diff --git a/setup.py b/setup.py
index 02dbbba8..c7d73265 100644
--- a/setup.py
+++ b/setup.py
@@ -22,7 +22,7 @@
 else:
     INSTALL_REQUIRES = [
         'esmpy>=8.0.0',
-        'xarray!=0.16.1',
+        'xarray>=0.16.2',
         'numpy>=1.16',
         'scipy',
         'shapely',
diff --git a/xesmf/frontend.py b/xesmf/frontend.py
index cf300027..0b637a15 100644
--- a/xesmf/frontend.py
+++ b/xesmf/frontend.py
@@ -527,9 +527,11 @@ def regrid_dataarray(self, dr_in, keep_attrs=False, skipna=False, na_thres=1.0):
             output_core_dims=[temp_horiz_dims],
             dask='parallelized',
             output_dtypes=[float],
-            output_sizes={
-                temp_horiz_dims[0]: self.shape_out[0],
-                temp_horiz_dims[1]: self.shape_out[1],
+            dask_gufunc_kwargs={
+                'output_sizes': {
+                    temp_horiz_dims[0]: self.shape_out[0],
+                    temp_horiz_dims[1]: self.shape_out[1],
+                },
             },
             keep_attrs=keep_attrs,
         )
@@ -560,9 +562,11 @@ def regrid_dataset(self, ds_in, keep_attrs=False, skipna=False, na_thres=1.0):
             output_core_dims=[temp_horiz_dims],
             dask='parallelized',
             output_dtypes=[float],
-            output_sizes={
-                temp_horiz_dims[0]: self.shape_out[0],
-                temp_horiz_dims[1]: self.shape_out[1],
+            dask_gufunc_kwargs={
+                'output_sizes': {
+                    temp_horiz_dims[0]: self.shape_out[0],
+                    temp_horiz_dims[1]: self.shape_out[1],
+                },
             },
             keep_attrs=keep_attrs,
         )