diff --git a/{{cookiecutter.project_slug}}/compose/caddy/Dockerfile b/{{cookiecutter.project_slug}}/compose/caddy/Dockerfile
deleted file mode 100644
index 774b0bf5b..000000000
--- a/{{cookiecutter.project_slug}}/compose/caddy/Dockerfile
+++ /dev/null
@@ -1,2 +0,0 @@
-FROM abiosoft/caddy:0.10.6
-COPY Caddyfile /etc/Caddyfile
diff --git a/{{cookiecutter.project_slug}}/compose/django/Dockerfile b/{{cookiecutter.project_slug}}/compose/django/Dockerfile
deleted file mode 100644
index 618533f7d..000000000
--- a/{{cookiecutter.project_slug}}/compose/django/Dockerfile
+++ /dev/null
@@ -1,29 +0,0 @@
-FROM python:3.5
-
-ENV PYTHONUNBUFFERED 1
-
-RUN groupadd -r django \
-    && useradd -r -g django django
-
-# Requirements have to be pulled and installed here, otherwise caching won't work
-COPY ./requirements /requirements
-RUN pip install --no-cache-dir -r /requirements/production.txt \
-    && rm -rf /requirements
-
-COPY ./compose/django/gunicorn.sh ./compose/django/entrypoint.sh /
-RUN sed -i 's/\r//' /entrypoint.sh \
-    && sed -i 's/\r//' /gunicorn.sh \
-    && chmod +x /entrypoint.sh \
-    && chown django /entrypoint.sh \
-    && chmod +x /gunicorn.sh \
-    && chown django /gunicorn.sh
-
-COPY . /app
-
-RUN chown -R django /app
-
-USER django
-
-WORKDIR /app
-
-ENTRYPOINT ["/entrypoint.sh"]
diff --git a/{{cookiecutter.project_slug}}/compose/django/Dockerfile-local b/{{cookiecutter.project_slug}}/compose/django/Dockerfile-local
deleted file mode 100644
index d2c56532a..000000000
--- a/{{cookiecutter.project_slug}}/compose/django/Dockerfile-local
+++ /dev/null
@@ -1,26 +0,0 @@
-FROM python:3.5
-ENV PYTHONUNBUFFERED 1
-
-# Requirements have to be pulled and installed here, otherwise caching won't work
-COPY ./requirements /requirements
-RUN pip install -r /requirements/local.txt
-
-COPY ./compose/django/entrypoint.sh /entrypoint.sh
-RUN sed -i 's/\r//' /entrypoint.sh
-RUN chmod +x /entrypoint.sh
-
-COPY ./compose/django/start-dev.sh /start-dev.sh
-RUN sed -i 's/\r//' /start-dev.sh
-RUN chmod +x /start-dev.sh
-
-COPY ./compose/django/celery/worker/start-dev.sh /start-celeryworker-dev.sh
-RUN sed -i 's/\r//' /start-celeryworker-dev.sh
-RUN chmod +x /start-celeryworker-dev.sh
-
-COPY ./compose/django/celery/beat/start-dev.sh /start-celerybeat-dev.sh
-RUN sed -i 's/\r//' /start-celerybeat-dev.sh
-RUN chmod +x /start-celerybeat-dev.sh
-
-WORKDIR /app
-
-ENTRYPOINT ["/entrypoint.sh"]
diff --git a/{{cookiecutter.project_slug}}/compose/django/start-dev.sh b/{{cookiecutter.project_slug}}/compose/django/start-dev.sh
deleted file mode 100644
index 04e06981f..000000000
--- a/{{cookiecutter.project_slug}}/compose/django/start-dev.sh
+++ /dev/null
@@ -1,3 +0,0 @@
-#!/bin/sh
-python manage.py migrate
-python manage.py runserver_plus 0.0.0.0:8000
diff --git a/{{cookiecutter.project_slug}}/compose/postgres/Dockerfile b/{{cookiecutter.project_slug}}/compose/postgres/Dockerfile
deleted file mode 100644
index 9cdaaba30..000000000
--- a/{{cookiecutter.project_slug}}/compose/postgres/Dockerfile
+++ /dev/null
@@ -1,11 +0,0 @@
-FROM postgres:{{ cookiecutter.postgresql_version }}
-
-# add backup scripts
-ADD backup.sh /usr/local/bin/backup
-ADD restore.sh /usr/local/bin/restore
-ADD list-backups.sh /usr/local/bin/list-backups
-
-# make them executable
-RUN chmod +x /usr/local/bin/restore
-RUN chmod +x /usr/local/bin/list-backups
-RUN chmod +x /usr/local/bin/backup
diff --git a/{{cookiecutter.project_slug}}/compose/caddy/Caddyfile b/{{cookiecutter.project_slug}}/compose/production/caddy/Caddyfile
similarity index 100%
rename from {{cookiecutter.project_slug}}/compose/caddy/Caddyfile
rename to {{cookiecutter.project_slug}}/compose/production/caddy/Caddyfile
diff --git a/{{cookiecutter.project_slug}}/compose/production/caddy/Dockerfile b/{{cookiecutter.project_slug}}/compose/production/caddy/Dockerfile
new file mode 100644
index 000000000..d02f0342d
--- /dev/null
+++ b/{{cookiecutter.project_slug}}/compose/production/caddy/Dockerfile
@@ -0,0 +1,3 @@
+FROM abiosoft/caddy:0.10.6
+
+COPY ./compose/production/caddy/Caddyfile /etc/Caddyfile
diff --git a/{{cookiecutter.project_slug}}/compose/production/django/Dockerfile b/{{cookiecutter.project_slug}}/compose/production/django/Dockerfile
new file mode 100644
index 000000000..fcbe51844
--- /dev/null
+++ b/{{cookiecutter.project_slug}}/compose/production/django/Dockerfile
@@ -0,0 +1,39 @@
+FROM python:3.5
+
+ENV PYTHONUNBUFFERED 1
+
+RUN groupadd -r django \
+    && useradd -r -g django django
+
+# Requirements have to be pulled and installed here, otherwise caching won't work
+COPY ./requirements /requirements
+RUN pip install --no-cache-dir -r /requirements/production.txt \
+    && rm -rf /requirements
+
+COPY ./compose/production/django/gunicorn.sh /gunicorn.sh
+RUN sed -i 's/\r//' /gunicorn.sh
+RUN chmod +x /gunicorn.sh
+RUN chown django /gunicorn.sh
+
+COPY ./compose/production/django/entrypoint.sh /entrypoint.sh
+RUN sed -i 's/\r//' /entrypoint.sh
+RUN chmod +x /entrypoint.sh
+RUN chown django /entrypoint.sh
+
+COPY ./compose/production/django/celery/worker/start.sh /start-celeryworker.sh
+RUN sed -i 's/\r//' /start-celeryworker.sh
+RUN chmod +x /start-celeryworker.sh
+
+COPY ./compose/production/django/celery/beat/start.sh /start-celerybeat.sh
+RUN sed -i 's/\r//' /start-celerybeat.sh
+RUN chmod +x /start-celerybeat.sh
+
+COPY . /app
+
+RUN chown -R django /app
+
+USER django
+
+WORKDIR /app
+
+ENTRYPOINT ["/entrypoint.sh"]
diff --git a/{{cookiecutter.project_slug}}/compose/django/celery/beat/start-dev.sh b/{{cookiecutter.project_slug}}/compose/production/django/celery/beat/start.sh
similarity index 65%
rename from {{cookiecutter.project_slug}}/compose/django/celery/beat/start-dev.sh
rename to {{cookiecutter.project_slug}}/compose/production/django/celery/beat/start.sh
index 987d7259e..845db0a3d 100644
--- a/{{cookiecutter.project_slug}}/compose/django/celery/beat/start-dev.sh
+++ b/{{cookiecutter.project_slug}}/compose/production/django/celery/beat/start.sh
@@ -1,8 +1,8 @@
-#!/bin/sh
+#!/usr/bin/env bash
 
 set -o errexit
+set -o pipefail
 set -o nounset
-set -o xtrace
 
-rm -f './celerybeat.pid'
+
 celery -A {{cookiecutter.project_slug}}.taskapp beat -l INFO
diff --git a/{{cookiecutter.project_slug}}/compose/django/celery/worker/start-dev.sh b/{{cookiecutter.project_slug}}/compose/production/django/celery/worker/start.sh
similarity index 71%
rename from {{cookiecutter.project_slug}}/compose/django/celery/worker/start-dev.sh
rename to {{cookiecutter.project_slug}}/compose/production/django/celery/worker/start.sh
index 594065e6c..4529aad92 100644
--- a/{{cookiecutter.project_slug}}/compose/django/celery/worker/start-dev.sh
+++ b/{{cookiecutter.project_slug}}/compose/production/django/celery/worker/start.sh
@@ -1,7 +1,8 @@
-#!/bin/sh
+#!/usr/bin/env bash
 
 set -o errexit
+set -o pipefail
 set -o nounset
-set -o xtrace
+
 
 celery -A {{cookiecutter.project_slug}}.taskapp worker -l INFO
diff --git a/{{cookiecutter.project_slug}}/compose/django/entrypoint.sh b/{{cookiecutter.project_slug}}/compose/production/django/entrypoint.sh
similarity index 91%
rename from {{cookiecutter.project_slug}}/compose/django/entrypoint.sh
rename to {{cookiecutter.project_slug}}/compose/production/django/entrypoint.sh
index 9fe7f5c88..3b83c7bb6 100644
--- a/{{cookiecutter.project_slug}}/compose/django/entrypoint.sh
+++ b/{{cookiecutter.project_slug}}/compose/production/django/entrypoint.sh
@@ -1,5 +1,12 @@
-#!/bin/bash
-set -e
+#!/usr/bin/env bash
+
+set -o errexit
+set -o pipefail
+
+# todo: turn on after #1295
+# set -o nounset
+
+
 cmd="$@"
 
 # This entrypoint is used to play nicely with the current cookiecutter configuration.
diff --git a/{{cookiecutter.project_slug}}/compose/django/gunicorn.sh b/{{cookiecutter.project_slug}}/compose/production/django/gunicorn.sh
similarity index 59%
rename from {{cookiecutter.project_slug}}/compose/django/gunicorn.sh
rename to {{cookiecutter.project_slug}}/compose/production/django/gunicorn.sh
index 014f173e3..25da06496 100644
--- a/{{cookiecutter.project_slug}}/compose/django/gunicorn.sh
+++ b/{{cookiecutter.project_slug}}/compose/production/django/gunicorn.sh
@@ -1,3 +1,9 @@
-#!/bin/sh
+#!/usr/bin/env bash
+
+set -o errexit
+set -o pipefail
+set -o nounset
+
+
 python /app/manage.py collectstatic --noinput
-/usr/local/bin/gunicorn config.wsgi -w 4 -b 0.0.0.0:5000 --chdir=/app
\ No newline at end of file
+/usr/local/bin/gunicorn config.wsgi -w 4 -b 0.0.0.0:5000 --chdir=/app
diff --git a/{{cookiecutter.project_slug}}/compose/production/postgres/Dockerfile b/{{cookiecutter.project_slug}}/compose/production/postgres/Dockerfile
new file mode 100644
index 000000000..769f79892
--- /dev/null
+++ b/{{cookiecutter.project_slug}}/compose/production/postgres/Dockerfile
@@ -0,0 +1,9 @@
+FROM postgres:{{ cookiecutter.postgresql_version }}
+
+ADD ./compose/production/postgres/backup.sh /usr/local/bin/backup
+ADD ./compose/production/postgres/restore.sh /usr/local/bin/restore
+ADD ./compose/production/postgres/list-backups.sh /usr/local/bin/list-backups
+
+RUN chmod +x /usr/local/bin/restore
+RUN chmod +x /usr/local/bin/list-backups
+RUN chmod +x /usr/local/bin/backup
diff --git a/{{cookiecutter.project_slug}}/compose/postgres/backup.sh b/{{cookiecutter.project_slug}}/compose/production/postgres/backup.sh
similarity index 90%
rename from {{cookiecutter.project_slug}}/compose/postgres/backup.sh
rename to {{cookiecutter.project_slug}}/compose/production/postgres/backup.sh
index 47f7a5140..46438011c 100644
--- a/{{cookiecutter.project_slug}}/compose/postgres/backup.sh
+++ b/{{cookiecutter.project_slug}}/compose/production/postgres/backup.sh
@@ -1,6 +1,9 @@
-#!/bin/bash
-# stop on errors
-set -e
+#!/usr/bin/env bash
+
+set -o errexit
+set -o pipefail
+set -o nounset
+
 
 # we might run into trouble when using the default `postgres` user, e.g. when dropping the postgres
 # database in restore.sh. Check that something else is used here
diff --git a/{{cookiecutter.project_slug}}/compose/postgres/list-backups.sh b/{{cookiecutter.project_slug}}/compose/production/postgres/list-backups.sh
similarity index 53%
rename from {{cookiecutter.project_slug}}/compose/postgres/list-backups.sh
rename to {{cookiecutter.project_slug}}/compose/production/postgres/list-backups.sh
index 75972b75b..2be3d1d61 100644
--- a/{{cookiecutter.project_slug}}/compose/postgres/list-backups.sh
+++ b/{{cookiecutter.project_slug}}/compose/production/postgres/list-backups.sh
@@ -1,4 +1,10 @@
-#!/bin/bash
+#!/usr/bin/env bash
+
+set -o errexit
+set -o pipefail
+set -o nounset
+
+
 echo "listing available backups"
 echo "-------------------------"
 ls /backups/
diff --git a/{{cookiecutter.project_slug}}/compose/postgres/restore.sh b/{{cookiecutter.project_slug}}/compose/production/postgres/restore.sh
similarity index 96%
rename from {{cookiecutter.project_slug}}/compose/postgres/restore.sh
rename to {{cookiecutter.project_slug}}/compose/production/postgres/restore.sh
index ddfc90d5f..e7358949e 100644
--- a/{{cookiecutter.project_slug}}/compose/postgres/restore.sh
+++ b/{{cookiecutter.project_slug}}/compose/production/postgres/restore.sh
@@ -1,7 +1,9 @@
-#!/bin/bash
+#!/usr/bin/env bash
+
+set -o errexit
+set -o pipefail
+set -o nounset
 
-# stop on errors
-set -e
 
 # we might run into trouble when using the default `postgres` user, e.g. when dropping the postgres
 # database in restore.sh. Check that something else is used here
diff --git a/{{cookiecutter.project_slug}}/local.yml b/{{cookiecutter.project_slug}}/local.yml
index 0fbb4436a..aaf131fa2 100644
--- a/{{cookiecutter.project_slug}}/local.yml
+++ b/{{cookiecutter.project_slug}}/local.yml
@@ -1,14 +1,14 @@
 version: '2'
 
 volumes:
-  postgres_data_dev: {}
-  postgres_backup_dev: {}
+  postgres_data_local: {}
+  postgres_backup_local: {}
 
 services:
-  django: &django
+  django:{% if cookiecutter.use_celery == 'y' %} &django{% endif %}
     build:
       context: .
-      dockerfile: ./compose/django/Dockerfile-local
+      dockerfile: ./compose/local/django/Dockerfile
     depends_on:
       - postgres{% if cookiecutter.use_mailhog == 'y' %}
       - mailhog{% endif %}
@@ -19,13 +19,15 @@ services:
       - USE_DOCKER=yes
     ports:
       - "8000:8000"
-    command: /start-dev.sh
+    command: /start.sh
 
   postgres:
-    build: ./compose/postgres
+    build:
+      context: .
+      dockerfile: ./compose/production/postgres/Dockerfile
     volumes:
-      - postgres_data_dev:/var/lib/postgresql/data
-      - postgres_backup_dev:/backups
+      - postgres_data_local:/var/lib/postgresql/data
+      - postgres_backup_local:/backups
     environment:
       - POSTGRES_USER={{cookiecutter.project_slug}}
 {% if cookiecutter.use_mailhog == 'y' %}
@@ -46,7 +48,7 @@ services:
       - postgres{% if cookiecutter.use_mailhog == 'y' %}
       - mailhog{% endif %}
     ports: []
-    command: /start-celeryworker-dev.sh
+    command: /start-celeryworker.sh
 
   celerybeat:
     # https://github.com/docker/compose/issues/3220
@@ -56,5 +58,5 @@ services:
       - postgres{% if cookiecutter.use_mailhog == 'y' %}
       - mailhog{% endif %}
     ports: []
-    command: /start-celerybeat-dev.sh
+    command: /start-celerybeat.sh
 {% endif %}
diff --git a/{{cookiecutter.project_slug}}/production.yml b/{{cookiecutter.project_slug}}/production.yml
index 79e856dfb..ef9163e5a 100644
--- a/{{cookiecutter.project_slug}}/production.yml
+++ b/{{cookiecutter.project_slug}}/production.yml
@@ -6,54 +6,52 @@ volumes:
   caddy: {}
 
 services:
-  django:
+  django:{% if cookiecutter.use_celery == 'y' %} &django{% endif %}
     build:
       context: .
-      dockerfile: ./compose/django/Dockerfile
+      dockerfile: ./compose/production/django/Dockerfile
     depends_on:
       - postgres
       - redis
-    command: /gunicorn.sh
     env_file: .env
+    command: /gunicorn.sh
 
   postgres:
-    build: ./compose/postgres
+    build:
+      context: .
+      dockerfile: ./compose/production/postgres/Dockerfile
     volumes:
       - postgres_data:/var/lib/postgresql/data
       - postgres_backup:/backups
     env_file: .env
 
   caddy:
-    build: ./compose/caddy
+    build:
+      context: .
+      dockerfile: ./compose/production/caddy/Dockerfile
     depends_on:
       - django
-    ports:
-      - "0.0.0.0:80:80"
-      - "0.0.0.0:443:443"
     volumes:
       - caddy:/root/.caddy
     env_file: .env
+    ports:
+      - "0.0.0.0:80:80"
+      - "0.0.0.0:443:443"
 
   redis:
     image: redis:3.0
 {% if cookiecutter.use_celery == 'y' %}
   celeryworker:
-    build:
-      context: .
-      dockerfile: ./compose/django/Dockerfile
-    env_file: .env
+    <<: *django
     depends_on:
      - postgres
      - redis
-    command: celery -A {{cookiecutter.project_slug}}.taskapp worker -l INFO
+    command: /start-celeryworker.sh
 
   celerybeat:
-    build:
-      context: .
-      dockerfile: ./compose/django/Dockerfile
-    env_file: .env
+    <<: *django
     depends_on:
       - postgres
       - redis
-    command: celery -A {{cookiecutter.project_slug}}.taskapp beat -l INFO
+    command: /start-celerybeat.sh
 {% endif %}
diff --git a/{{cookiecutter.project_slug}}/requirements/production.txt b/{{cookiecutter.project_slug}}/requirements/production.txt
index b9f09ca75..a347337f8 100644
--- a/{{cookiecutter.project_slug}}/requirements/production.txt
+++ b/{{cookiecutter.project_slug}}/requirements/production.txt
@@ -4,8 +4,8 @@
 
 {% if cookiecutter.windows == 'y' -%}
 # Python-PostgreSQL Database Adapter
-# If using Win for dev, this assumes Unix in prod
-# ------------------------------------------------
+# Assuming Windows is used locally, and *nix -- in production.
+# ------------------------------------------------------------
 psycopg2==2.7.3.1
 {%- endif %}