diff --git a/Dockerfile b/Dockerfile
deleted file mode 100644
index a0add117b..000000000
--- a/Dockerfile
+++ /dev/null
@@ -1,21 +0,0 @@
-FROM postgres:9.6.3
-
-MAINTAINER Timescale
-
-ENV PG_MAJOR 9.6
-
-RUN apt-get update && apt-get install -y \
-    build-essential \
-    daemontools \
-    postgresql-server-dev-$PG_MAJOR \
-    && rm -rf /var/lib/apt/lists/*
-
-RUN mkdir -p /build/{src,test/results}
-COPY sql /build/sql
-COPY src/*.c src/*.h build/src/
-COPY test/expected /build/test/
-COPY test/sql /build/test/
-COPY test/runner.sh /build/test/runner.sh
-COPY timescaledb.control /build/
-COPY Makefile build/Makefile
-RUN make -C /build install && rm -rf /build
diff --git a/docker.mk b/docker.mk
deleted file mode 100644
index c12fe0687..000000000
--- a/docker.mk
+++ /dev/null
@@ -1,27 +0,0 @@
-IMAGE_NAME = timescaledb
-CONTAINER_NAME = timescaledb
-TEST_CONTAINER_NAME = $(CONTAINER_NAME)_testing
-MAKE = make
-PGPORT = 5432
-TEST_PGPORT = 6543
-TEST_TABLESPACE_PATH = /tmp/tspace1
-TEST_INSTANCE_OPTS = # clear this setting when running against existing Docker instance
-
-build-image: Dockerfile
-	@docker build . -t $(IMAGE_NAME)
-
-start-container:
-	@IMAGE_NAME=$(IMAGE_NAME) CONTAINER_NAME=$(CONTAINER_NAME) PGPORT=$(PGPORT) ./scripts/docker-run.sh
-
-start-test-container:
-	@IMAGE_NAME=$(IMAGE_NAME) CONTAINER_NAME=$(TEST_CONTAINER_NAME) \
-	PGPORT=$(TEST_PGPORT) TEST_TABLESPACE_PATH=$(TEST_TABLESPACE_PATH) ./scripts/start-test-docker.sh
-
-test: build-image start-test-container installcheck
-	@docker rm -f $(TEST_CONTAINER_NAME)
-
-run: build-image start-container
-
-include Makefile
-
-.PHONY: test start-container start-test-container build-image
diff --git a/scripts/docker-build.sh b/scripts/docker-build.sh
new file mode 100755
index 000000000..2b202da05
--- /dev/null
+++ b/scripts/docker-build.sh
@@ -0,0 +1,29 @@
+#!/bin/bash
+#
+# This script builds a development TimescaleDB image from the
+# currently checked out source on the host.
+#
+SCRIPT_DIR=$(dirname $0)
+BASE_DIR=${PWD}/${SCRIPT_DIR}/..
+PG_IMAGE_TAG=${PG_IMAGE_TAG:-9.6.3-alpine}
+BUILD_CONTAINER_NAME=${BUILD_CONTAINER_NAME:-pgbuild}
+IMAGE_NAME=${IMAGE_NAME:-$USER/timescaledb}
+GIT_BRANCH=$(git rev-parse --abbrev-ref HEAD ${BASE_DIR} | awk '{print $1; exit}' | sed -e "s|/|_|g")
+
+# Clean previous containers
+docker rm -f $(docker ps -a -q -f name=${BUILD_CONTAINER_NAME} 2>/dev/null) 2>/dev/null
+
+# Run a Postgres container
+docker run -u postgres -d --name ${BUILD_CONTAINER_NAME} -v ${BASE_DIR}:/src postgres:${PG_IMAGE_TAG}
+
+# Install build dependencies
+docker exec -u root -it ${BUILD_CONTAINER_NAME} /bin/bash -c "apk add --no-cache --virtual .build-deps coreutils dpkg-dev gcc libc-dev make util-linux-dev diffutils && mkdir -p /build"
+
+# Build and install the extension
+docker exec -u root -it ${BUILD_CONTAINER_NAME} /bin/bash -c "cp -a /src/{src,sql,test,Makefile,timescaledb.control} /build/ &&  make -C /build clean && make -C /build install && echo \"shared_preload_libraries = 'timescaledb'\" >> /usr/local/share/postgresql/postgresql.conf.sample"
+
+docker commit -a $USER -m "TimescaleDB development image" ${BUILD_CONTAINER_NAME} ${IMAGE_NAME}:${GIT_BRANCH}
+
+echo
+echo "Built image ${IMAGE_NAME}:${GIT_BRANCH}"
+echo "Run 'docker run -d --name some-timescaledb -p 5432:5432 ${IMAGE_NAME}:${GIT_BRANCH}' to launch"
diff --git a/scripts/docker-run-tests.sh b/scripts/docker-run-tests.sh
new file mode 100755
index 000000000..f458694c3
--- /dev/null
+++ b/scripts/docker-run-tests.sh
@@ -0,0 +1,34 @@
+#!/bin/bash
+#
+# This script runs the TimescaleDB tests through a standard PostgreSQL
+# container, first installing the extension via a mounted host volume.
+#
+SCRIPT_DIR=$(dirname $0)
+BASE_DIR=${PWD}/${SCRIPT_DIR}/..
+PG_IMAGE_TAG=${PG_IMAGE_TAG:-9.6.3-alpine}
+CONTAINER_NAME=${CONTAINER_NAME:-pgtest}
+
+case $1 in
+    clean)
+        docker rm -f $(docker ps -a -q -f name=${CONTAINER_NAME} 2>/dev/null) 2>/dev/null
+        ;;
+esac
+
+if [ $(docker ps -q -f name=${CONTAINER_NAME} 2>/dev/null | wc -l) = 0 ]; then
+    echo "Creating container ${CONTAINER_NAME}"
+    docker rm ${CONTAINER_NAME} 2>/dev/null
+    # Run a Postgres container
+    docker run -u postgres -d --name ${CONTAINER_NAME} -v ${BASE_DIR}:/src postgres:${PG_IMAGE_TAG}
+    # Install build dependencies
+    docker exec -u root -it ${CONTAINER_NAME} /bin/bash -c "apk add --no-cache --virtual .build-deps coreutils dpkg-dev gcc libc-dev make util-linux-dev diffutils && mkdir -p /build"
+fi
+
+# Copy the source files to build directory
+docker exec -u root -it ${CONTAINER_NAME} /bin/bash -c "cp -a /src/{src,sql,test,Makefile,timescaledb.control} /build/ &&  make -C /build clean && make -C /build install"
+
+# Run tests
+docker exec -u postgres -it ${CONTAINER_NAME} /bin/bash -c "make -C /build installcheck TEST_INSTANCE_OPTS='--temp-instance=/tmp/pgdata --temp-config=/build/test/postgresql.conf'"
+
+if [ "$?" != "0" ]; then
+    docker exec -it ${CONTAINER_NAME} cat /build/test/regression.diffs
+fi