diff --git a/Happstack/Server/Heist.hs b/Happstack/Server/Heist.hs
--- a/Happstack/Server/Heist.hs
+++ b/Happstack/Server/Heist.hs
@@ -94,11 +94,10 @@
                   -> m (Either [String] (HeistState n))
 initHeistCompiled splices attrSplices templateDir =
     liftIO $ runEitherT $
-           do templateRepo <- loadTemplates templateDir
               initHeist $ mempty { hcLoadTimeSplices  = defaultLoadTimeSplices
                                  , hcCompiledSplices  = splices
                                  , hcAttributeSplices = attrSplices
-                                 , hcTemplates        = templateRepo
+                                 , hcTemplateLocations = [loadTemplates templateDir]
                                  }
 
 heistServe :: (Happstack m) =>
diff --git a/happstack-heist.cabal b/happstack-heist.cabal
--- a/happstack-heist.cabal
+++ b/happstack-heist.cabal
@@ -1,5 +1,5 @@
 Name:                happstack-heist
-Version:             7.1.0
+Version:             7.1.1
 Synopsis:            Support for using Heist templates in Happstack
 Description:         Happstack is a web application framework. Heist is an XML templating solution. This package makes it easy to use Heist templates with Happstack.
 Homepage:            http://www.happstack.com/
@@ -25,6 +25,6 @@
                        either           == 3.4.*,
                        filepath,
                        happstack-server >= 7.0 && < 7.2,
-                       heist            >= 0.11 && < 0.12,
+                       heist            >= 0.12 && < 0.13,
                        mtl              == 2.*,
                        text             >= 0.10 && < 0.12