diff --git a/ChangeLog b/ChangeLog
index d2c9260..8b15f7f 100755
--- a/ChangeLog
+++ b/ChangeLog
@@ -4,6 +4,14 @@
         ========================
 
 
+2019-06-05
+
+        * Bug fix version 1.6.1 released
+        ================================
+
+        Fix initialisation script for c-shell (#2724)
+
+
 2019-05-29
 
         * Version 1.6.0 released
diff --git a/NEWS b/NEWS
index 84c993f..2fef2a0 100755
--- a/NEWS
+++ b/NEWS
@@ -1,6 +1,6 @@
 New Features and Important Changes in ctools 1.7.0
 
-29 May 2019
+5 June 2019
 
 
 Introduction
diff --git a/doc/source/admin/download.rst b/doc/source/admin/download.rst
index ef9b39c..3bd7fa7 100755
--- a/doc/source/admin/download.rst
+++ b/doc/source/admin/download.rst
@@ -3,7 +3,7 @@
 Download
 ========
 
-The latest ctools release is ``ctools-1.6.0`` (29 May 2019).
+The latest ctools release is ``ctools-1.6.1`` (5 June 2019).
 
 Below a table of ctools releases. Please read the :ref:`sec_release` to
 learn more about new features and corrected bugs in a given release.
@@ -23,6 +23,9 @@ learn more about new features and corrected bugs in a given release.
     * - ctools
       - gammalib
       - Mac OS X (10.7+) binary disk image
+    * - `1.6.1 <http://cta.irap.omp.eu/ctools/releases/ctools/ctools-1.6.1.tar.gz>`_
+      - `1.6.1 <http://cta.irap.omp.eu/ctools/releases/gammalib/gammalib-1.6.1.tar.gz>`_
+      - `ctools-1.6.1-macosx10.7.dmg <http://cta.irap.omp.eu/ctools/releases/ctools/ctools-1.6.1-macosx10.7.dmg>`_
     * - `1.6.0 <http://cta.irap.omp.eu/ctools/releases/ctools/ctools-1.6.0.tar.gz>`_
       - `1.6.0 <http://cta.irap.omp.eu/ctools/releases/gammalib/gammalib-1.6.0.tar.gz>`_
       - `ctools-1.6.0-macosx10.7.dmg <http://cta.irap.omp.eu/ctools/releases/ctools/ctools-1.6.0-macosx10.7.dmg>`_
diff --git a/doc/source/admin/release_history/1.6.1.rst b/doc/source/admin/release_history/1.6.1.rst
new file mode 100644
index 0000000..0da38f1
--- /dev/null
+++ b/doc/source/admin/release_history/1.6.1.rst
@@ -0,0 +1,14 @@
+.. _1.6.1:
+
+ctools 1.6.1 release (5 June 2019)
+==================================
+
+Overview
+--------
+
+ctools 1.6.1 is a bug fix release for ctools release 1.6.
+
+The following bugs were fixed:
+
+* [`2724 <https://cta-redmine.irap.omp.eu/issues/2724>`_] -
+  Fix initialisation script for c-shell
diff --git a/doc/source/admin/release_history/1.7.rst b/doc/source/admin/release_history/1.7.rst
new file mode 100644
index 0000000..dd55227
--- /dev/null
+++ b/doc/source/admin/release_history/1.7.rst
@@ -0,0 +1,34 @@
+.. _1.7:
+
+ctools 1.7 release
+==================
+
+Overview
+--------
+
+ctools 1.7 is a major release that adds significant functionality.
+
+In particular, this release provides:
+
+* ...
+* ...
+
+
+Bug fixes
+---------
+
+
+
+Improvements
+------------
+
+
+
+New features
+------------
+
+
+
+Clean up
+--------
+
diff --git a/doc/source/admin/release_history/index.rst b/doc/source/admin/release_history/index.rst
index 938455f..9862f1c 100755
--- a/doc/source/admin/release_history/index.rst
+++ b/doc/source/admin/release_history/index.rst
@@ -6,6 +6,8 @@ Release History
 .. toctree::
    :maxdepth: 1
 
+   ctools 1.7 <1.7>
+   ctools 1.6.1 <1.6.1>
    ctools 1.6 <1.6>
    ctools 1.5.4 <1.5.4>
    ctools 1.5.3 <1.5.3>
diff --git a/src/ctools-setup.in b/src/ctools-setup.in
index 11baaf8..692d645 100755
--- a/src/ctools-setup.in
+++ b/src/ctools-setup.in
@@ -1,4 +1,5 @@
-#  Filename:   ctools-setup(.in)
+#! /bin/sh
+# Filename:    ctools-setup(.in)
 # Description: Writes an initialization script for ctools software
 #              which is custom fit to the user and the particular
 #              software installation. Note that this script is
@@ -82,35 +83,6 @@ if [ -d $prefix/syspfiles/. ]; then
 fi
 
 #
-# Set LD_LIBRARY_PATH
-# ===================
-if [ -z "${LD_LIBRARY_PATH}" ]; then
-  LD_LIBRARY_PATH=$ctools_lib
-else
-  LD_LIBRARY_PATH=$ctools_lib:$LD_LIBRARY_PATH
-fi
-
-#
-# Set DYLD_LIBRARY_PATH if required
-# =================================
-case $uname_system in
-  Darwin*)
-    if [ -z "${DYLD_LIBRARY_PATH}" ]; then
-      DYLD_LIBRARY_PATH=$ctools_lib
-    else
-      DYLD_LIBRARY_PATH=$ctools_lib:$DYLD_LIBRARY_PATH
-    fi
-    ;;
-  CYGWIN*)
-    if [ -z "${PATH}" ]; then
-      PATH=$ctools_lib
-    else
-      PATH=$ctools_lib:$PATH
-    fi
-    ;;
-esac
-
-#
 # Set PYTHONPATH
 # ==============
 if [ -z "${PYTHONPATH}" ]; then
@@ -163,11 +135,27 @@ fi
 #
 # List of variables needed in initialization script
 # =================================================
-varlist="LD_LIBRARY_PATH DYLD_LIBRARY_PATH PATH"
+varlist="PATH"
 varlist="$varlist PYTHONPATH PKG_CONFIG_PATH MANPATH"
 varlist="$varlist PFILES PFCLOBBER CALDB"
 
 #
+# Set LD_LIBRARY_PATH
+# ===================
+case $uname_system in
+  Darwin*)
+    ;;
+  *)
+    if [ -z "${LD_LIBRARY_PATH}" ]; then
+      LD_LIBRARY_PATH=$ctools_lib
+    else
+      LD_LIBRARY_PATH=$ctools_lib:$LD_LIBRARY_PATH
+    fi
+    varlist="$varlist LD_LIBRARY_PATH"
+    ;;
+esac
+
+#
 # Save values in output initialization shell scripts
 # ==================================================
 # Name of temporary config script