diff --git a/Dockerfile b/Dockerfile
index 874decacdf3..88a988cb07e 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -1,16 +1,51 @@
-FROM python:3.6
+FROM ubuntu:18.04
 
-# do these on one line so changes trigger apt-get update
-RUN apt-get update && \
-    apt-get install -y python-pip netcat python-dev python3-dev postgresql
+ENV DEBIAN_FRONTEND noninteractive
 
-RUN pip install pip --upgrade
-RUN pip install virtualenv
-RUN pip install virtualenvwrapper
-RUN pip install tox
+RUN apt-get update && \
+    apt-get install -y  --no-install-recommends \
+        netcat postgresql make build-essential libssl-dev zlib1g-dev \
+        libbz2-dev libreadline-dev libsqlite3-dev wget curl llvm libncurses5-dev \
+        xz-utils tk-dev libxml2-dev libxmlsec1-dev libffi-dev git ca-certificates \
+        curl git ssh && \
+    apt-get clean && rm -rf /var/lib/apt/lists/* /tmp/* /var/tmp/*
 
 RUN useradd -mU dbt_test_user
+RUN mkdir /usr/app && chown dbt_test_user /usr/app
+RUN mkdir /home/tox && chown dbt_test_user /home/tox
 USER dbt_test_user
 
-WORKDIR /usr/src/app
-RUN cd /usr/src/app
+WORKDIR /usr/app
+VOLUME /usr/app
+
+RUN curl -L https://github.com/pyenv/pyenv-installer/raw/master/bin/pyenv-installer | bash
+
+ENV PYENV_ROOT="/home/dbt_test_user/.pyenv" \
+    PATH="/home/dbt_test_user/.pyenv/bin:/home/dbt_test_user/.pyenv/shims:$PATH"
+
+RUN pyenv update && \
+    echo "2.7.16 3.6.8 3.7.3" | xargs -P 4 -n 1 pyenv install && \
+    pyenv global $(pyenv versions --bare)
+
+RUN pyenv virtualenv 3.6.8 dbt36 && \
+    pyenv virtualenv 3.7.3 dbt37 && \
+    pyenv virtualenv 2.7.16 dbt27
+
+RUN cd /usr/app && \
+    python -m pip install -U pip && \
+    python -m pip install tox && \
+    pyenv local dbt37 && \
+    python -m pip install -U pip && \
+    python -m pip install tox && \
+    pyenv local --unset && \
+    pyenv local dbt36 && \
+    python -m pip install -U pip && \
+    python -m pip install tox && \
+    pyenv local --unset && \
+    pyenv local dbt27 && \
+    python -m pip install -U pip && \
+    python -m pip install tox && \
+    pyenv local --unset && \
+    pyenv rehash
+
+RUN pyenv local dbt36 dbt37 dbt27
diff --git a/docker-compose.yml b/docker-compose.yml
index da9b389fefe..93ac2c8cc7b 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -18,8 +18,8 @@ services:
     env_file:
       - ./test.env
     volumes:
-      - .:/usr/src/app
-    working_dir: /usr/src/app
+      - .:/usr/app
+    working_dir: /usr/app
     depends_on:
       - database