diff --git a/templates/Wear/Wearable/build.gradle.ftl b/templates/Wear/Wearable/build.gradle.ftl
index 0bab676..9bd4a7b 100644
--- a/templates/Wear/Wearable/build.gradle.ftl
+++ b/templates/Wear/Wearable/build.gradle.ftl
@@ -15,11 +15,11 @@
 -->
 buildscript {
     repositories {
-        mavenCentral()
+        jcenter()
     }
 
     dependencies {
-        classpath 'com.android.tools.build:gradle:1.0.0'
+        classpath 'com.android.tools.build:gradle:1.1.0'
     }
 }
 
@@ -67,6 +67,12 @@
             proguardFiles getDefaultProguardFile('proguard-android.txt')
         }
     }
+
+    compileOptions {
+        sourceCompatibility JavaVersion.VERSION_1_7
+        targetCompatibility JavaVersion.VERSION_1_7
+    }
+
     sourceSets {
         main {
             dirs.each { dir ->
diff --git a/templates/WearPlusShared/Shared/build.gradle.ftl b/templates/WearPlusShared/Shared/build.gradle.ftl
index 1a9d842..bdc7817 100644
--- a/templates/WearPlusShared/Shared/build.gradle.ftl
+++ b/templates/WearPlusShared/Shared/build.gradle.ftl
@@ -19,7 +19,7 @@
     }
 
     dependencies {
-        classpath 'com.android.tools.build:gradle:1.0.0'
+        classpath 'com.android.tools.build:gradle:1.1.0'
     }
 }
 
@@ -56,6 +56,11 @@
         targetSdkVersion ${compile_sdk}
     }
 
+    compileOptions {
+        sourceCompatibility JavaVersion.VERSION_1_7
+        targetCompatibility JavaVersion.VERSION_1_7
+    }
+
     sourceSets {
         main {
             dirs.each { dir ->
diff --git a/templates/WearPlusShared/Wearable/build.gradle.ftl b/templates/WearPlusShared/Wearable/build.gradle.ftl
index a625df8..a509379 100644
--- a/templates/WearPlusShared/Wearable/build.gradle.ftl
+++ b/templates/WearPlusShared/Wearable/build.gradle.ftl
@@ -19,7 +19,7 @@
     }
 
     dependencies {
-        classpath 'com.android.tools.build:gradle:1.0.0'
+        classpath 'com.android.tools.build:gradle:1.1.0'
     }
 }
 
@@ -72,6 +72,12 @@
             proguardFiles getDefaultProguardFile('proguard-android.txt')
         }
     }
+
+    compileOptions {
+        sourceCompatibility JavaVersion.VERSION_1_7
+        targetCompatibility JavaVersion.VERSION_1_7
+    }
+
     sourceSets {
         main {
             dirs.each { dir ->
diff --git a/templates/WearPlusShared/_MODULE_/build.gradle.ftl b/templates/WearPlusShared/_MODULE_/build.gradle.ftl
index 5cb27c5..fc6be53 100644
--- a/templates/WearPlusShared/_MODULE_/build.gradle.ftl
+++ b/templates/WearPlusShared/_MODULE_/build.gradle.ftl
@@ -19,7 +19,7 @@
     }
 
     dependencies {
-        classpath 'com.android.tools.build:gradle:1.0.0'
+        classpath 'com.android.tools.build:gradle:1.1.0'
     }
 }
 
@@ -72,6 +72,11 @@
         versionName "1.0"
     }
 
+    compileOptions {
+        sourceCompatibility JavaVersion.VERSION_1_7
+        targetCompatibility JavaVersion.VERSION_1_7
+    }
+
     sourceSets {
         main {
             dirs.each { dir ->
diff --git a/templates/base-application/_MODULE_/build.gradle.ftl b/templates/base-application/_MODULE_/build.gradle.ftl
index 737c3d0..6395ee2 100644
--- a/templates/base-application/_MODULE_/build.gradle.ftl
+++ b/templates/base-application/_MODULE_/build.gradle.ftl
@@ -15,11 +15,11 @@
 -->
 buildscript {
     repositories {
-        mavenCentral()
+        jcenter()
     }
 
     dependencies {
-        classpath 'com.android.tools.build:gradle:1.0.0'
+        classpath 'com.android.tools.build:gradle:1.1.0'
     }
 }
 
diff --git a/templates/base/_MODULE_/build.gradle.ftl b/templates/base/_MODULE_/build.gradle.ftl
index e97524b..0b89e4b 100644
--- a/templates/base/_MODULE_/build.gradle.ftl
+++ b/templates/base/_MODULE_/build.gradle.ftl
@@ -19,7 +19,7 @@
     }
 
     dependencies {
-        classpath 'com.android.tools.build:gradle:1.0.0'
+        classpath 'com.android.tools.build:gradle:1.1.0'
     }
 }
 
@@ -80,6 +80,11 @@
         targetSdkVersion ${compile_sdk}
     }
 
+    compileOptions {
+        sourceCompatibility JavaVersion.VERSION_1_7
+        targetCompatibility JavaVersion.VERSION_1_7
+    }
+
     sourceSets {
         main {
             dirs.each { dir ->
diff --git a/templates/create/_MODULE_/build.gradle.ftl b/templates/create/_MODULE_/build.gradle.ftl
index 9dda27c..6884324 100644
--- a/templates/create/_MODULE_/build.gradle.ftl
+++ b/templates/create/_MODULE_/build.gradle.ftl
@@ -21,11 +21,11 @@
 
 buildscript {
     repositories {
-        mavenCentral()
+        jcenter()
     }
 
     dependencies {
-        classpath 'com.android.tools.build:gradle:1.0.0'
+        classpath 'com.android.tools.build:gradle:1.1.0'
     }
 }
 
diff --git a/templates/create/buildSrc/build.gradle.ftl b/templates/create/buildSrc/build.gradle.ftl
index 34c59af..5be78db 100644
--- a/templates/create/buildSrc/build.gradle.ftl
+++ b/templates/create/buildSrc/build.gradle.ftl
@@ -15,7 +15,7 @@
         limitations under the License.
 -->
 repositories {
-    mavenCentral()
+    jcenter()
 }
 dependencies {
     compile 'org.freemarker:freemarker:2.3.20'