diff --git a/Makefile b/Makefile
index 7ce3323339..b00ae6a243 100644
--- a/Makefile
+++ b/Makefile
@@ -196,7 +196,7 @@ requirements_awx_dev:
 
 requirements: requirements_ansible requirements_awx
 
-requirements_dev: requirements requirements_awx_dev requirements_ansible_dev
+requirements_dev: requirements_awx requirements_ansible_py3 requirements_awx_dev requirements_ansible_dev
 
 requirements_test: requirements
 
diff --git a/tools/docker-compose/Dockerfile b/tools/docker-compose/Dockerfile
index 6e81a9cced..53f07722a2 100644
--- a/tools/docker-compose/Dockerfile
+++ b/tools/docker-compose/Dockerfile
@@ -1,16 +1,16 @@
-FROM centos:7
+FROM centos:8
 
 ARG UID=0
 
 # Add ansible-devel so that we get collections!
 ADD tools/docker-compose/ansible_nightly.repo /etc/yum.repos.d/ansible_nightly.repo
 
-RUN yum -y update && yum -y install epel-release && \
-    yum -y install https://centos7.iuscommunity.org/ius-release.rpm \
-    yum install https://download.postgresql.org/pub/repos/yum/reporpms/EL-7-x86_64/pgdg-redhat-repo-latest.noarch.rpm
-
 # sync with installer/roles/image_build/templates/Dockerfile.j2
-RUN yum -y install acl \
+RUN dnf -y update && \
+  dnf -y install epel-release 'dnf-command(config-manager)' && \
+  dnf module -y enable 'postgresql:10' && \
+  dnf config-manager --set-enabled PowerTools && \
+  dnf -y install acl \
   alsa-lib \
   ansible \
   atk \
@@ -22,16 +22,13 @@ RUN yum -y install acl \
   gcc \
   gcc-c++ \
   GConf2 \
-  git2u \
-  git2u-core \
+  git \
   gtk3 \
-  ipa-gothic-fonts \
   krb5-devel \
   krb5-libs \
   krb5-workstation \
   libcurl-devel \
   libffi-devel \
-  libselinux-python \
   libstdc++.so.6 \
   libtool-ltdl-devel \
   libcgroup-tools \
@@ -47,24 +44,23 @@ RUN yum -y install acl \
   libXtst \
   make \
   mercurial \
-  mg \
   nginx \
   nodejs \
+  nss \
   openldap-devel \
   openssh-server \
   patch \
-  postgresql10 \
-  postgresql10-contrib \
-  postgresql10-devel \
-  python-devel \
-  python-pip \
-  python-psutil \
-  python-psycopg2 \
-  python-setuptools \
-  python36-devel \
-  python36-setuptools \
+  @postgresql:10 \
+  postgresql-devel \
+  python3-devel \
+  python3-libselinux \
+  python3-pip \
+  python3-psutil \
+  python3-psycopg2 \
+  python3-setuptools \
+  python3-devel \
+  python3-setuptools \
   rsync \
-  setools-libs \
   subversion \
   sudo \
   swig \
@@ -81,11 +77,11 @@ RUN yum -y install acl \
   xorg-x11-fonts-misc \
   xorg-x11-fonts-Type1 \
   xorg-x11-utils \
-  yum-utils
+  dnf-utils
 
 ENV PATH="/usr/pgsql-10/bin:${PATH}"
 
-RUN yum install -y https://github.com/krallin/tini/releases/download/v0.18.0/tini_0.18.0.rpm
+RUN dnf install -y https://github.com/krallin/tini/releases/download/v0.18.0/tini_0.18.0.rpm
 
 RUN /usr/bin/ssh-keygen -q -t rsa -N "" -f /root/.ssh/id_rsa
 RUN mkdir -p /data/db
@@ -98,7 +94,7 @@ RUN openssl req -nodes -newkey rsa:2048 -keyout /etc/nginx/nginx.key -out /etc/n
 RUN openssl x509 -req -days 365 -in /etc/nginx/nginx.csr -signkey /etc/nginx/nginx.key -out /etc/nginx/nginx.crt
 
 RUN python3 -m ensurepip && pip3 install virtualenv flake8
-RUN pip install supervisor
+RUN pip3 install supervisor
 
 ADD Makefile /tmp/Makefile
 RUN mkdir /tmp/requirements
@@ -117,23 +113,15 @@ RUN cd /tmp && VENV_BASE="/venv" make requirements_dev
 RUN npm install -g n
 RUN n 10.15.0
 
-# Install a newer SQLite to make Django happy (centos7 has a really old one,
-# and we can probably stop doing this in centos8)
-RUN curl -O "https://sqlite.org/2019/sqlite-autoconf-3290000.tar.gz"
-RUN tar zxvf sqlite-autoconf-3290000.tar.gz
-RUN cd sqlite-autoconf-3290000 && ./configure && make && make install
-RUN mv -f /usr/local/lib/libsqlite3.so.0 /lib64/
-RUN mv -f /usr/local/lib/libsqlite3.so.0.8.6 /lib64/
-
 # Install OpenShift CLI
 RUN cd /usr/local/bin && \
     curl -L https://github.com/openshift/origin/releases/download/v3.9.0/openshift-origin-client-tools-v3.9.0-191fece-linux-64bit.tar.gz | \
     tar -xz --strip-components=1 --wildcards --no-anchored 'oc'
 
 ADD tools/docker-compose/google-cloud-sdk.repo /etc/yum.repos.d/
-RUN yum install -y kubectl
+RUN dnf install -y kubectl
 
-RUN yum -y remove cyrus-sasl-devel \
+RUN dnf -y remove cyrus-sasl-devel \
   gcc \
   gcc-c++ \
   krb5-devel \
@@ -148,11 +136,10 @@ RUN yum -y remove cyrus-sasl-devel \
   xmlsec1-devel \
   xmlsec1-openssl-devel
 
-RUN yum -y clean all
+RUN dnf -y clean all
 
 RUN rm -rf /root/.cache
 
-RUN localedef -c -i en_US -f UTF-8 en_US.UTF-8
 ENV LANG en_US.UTF-8
 ENV LANGUAGE en_US:en
 ENV LC_ALL en_US.UTF-8
diff --git a/tools/docker-compose/ansible_nightly.repo b/tools/docker-compose/ansible_nightly.repo
index 183cba14e8..8742f3f9ac 100644
--- a/tools/docker-compose/ansible_nightly.repo
+++ b/tools/docker-compose/ansible_nightly.repo
@@ -1,4 +1,5 @@
 [ansible-nightly]
-baseurl=https://releases.ansible.com/ansible/rpm/nightly/devel/epel-7-$basearch
+name=ansible-nightly
+baseurl=https://releases.ansible.com/ansible/rpm/nightly/devel/epel-8-$basearch
 gpgcheck=0
 enabled=1
diff --git a/tools/docker-compose/google-cloud-sdk.repo b/tools/docker-compose/google-cloud-sdk.repo
index 098f56bc25..bff8d01ccd 100644
--- a/tools/docker-compose/google-cloud-sdk.repo
+++ b/tools/docker-compose/google-cloud-sdk.repo
@@ -1,6 +1,6 @@
 [google-cloud-sdk]
 name=Google Cloud SDK
-baseurl=https://packages.cloud.google.com/yum/repos/cloud-sdk-el7-x86_64
+baseurl=https://packages.cloud.google.com/yum/repos/cloud-sdk-el8-x86_64
 enabled=1
 gpgcheck=1
 repo_gpgcheck=1