diff --git a/helm-chart/kuberay-apiserver/Chart.yaml b/helm-chart/kuberay-apiserver/Chart.yaml
index 46aa72f..e960c48 100644
--- a/helm-chart/kuberay-apiserver/Chart.yaml
+++ b/helm-chart/kuberay-apiserver/Chart.yaml
@@ -15,4 +15,4 @@ type: application
 # This is the chart version. This version number should be incremented each time you make changes
 # to the chart and its templates, including the app version.
 # Versions are expected to follow Semantic Versioning (https://semver.org/)
-version: 1.2.0-rc.0
+version: 1.2.0-rc.1
diff --git a/helm-chart/kuberay-apiserver/values.yaml b/helm-chart/kuberay-apiserver/values.yaml
index 3a789b3..d33e388 100644
--- a/helm-chart/kuberay-apiserver/values.yaml
+++ b/helm-chart/kuberay-apiserver/values.yaml
@@ -7,7 +7,7 @@ replicaCount: 1
 name: "kuberay-apiserver"
 image:
   repository: quay.io/kuberay/apiserver
-  tag: v1.2.0-rc.0
+  tag: v1.2.0-rc.1
   pullPolicy: IfNotPresent
 
 ## Install Default RBAC roles and bindings
diff --git a/helm-chart/kuberay-operator/Chart.yaml b/helm-chart/kuberay-operator/Chart.yaml
index aacbd9b..c0c1579 100644
--- a/helm-chart/kuberay-operator/Chart.yaml
+++ b/helm-chart/kuberay-operator/Chart.yaml
@@ -1,6 +1,6 @@
 apiVersion: v2
 description: A Helm chart for Kubernetes
 name: kuberay-operator
-version: 1.2.0-rc.0
+version: 1.2.0-rc.1
 icon: https://github.com/ray-project/ray/raw/master/doc/source/images/ray_header_logo.png
 type: application
diff --git a/helm-chart/kuberay-operator/templates/_helpers.tpl b/helm-chart/kuberay-operator/templates/_helpers.tpl
index b0187f5..beaea3d 100644
--- a/helm-chart/kuberay-operator/templates/_helpers.tpl
+++ b/helm-chart/kuberay-operator/templates/_helpers.tpl
@@ -177,6 +177,7 @@ rules:
   resources:
   - services/proxy
   verbs:
+  - create
   - get
   - patch
   - update
diff --git a/helm-chart/kuberay-operator/templates/deployment.yaml b/helm-chart/kuberay-operator/templates/deployment.yaml
index 32936fb..878a495 100644
--- a/helm-chart/kuberay-operator/templates/deployment.yaml
+++ b/helm-chart/kuberay-operator/templates/deployment.yaml
@@ -82,6 +82,9 @@ spec:
             {{- $argList = append $argList "--log-file-encoder" -}}
             {{- $argList = append $argList .Values.logging.fileEncoder -}}
             {{- end -}}
+            {{- if hasKey .Values "useKubernetesProxy" -}}
+            {{- $argList = append $argList (printf "--use-kubernetes-proxy=%t" .Values.useKubernetesProxy) -}}
+            {{- end -}}
             {{- if hasKey .Values "leaderElectionEnabled" -}}
             {{- $argList = append $argList (printf "--enable-leader-election=%t" .Values.leaderElectionEnabled) -}}
             {{- end -}}
diff --git a/helm-chart/kuberay-operator/values.yaml b/helm-chart/kuberay-operator/values.yaml
index 63aafc5..a49813d 100644
--- a/helm-chart/kuberay-operator/values.yaml
+++ b/helm-chart/kuberay-operator/values.yaml
@@ -4,7 +4,7 @@
 
 image:
   repository: quay.io/kuberay/operator
-  tag: v1.2.0-rc.0
+  tag: v1.2.0-rc.1
   pullPolicy: IfNotPresent
 
 nameOverride: "kuberay-operator"
@@ -78,6 +78,9 @@ securityContext:
   seccompProfile:
     type: RuntimeDefault
 
+# if userKubernetesProxy is set to true, the KubeRay operator will be configured with the --use-kubernetes-proxy flag.
+# Using this option to configure kuberay-operator to comunitcate to Ray head pods by proxying through the Kubernetes API Server.
+# useKubernetesProxy: true
 
 # If leaderElectionEnabled is set to true, the KubeRay operator will use leader election for high availability.
 leaderElectionEnabled: true
diff --git a/helm-chart/ray-cluster/Chart.yaml b/helm-chart/ray-cluster/Chart.yaml
index 5c2976c..06d29a9 100644
--- a/helm-chart/ray-cluster/Chart.yaml
+++ b/helm-chart/ray-cluster/Chart.yaml
@@ -1,5 +1,5 @@
 apiVersion: v1
 description: A Helm chart for Kubernetes
 name: ray-cluster
-version: 1.2.0-rc.0
+version: 1.2.0-rc.1
 icon: https://github.com/ray-project/ray/raw/master/doc/source/images/ray_header_logo.png