diff --git a/Gemfile b/Gemfile
index 40c781dc41..2d8b4932a9 100644
--- a/Gemfile
+++ b/Gemfile
@@ -97,7 +97,7 @@ gem 'browser'
 gem 'diff-lcs', '~> 1.2'
 gem 'hiredis-client'
 gem 'httpclient', github: '3scale/httpclient', branch: 'ssl-env-cert'
-gem 'json-schema', git: 'https://github.com/3scale/json-schema.git'
+gem 'json-schema'
 gem 'json_schemer'
 gem 'local-fastimage_resize', '~> 3.4.0', require: 'fastimage/resize'
 gem 'kt-paperclip', '~> 7.2'
diff --git a/Gemfile.lock b/Gemfile.lock
index f587a9279a..518d5bf38e 100644
--- a/Gemfile.lock
+++ b/Gemfile.lock
@@ -12,13 +12,6 @@ GIT
   specs:
     httpclient (2.8.3)
 
-GIT
-  remote: https://github.com/3scale/json-schema.git
-  revision: 26487618a68443e94d623bb585cb464b07d36702
-  specs:
-    json-schema (3.0.0)
-      addressable (>= 2.4)
-
 GIT
   remote: https://github.com/3scale/rspec-html-matchers.git
   revision: 58b19212afcf66540da729214287d85f586fa7cd
@@ -163,8 +156,8 @@ GEM
       activerecord (>= 3.0)
     acts_as_tree (2.9.1)
       activerecord (>= 3.0.0)
-    addressable (2.8.0)
-      public_suffix (>= 2.0.2, < 5.0)
+    addressable (2.8.7)
+      public_suffix (>= 2.0.2, < 7.0)
     afm (0.2.2)
     after_commit_queue (1.1.0)
       rails (>= 3.0)
@@ -219,7 +212,7 @@ GEM
       ransack (~> 4.1)
     base64 (0.2.0)
     bcrypt (3.1.13)
-    bigdecimal (3.1.8)
+    bigdecimal (3.1.9)
     binding_of_caller (1.0.0)
       debug_inspector (>= 0.0.1)
     bootsnap (1.16.0)
@@ -438,7 +431,10 @@ GEM
       railties (>= 4.2.0)
       thor (>= 0.14, < 2.0)
     json (2.7.1)
-    json_schemer (2.3.0)
+    json-schema (5.1.1)
+      addressable (~> 2.8)
+      bigdecimal (~> 3.1)
+    json_schemer (2.4.0)
       bigdecimal
       hana (~> 1.3)
       regexp_parser (~> 2.0)
@@ -609,7 +605,7 @@ GEM
     pry-stack_explorer (0.6.1)
       binding_of_caller (~> 1.0)
       pry (~> 0.13)
-    public_suffix (4.0.7)
+    public_suffix (6.0.1)
     raabro (1.4.0)
     racc (1.8.1)
     rack (2.2.13)
@@ -708,7 +704,7 @@ GEM
     reform-rails (0.2.6)
       activemodel (>= 5.0)
       reform (>= 2.3.1, < 3.0.0)
-    regexp_parser (2.6.1)
+    regexp_parser (2.10.0)
     representable (3.0.4)
       declarative (< 0.1.0)
       declarative-option (< 0.2.0)
@@ -1034,7 +1030,7 @@ DEPENDENCIES
   inherited_resources (~> 1.14.0)
   jquery-rails (= 4.6)
   json (~> 2.7, >= 2.7.1)
-  json-schema!
+  json-schema
   json_schemer
   jwt (~> 1.5.2)
   kt-paperclip (~> 7.2)
diff --git a/app/lib/three_scale/json_validator.rb b/app/lib/three_scale/json_validator.rb
index 5e93031ea6..37527151ba 100644
--- a/app/lib/three_scale/json_validator.rb
+++ b/app/lib/three_scale/json_validator.rb
@@ -6,8 +6,7 @@ class JSONValidator < ::JSON::Validator
     # or add them manually later with ThreeScale::JSONValidator.add_schema(schema)
     AUTOLOAD_SCHEMA_FILES  = [
       'app/lib/three_scale/swagger/schemas/*.schema.json',
-      'app/lib/three_scale/swagger/schemas/1.2/*.json',
-      'app/lib/three_scale/policies/schemas/*.schema.json'
+      'app/lib/three_scale/swagger/schemas/1.2/*.json'
     ].freeze
     private_constant :AUTOLOAD_SCHEMA_FILES
 
diff --git a/app/lib/three_scale/policies/schemas/apicast-policy-v1.1.schema.json b/app/lib/three_scale/policies/schemas/apicast-policy-v1.1.schema.json
new file mode 100644
index 0000000000..00d7c64f61
--- /dev/null
+++ b/app/lib/three_scale/policies/schemas/apicast-policy-v1.1.schema.json
@@ -0,0 +1,114 @@
+{
+  "$id": "http://apicast.io/policy-v1.1/schema",
+  "type": "object",
+  "$schema": "http://json-schema.org/draft-07/schema#",
+  "definitions": {
+    "schema": {
+      "$id": "#/definitions/schema",
+      "$schema": "http://json-schema.org/draft-07/schema#",
+      "default": {}
+    },
+    "version": {
+      "$id": "#/definitions/version",
+      "type": "string",
+      "title": "The Policy Version",
+      "description": "A semantic version of a policy.",
+      "examples": [
+        "1.3.4",
+        "0.1"
+      ],
+      "pattern": "^((\\d+\\.)?(\\d+\\.)?(\\*|\\d+))|builtin$"
+    }
+  },
+  "properties": {
+    "name": {
+      "$id": "/properties/name",
+      "type": "string",
+      "title": "The Policy Name",
+      "description": "Name of the policy.",
+      "examples": [
+        "Basic Authentication"
+      ],
+      "minLength": 1
+    },
+    "summary": {
+      "$id": "/properties/summary",
+      "type": "string",
+      "title": "The Policy Summary",
+      "description": "Short description of what the policy does",
+      "examples": [
+        "Enables CORS (Cross Origin Resource Sharing) request handling."
+      ],
+      "maxLength": 75
+    },
+    "description": {
+      "$id": "/properties/description",
+      "oneOf": [
+        { "type": "string",
+          "minLength": 1 },
+        { "type": "array", "items": { "type": "string" },
+          "minItems": 1
+        }
+      ],
+      "title": "The Policy Description",
+      "description": "Longer description of what the policy does.",
+      "examples": [
+        "Extract authentication credentials from the HTTP Authorization header and pass them to 3scale backend.",
+        [ "Redirect request to different upstream: ", " - based on path", "- set different Host header"]
+      ]
+    },
+    "order": {
+      "$id": "/properties/order",
+      "type": "object",
+      "title": "Order restrictions of the policy",
+      "description": "Specifies before or after which policies the policy should be placed in the chain.",
+      "properties": {
+        "before": {
+          "type": "array",
+          "items": {
+            "type": "object",
+            "properties": {
+              "name": {
+                "type": "string"
+              },
+              "version": {
+                "type": "string"
+              }
+            },
+            "required": [
+              "name",
+              "version"
+            ]
+          },
+          "description": "The policy should be placed before these ones in the chain."
+        },
+        "after": {
+          "type": "array",
+          "items": {
+            "type": "object",
+            "properties": {
+              "name": {
+                "type": "string"
+              },
+              "version": {
+                "type": "string"
+              }
+            },
+            "required": [
+              "name",
+              "version"
+            ]
+          },
+          "description": "The policy should be placed after these ones in the chain."
+        }
+      }
+    },
+    "version": {
+      "$ref": "#/definitions/version"
+    },
+    "configuration": {
+      "$ref": "#/definitions/schema"
+    }
+  },
+  "required": ["name", "version", "configuration", "summary"]
+}
diff --git a/app/lib/three_scale/policies/schemas/manifest.schema.json b/app/lib/three_scale/policies/schemas/apicast-policy-v1.schema.json
similarity index 94%
rename from app/lib/three_scale/policies/schemas/manifest.schema.json
rename to app/lib/three_scale/policies/schemas/apicast-policy-v1.schema.json
index 20a88ce5a5..2110eb1115 100644
--- a/app/lib/three_scale/policies/schemas/manifest.schema.json
+++ b/app/lib/three_scale/policies/schemas/apicast-policy-v1.schema.json
@@ -1,11 +1,11 @@
 {
-  "$id": "http://apicast.io/policy-v1/schema#manifest",
+  "$id": "http://apicast.io/policy-v1/schema",
   "type": "object",
   "$schema": "http://json-schema.org/draft-07/schema#",
   "definitions": {
     "schema": {
       "$id": "#/definitions/schema",
-      "$ref": "http://json-schema.org/draft-07/schema#",
+      "$schema": "http://json-schema.org/draft-07/schema#",
       "default": {}
     },
     "version": {
diff --git a/app/lib/three_scale/policies/schemas/json-draft-07.schema.json b/app/lib/three_scale/policies/schemas/json-draft-07.schema.json
deleted file mode 100644
index 85079d89cd..0000000000
--- a/app/lib/three_scale/policies/schemas/json-draft-07.schema.json
+++ /dev/null
@@ -1,168 +0,0 @@
-{
-    "$schema": "http://json-schema.org/draft-07/schema#",
-    "$id": "http://json-schema.org/draft-07/schema#",
-    "title": "Core schema meta-schema",
-    "definitions": {
-        "schemaArray": {
-            "type": "array",
-            "minItems": 1,
-            "items": { "$ref": "#" }
-        },
-        "nonNegativeInteger": {
-            "type": "integer",
-            "minimum": 0
-        },
-        "nonNegativeIntegerDefault0": {
-            "allOf": [
-                { "$ref": "#/definitions/nonNegativeInteger" },
-                { "default": 0 }
-            ]
-        },
-        "simpleTypes": {
-            "enum": [
-                "array",
-                "boolean",
-                "integer",
-                "null",
-                "number",
-                "object",
-                "string"
-            ]
-        },
-        "stringArray": {
-            "type": "array",
-            "items": { "type": "string" },
-            "uniqueItems": true,
-            "default": []
-        }
-    },
-    "type": ["object", "boolean"],
-    "properties": {
-        "$id": {
-            "type": "string",
-            "format": "uri-reference"
-        },
-        "$schema": {
-            "type": "string",
-            "format": "uri"
-        },
-        "$ref": {
-            "type": "string",
-            "format": "uri-reference"
-        },
-        "$comment": {
-            "type": "string"
-        },
-        "title": {
-            "type": "string"
-        },
-        "description": {
-            "type": "string"
-        },
-        "default": true,
-        "readOnly": {
-            "type": "boolean",
-            "default": false
-        },
-        "examples": {
-            "type": "array",
-            "items": true
-        },
-        "multipleOf": {
-            "type": "number",
-            "exclusiveMinimum": 0
-        },
-        "maximum": {
-            "type": "number"
-        },
-        "exclusiveMaximum": {
-            "type": "number"
-        },
-        "minimum": {
-            "type": "number"
-        },
-        "exclusiveMinimum": {
-            "type": "number"
-        },
-        "maxLength": { "$ref": "#/definitions/nonNegativeInteger" },
-        "minLength": { "$ref": "#/definitions/nonNegativeIntegerDefault0" },
-        "pattern": {
-            "type": "string",
-            "format": "regex"
-        },
-        "additionalItems": { "$ref": "#" },
-        "items": {
-            "anyOf": [
-                { "$ref": "#" },
-                { "$ref": "#/definitions/schemaArray" }
-            ],
-            "default": true
-        },
-        "maxItems": { "$ref": "#/definitions/nonNegativeInteger" },
-        "minItems": { "$ref": "#/definitions/nonNegativeIntegerDefault0" },
-        "uniqueItems": {
-            "type": "boolean",
-            "default": false
-        },
-        "contains": { "$ref": "#" },
-        "maxProperties": { "$ref": "#/definitions/nonNegativeInteger" },
-        "minProperties": { "$ref": "#/definitions/nonNegativeIntegerDefault0" },
-        "required": { "$ref": "#/definitions/stringArray" },
-        "additionalProperties": { "$ref": "#" },
-        "definitions": {
-            "type": "object",
-            "additionalProperties": { "$ref": "#" },
-            "default": {}
-        },
-        "properties": {
-            "type": "object",
-            "additionalProperties": { "$ref": "#" },
-            "default": {}
-        },
-        "patternProperties": {
-            "type": "object",
-            "additionalProperties": { "$ref": "#" },
-            "propertyNames": { "format": "regex" },
-            "default": {}
-        },
-        "dependencies": {
-            "type": "object",
-            "additionalProperties": {
-                "anyOf": [
-                    { "$ref": "#" },
-                    { "$ref": "#/definitions/stringArray" }
-                ]
-            }
-        },
-        "propertyNames": { "$ref": "#" },
-        "const": true,
-        "enum": {
-            "type": "array",
-            "items": true,
-            "minItems": 1,
-            "uniqueItems": true
-        },
-        "type": {
-            "anyOf": [
-                { "$ref": "#/definitions/simpleTypes" },
-                {
-                    "type": "array",
-                    "items": { "$ref": "#/definitions/simpleTypes" },
-                    "minItems": 1,
-                    "uniqueItems": true
-                }
-            ]
-        },
-        "format": { "type": "string" },
-        "contentMediaType": { "type": "string" },
-        "contentEncoding": { "type": "string" },
-        "if": { "$ref": "#" },
-        "then": { "$ref": "#" },
-        "else": { "$ref": "#" },
-        "allOf": { "$ref": "#/definitions/schemaArray" },
-        "anyOf": { "$ref": "#/definitions/schemaArray" },
-        "oneOf": { "$ref": "#/definitions/schemaArray" },
-        "not": { "$ref": "#" }
-    },
-    "default": true
-}
diff --git a/app/lib/three_scale/policies/specification.rb b/app/lib/three_scale/policies/specification.rb
index e23b2c040e..7bdab39386 100644
--- a/app/lib/three_scale/policies/specification.rb
+++ b/app/lib/three_scale/policies/specification.rb
@@ -6,18 +6,54 @@ class Specification
       def initialize(doc)
         @errors = ActiveModel::Errors.new(self)
         @doc = doc
-        @validator = JSONValidator.new(doc)
       end
 
       attr_reader :errors, :doc
 
-      JSON_SCHEMA = {'$ref' => 'http://apicast.io/policy-v1/schema#'}.freeze
+      SCHEMAS_PATH = "app/lib/three_scale/policies/schemas/"
+      POLICY_SCHEMAS_FILENAMES = %w[apicast-policy-v1.1.schema.json apicast-policy-v1.schema.json].freeze
+      DEFAULT_POLICY_SCHEMA_ID = "http://apicast.io/policy-v1.1/schema"
+
+      POLICY_SCHEMAS = POLICY_SCHEMAS_FILENAMES.each_with_object({}) do |schema_filename, schemas|
+        policy_schema = JSON.parse(File.read(File.join(SCHEMAS_PATH, schema_filename)))
+        id = policy_schema["$id"]
+        schemas[id] = JSONSchemer.schema(policy_schema) if id
+      end.freeze
 
       def valid?
         return false if errors.any?
-        @validator.fully_validate(JSON_SCHEMA).each { |error| errors.add(:base, error) }
+
+        schemer = POLICY_SCHEMAS[schema_id]
+        unless schemer
+          errors.add(:base, "unsupported schema")
+          return false
+        end
+
+        validate(schemer)
+
         errors.empty?
       end
+
+      private
+
+      def validate(schemer)
+        schemer&.validate(doc).to_a.map { _1.fetch('error') }.each do |error|
+          errors.add(:base, error)
+        end
+      rescue JSONSchemer::UnknownRef => exception
+        errors.add(:base, "unknown ref: #{exception.message}")
+      end
+
+      def schema_id
+        @schema_id ||= begin
+          schema = doc&.[]("$schema")
+          # Stripping URL fragment for compatibility. Previously, the schema ID was defined as "http://apicast.io/policy-v1/schema#manifest",
+          # or even "http://apicast.io/policy-v1/schema#manifest#"
+          # After changing the validator to `json_schemer`, the schema ID is now defined as "http://apicast.io/policy-v1/schema"
+          # to avoid issues with the existing schemas in the database or those coming from APIcast
+          schema.present? ? UriUtils.strip_fragment(schema.sub(/\#$/, '')) : DEFAULT_POLICY_SCHEMA_ID
+        end
+      end
     end
   end
 end
diff --git a/app/lib/uri_utils.rb b/app/lib/uri_utils.rb
new file mode 100644
index 0000000000..0166f21ab1
--- /dev/null
+++ b/app/lib/uri_utils.rb
@@ -0,0 +1,13 @@
+# frozen_string_literal: true
+
+module UriUtils
+  module_function
+
+  def strip_fragment(uri_string)
+    new_uri = URI(uri_string)
+    new_uri.fragment = nil
+    new_uri.to_s
+  rescue URI::InvalidURIError
+    nil
+  end
+end
diff --git a/doc/active_docs/policy_registry_api.json b/doc/active_docs/policy_registry_api.json
index de5a3b56ef..cc5e7c99d9 100644
--- a/doc/active_docs/policy_registry_api.json
+++ b/doc/active_docs/policy_registry_api.json
@@ -92,7 +92,7 @@
           "description": "ID of the policy. It can be an integer value or a combination 'name-version' of the policy (e.g. 'mypolicy-1.0')",
           "required": true,
           "schema": {
-            "type": "integer"
+            "type": "string"
           }
         }
       ],
diff --git a/test/fixtures/policies/apicast-policy.json b/test/fixtures/policies/apicast-policy.json
index 8fc279d39a..524a11fa07 100644
--- a/test/fixtures/policies/apicast-policy.json
+++ b/test/fixtures/policies/apicast-policy.json
@@ -1,5 +1,5 @@
 {
-  "$schema": "http://apicast.io/policy-v1/schema#manifest#",
+  "$schema": "http://apicast.io/policy-v1/schema",
   "name": "Upstream",
   "summary": "Allows to modify the upstream URL of the request based on its path.",
   "description":
diff --git a/test/unit/policy_test.rb b/test/unit/policy_test.rb
index 665e006e1b..7aab41a3aa 100644
--- a/test/unit/policy_test.rb
+++ b/test/unit/policy_test.rb
@@ -59,7 +59,7 @@ class PolicyTest < ActiveSupport::TestCase
 
     policy.schema = '{"foo": "bar"}'
     refute policy.valid?
-    assert_includes policy.errors[:schema], 'The property \'#/\' did not contain a required property of \'name\' in schema http://apicast.io/policy-v1/schema#'
+    assert_includes policy.errors[:schema], "object at root is missing required properties: name, version, configuration, summary"
 
     policy.schema = file_fixture('policies/apicast-policy.json').read
     policy.version = policy.schema['version']
diff --git a/test/unit/three_scale/json_validator_test.rb b/test/unit/three_scale/json_validator_test.rb
index 9297a3dee4..a32aeffb83 100644
--- a/test/unit/three_scale/json_validator_test.rb
+++ b/test/unit/three_scale/json_validator_test.rb
@@ -16,17 +16,15 @@ class ThreeScale::JSONValidatorTest < ActiveSupport::TestCase
 
   test 'extract the schema draft' do
     assert_equal 4, @klass.send(:schema_draft, { '$schema' => 'http://json-schema.org/draft-04/schema#' })
-    assert_equal 7, @klass.send(:schema_draft, { '$schema' => 'http://json-schema.org/draft-07/schema#' })
     assert_equal 0, @klass.send(:schema_draft, {})
   end
 
   test 'extract the schema id' do
     assert_equal 'my-id', @klass.send(:schema_id, { 'id' => 'my-id', '$schema' => 'http://json-schema.org/draft-04/schema#' })
-    assert_equal 'my-id', @klass.send(:schema_id, { '$id' => 'my-id', '$schema' => 'http://json-schema.org/draft-07/schema#' })
   end
 
   test 'schema build' do
-    schema_json = { '$id' => 'http://example.com/schema-v1/my-schema#frag', '$schema' => 'http://json-schema.org/draft-07/schema#' }
+    schema_json = { 'id' => 'http://example.com/schema-v1/my-schema#frag', '$schema' => 'http://json-schema.org/draft-04/schema#' }
     schema = @klass.build_schema schema_json
     assert_kind_of JSON::Schema, schema
   end
diff --git a/test/unit/three_scale/policies/specification_test.rb b/test/unit/three_scale/policies/specification_test.rb
index 1efc5d37ac..b63432022a 100644
--- a/test/unit/three_scale/policies/specification_test.rb
+++ b/test/unit/three_scale/policies/specification_test.rb
@@ -12,7 +12,32 @@ class ThreeScale::Policies::SpecificationTest < ActiveSupport::TestCase
 
   test 'valid? returns false for an invalid specification and errors returns why' do
     specification = ThreeScale::Policies::Specification.new({"foo" => "bar"})
-    refute specification.valid?, 'specification should not be valid'
-    assert_includes specification.errors[:base], 'The property \'#/\' did not contain a required property of \'name\' in schema http://apicast.io/policy-v1/schema#'
+    assert_not specification.valid?, 'specification should not be valid'
+    assert_includes specification.errors[:base], "object at root is missing required properties: name, version, configuration, summary"
+  end
+
+  test "use the default policy schema if the document doesn't include the schema ID" do
+    doc = JSON.parse(file_fixture('policies/apicast-policy.json').read)
+    doc.delete("$schema")
+
+    specification = ThreeScale::Policies::Specification.new(doc)
+    assert specification.valid?, 'specification should be valid'
+  end
+
+  test "unsupported schema" do
+    doc = JSON.parse(file_fixture('policies/apicast-policy.json').read)
+    doc["$schema"] = "invalid"
+
+    specification = ThreeScale::Policies::Specification.new(doc)
+    assert_not specification.valid?, 'specification should not be valid'
+    assert_includes specification.errors[:base], "unsupported schema"
+  end
+
+  test "support policies with #manifest in schema ID" do
+    doc = JSON.parse(file_fixture('policies/apicast-policy.json').read)
+    doc["$schema"] = "http://apicast.io/policy-v1/schema#manifest#"
+
+    specification = ThreeScale::Policies::Specification.new(doc)
+    assert specification.valid?, 'specification should be valid'
   end
 end