diff --git a/pkg/model/file/funcmap.go b/pkg/model/file/funcmap.go
index 800bb9c7bc3..b974b37d0bb 100644
--- a/pkg/model/file/funcmap.go
+++ b/pkg/model/file/funcmap.go
@@ -17,6 +17,8 @@ limitations under the License.
 package file
 
 import (
+	"fmt"
+	"hash/fnv"
 	"strings"
 	"text/template"
 )
@@ -26,5 +28,14 @@ func DefaultFuncMap() template.FuncMap {
 	return template.FuncMap{
 		"title": strings.Title,
 		"lower": strings.ToLower,
+		"hash":  hash,
 	}
 }
+
+func hash(s string) (string, error) {
+	hasher := fnv.New32a()
+	if _, err := hasher.Write([]byte(s)); err != nil {
+		return "", err
+	}
+	return fmt.Sprintf("%x", hasher.Sum(nil)), nil
+}
diff --git a/pkg/plugin/v2/scaffolds/internal/templates/main.go b/pkg/plugin/v2/scaffolds/internal/templates/main.go
index 8283f838b77..9230115664c 100644
--- a/pkg/plugin/v2/scaffolds/internal/templates/main.go
+++ b/pkg/plugin/v2/scaffolds/internal/templates/main.go
@@ -18,9 +18,7 @@ package templates
 
 import (
 	"fmt"
-	"hash/fnv"
 	"path/filepath"
-	"text/template"
 
 	"sigs.k8s.io/kubebuilder/pkg/model/file"
 )
@@ -28,7 +26,6 @@ import (
 const defaultMainPath = "main.go"
 
 var _ file.Template = &Main{}
-var _ file.UseCustomFuncMap = &Main{}
 
 // Main scaffolds the controller manager entry point
 type Main struct {
@@ -53,21 +50,6 @@ func (f *Main) SetTemplateDefaults() error {
 	return nil
 }
 
-func hash(s string) (string, error) {
-	hasher := fnv.New32a()
-	if _, err := hasher.Write([]byte(s)); err != nil {
-		return "", err
-	}
-	return fmt.Sprintf("%x", hasher.Sum(nil)), nil
-}
-
-// GetFuncMap implements file.UseCustomFuncMap
-func (f *Main) GetFuncMap() template.FuncMap {
-	fm := file.DefaultFuncMap()
-	fm["hash"] = hash
-	return fm
-}
-
 var _ file.Inserter = &MainUpdater{}
 
 // MainUpdater updates main.go to run Controllers
@@ -236,13 +218,13 @@ func main() {
 		"Enabling this will ensure there is only one active controller manager.")
 	flag.Parse()
 
-	ctrl.SetLogger(zap.New(zap.UseDevMode(true))) 
+	ctrl.SetLogger(zap.New(zap.UseDevMode(true)))
 
 	mgr, err := ctrl.NewManager(ctrl.GetConfigOrDie(), ctrl.Options{
 		Scheme:             scheme,
 		MetricsBindAddress: metricsAddr,
-		Port:               9443, 
-		LeaderElection:     enableLeaderElection, 
+		Port:               9443,
+		LeaderElection:     enableLeaderElection,
 		LeaderElectionID:   "{{ hash .Repo }}.{{ .Domain }}",
 	})
 	if err != nil {
diff --git a/pkg/plugin/v3/init.go b/pkg/plugin/v3/init.go
index 42fd6791543..07761fc2bb8 100644
--- a/pkg/plugin/v3/init.go
+++ b/pkg/plugin/v3/init.go
@@ -46,6 +46,7 @@ type initPlugin struct {
 	// flags
 	fetchDeps          bool
 	skipGoVersionCheck bool
+	componentConfig    bool
 }
 
 var (
@@ -87,6 +88,8 @@ func (p *initPlugin) BindFlags(fs *pflag.FlagSet) {
 	fs.StringVar(&p.license, "license", "apache2",
 		"license to use to boilerplate, may be one of 'apache2', 'none'")
 	fs.StringVar(&p.owner, "owner", "", "owner to add to the copyright")
+	fs.BoolVar(&p.componentConfig, "component-config", false,
+		"create a versioned ComponentConfig file, may be 'true' or 'false'")
 
 	// project args
 	fs.StringVar(&p.config.Repo, "repo", "", "name to use for go module (e.g., github.com/user/repo), "+
@@ -142,7 +145,7 @@ func (p *initPlugin) Validate() error {
 }
 
 func (p *initPlugin) GetScaffolder() (scaffold.Scaffolder, error) {
-	return scaffolds.NewInitScaffolder(p.config, p.license, p.owner), nil
+	return scaffolds.NewInitScaffolder(p.config, p.license, p.owner, p.componentConfig), nil
 }
 
 func (p *initPlugin) PostScaffold() error {
diff --git a/pkg/plugin/v3/scaffolds/init.go b/pkg/plugin/v3/scaffolds/init.go
index 5403bfe7384..a7d9f72094f 100644
--- a/pkg/plugin/v3/scaffolds/init.go
+++ b/pkg/plugin/v3/scaffolds/init.go
@@ -37,7 +37,7 @@ import (
 
 const (
 	// ControllerRuntimeVersion is the kubernetes-sigs/controller-runtime version to be used in the project
-	ControllerRuntimeVersion = "v0.6.3"
+	ControllerRuntimeVersion = "v0.7.0-alpha.6"
 	// ControllerToolsVersion is the kubernetes-sigs/controller-tools version to be used in the project
 	ControllerToolsVersion = "v0.3.0"
 	// KustomizeVersion is the kubernetes-sigs/kustomize version to be used in the project
@@ -53,15 +53,17 @@ type initScaffolder struct {
 	boilerplatePath string
 	license         string
 	owner           string
+	componentConfig bool
 }
 
 // NewInitScaffolder returns a new Scaffolder for project initialization operations
-func NewInitScaffolder(config *config.Config, license, owner string) scaffold.Scaffolder {
+func NewInitScaffolder(config *config.Config, license, owner string, componentConfig bool) scaffold.Scaffolder {
 	return &initScaffolder{
 		config:          config,
 		boilerplatePath: filepath.Join("hack", "boilerplate.go.txt"),
 		license:         license,
 		owner:           owner,
+		componentConfig: componentConfig,
 	}
 }
 
@@ -101,11 +103,14 @@ func (s *initScaffolder) scaffold() error {
 		&templates.GitIgnore{},
 		&rbac.AuthProxyRole{},
 		&rbac.AuthProxyRoleBinding{},
-		&kdefault.AuthProxyPatch{},
+		&kdefault.AuthProxyPatch{ComponentConfig: s.componentConfig},
 		&rbac.AuthProxyService{},
 		&rbac.ClientClusterRole{},
-		&manager.Config{Image: imageName},
-		&templates.Main{},
+		&manager.Config{
+			Image:           imageName,
+			ComponentConfig: s.componentConfig,
+		},
+		&templates.Main{ComponentConfig: s.componentConfig},
 		&templates.GoMod{ControllerRuntimeVersion: ControllerRuntimeVersion},
 		&templates.Makefile{
 			Image:                    imageName,
@@ -115,14 +120,17 @@ func (s *initScaffolder) scaffold() error {
 			ControllerRuntimeVersion: ControllerRuntimeVersion,
 		},
 		&templates.Dockerfile{},
+		&templates.ComponentConfig{},
 		&templates.DockerignoreFile{},
-		&kdefault.Kustomize{},
+		&kdefault.Kustomize{ComponentConfig: s.componentConfig},
 		&kdefault.ManagerWebhookPatch{},
+		&kdefault.ManagerConfigPatch{},
 		&rbac.ManagerRoleBinding{},
 		&rbac.LeaderElectionRole{},
 		&rbac.LeaderElectionRoleBinding{},
 		&rbac.KustomizeRBAC{},
 		&manager.Kustomization{},
+		&manager.ComponentConfig{},
 		&webhook.Kustomization{},
 		&webhook.KustomizeConfigWebhook{},
 		&webhook.Service{},
diff --git a/pkg/plugin/v3/scaffolds/internal/templates/componentconfig.go b/pkg/plugin/v3/scaffolds/internal/templates/componentconfig.go
new file mode 100644
index 00000000000..64439bb795a
--- /dev/null
+++ b/pkg/plugin/v3/scaffolds/internal/templates/componentconfig.go
@@ -0,0 +1,55 @@
+/*
+Copyright 2020 The Kubernetes Authors.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+package templates
+
+import (
+	"sigs.k8s.io/kubebuilder/pkg/model/file"
+)
+
+var _ file.Template = &ComponentConfig{}
+
+// ComponentConfig scaffolds the ComponentConfig file in manager folder.
+type ComponentConfig struct {
+	file.TemplateMixin
+	file.DomainMixin
+	file.RepositoryMixin
+}
+
+// SetTemplateDefaults implements input.Template
+func (f *ComponentConfig) SetTemplateDefaults() error {
+	if f.Path == "" {
+		f.Path = "config.yaml"
+	}
+
+	f.TemplateBody = componentConfigTemplate
+
+	f.IfExistsAction = file.Error
+
+	return nil
+}
+
+const componentConfigTemplate = `apiVersion: controller-runtime.sigs.k8s.io/v1alpha1
+kind: ControllerManagerConfiguration
+metrics:
+  bindAddress: :8080
+webhook:
+  port: 9443
+leaderElection:
+  leaderElect: false
+  resourceLock: configmaps
+  resourceName: {{ hash .Repo }}.{{ .Domain }}",
+`
diff --git a/pkg/plugin/v3/scaffolds/internal/templates/config/controller/controller.go b/pkg/plugin/v3/scaffolds/internal/templates/config/controller/controller.go
index c2dd25bc423..1e6d3868429 100644
--- a/pkg/plugin/v3/scaffolds/internal/templates/config/controller/controller.go
+++ b/pkg/plugin/v3/scaffolds/internal/templates/config/controller/controller.go
@@ -92,7 +92,7 @@ type {{ .Resource.Kind }}Reconciler struct {
 //
 // For more details, check Reconcile and its Result here:
 // - https://pkg.go.dev/sigs.k8s.io/controller-runtime@{{ .ControllerRuntimeVersion }}/pkg/reconcile
-func (r *{{ .Resource.Kind }}Reconciler) Reconcile(req ctrl.Request) (ctrl.Result, error) {
+func (r *{{ .Resource.Kind }}Reconciler) Reconcile(ctx context.Context, req ctrl.Request) (ctrl.Result, error) {
 	_ = context.Background()
 	_ = r.Log.WithValues("{{ .Resource.Kind | lower }}", req.NamespacedName)
 
diff --git a/pkg/plugin/v3/scaffolds/internal/templates/config/kdefault/auth_proxy_patch.go b/pkg/plugin/v3/scaffolds/internal/templates/config/kdefault/auth_proxy_patch.go
index 4126549ece8..384f517275a 100644
--- a/pkg/plugin/v3/scaffolds/internal/templates/config/kdefault/auth_proxy_patch.go
+++ b/pkg/plugin/v3/scaffolds/internal/templates/config/kdefault/auth_proxy_patch.go
@@ -28,6 +28,9 @@ var _ file.Template = &AuthProxyPatch{}
 // prometheus metrics for manager Pod.
 type AuthProxyPatch struct {
 	file.TemplateMixin
+
+	// ComponentConfig defines that this should be configured with a file
+	ComponentConfig bool
 }
 
 // SetTemplateDefaults implements input.Template
@@ -43,7 +46,7 @@ func (f *AuthProxyPatch) SetTemplateDefaults() error {
 	return nil
 }
 
-const kustomizeAuthProxyPatchTemplate = `# This patch inject a sidecar container which is a HTTP proxy for the 
+const kustomizeAuthProxyPatchTemplate = `# This patch inject a sidecar container which is a HTTP proxy for the
 # controller manager, it performs RBAC authorization against the Kubernetes API using SubjectAccessReviews.
 apiVersion: apps/v1
 kind: Deployment
@@ -64,8 +67,10 @@ spec:
         ports:
         - containerPort: 8443
           name: https
-      - name: manager
+      {{- if not .ComponentConfig }}
+			- name: manager
         args:
         - "--metrics-addr=127.0.0.1:8080"
         - "--enable-leader-election"
+			{{- end }}
 `
diff --git a/pkg/plugin/v3/scaffolds/internal/templates/config/kdefault/config_manager_patch.go b/pkg/plugin/v3/scaffolds/internal/templates/config/kdefault/config_manager_patch.go
new file mode 100644
index 00000000000..3da2b7c3f65
--- /dev/null
+++ b/pkg/plugin/v3/scaffolds/internal/templates/config/kdefault/config_manager_patch.go
@@ -0,0 +1,61 @@
+/*
+Copyright 2020 The Kubernetes Authors.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+package kdefault
+
+import (
+	"path/filepath"
+
+	"sigs.k8s.io/kubebuilder/pkg/model/file"
+)
+
+var _ file.Template = &ManagerConfigPatch{}
+
+// ManagerConfigPatch scaffolds a ManagerConfigPatch for a Resource
+type ManagerConfigPatch struct {
+	file.TemplateMixin
+}
+
+// SetTemplateDefaults implements input.Template
+func (f *ManagerConfigPatch) SetTemplateDefaults() error {
+	if f.Path == "" {
+		f.Path = filepath.Join("config", "default", "manager_config_patch.yaml")
+	}
+
+	f.TemplateBody = managerConfigPatchTemplate
+
+	return nil
+}
+
+const managerConfigPatchTemplate = `apiVersion: apps/v1
+kind: Deployment
+metadata:
+  name: controller-manager
+  namespace: system
+spec:
+  template:
+    spec:
+      containers:
+      - name: manager
+        volumeMounts:
+        - name: config
+          mountPath: /config.yaml
+          subPath: config.yaml
+      volumes:
+      - name: config
+        configMap:
+          name: controller-config
+`
diff --git a/pkg/plugin/v3/scaffolds/internal/templates/config/kdefault/kustomize.go b/pkg/plugin/v3/scaffolds/internal/templates/config/kdefault/kustomize.go
index b40d18444c6..b9e30fe46f3 100644
--- a/pkg/plugin/v3/scaffolds/internal/templates/config/kdefault/kustomize.go
+++ b/pkg/plugin/v3/scaffolds/internal/templates/config/kdefault/kustomize.go
@@ -28,6 +28,8 @@ var _ file.Template = &Kustomize{}
 type Kustomize struct {
 	file.TemplateMixin
 	file.ProjectNameMixin
+
+	ComponentConfig bool
 }
 
 // SetTemplateDefaults implements input.Template
@@ -70,11 +72,15 @@ bases:
 #- ../prometheus
 
 patchesStrategicMerge:
-  # Protect the /metrics endpoint by putting it behind auth.
-  # If you want your controller-manager to expose the /metrics
-  # endpoint w/o any authn/z, please comment the following line.
+# Protect the /metrics endpoint by putting it behind auth.
+# If you want your controller-manager to expose the /metrics
+# endpoint w/o any authn/z, please comment the following line.
 - manager_auth_proxy_patch.yaml
 
+# Mount the controller config file for loading manager configurations
+# through a ComponentConfig type
+{{ if .ComponentConfig }}#{{ end }}- manager_config_patch.yaml
+
 # [WEBHOOK] To enable webhook, uncomment all the sections with [WEBHOOK] prefix including the one in
 # crd/kustomization.yaml
 #- manager_webhook_patch.yaml
diff --git a/pkg/plugin/v3/scaffolds/internal/templates/config/manager/componentconfig.go b/pkg/plugin/v3/scaffolds/internal/templates/config/manager/componentconfig.go
new file mode 100644
index 00000000000..ea43e311489
--- /dev/null
+++ b/pkg/plugin/v3/scaffolds/internal/templates/config/manager/componentconfig.go
@@ -0,0 +1,57 @@
+/*
+Copyright 2020 The Kubernetes Authors.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+package manager
+
+import (
+	"path/filepath"
+
+	"sigs.k8s.io/kubebuilder/pkg/model/file"
+)
+
+var _ file.Template = &ComponentConfig{}
+
+// ComponentConfig scaffolds the ComponentConfig file in manager folder.
+type ComponentConfig struct {
+	file.TemplateMixin
+	file.DomainMixin
+	file.RepositoryMixin
+}
+
+// SetTemplateDefaults implements input.Template
+func (f *ComponentConfig) SetTemplateDefaults() error {
+	if f.Path == "" {
+		f.Path = filepath.Join("config", "manager", "config.yaml")
+	}
+
+	f.TemplateBody = componentConfigTemplate
+
+	f.IfExistsAction = file.Error
+
+	return nil
+}
+
+const componentConfigTemplate = `apiVersion: controller-runtime.sigs.k8s.io/v1alpha1
+kind: ControllerManagerConfiguration
+metrics:
+  bindAddress: :8080
+webhook:
+  port: 9443
+leaderElection:
+  leaderElect: true
+  resourceLock: configmaps
+  resourceName: {{ hash .Repo }}.{{ .Domain }}",
+`
diff --git a/pkg/plugin/v3/scaffolds/internal/templates/config/manager/config.go b/pkg/plugin/v3/scaffolds/internal/templates/config/manager/config.go
index 3218812be68..89c31236c8a 100644
--- a/pkg/plugin/v3/scaffolds/internal/templates/config/manager/config.go
+++ b/pkg/plugin/v3/scaffolds/internal/templates/config/manager/config.go
@@ -30,6 +30,9 @@ type Config struct {
 
 	// Image is controller manager image name
 	Image string
+
+	// ComponentConfig defines that this should be configured with a file
+	ComponentConfig bool
 }
 
 // SetTemplateDefaults implements input.Template
@@ -72,8 +75,10 @@ spec:
       containers:
       - command:
         - /manager
+        {{- if not .ComponentConfig }}
         args:
         - --enable-leader-election
+        {{- end }}
         image: {{ .Image }}
         name: manager
         securityContext:
diff --git a/pkg/plugin/v3/scaffolds/internal/templates/config/manager/kustomization.go b/pkg/plugin/v3/scaffolds/internal/templates/config/manager/kustomization.go
index 4016d302ad8..aa24219f2d2 100644
--- a/pkg/plugin/v3/scaffolds/internal/templates/config/manager/kustomization.go
+++ b/pkg/plugin/v3/scaffolds/internal/templates/config/manager/kustomization.go
@@ -44,4 +44,12 @@ func (f *Kustomization) SetTemplateDefaults() error {
 
 const kustomizeManagerTemplate = `resources:
 - manager.yaml
+
+generatorOptions:
+  disableNameSuffixHash: true
+
+configMapGenerator:
+- name: controller-config
+  files:
+  - config.yaml
 `
diff --git a/pkg/plugin/v3/scaffolds/internal/templates/main.go b/pkg/plugin/v3/scaffolds/internal/templates/main.go
index afd6728b341..b33d3bbc360 100644
--- a/pkg/plugin/v3/scaffolds/internal/templates/main.go
+++ b/pkg/plugin/v3/scaffolds/internal/templates/main.go
@@ -18,9 +18,7 @@ package templates
 
 import (
 	"fmt"
-	"hash/fnv"
 	"path/filepath"
-	"text/template"
 
 	"sigs.k8s.io/kubebuilder/pkg/model/file"
 )
@@ -28,7 +26,6 @@ import (
 const defaultMainPath = "main.go"
 
 var _ file.Template = &Main{}
-var _ file.UseCustomFuncMap = &Main{}
 
 // Main scaffolds the controller manager entry point
 type Main struct {
@@ -36,6 +33,9 @@ type Main struct {
 	file.BoilerplateMixin
 	file.DomainMixin
 	file.RepositoryMixin
+
+	// ComponentConfig is set if to enable ComponentConfig
+	ComponentConfig bool
 }
 
 // SetTemplateDefaults implements file.Template
@@ -53,21 +53,6 @@ func (f *Main) SetTemplateDefaults() error {
 	return nil
 }
 
-func hash(s string) (string, error) {
-	hasher := fnv.New32a()
-	if _, err := hasher.Write([]byte(s)); err != nil {
-		return "", err
-	}
-	return fmt.Sprintf("%x", hasher.Sum(nil)), nil
-}
-
-// GetFuncMap implements file.UseCustomFuncMap
-func (f *Main) GetFuncMap() template.FuncMap {
-	fm := file.DefaultFuncMap()
-	fm["hash"] = hash
-	return fm
-}
-
 var _ file.Inserter = &MainUpdater{}
 
 // MainUpdater updates main.go to run Controllers
@@ -226,13 +211,14 @@ func init() {
 }
 
 func main() {
+	{{ if not .ComponentConfig }}
 	var metricsAddr string
 	var enableLeaderElection bool
 	flag.StringVar(&metricsAddr, "metrics-addr", ":8080", "The address the metric endpoint binds to.")
 	flag.BoolVar(&enableLeaderElection, "enable-leader-election", false,
 		"Enable leader election for controller manager. " +
 		"Enabling this will ensure there is only one active controller manager.")
-
+	{{ end }}
 	opts := zap.Options{
 		Development: true,
 	}
@@ -241,13 +227,24 @@ func main() {
 
 	ctrl.SetLogger(zap.New(zap.UseFlagOptions(&opts)))
 
+
+	{{- if not .ComponentConfig }}
 	mgr, err := ctrl.NewManager(ctrl.GetConfigOrDie(), ctrl.Options{
 		Scheme:             scheme,
 		MetricsBindAddress: metricsAddr,
-		Port:               9443, 
-		LeaderElection:     enableLeaderElection, 
+		Port:               9443,
+		LeaderElection:     enableLeaderElection,
 		LeaderElectionID:   "{{ hash .Repo }}.{{ .Domain }}",
 	})
+	{{- else }}
+	options, err := ctrl.Options{Scheme: scheme}.AndFrom(ctrl.ConfigFile())
+	if err != nil {
+		setupLog.Error(err, "unable to load the config file")
+		os.Exit(1)
+	}
+
+	mgr, err := ctrl.NewManager(ctrl.GetConfigOrDie(), options)
+	{{- end }}
 	if err != nil {
 		setupLog.Error(err, "unable to start manager")
 		os.Exit(1)