diff --git a/.github/workflows/build-images.yml b/.github/workflows/build-images.yml
index b4b09d4197..aa0ac093e4 100644
--- a/.github/workflows/build-images.yml
+++ b/.github/workflows/build-images.yml
@@ -55,6 +55,10 @@ jobs:
             tag_suffix: emailservice
             context: ./src/emailservice
             setup-qemu: true
+          - file: ./src/ffspostgres/Dockerfile
+            tag_suffix: ffspostgres
+            context: ./
+            setup-qemu: true
           # NOTE:
           # https://github.com/open-telemetry/opentelemetry-demo/issues/956
           # Until dedicated ARM runners are available for GHA we cannot upgrade
diff --git a/CHANGELOG.md b/CHANGELOG.md
index c9180928f4..90e51e67d3 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -15,6 +15,8 @@ release.
   ([#1333](https://github.com/open-telemetry/opentelemetry-demo/pull/1333))
 * [currency] fix metric exporter options
   ([#1335](https://github.com/open-telemetry/opentelemetry-demo/pull/1335))
+* [ffspostgres] define and use demo specific postgres image
+  ([#1338](https://github.com/open-telemetry/opentelemetry-demo/pull/1338))
 
 ## 1.7.2
 
diff --git a/docker-compose.yml b/docker-compose.yml
index d1d662ac94..79fcfb69b0 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -228,11 +228,11 @@ services:
       - OTEL_EXPORTER_OTLP_ENDPOINT
       - OTEL_EXPORTER_OTLP_TRACES_PROTOCOL=grpc
       - OTEL_SERVICE_NAME=featureflagservice
-      - DATABASE_URL=ecto://ffs:ffs@ffs_postgres:5432/ffs
+      - DATABASE_URL=ecto://ffs:ffs@ffspostgres:5432/ffs
     healthcheck:
       test: ["CMD", "curl", "-H", "baggage: synthetic_request=true", "-f", "http://localhost:${FEATURE_FLAG_SERVICE_PORT}"]
     depends_on:
-      ffs_postgres:
+      ffspostgres:
         condition: service_healthy
     logging: *logging
 
@@ -540,10 +540,14 @@ services:
   # Dependent Services
   # ******************
   # Postgres used by Feature Flag service
-  ffs_postgres:
-    image: postgres:16.1
-    container_name: postgres
-    user: postgres
+  ffspostgres:
+    image: ${IMAGE_NAME}:${IMAGE_VERSION}-ffspostgres
+    container_name: ffs-postgres
+    build:
+      context: ./
+      dockerfile: ./src/ffspostgres/Dockerfile
+      cache_from:
+        - ${IMAGE_NAME}:${IMAGE_VERSION}-ffspostgres
     deploy:
       resources:
         limits:
@@ -554,8 +558,7 @@ services:
       - POSTGRES_DB=ffs
       - POSTGRES_PASSWORD=ffs
     volumes:
-      - ./src/ffs_postgres/10-ffs_schema.sql:/docker-entrypoint-initdb.d/10-ffs_schema.sql
-      - ./src/ffs_postgres/20-ffs_data.sql:/docker-entrypoint-initdb.d/20-ffs_data.sql
+      - ./src/ffspostgres/update-scripts/99-ffs_update.sql:/docker-entrypoint-initdb.d/99-ffs_update.sql
     healthcheck:
       test: ["CMD-SHELL", "pg_isready -d ffs -U ffs"]
       interval: 10s
diff --git a/src/ffspostgres/Dockerfile b/src/ffspostgres/Dockerfile
new file mode 100644
index 0000000000..d996642d4f
--- /dev/null
+++ b/src/ffspostgres/Dockerfile
@@ -0,0 +1,10 @@
+# Copyright The OpenTelemetry Authors
+# SPDX-License-Identifier: Apache-2.0
+
+FROM postgres:16.1-alpine
+
+COPY ./src/ffspostgres/init-scripts/ /docker-entrypoint-initdb.d/
+
+EXPOSE 5432
+ENTRYPOINT ["docker-entrypoint.sh"]
+CMD ["postgres"]
diff --git a/src/ffs_postgres/10-ffs_schema.sql b/src/ffspostgres/init-scripts/10-ffs_schema.sql
similarity index 100%
rename from src/ffs_postgres/10-ffs_schema.sql
rename to src/ffspostgres/init-scripts/10-ffs_schema.sql
diff --git a/src/ffs_postgres/20-ffs_data.sql b/src/ffspostgres/init-scripts/20-ffs_data.sql
similarity index 66%
rename from src/ffs_postgres/20-ffs_data.sql
rename to src/ffspostgres/init-scripts/20-ffs_data.sql
index ceca419128..700e993236 100644
--- a/src/ffs_postgres/20-ffs_data.sql
+++ b/src/ffspostgres/init-scripts/20-ffs_data.sql
@@ -2,11 +2,6 @@
 -- SPDX-License-Identifier: Apache-2.0
 
 -- Feature Flags created and initialized on startup
---     'enabled' is a decimal value between 0 and 1 (inclusive)
---     0.0 is always disabled
---     1.0 is always enabled
---     All values between set a percentage chance on each request
---     example: 0.55 is enabled 55% of the time
 INSERT INTO public.featureflags (name, description, enabled)
 VALUES
     ('productCatalogFailure', 'Fail product catalog service on a specific product', 0),
diff --git a/src/ffspostgres/update-scripts/99-ffs_update.sql b/src/ffspostgres/update-scripts/99-ffs_update.sql
new file mode 100644
index 0000000000..b66516e954
--- /dev/null
+++ b/src/ffspostgres/update-scripts/99-ffs_update.sql
@@ -0,0 +1,12 @@
+-- Copyright The OpenTelemetry Authors
+-- SPDX-License-Identifier: Apache-2.0
+
+-- Feature Flags updated for startup
+--     'enabled' is a decimal value between 0 and 1 (inclusive)
+--     0.0 is always disabled
+--     1.0 is always enabled
+--     All values between set a percentage chance on each request
+--     example: 0.55 is enabled 55% of the time
+
+-- UPDATE public.featureflags SET enabled = 0.55 WHERE name = 'cartServiceFailure';
+