diff --git a/docker-compose/docker-compose.yml b/docker-compose/docker-compose.yml
index a395f0331b..3f097f2700 100644
--- a/docker-compose/docker-compose.yml
+++ b/docker-compose/docker-compose.yml
@@ -159,12 +159,12 @@ services:
       context: ./compute_wrapper/
       args:
         - REPOSITORY=${REPOSITORY:-neondatabase}
-        - COMPUTE_IMAGE=compute-node-v${PG_VERSION:-14}
+        - COMPUTE_IMAGE=compute-node-v${PG_VERSION:-16}
         - TAG=${TAG:-latest}
         - http_proxy=$http_proxy
         - https_proxy=$https_proxy
     environment:
-      - PG_VERSION=${PG_VERSION:-14}
+      - PG_VERSION=${PG_VERSION:-16}
       #- RUST_BACKTRACE=1
     # Mount the test files directly, for faster editing cycle.
     volumes:
diff --git a/docs/docker.md b/docs/docker.md
index cbf68be3a7..ccd2afc27a 100644
--- a/docs/docker.md
+++ b/docs/docker.md
@@ -34,12 +34,12 @@ You can see a [docker compose](https://docs.docker.com/compose/) example to crea
 1. create containers
 
 You can specify version of neon cluster using following environment values.
-- PG_VERSION: postgres version for compute (default is 14)
+- PG_VERSION: postgres version for compute (default is 16)
 - TAG: the tag version of [docker image](https://registry.hub.docker.com/r/neondatabase/neon/tags) (default is latest), which is tagged in [CI test](/.github/workflows/build_and_test.yml)
 ```
 $ cd docker-compose/
 $ docker-compose down   # remove the containers if exists
-$ PG_VERSION=15 TAG=2937 docker-compose up --build -d  # You can specify the postgres and image version
+$ PG_VERSION=16 TAG=2937 docker-compose up --build -d  # You can specify the postgres and image version
 Creating network "dockercompose_default" with the default driver
 Creating docker-compose_storage_broker_1       ... done
 (...omit...)