diff --git a/CHANGES b/CHANGES
index 7ad0d1d266..7c73ffe0b2 100644
--- a/CHANGES
+++ b/CHANGES
@@ -1,3 +1,9 @@
+4.2.0-dev.40 | 2021-07-20 09:58:14 -0700
+
+  * Cover in NEWS the inclusion of btest tooling in the installation (Christian Kreibich, Corelight)
+
+    [skip ci]
+
 4.2.0-dev.38 | 2021-07-20 09:55:59 -0700
 
   * Fix generate-docs github action to send email when it fails (Tim Wojtulewicz, Corelight)
diff --git a/NEWS b/NEWS
index 3a083bdf4b..8dc50be3e7 100644
--- a/NEWS
+++ b/NEWS
@@ -78,20 +78,31 @@ New Functionality
   takes a semicolon separated list of paths containing plugins that will be
   statically built into Zeek.
 
+- Added a ``--plugindir`` argument to ``configure`` to set the
+  installation path for plugins.
+
 - The X509 analyzer now can check if a specific hostname is valid for a
   certificate. Two new BIFs were added for this, ``x509_check_hostname`` and
   ``x509_check_cert_hostname``. A new field ``sni_matches_cert`` that tracks
   this information was added to ``ssl.log``.
 
-- Added a ``--plugindir`` argument to ``configure`` to set the
-  installation path for plugins.
-
 - Added new functions to dynamically enable/disable file analyzers:
 
   - ``global enable_analyzer: function(tag: Files::Tag): bool;``
   - ``global disable_analyzer: function(tag: Files::Tag): bool;``
   - ``global analyzer_enabled: function(tag: Files::Tag): bool;``
 
+- Zeek now includes its own BTest tooling in the distribution, enabling other
+  tests (e.g. in Zeek packages) to use it. The ``$PREFIX/share/btest folder``,
+  reported via ``zeek-config --btest_tools_dir``, includes:
+
+  - ``scripts/`` for ``btest-diff`` canonifiers
+  - ``data/`` for data files, including ``random.seed``
+  - ``data/pcaps`` for the test pcaps
+
+  Configuring with ``--disable-btest-pcaps`` suppresses installation of the
+  test pcaps.
+
 - The Supervisor now defaults to starting with a minimal set of Zeek
   scripts controlled by a new init file, ``base/init-supervisor.zeek``.
   One may still run it with a larger configuration by loading additional
diff --git a/VERSION b/VERSION
index 085c7208d2..972c09eb46 100644
--- a/VERSION
+++ b/VERSION
@@ -1 +1 @@
-4.2.0-dev.38
+4.2.0-dev.40