diff --git a/CHANGES/468.bugfix b/CHANGES/468.bugfix
new file mode 100644
index 00000000..421d7662
--- /dev/null
+++ b/CHANGES/468.bugfix
@@ -0,0 +1 @@
+Fix the postgresql database not being preserved for docker-compose.
diff --git a/images/compose/README.md b/images/compose/README.md
index befc7f7b..70e933bf 100644
--- a/images/compose/README.md
+++ b/images/compose/README.md
@@ -29,7 +29,7 @@ docker-compose scale pulp_api=4 pulp_content=4
 pip install podman-compose
 git clone git@github.com:pulp/pulp-oci-images.git
 cd images/compose
-mkdir ../../pgsql ../../pulp_storage
+mkdir -p ../../pgsql/data ../../pulp_storage
 podman unshare chown 700:700 ../../pulp_storage
 podman-compose -f docker-compose.folders.yml up
 ```
@@ -39,7 +39,7 @@ podman-compose -f docker-compose.folders.yml up
 pip install podman-compose
 git clone git@github.com:pulp/pulp-oci-images.git
 cd images/compose
-mkdir ../../pgsql ../../pulp_storage
+mkdir -p ../../pgsql/data ../../pulp_storage
 sudo chown 700:700 ../../pulp_storage
 podman-compose -f docker-compose.folders.yml up
 ```
diff --git a/images/compose/docker-compose.folders.yml b/images/compose/docker-compose.folders.yml
index 39c76d6f..181776bf 100644
--- a/images/compose/docker-compose.folders.yml
+++ b/images/compose/docker-compose.folders.yml
@@ -11,7 +11,7 @@ services:
       POSTGRES_INITDB_ARGS: '--auth-host=scram-sha-256'
       POSTGRES_HOST_AUTH_METHOD: 'scram-sha-256'
     volumes:
-      - "../../pgsql:/var/lib/postgresql:Z"
+      - "../../pgsql/data:/var/lib/postgresql/data:Z"
       - "./assets/postgres/passwd:/etc/passwd:Z"
 
   redis:
diff --git a/images/compose/docker-compose.yml b/images/compose/docker-compose.yml
index 028e4ac0..c04a5fff 100644
--- a/images/compose/docker-compose.yml
+++ b/images/compose/docker-compose.yml
@@ -11,7 +11,7 @@ services:
       POSTGRES_INITDB_ARGS: '--auth-host=scram-sha-256'
       POSTGRES_HOST_AUTH_METHOD: 'scram-sha-256'
     volumes:
-      - "pg_data:/var/lib/postgresql"
+      - "pg_data:/var/lib/postgresql/data"
       - "./assets/postgres/passwd:/etc/passwd:Z"
     restart: always