diff --git a/installer/inventory b/installer/inventory
index 58c38ca250..d1a742d314 100644
--- a/installer/inventory
+++ b/installer/inventory
@@ -30,7 +30,7 @@ awx_secret_key=awxsecret
 # kubernetes_context=test-cluster
 # awx_kubernetes_namespace=awx
 
-# Standalone Docker Install
+# Common Docker parameters
 postgres_data_dir=/tmp/pgdocker
 host_port=80
 
@@ -38,11 +38,19 @@ host_port=80
 # Optional for Openshift if using Dockerhub or another prebuilt registry
 # Required for Standalone Docker Install if building the image on your own
 # Optional for Standalone Docker Install if using Dockerhub or another prebuilt registry
+# Required for Docker Compose Install if building the image on your own
+# Optional for Docker Compose Install if using Dockerhub or another prebuilt registry
 # Define if you want the image pushed to a registry. The container definition will also use these images
 # docker_registry=172.30.1.1:5000
 # docker_registry_repository=awx
 # docker_registry_username=developer
 
+# Docker Compose Install
+# use_docker_compose=false
+# The docker_compose.yml file will be created in this directory
+# The name of the directory (here "awx") will be the prefix of the docker containers
+docker_compose_dir=/var/lib/awx
+
 
 # Docker_image will not attempt to push to remote if the image already exists locally
 # Set this to true to delete images from docker on the build host so that they are pushed to the remote repository
diff --git a/installer/local_docker/tasks/compose.yml b/installer/local_docker/tasks/compose.yml
index e69de29bb2..3c581c7b69 100644
--- a/installer/local_docker/tasks/compose.yml
+++ b/installer/local_docker/tasks/compose.yml
@@ -0,0 +1,14 @@
+---
+- name: Create {{ docker_compose_dir }} directory
+  file:
+    path: "{{ docker_compose_dir }}"
+    state: directory
+
+- name: Create docker-compose.yml file
+  template:
+    src: docker-compose.yml.j2
+    dest: "{{ docker_compose_dir }}/docker-compose.yml"
+
+- name: Start the containers
+  docker_service:
+    project_src: "{{ docker_compose_dir }}"
diff --git a/installer/local_docker/templates/docker-compose.yml.j2 b/installer/local_docker/templates/docker-compose.yml.j2
new file mode 100644
index 0000000000..05240771d4
--- /dev/null
+++ b/installer/local_docker/templates/docker-compose.yml.j2
@@ -0,0 +1,97 @@
+#jinja2: lstrip_blocks: True
+version: '2'
+services:
+
+  web:
+    image: {{ awx_web_docker_actual_image }}
+    depends_on:
+      - rabbitmq
+      - memcached
+      {% if pg_hostname is not defined %}
+      - postgres
+      {% endif %}
+    ports:
+      - "{{ host_port }}:8052"
+    hostname: awxweb
+    user: root
+    restart: unless-stopped
+    {% if awx_container_search_domains is defined %}
+    dns_search: "{{ awx_container_search_domains }}"
+    {% endif %}
+    environment:
+      http_proxy: {{ http_proxy | default('') }}
+      https_proxy: {{ https_proxy | default('') }}
+      no_proxy: {{ no_proxy | default('') }}
+      SECRET_KEY: {{ awx_secret_key }}
+      DATABASE_NAME: {{ pg_database }}
+      DATABASE_USER: {{ pg_username }}
+      DATABASE_PASSWORD: {{ pg_password }}
+      DATABASE_PORT: {{ pg_port }}
+      DATABASE_HOST: {{ pg_hostname|default("postgres") }}
+      RABBITMQ_USER: guest
+      RABBITMQ_PASSWORD: guest
+      RABBITMQ_HOST: rabbitmq
+      RABBITMQ_PORT: 5672
+      RABBITMQ_VHOST: awx
+      MEMCACHED_HOST: memcached
+      MEMCACHED_PORT: 11211
+      AWX_ADMIN_USER: {{ default_admin_user|default('admin') }}
+      AWX_ADMIN_PASSWORD: {{ default_admin_password|default('password') }}
+
+  task:
+    image: {{ awx_task_docker_actual_image }}
+    depends_on:
+      - rabbitmq
+      - memcached
+      - web
+      {% if pg_hostname is not defined %}
+      - postgres
+      {% endif %}
+    hostname: awx
+    user: root
+    restart: unless-stopped
+    {% if awx_container_search_domains is defined %}
+    dns_search: "{{ awx_container_search_domains }}"
+    {% endif %}
+    environment:
+      http_proxy: {{ http_proxy | default('') }}
+      https_proxy: {{ https_proxy | default('') }}
+      no_proxy: {{ no_proxy | default('') }}
+      SECRET_KEY: {{ awx_secret_key }}
+      DATABASE_NAME: {{ pg_database }}
+      DATABASE_USER: {{ pg_username }}
+      DATABASE_PASSWORD: {{ pg_password }}
+      DATABASE_HOST: {{ pg_hostname|default("postgres") }}
+      DATABASE_PORT: {{ pg_port }}
+      RABBITMQ_USER: guest
+      RABBITMQ_PASSWORD: guest
+      RABBITMQ_HOST: rabbitmq
+      RABBITMQ_PORT: 5672
+      RABBITMQ_VHOST: awx
+      MEMCACHED_HOST: memcached
+      MEMCACHED_PORT: 11211
+      AWX_ADMIN_USER: {{ default_admin_user|default('admin') }}
+      AWX_ADMIN_PASSWORD: {{ default_admin_password|default('password') }}
+
+  rabbitmq:
+    image: rabbitmq:3
+    restart: unless-stopped
+    environment:
+      RABBITMQ_DEFAULT_VHOST: awx
+
+  memcached:
+    image: memcached:alpine
+    restart: unless-stopped
+
+  {% if pg_hostname is not defined %}
+  postgres:
+    image: postgres:9.6
+    restart: unless-stopped
+    volumes:
+      - {{ postgres_data_dir }}:/var/lib/postgresql/data:Z
+    environment:
+      POSTGRES_USER: {{ pg_username }}
+      POSTGRES_PASSWORD: {{ pg_password }}
+      POSTGRES_DB: {{ pg_database }}
+      PGDATA: /var/lib/postgresql/data/pgdata
+  {% endif %}