diff --git a/go.mod b/go.mod
index 562e32043..22f964eea 100644
--- a/go.mod
+++ b/go.mod
@@ -2,6 +2,8 @@ module sigs.k8s.io/cluster-api-provider-ibmcloud
 
 go 1.18
 
+replace sigs.k8s.io/cluster-api => sigs.k8s.io/cluster-api v1.2.1
+
 require (
 	github.com/IBM-Cloud/power-go-client v1.1.12
 	github.com/IBM/go-sdk-core/v5 v5.10.2
@@ -145,5 +147,3 @@ require (
 	sigs.k8s.io/structured-merge-diff/v4 v4.2.1 // indirect
 	sigs.k8s.io/yaml v1.3.0 // indirect
 )
-
-replace sigs.k8s.io/cluster-api => sigs.k8s.io/cluster-api v1.2.0
diff --git a/go.sum b/go.sum
index 3d7a3fdb4..da0188f4d 100644
--- a/go.sum
+++ b/go.sum
@@ -1449,8 +1449,8 @@ rsc.io/binaryregexp v0.2.0/go.mod h1:qTv7/COck+e2FymRvadv62gMdZztPaShugOCi3I+8D8
 rsc.io/quote/v3 v3.1.0/go.mod h1:yEA65RcK8LyAZtP9Kv3t0HmxON59tX3rD+tICJqUlj0=
 rsc.io/sampler v1.3.0/go.mod h1:T1hPZKmBbMNahiBKFy5HrXp6adAjACjK9JXDnKaTXpA=
 sigs.k8s.io/apiserver-network-proxy/konnectivity-client v0.0.30/go.mod h1:fEO7lRTdivWO2qYVCVG7dEADOMo/MLDCVr8So2g88Uw=
-sigs.k8s.io/cluster-api v1.2.0 h1:jAKG78SQ6nUHfqbRD64FrYZR79P+J7/aiH17zbpsWcQ=
-sigs.k8s.io/cluster-api v1.2.0/go.mod h1:oiuV+mlCV1QxDnuI+PfElFlAfuXHo9ZGVBojoihVtHY=
+sigs.k8s.io/cluster-api v1.2.1 h1:/DbsSy04mP8x/B7pzMv8vbIolE4Jh0icnJhlsh1Nlug=
+sigs.k8s.io/cluster-api v1.2.1/go.mod h1:oiuV+mlCV1QxDnuI+PfElFlAfuXHo9ZGVBojoihVtHY=
 sigs.k8s.io/cluster-api/test v1.2.1 h1:NiVPpS0BMax38CY8apwPBhagTbQX3vf9kiUb2fGBGWI=
 sigs.k8s.io/cluster-api/test v1.2.1/go.mod h1:JdMqpv9rEOFWQVQ8danpBduqxoQkZMiOvpIGJ7v8qjw=
 sigs.k8s.io/controller-runtime v0.12.3 h1:FCM8xeY/FI8hoAfh/V4XbbYMY20gElh9yh+A98usMio=
diff --git a/hack/tools/go.mod b/hack/tools/go.mod
index bd6a4e8e1..6333581d3 100644
--- a/hack/tools/go.mod
+++ b/hack/tools/go.mod
@@ -247,8 +247,3 @@ require (
 	sigs.k8s.io/structured-merge-diff/v4 v4.2.1 // indirect
 	sigs.k8s.io/yaml v1.3.0 // indirect
 )
-
-replace (
-	sigs.k8s.io/cluster-api => sigs.k8s.io/cluster-api v1.2.1
-	sigs.k8s.io/cluster-api/test => sigs.k8s.io/cluster-api/test v1.2.1
-)