diff --git a/.github/actions/dev-env-setup/action.yml b/.github/actions/dev-env-setup/action.yml
index 690d5f4b08..7c63dfe9a6 100644
--- a/.github/actions/dev-env-setup/action.yml
+++ b/.github/actions/dev-env-setup/action.yml
@@ -46,6 +46,12 @@ runs:
       run: poetry install --no-interaction --no-root
       working-directory: ./bc_obps
       shell: bash
+    - name: Install dependencies for PostgreSQL build
+      working-directory: ./bc_obps
+      shell: bash
+      run: |
+        sudo apt-get update
+        sudo apt-get install -y libreadline-dev uuid-dev
     - name: Install server dev tools
       working-directory: ./bc_obps
       shell: bash
diff --git a/bc_obps/.tool-versions b/bc_obps/.tool-versions
index 5aacdee457..4e74d90f4c 100644
--- a/bc_obps/.tool-versions
+++ b/bc_obps/.tool-versions
@@ -1,3 +1,3 @@
 python 3.12.3
 poetry 1.8.1
-postgres 14.0
+postgres 16.2