diff --git a/Makefile b/Makefile
index 2550604a..3ce72d53 100644
--- a/Makefile
+++ b/Makefile
@@ -6,7 +6,7 @@
 VERSION ?= 3.11.1
 # Replaces Operator version
 # Set this when when there is a new patch release in the channel.
-REPLACES_VERSION ?= none
+REPLACES_VERSION ?= 0.2.6
 
 LOCAL_BIN ?= $(PWD)/ci-tools/bin
 export PATH := $(LOCAL_BIN):$(PATH)
@@ -307,11 +307,11 @@ bundle: operator-sdk manifests kustomize ## Generate bundle manifests and metada
 	$(SED) -i 's/^  version:.*/  version: "$(VERSION)"/' bundle/manifests/gatekeeper-operator.clusterserviceversion.yaml
 	$(SED) -i '/^    createdAt:.*/d' bundle/manifests/gatekeeper-operator.clusterserviceversion.yaml
 	$(SED) -i 's/$(CHANNELS)/"$(CHANNELS)"/g' bundle/metadata/annotations.yaml
+	$(SED) -i 's/^    olm.skipRange:.*/    olm.skipRange: "<$(shell echo $(VERSION) | cut -d '.' -f 1-2).0"/' bundle/manifests/gatekeeper-operator.clusterserviceversion.yaml
   ifneq ($(REPLACES_VERSION), none)
 	  $(SED) -i 's/^  replaces:.*/  replaces: gatekeeper-operator.v$(REPLACES_VERSION)/' bundle/manifests/gatekeeper-operator.clusterserviceversion.yaml
   else
 	  $(SED) -i 's/^  replaces:.*/  # replaces: none/' bundle/manifests/gatekeeper-operator.clusterserviceversion.yaml
-	  $(SED) -i 's/^    olm.skipRange:.*/    olm.skipRange: "<$(VERSION)"/' bundle/manifests/gatekeeper-operator.clusterserviceversion.yaml
   endif
 	$(OPERATOR_SDK) bundle validate ./bundle
 
diff --git a/bundle/manifests/gatekeeper-operator.clusterserviceversion.yaml b/bundle/manifests/gatekeeper-operator.clusterserviceversion.yaml
index 6603792c..da5d808b 100644
--- a/bundle/manifests/gatekeeper-operator.clusterserviceversion.yaml
+++ b/bundle/manifests/gatekeeper-operator.clusterserviceversion.yaml
@@ -16,7 +16,7 @@ metadata:
         }
       ]
     capabilities: Basic Install
-    olm.skipRange: "<3.11.1"
+    olm.skipRange: "<3.11.0"
     operators.operatorframework.io/builder: operator-sdk-v1.31.0
     operators.operatorframework.io/project_layout: go.kubebuilder.io/v3
   name: gatekeeper-operator.v3.11.1
@@ -516,5 +516,5 @@ spec:
   relatedImages:
   - image: openpolicyagent/gatekeeper:v3.11.1
     name: gatekeeper
-  # replaces: none
+  replaces: gatekeeper-operator.v0.2.6
   version: "3.11.1"