/administration/gitaly/index.md b/doc/administration/gitaly/index.md
index 30a4c08508d..2e22212ddde 100644
--- a/doc/administration/gitaly/index.md
+++ b/doc/administration/gitaly/index.md
@@ -2,7 +2,7 @@
 
 [Gitaly](https://gitlab.com/gitlab-org/gitlay) (introduced in GitLab
 9.0) is a service that provides high-level RPC access to Git
-repositories. As of GitLab 9.0 it is still an optional component with
+repositories. As of GitLab 9.1 it is still an optional component with
 limited scope.
 
 GitLab components that access Git repositories (gitlab-rails,
@@ -11,28 +11,26 @@ not have direct access to Gitaly.
 
 ## Configuring Gitaly
 
-The Gitaly service itself is configured via environment variables.
-These variables are documented [in the gitaly
+The Gitaly service itself is configured via a TOML configuration file.
+This file is documented [in the gitaly
 repository](https://gitlab.com/gitlab-org/gitaly/blob/master/doc/configuration/README.md).
 
-To change a Gitaly environment variable in Omnibus you can use
-`gitaly['env']` in `/etc/gitlab/gitlab.rb`. Changes will be applied
+To change a Gitaly setting in Omnibus you can use
+`gitaly['my_setting']` in `/etc/gitlab/gitlab.rb`. Changes will be applied
 when you run `gitlab-ctl reconfigure`.
 
 ```ruby
-gitaly['env'] = {
-  'GITALY_MY_VARIABLE' => 'value'
-}
+gitaly['prometheus_listen_addr'] = 'localhost:9236'
 ```
 
-To change a Gitaly environment variable in installations from source
-you can edit `/home/git/gitaly/env`.
+To change a Gitaly setting in installations from source you can edit
+`/home/git/gitaly/config.toml`.
 
-```shell
-GITALY_MY_VARIABLE='value'
+```toml
+prometheus_listen_addr = "localhost:9236"
 ```
 
-Changes to `/home/git/gitaly/env` are applied when you run `service
+Changes to `/home/git/gitaly/config.toml` are applied when you run `service
 gitlab restart`.
 
 ## Configuring GitLab to not use Gitaly
@@ -49,15 +47,15 @@ gitaly['enable'] = false
 ```
 
 In source installations, edit `/home/git/gitlab/config/gitlab.yml` and
-make sure `socket_path` in the `gitaly` section is commented out. This
-does not disable the Gitaly service; it only prevents it from being
-used.
+make sure `enabled` in the `gitaly` section is set to 'false'. This
+does not disable the Gitaly service in your init script; it only
+prevents it from being used.
 
 Apply the change with `service gitlab restart`.
 
 ```yaml
   gitaly:
-    # socket_path: tmp/sockets/private/gitlay.socket
+    enabled: false
 ```
 
 ## Disabling or enabling the Gitaly service
diff --git a/doc/install/installation.md b/doc/install/installation.md
index a2248a38435..5b72c2cce07 100644
--- a/doc/install/installation.md
+++ b/doc/install/installation.md
@@ -459,9 +459,9 @@ Make GitLab start on boot:
 
 ### Install Gitaly
 
-As of GitLab 9.0 Gitaly is an **optional** component. Its
-configuration is expected to change in GitLab 9.1. It is OK to wait
-with setting up Gitaly until you upgrade to GitLab 9.1 or later.
+As of GitLab 9.1 Gitaly is an **optional** component. Its
+configuration is still changing regularly. It is OK to wait
+with setting up Gitaly until you upgrade to GitLab 9.2 or later.
 
     # Fetch Gitaly source with Git and compile with Go
     sudo -u git -H bundle exec rake "gitlab:gitaly:install[/home/git/gitaly]" RAILS_ENV=production
@@ -471,9 +471,11 @@ with setting up Gitaly until you upgrade to GitLab 9.1 or later.
     sudo chown git /home/git/gitlab/tmp/sockets/private
 
     # Configure Gitaly
-    echo 'GITALY_SOCKET_PATH=/home/git/gitlab/tmp/sockets/private/gitaly.socket' | \
-      sudo -u git tee -a /home/git/gitaly/env
-
+    cd /home/git/gitaly
+    sudo -u git cp config.toml.example config.toml
+    # If you are using non-default settings you need to update config.toml
+    sudo -u git -H editor config.toml
+    
     # Enable Gitaly in the init script
     echo 'gitaly_enabled=true' | sudo tee -a /etc/default/gitlab
 
diff --git a/doc/update/9.0-to-9.1.md b/doc/update/9.0-to-9.1.md
index 53cddb3f290..ae983dea384 100644
--- a/doc/update/9.0-to-9.1.md
+++ b/doc/update/9.0-to-9.1.md
@@ -297,7 +297,10 @@ during your 9.1 upgrade **you can skip this step**.
 If you have not yet set up Gitaly then follow [Gitaly section of the installation
 guide](../install/installation.md#install-gitaly).
 
-If you installed Gitaly in GitLab 9.0 you need to make some changes in gitlab.yml.
+If you installed Gitaly in GitLab 9.0 you need to make some changes in
+gitlab.yml, and create a new config.toml file.
+
+#### Gitaly gitlab.yml changes
 
 Look for `socket_path:` the `gitaly:` section. Its value is usually
 `/home/git/gitlab/tmp/sockets/private/gitaly.socket`. Note what socket
@@ -318,6 +321,20 @@ the socket path, but with `unix:` in front.
 
 Each entry under `storages:` should use the same `gitaly_address`.
 
+#### Gitaly config.toml
+
+In GitLab 9.1 we are replacing environment variables in Gitaly with a
+TOML configuration file.
+
+```shell
+cd /home/git/gitaly
+
+sudo mv env env.old
+sudo -u git cp config.toml.example config.toml
+# If you are using custom repository storage paths they need to be in config.toml
+sudo -u git -H editor config.toml
+```
+
 ### 11. Start application
 
 ```bash
diff --git a/lib/gitlab/gitaly_client/ref.rb b/lib/gitlab/gitaly_client/ref.rb
index 4958d00c542..fcdf452d567 100644
--- a/lib/gitlab/gitaly_client/ref.rb
+++ b/lib/gitlab/gitaly_client/ref.rb
@@ -24,7 +24,7 @@ module Gitlab
       end
 
       def find_ref_name(commit_id, ref_prefix)
-        request   = Gitaly::FindRefNameRequest.new(
+        request = Gitaly::FindRefNameRequest.new(
           repository: @repository,
           commit_id: commit_id,
           prefix: ref_prefix
diff --git a/lib/support/init.d/gitlab b/lib/support/init.d/gitlab
index 09e121e5120..6e351365de0 100755
--- a/lib/support/init.d/gitlab
+++ b/lib/support/init.d/gitlab
@@ -326,8 +326,7 @@ start_gitlab() {
       echo "Gitaly is already running with pid $gapid, not restarting"
     else
       $app_root/bin/daemon_with_pidfile $gitaly_pid_path \
-        $app_root/bin/with_env $gitaly_dir/env \
-          $gitaly_dir/gitaly >> $gitaly_log 2>&1 &
+          $gitaly_dir/gitaly $gitaly_dir/config.toml >> $gitaly_log 2>&1 &
     fi
   fi