diff --git a/Dockerfile b/Dockerfile
index b76ba61dc..f5aa00829 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -9,29 +9,17 @@ RUN apt-get update -qq && \
   default-jre-headless \
   unison \
   sudo graphviz --no-install-recommends \
-  sudo libfile-mimeinfo-perl && \
+  libfile-mimeinfo-perl && \
   rm -rf /var/lib/apt/lists/*
 
 # heroku tools
 RUN wget -O- https://toolbelt.heroku.com/install-ubuntu.sh | sh
 
-# install gems
-COPY Gemfile* /tmp/
-COPY addons /tmp/addons
-WORKDIR /tmp
-RUN bundle install
-RUN rm -rf addons
+ENV BUNDLE_PATH /usr/local/bundle/
 
 # create app directory
 ENV APP_HOME /usr/src/app
 RUN mkdir $APP_HOME
 WORKDIR $APP_HOME
-RUN mkdir addons
-RUN ln -s $(readlink -f addons) /tmp
-
-# container user
-RUN groupadd scinote
-RUN useradd -ms /bin/bash -g scinote scinote
-USER scinote
 
 CMD rails s -b 0.0.0.0
diff --git a/Dockerfile.production b/Dockerfile.production
index 63bc9f0da..5b82281e2 100644
--- a/Dockerfile.production
+++ b/Dockerfile.production
@@ -9,12 +9,15 @@ RUN apt-get update -qq && \
   netcat \
   default-jre-headless \
   sudo graphviz --no-install-recommends \
-  sudo libfile-mimeinfo-perl && \
+  libfile-mimeinfo-perl && \
   rm -rf /var/lib/apt/lists/*
 
+ENV RAILS_ENV production
+
 # install gems
-COPY Gemfile* /tmp/
-WORKDIR /tmp
+COPY Gemfile* /usr/src/bundle/
+COPY addons /usr/src/bundle/addons
+WORKDIR /usr/src/bundle
 RUN bundle install
 
 # create app directory
@@ -24,12 +27,10 @@ WORKDIR $APP_HOME
 COPY . .
 RUN rm -f $APP_HOME/config/application.yml $APP_HOME/production.env
 
-ENV RAILS_ENV=production \
-  DATABASE_URL=postgresql://postgres@db/scinote_production \
+RUN DATABASE_URL=postgresql://postgres@db/scinote_production \
   PAPERCLIP_HASH_SECRET=dummy \
   SECRET_KEY_BASE=dummy \
-  DEFACE_ENABLED=true
-
-RUN bash -c "rake assets:precompile && rake deface:precompile"
+  DEFACE_ENABLED=true \
+  bash -c "rake assets:precompile && rake deface:precompile"
 
 CMD rails s -b 0.0.0.0
diff --git a/Makefile b/Makefile
index d145451c7..946f44e0a 100644
--- a/Makefile
+++ b/Makefile
@@ -10,6 +10,7 @@ ENABLE_TUTORIAL=true
 ENABLE_RECAPTCHA=false
 ENABLE_USER_CONFIRMATION=false
 ENABLE_USER_REGISTRATION=true
+DEFACE_ENABLED=false
 endef
 export PRODUCTION_CONFIG_BODY
 
@@ -44,6 +45,9 @@ database:
 database-production:
 	@$(MAKE) rails-production cmd="bash -c 'while ! nc -z db 5432; do sleep 1; done; rake db:create && rake db:migrate && rake db:seed'"
 
+deface:
+	@$(MAKE) rails cmd="rake deface:precompile"
+
 rails:
 	@docker-compose run --rm web $(cmd)
 
@@ -53,7 +57,7 @@ rails-production:
 run:
 	rm tmp/pids/server.pid || true
 	@docker-compose up -d
-	@docker attach $(shell docker-compose ps web | grep "rails s" | awk '{ print $$1; }')
+	@docker attach scinote_web_development
 
 start:
 	@docker-compose start
diff --git a/docker-compose.production.yml b/docker-compose.production.yml
index 44365731d..f1fdb456c 100644
--- a/docker-compose.production.yml
+++ b/docker-compose.production.yml
@@ -1,4 +1,4 @@
-version: '2.1'
+version: '2'
 services:
   db:
     container_name: scinote_db_production
diff --git a/docker-compose.yml b/docker-compose.yml
index 435dff1d7..e2429d0ef 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -1,22 +1,35 @@
+version: '2'
+services:
+  db:
+    container_name: scinote_db_development
+    image: postgres:9.4
+    volumes:
+      - scinote_development_postgres:/var/lib/postgresql/data
 
-dbdata:
-  image: busybox
-  volumes:
-    - /var/lib/postgresql
-  command: "true"
+  web:
+    build:
+      context: .
+      dockerfile: Dockerfile
+    image: scinote_web_development
+    container_name: scinote_web_development
+    stdin_open: true
+    tty: true
+    depends_on:
+      - db
+    ports:
+      - "3000:3000"
+    command: >
+      bash -c "rm -f /usr/src/app/tmp/pids/server.pid &&
+               (bundle check || bundle install) &&
+               bundle exec rails s -b 0.0.0.0"
+    environment:
+      - RAILS_ENV=development
+    volumes:
+      - .:/usr/src/app
+      - scinote_development_bundler:/usr/local/bundle/
+      - scinote_development_files:/usr/src/app/public/system
 
-db:
-  image: postgres:9.4
-  volumes_from:
-    - dbdata
-
-web:
-  build: .
-  stdin_open: true
-  tty: true
-  ports:
-   - "3000:3000"
-  volumes:
-   - .:/usr/src/app
-  links:
-    - db
+volumes:
+  scinote_development_postgres:
+  scinote_development_bundler:
+  scinote_development_files: