diff --git a/.env b/.env
index 17efe3a..5261d8c 100644
--- a/.env
+++ b/.env
@@ -2,7 +2,7 @@ REGISTRY="inakri" # set -a && source .env
 REPO_OWNER="izelnakri"
 PGUSER=postgres
 PGPASSWORD=postgres
-PGHOST=localhost
+# PGHOST=localhost
 MIX_ENV=test
 # CIRCLE_BRANCH=$$(if [ -v CIRCLE_BRANCH ]; then echo master; else git branch --no-color 2> /dev/null | sed -e '/^[^*]/d' -e 's/* \(.*\)/\1/'; fi)
 # DOCKER_TAG=paper_trail:master
diff --git a/Dockerfile b/Dockerfile
index 72684d1..bc3ef5e 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -5,7 +5,7 @@ ENV MIX_ENV=$MIX_ENV
 
 WORKDIR /code/
 
-RUN echo "y" | mix local.hex --if-missing && echo "y" | mix local.rebar --if-missing
+RUN apk add postgresql | echo "y" | mix local.hex --if-missing && echo "y" | mix local.rebar --if-missing
 
 ADD ["mix.lock", "mix.exs", "/code/"]
 
diff --git a/docker-compose.yaml b/docker-compose.yaml
index c1600c3..fb5a9b0 100644
--- a/docker-compose.yaml
+++ b/docker-compose.yaml
@@ -1,8 +1,8 @@
-version: '3.4'
 services:
   db:
-    image: postgres:12.2-alpine
+    image: postgres:16.4-alpine
     environment:
+      POSTGRES_PASSWORD: $PGPASSWORD
       PGPASSWORD: $PGPASSWORD
       PGUSER: $PGUSER
       PGDATA: /var/lib/postgresql/data/pgdata
diff --git a/setup-database.sh b/setup-database.sh
index aede2c4..175e593 100644
--- a/setup-database.sh
+++ b/setup-database.sh
@@ -1,6 +1,6 @@
 #!/bin/sh
 set -oe allexport
-source ./.env
+source .env
 
 # Prepare Dialyzer if the project has Dialyxer set up
 # if mix help dialyzer >/dev/null 2>&1