diff --git a/clienv/clienv.go b/clienv/clienv.go
index 627ef82a9..cb63116c4 100644
--- a/clienv/clienv.go
+++ b/clienv/clienv.go
@@ -20,6 +20,7 @@ type CliEnv struct {
 	stderr      io.Writer
 	Path        *PathStructure
 	domain      string
+	branch      string
 	nhclient    *nhostclient.Client
 	projectName string
 }
@@ -29,6 +30,7 @@ func New(
 	stderr io.Writer,
 	path *PathStructure,
 	domain string,
+	branch string,
 	projectName string,
 ) *CliEnv {
 	return &CliEnv{
@@ -36,6 +38,7 @@ func New(
 		stderr:      stderr,
 		Path:        path,
 		domain:      domain,
+		branch:      branch,
 		nhclient:    nil,
 		projectName: projectName,
 	}
@@ -57,6 +60,7 @@ func FromCLI(cCtx *cli.Context) *CliEnv {
 			cCtx.String(flagNhostFolder),
 		),
 		domain:      cCtx.String(flagDomain),
+		branch:      cCtx.String(flagBranch),
 		projectName: sanitizeName(cCtx.String(flagProjectName)),
 		nhclient:    nil,
 	}
@@ -70,6 +74,10 @@ func (ce *CliEnv) Domain() string {
 	return ce.domain
 }
 
+func (ce *CliEnv) Branch() string {
+	return ce.branch
+}
+
 func (ce *CliEnv) GetNhostClient() *nhostclient.Client {
 	if ce.nhclient == nil {
 		ce.nhclient = nhostclient.New(ce.domain)
diff --git a/clienv/flags.go b/clienv/flags.go
index d5b58b1ae..0bc363153 100644
--- a/clienv/flags.go
+++ b/clienv/flags.go
@@ -11,6 +11,7 @@ import (
 
 const (
 	flagDomain         = "domain"
+	flagBranch         = "branch"
 	flagProjectName    = "project-name"
 	flagRootFolder     = "root-folder"
 	flagDataFolder     = "data-folder"
@@ -35,15 +36,17 @@ func getGitBranchName() string {
 	return head.Name().Short()
 }
 
-func Flags() ([]cli.Flag, error) {
+func Flags() ([]cli.Flag, error) { //nolint:funlen
 	fullWorkingDir, err := os.Getwd()
 	if err != nil {
 		return nil, fmt.Errorf("failed to get working directory: %w", err)
 	}
 
+	branch := getGitBranchName()
+
 	workingDir := "."
 	dotNhostFolder := filepath.Join(workingDir, ".nhost")
-	dataFolder := filepath.Join(dotNhostFolder, "data", getGitBranchName())
+	dataFolder := filepath.Join(dotNhostFolder, "data", branch)
 	nhostFolder := filepath.Join(workingDir, "nhost")
 
 	return []cli.Flag{
@@ -54,6 +57,13 @@ func Flags() ([]cli.Flag, error) {
 			Value:   "nhost.run",
 			Hidden:  true,
 		},
+		&cli.StringFlag{ //nolint:exhaustruct
+			Name:    flagBranch,
+			Usage:   "Git branch name",
+			EnvVars: []string{"BRANCH"},
+			Value:   branch,
+			Hidden:  true,
+		},
 		&cli.StringFlag{ //nolint:exhaustruct
 			Name:     flagRootFolder,
 			Usage:    "Root folder of project\n\t",
diff --git a/cmd/config/validate_test.go b/cmd/config/validate_test.go
index d45029ab9..5cc72417e 100644
--- a/cmd/config/validate_test.go
+++ b/cmd/config/validate_test.go
@@ -207,6 +207,7 @@ func TestValidate(t *testing.T) {
 					filepath.Join("testdata", "validate", tc.path, "nhost"),
 				),
 				"fakedomain",
+				"fakebranch",
 				"",
 			)
 
diff --git a/cmd/dev/down.go b/cmd/dev/down.go
index 78565e828..990409f6e 100644
--- a/cmd/dev/down.go
+++ b/cmd/dev/down.go
@@ -6,13 +6,23 @@ import (
 	"github.com/urfave/cli/v2"
 )
 
+const (
+	flagVolumes = "volumes"
+)
+
 func CommandDown() *cli.Command {
 	return &cli.Command{ //nolint:exhaustruct
 		Name:    "down",
 		Aliases: []string{},
 		Usage:   "Stop local development environment",
 		Action:  commandDown,
-		Flags:   []cli.Flag{},
+		Flags: []cli.Flag{
+			&cli.BoolFlag{ //nolint:exhaustruct
+				Name:  flagVolumes,
+				Usage: "Remove volumes",
+				Value: false,
+			},
+		},
 	}
 }
 
@@ -21,7 +31,7 @@ func commandDown(cCtx *cli.Context) error {
 
 	dc := dockercompose.New(ce.Path.WorkingDir(), ce.Path.DockerCompose(), ce.ProjectName())
 
-	if err := dc.Stop(cCtx.Context); err != nil {
+	if err := dc.Stop(cCtx.Context, cCtx.Bool(flagVolumes)); err != nil {
 		ce.Warnln("failed to stop Nhost development environment: %s", err)
 	}
 
diff --git a/cmd/dev/up.go b/cmd/dev/up.go
index 547a6f460..d3f05d924 100644
--- a/cmd/dev/up.go
+++ b/cmd/dev/up.go
@@ -207,6 +207,7 @@ func up( //nolint:funlen
 		ce.Path.DotNhostFolder(),
 		ce.Path.Root(),
 		ports,
+		ce.Branch(),
 	)
 	if err != nil {
 		return fmt.Errorf("failed to generate docker-compose.yaml: %w", err)
@@ -300,7 +301,7 @@ func Up(
 		ctx, cancel := context.WithTimeout(context.Background(), time.Minute)
 		defer cancel()
 
-		if err := dc.Stop(ctx); err != nil { //nolint:contextcheck
+		if err := dc.Stop(ctx, false); err != nil { //nolint:contextcheck
 			ce.Warnln("failed to stop Nhost development environment: %s", err)
 		}
 
diff --git a/cmd/dockercredentials/get.go b/cmd/dockercredentials/get.go
index 7104fe3e2..e4271599f 100644
--- a/cmd/dockercredentials/get.go
+++ b/cmd/dockercredentials/get.go
@@ -39,6 +39,7 @@ func getToken(ctx context.Context, domain string) (string, error) {
 		&clienv.PathStructure{},
 		domain,
 		"unneeded",
+		"unneeded",
 	)
 	session, err := ce.LoadSession(ctx)
 	if err != nil {
diff --git a/dockercompose/compose.go b/dockercompose/compose.go
index 9650ff6da..3c7f0d87f 100644
--- a/dockercompose/compose.go
+++ b/dockercompose/compose.go
@@ -4,6 +4,8 @@ import (
 	"fmt"
 	"os"
 	"path/filepath"
+	"regexp"
+	"strings"
 
 	"github.com/nhost/be/services/mimir/model"
 	"github.com/nhost/cli/ssl"
@@ -417,6 +419,11 @@ type ExposePorts struct {
 	Functions uint
 }
 
+func sanitizeBranch(name string) string {
+	re := regexp.MustCompile(`[^a-zA-Z0-9_-]`)
+	return strings.ToLower(re.ReplaceAllString(name, ""))
+}
+
 func ComposeFileFromConfig( //nolint:funlen
 	cfg *model.ConfigConfig,
 	projectName string,
@@ -428,6 +435,7 @@ func ComposeFileFromConfig( //nolint:funlen
 	dotNhostFolder string,
 	rootFolder string,
 	ports ExposePorts,
+	branch string,
 ) (*ComposeFile, error) {
 	minio, err := minio(dataFolder)
 	if err != nil {
@@ -444,7 +452,8 @@ func ComposeFileFromConfig( //nolint:funlen
 		return nil, err
 	}
 
-	postgres, err := postgres(cfg, postgresPort, dataFolder)
+	pgVolumeName := fmt.Sprintf("pgdata_%s", sanitizeBranch(branch))
+	postgres, err := postgres(cfg, postgresPort, dataFolder, pgVolumeName)
 	if err != nil {
 		return nil, err
 	}
@@ -494,6 +503,7 @@ func ComposeFileFromConfig( //nolint:funlen
 		Volumes: map[string]struct{}{
 			"functions_node_modules": {},
 			"root_node_modules":      {},
+			pgVolumeName:             {},
 		},
 	}
 	return c, nil
diff --git a/dockercompose/dockercompose.go b/dockercompose/dockercompose.go
index fa65a537b..7f3b3f0cf 100644
--- a/dockercompose/dockercompose.go
+++ b/dockercompose/dockercompose.go
@@ -67,7 +67,7 @@ func (dc *DockerCompose) Start(ctx context.Context) error {
 	return nil
 }
 
-func (dc *DockerCompose) Stop(ctx context.Context) error {
+func (dc *DockerCompose) Stop(ctx context.Context, volumes bool) error {
 	cmd := exec.CommandContext( //nolint:gosec
 		ctx,
 		"docker", "compose",
@@ -76,6 +76,9 @@ func (dc *DockerCompose) Stop(ctx context.Context) error {
 		"-p", dc.projectName,
 		"down",
 	)
+	if volumes {
+		cmd.Args = append(cmd.Args, "--volumes")
+	}
 	cmd.Stdout = os.Stdout
 	cmd.Stderr = os.Stderr
 
diff --git a/dockercompose/postgres.go b/dockercompose/postgres.go
index 0862d499d..40737d658 100644
--- a/dockercompose/postgres.go
+++ b/dockercompose/postgres.go
@@ -12,6 +12,7 @@ func postgres( //nolint:funlen
 	cfg *model.ConfigConfig,
 	port uint,
 	dataFolder string,
+	volumeName string,
 ) (*Service, error) {
 	if err := os.MkdirAll(fmt.Sprintf("%s/db/pgdata", dataFolder), 0o755); err != nil { //nolint:gomnd
 		return nil, fmt.Errorf("failed to create postgres data folder: %w", err)
@@ -75,9 +76,9 @@ func postgres( //nolint:funlen
 		Restart: "always",
 		Volumes: []Volume{
 			{
-				Type:   "bind",
-				Source: fmt.Sprintf("%s/db/pgdata", dataFolder),
-				Target: "/var/lib/postgresql/data/pgdata:Z",
+				Type:   "volume",
+				Source: volumeName,
+				Target: "/var/lib/postgresql/data/pgdata",
 			},
 			{
 				Type:   "bind",
diff --git a/dockercompose/postgres_test.go b/dockercompose/postgres_test.go
index d0a364d01..1047924bd 100644
--- a/dockercompose/postgres_test.go
+++ b/dockercompose/postgres_test.go
@@ -41,9 +41,9 @@ func expectedPostgres(tmpdir string) *Service {
 		Restart: "always",
 		Volumes: []Volume{
 			{
-				Type:   "bind",
-				Source: filepath.Join(tmpdir, "db/pgdata"),
-				Target: "/var/lib/postgresql/data/pgdata:Z",
+				Type:   "volume",
+				Source: "pgdate_test",
+				Target: "/var/lib/postgresql/data/pgdata",
 			},
 			{
 				Type:   "bind",
@@ -77,7 +77,7 @@ func TestPostgres(t *testing.T) {
 			tc := tc
 
 			tmpdir := filepath.Join(os.TempDir(), "data")
-			got, err := postgres(tc.cfg(), 5432, tmpdir)
+			got, err := postgres(tc.cfg(), 5432, tmpdir, "pgdate_test")
 			if err != nil {
 				t.Errorf("got error: %v", err)
 			}