diff --git a/setup.py b/setup.py
index 6757414aa0b02..60cf6fcdec21f 100644
--- a/setup.py
+++ b/setup.py
@@ -21,7 +21,7 @@
 
 GRPC_EXTRAS = [
     'grpcio >= 0.14.0',
-    'google-gax >= 0.11.0',
+    'google-gax >= 0.12.0',
     'gax-google-pubsub-v1',
 ]
 
diff --git a/tox.ini b/tox.ini
index 1936e43c354c2..4d01e63b5d723 100644
--- a/tox.ini
+++ b/tox.ini
@@ -24,7 +24,7 @@ covercmd =
 [grpc]
 deps =
     grpcio >= 0.14.0
-    google-gax >= 0.11.0
+    google-gax >= 0.12.0
     gax-google-pubsub-v1
 
 [testenv:py27]