diff --git a/.gitignore b/.gitignore
index 193c1ae..05e944f 100644
--- a/.gitignore
+++ b/.gitignore
@@ -3,3 +3,6 @@
 */replication/pg-*
 */replication/docker-compose.override.yml
 .DS_Store
+.python-version
+venv
+__pycache__
diff --git a/.travis.yml b/.travis.yml
index d8ad827..243de6a 100644
--- a/.travis.yml
+++ b/.travis.yml
@@ -6,22 +6,18 @@ services:
   - docker
 
 python:
-  - '2.7'
-  - '3.5'
-  - '3.6.7'
-  - '3.7.1'
+  - '3.7'
+
+env:
+  - SCENARIO=datadir_init
+  - SCENARIO=replications
+  - SCENARIO=collations
+
+before_script:
+  - ./build-test.sh
 
 script:
-  - ./build.sh
-  - pushd sample/replication
-  - make up
-  - make status
-  # Check for database status
-  - until make check-master-running; do echo "Retrying"; sleep 5; done
-  - until make check-slave-running; do echo "Retrying"; sleep 5; done
-
-  # Check replications
-  - until make check-master-replication; do echo "Retrying"; make master-log-tail; sleep 5; done
-  - sleep 60  # Wait replication finished
-  - until make check-slave-replication; do echo "Retrying"; make slave-log-tail; sleep 5; done
+  - pushd scenario_tests/${SCENARIO}
+  - ./test.sh
   - popd
+
diff --git a/Dockerfile.test b/Dockerfile.test
new file mode 100644
index 0000000..c897705
--- /dev/null
+++ b/Dockerfile.test
@@ -0,0 +1,16 @@
+#--------- Generic stuff all our Dockerfiles should start with so we get caching ------------
+FROM kartoza/postgis:manual-build
+
+# For testing
+
+COPY scenario_tests/utils/requirements.txt /lib/utils/requirements.txt
+
+RUN set -eux \
+    && export DEBIAN_FRONTEND=noninteractive \
+    && apt-get update \
+    && apt-get -y --no-install-recommends install python3-pip \
+    && apt-get -y --purge autoremove \
+    && apt-get clean \
+    && rm -rf /var/lib/apt/lists/*
+
+RUN pip3 install -r /lib/utils/requirements.txt
diff --git a/README.md b/README.md
index f8adf13..3b314b9 100644
--- a/README.md
+++ b/README.md
@@ -91,6 +91,50 @@ docker run --name "postgis" -p 25432:5432 -d -t kartoza/postgis
 
 ## Environment variables
 
+#### Cluster Initializations
+
+With minimum setup, our image will use initial cluster located in the
+`DATADIR` environment variable. If you want to use persistence, mount these 
+location into your volume/host. By default, `DATADIR` will point to `/var/lib/postgresql/{major-version}`.
+You can instead mount the parent location like this:
+
+* `-v data-volume:/var/lib/postgresql`
+
+This default cluster will be initialized with default locale settings `C.UTF-8`.
+If, for instance, you want to create a new cluster with your own settings (not using the default cluster).
+You need to specify different empty directory, like this
+
+```shell script
+-v data-volume:/opt/postgres/data \
+-e DATADIR:/opt/postgres/data \
+-e DEFAULT_ENCODING="UTF8" \
+-e DEFAULT_COLLATION="id_ID.utf8" \
+-e DEFAULT_CTYPE="id_ID.utf8" \
+-e INITDB_EXTRA_ARGS="<some more initdb command args>"
+```
+
+The containers will use above parameters to initialize a new db cluster in the 
+specified directory. If the directory is not empty, then initialization parameter will be ignored.
+
+These are some initialization parameter that will only be used to initialize new cluster.
+If the container uses existing cluster, it will be ignored (for example, when the container restarts).
+
+* `DEFAULT_ENCODING`: cluster encoding
+* `DEFAULT_COLLATION`: cluster collation
+* `DEFAULT_CTYPE`: cluster ctype
+* `WAL_SEGSIZE`: WAL segsize option
+* `INITDB_EXTRA_ARGS`: extra parameter that will be passed down to `initdb` command
+
+In addition to that, we have another parameter: `RECREATE_DATADIR` that can be used to force database reinitializations.
+If this parameter is specified as `TRUE` it will act as explicit consent to delete `DATADIR` and create 
+new db cluster.
+
+* `RECREATE_DATADIR`: Force database reinitializations in the location `DATADIR`
+
+If you used `RECREATE_DATADIR` and successfully created new cluster. Remember 
+that you should remove this parameter afterwards. Because, if it was not omitted, 
+it will always recreate new db cluster after every container restarts.
+
 #### Basic configuration
 
 You can use the following environment variables to pass a
@@ -152,10 +196,11 @@ You can also define any other configuration to add to `postgres.conf`, separated
 
 * `-e EXTRA_CONF="log_destination = 'stderr'\nlogging_collector = on"`
 
-If you plan on migrating the image and continue using the data directory you need to pass
-
-* EXISTING_DATA_DIR=true
+If you want to reinitialize the data directory from scratch, you need to do:
 
+1. Do backup, move data, etc. Any preparations before deleting your data directory.
+2. Set environment variables `RECREATE_DATADIR=TRUE`. Restart the service
+3. The service will delete your `DATADIR` directory and start reinitializing your data directory from scratch. 
 
 ## Docker secrets
 
@@ -414,13 +459,25 @@ The database cluster is initialised with the following encoding settings
 -E "UTF8" --lc-collate="en_US.UTF-8" --lc-ctype="en_US.UTF-8"
 `
 
+or
+
+`
+-E "UTF8" --lc-collate="C.UTF-8" --lc-ctype="C.UTF-8"
+`
+
+If you use default `DATADIR` location.
+
 If you need to setup a database cluster with other encoding parameters you need
-to pass the environment variables
+to pass the environment variables when you initialize the cluster.
 
 * -e DEFAULT_ENCODING="UTF8"
 * -e DEFAULT_COLLATION="en_US.UTF-8"
 * -e DEFAULT_CTYPE="en_US.UTF-8"
 
+Initializing a new cluster can be done by using different `DATADIR` location and 
+mounting an empty volume. Or use parameter `RECREATE_DATADIR` to forcefully 
+delete the current cluster and create a new one. Make sure to remove parameter 
+`RECREATE_DATADIR` after creating the cluster.
 
 See [the postgres documentation about encoding](https://www.postgresql.org/docs/11/multibyte.html) for more information.
 
@@ -429,6 +486,6 @@ See [the postgres documentation about encoding](https://www.postgresql.org/docs/
 
 Tim Sutton (tim@kartoza.com)
 Gavin Fleming (gavin@kartoza.com)
-Risky Maulana (rizky@kartoza.com)
+Rizky Maulana (rizky@kartoza.com)
 Admire Nyakudya (admire@kartoza.com)
 December 2018
diff --git a/build-test.sh b/build-test.sh
new file mode 100755
index 0000000..f01d44c
--- /dev/null
+++ b/build-test.sh
@@ -0,0 +1,5 @@
+#!/usr/bin/env bash
+
+./build.sh
+
+docker build -t kartoza/postgis:manual-build -f Dockerfile.test .
diff --git a/docker-entrypoint.sh b/docker-entrypoint.sh
index 5e92d0a..aa27599 100755
--- a/docker-entrypoint.sh
+++ b/docker-entrypoint.sh
@@ -1,8 +1,9 @@
 #!/usr/bin/env bash
 
-# This script will run as the postgres user due to the Dockerfile USER directive
 set -e
 
+source /env-data.sh
+
 # Setup postgres CONF file
 
 source /setup-conf.sh
@@ -14,46 +15,6 @@ source /setup-ssl.sh
 
 source /setup-pg_hba.sh
 
-
-
-# Running extended script or sql if provided.
-# Useful for people who extends the image.
-function entry_point_script {
-SETUP_LOCKFILE="/docker-entrypoint-initdb.d/.entry_point.lock"
-if [[ -f "${SETUP_LOCKFILE}" ]]; then
-    return 0
-else
-    if find "/docker-entrypoint-initdb.d" -mindepth 1 -print -quit 2>/dev/null | grep -q .; then
-        for f in /docker-entrypoint-initdb.d/*; do
-        export PGPASSWORD=${POSTGRES_PASS}
-        case "$f" in
-            *.sql)    echo "$0: running $f"; psql ${SINGLE_DB} -U ${POSTGRES_USER} -p 5432 -h localhost  -f ${f} || true ;;
-            *.sql.gz) echo "$0: running $f"; gunzip < "$f" | psql ${SINGLE_DB} -U ${POSTGRES_USER} -p 5432 -h localhost || true ;;
-            *.sh)     echo "$0: running $f"; . $f || true;;
-            *)        echo "$0: ignoring $f" ;;
-        esac
-        echo
-        done
-        # Put lock file to make sure entry point scripts were run
-        touch ${SETUP_LOCKFILE}
-    else
-        return 0
-    fi
-
-fi
-
-}
-
-function kill_postgres {
-PID=`cat ${PG_PID}`
-kill -TERM ${PID}
-
-# Wait for background postgres main process to exit
-while [[ "$(ls -A ${PG_PID} 2>/dev/null)" ]]; do
-  sleep 1
-done
-}
-
 if [[ -z "$REPLICATE_FROM" ]]; then
     # This means this is a master instance. We check that database exists
     echo "Setup master database"
diff --git a/env-data.sh b/env-data.sh
index 82ef14c..867b4ae 100644
--- a/env-data.sh
+++ b/env-data.sh
@@ -41,6 +41,17 @@ function file_env {
 	unset "$fileVar"
 }
 
+function boolean() {
+  case $1 in
+    [Tt][Rr][Uu][Ee] | [Yy][Ee][Ss])
+        echo 'TRUE'
+        ;;
+    *)
+        echo 'FALSE'
+        ;;
+  esac
+}
+
 file_env 'POSTGRES_PASS'
 file_env 'POSTGRES_USER'
 file_env 'POSTGRES_DBNAME'
@@ -55,6 +66,18 @@ fi
 if [ -z "${POSTGRES_DBNAME}" ]; then
 	POSTGRES_DBNAME=gis
 fi
+# If datadir is defined use this
+if [ -n "${DATADIR}" ]; then
+  DATADIR=${DATADIR}
+fi
+# RECREATE_DATADIR flag default value
+# Always assume that we don't want to recreate datadir if not explicitly defined
+# For issue: https://github.com/kartoza/docker-postgis/issues/226
+if [ -z "${RECREATE_DATADIR}" ]; then
+  RECREATE_DATADIR=FALSE
+else
+  RECREATE_DATADIR=$(boolean ${RECREATE_DATADIR})
+fi
 # SSL mode
 if [ -z "${PGSSLMODE}" ]; then
 	PGSSLMODE=require
@@ -192,37 +215,79 @@ fi
 
 # Compatibility with official postgres variable
 # Official postgres variable gets priority
-if [ ! -z "${POSTGRES_PASSWORD}" ]; then
+if [ -n "${POSTGRES_PASSWORD}" ]; then
 	POSTGRES_PASS=${POSTGRES_PASSWORD}
 fi
-if [ ! -z "${PGDATA}" ]; then
+if [ -n "${PGDATA}" ]; then
 	DATADIR=${PGDATA}
 fi
 
-if [ ! -z "$POSTGRES_DB" ]; then
+if [ -n "${POSTGRES_DB}" ]; then
 	POSTGRES_DBNAME=${POSTGRES_DB}
 fi
 
+if [ -n "${POSTGRES_INITDB_ARGS}" ]; then
+  INITDB_EXTRA_ARGS=${POSTGRES_INITDB_ARGS}
+fi
+
 list=(`echo ${POSTGRES_DBNAME} | tr ',' ' '`)
 arr=(${list})
 SINGLE_DB=${arr[0]}
+
+
 # usable function definitions
-function restart_postgres {
-PID=`cat ${PG_PID}`
-kill -TERM ${PID}
+function kill_postgres {
+  PID=`cat ${PG_PID}`
+  kill -TERM ${PID}
 
-# Wait for background postgres main process to exit
-while [[ "$(ls -A ${PG_PID} 2>/dev/null)" ]]; do
-  sleep 1
-done
+  # Wait for background postgres main process to exit
+  # wait until PID file gets deleted
+  while ls -A ${PG_PID} 2> /dev/null; do
+    sleep 1
+  done
 
-# Brought postgres back up again
-source /env-data.sh
-su - postgres -c "${POSTGRES} -D ${DATADIR} -c config_file=${CONF} ${LOCALONLY} &"
-
-# wait for postgres to come up
-until su - postgres -c "psql -l"; do
-  sleep 1
-done
-echo "postgres ready"
+  return 0
+}
+
+function restart_postgres {
+
+  kill_postgres
+
+  # Brought postgres back up again
+  source /env-data.sh
+  su - postgres -c "$SETVARS $POSTGRES -D $DATADIR -c config_file=$CONF &"
+
+  # wait for postgres to come up
+  until su - postgres -c "pg_isready"; do
+    sleep 1
+  done
+  echo "postgres ready"
+  return 0
+}
+
+
+
+# Running extended script or sql if provided.
+# Useful for people who extends the image.
+function entry_point_script {
+  SETUP_LOCKFILE="/docker-entrypoint-initdb.d/.entry_point.lock"
+  # If lockfile doesn't exists, proceed.
+  if [[ ! -f "${SETUP_LOCKFILE}" ]]; then
+      if find "/docker-entrypoint-initdb.d" -mindepth 1 -print -quit 2>/dev/null | grep -q .; then
+          for f in /docker-entrypoint-initdb.d/*; do
+          export PGPASSWORD=${POSTGRES_PASS}
+          case "$f" in
+              *.sql)    echo "$0: running $f"; psql ${SINGLE_DB} -U ${POSTGRES_USER} -p 5432 -h localhost  -f ${f} || true ;;
+              *.sql.gz) echo "$0: running $f"; gunzip < "$f" | psql ${SINGLE_DB} -U ${POSTGRES_USER} -p 5432 -h localhost || true ;;
+              *.sh)     echo "$0: running $f"; . $f || true;;
+              *)        echo "$0: ignoring $f" ;;
+          esac
+          echo
+          done
+          # Put lock file to make sure entry point scripts were run
+          touch ${SETUP_LOCKFILE}
+      fi
+  fi
+
+  return 0
 }
diff --git a/scenario_tests/.gitignore b/scenario_tests/.gitignore
new file mode 100644
index 0000000..7376571
--- /dev/null
+++ b/scenario_tests/.gitignore
@@ -0,0 +1 @@
+docker-compose.override.yml
diff --git a/scenario_tests/README.md b/scenario_tests/README.md
new file mode 100644
index 0000000..0af9888
--- /dev/null
+++ b/scenario_tests/README.md
@@ -0,0 +1,75 @@
+# TESTING GUIDE
+
+
+## TL;DR; How to run the test
+
+Go into root repo and run
+
+```
+./build-test.sh
+```
+
+It will create a tagged image `kartoza/postgis:manual-build`
+
+Each scenario tests in this directory use this image.
+
+To run each scenario test, go into the scenario directory and run test script:
+
+```
+# Testing collations scenario
+cd collations
+./test.sh
+```
+
+## Testing architecture
+
+We make two stage of testing in travis.
+First build stage, we build the image, push it into docker hub. 
+Then the testing stage will 
+use this image to run each scenario tests (run in parallel).
+
+Any testing framework can be used, but we use python `unittest` module for simplicity and readability.
+
+Due to the shared testing image used for other scenarios, for simplicity, put 
+relevant python dependencies on `utils/requirement.txt`. 
+
+For OS level dependencies, include your setup in the root folder's `Dockerfile.test`
+
+## Making new tests
+
+Create new directory in this folder (`scenario_tests`).
+Directory should contains:
+
+- Host level test script called `test.sh`
+- `docker-compose.yml` file for the service setup
+- `.env` file if needed for `docker-compose.yml` settings
+- `tests` directory which contains your test scripts. The testing architecture will
+  execute `test.sh` script in this directory (service level), if you use generic host level `test.sh` script.
+
+
+Explanations:
+
+Host level test script is used to setup the docker service, then run the unit test when 
+the service is ready. You can copy paste from existing `collations` for generic script.
+
+`docker-compose.yml` file should mount your `tests` directory and provides settings 
+needed by the service that are going to be tested.
+
+`tests` directory contains the actual test script that will be run from *inside* 
+the service. For example, in `collations` scenario `test.sh` (service level scripts) 
+will start python unittest script with necessary variables.
+
+Add your scenario to travis config:
+
+In `jobs.include[]` list there will be `stage: test` entry.
+Add your environment variable needed to run your test in `stage.env` list.
+For example, if you have new scenario folder `my_test`, then the env key 
+will look like this:
+
+```
+- stage: test
+  env:
+    - SCENARIO=replications
+    - SCENARIO=collations
+    - SCENARIO=my_test EXTRA_SETTING_1=value1 EXTRA_SETTING_2=value2 EXTRA_SETTING_3=value3 
+```
diff --git a/scenario_tests/collations/docker-compose.yml b/scenario_tests/collations/docker-compose.yml
new file mode 100644
index 0000000..f3239ed
--- /dev/null
+++ b/scenario_tests/collations/docker-compose.yml
@@ -0,0 +1,54 @@
+
+version: '2.1'
+
+volumes:
+  pg-data-dir:
+  new-pg-data-dir:
+
+services:
+  pg:
+    image: 'kartoza/postgis:${TAG:-manual-build}'
+    restart: 'always'
+    # You can optionally mount to volume, to play with the persistence and
+    # observe how the node will behave after restarts.
+    volumes:
+      - pg-data-dir:/var/lib/postgresql
+      - ./tests:/tests
+      - ../utils:/lib/utils
+    environment:
+      DEFAULT_COLLATION: ${DEFAULT_COLLATION:-id_ID.utf8}
+      DEFAULT_CTYPE: ${DEFAULT_COLLATION:-id_ID.utf8}
+      ALLOW_IP_RANGE: '0.0.0.0/0'
+      TEST_CLASS: test_collation.TestCollationDefault
+    ports:
+      - "7777:5432"
+    healthcheck:
+      interval: 60s
+      timeout: 30s
+      retries: 3
+      test: "pg_isready"
+
+  pg-new:
+    image: 'kartoza/postgis:${TAG:-manual-build}'
+    restart: 'always'
+    # You can optionally mount to volume, to play with the persistence and
+    # observe how the node will behave after restarts.
+    volumes:
+      - new-pg-data-dir:/opt/data/postgis
+      - ./tests:/tests
+      - ../utils:/lib/utils
+    hostname: 'pg-new'
+    environment:
+      RECREATE_DATADIR: "True"
+      PGDATA: /opt/data/postgis
+      DEFAULT_COLLATION: ${DEFAULT_COLLATION:-id_ID.utf8}
+      DEFAULT_CTYPE: ${DEFAULT_COLLATION:-id_ID.utf8}
+      ALLOW_IP_RANGE: '0.0.0.0/0'
+      TEST_CLASS: test_collation.TestCollationInitialization
+    ports:
+      - "7776:5432"
+    healthcheck:
+      interval: 60s
+      timeout: 30s
+      retries: 3
+      test: "pg_isready"
diff --git a/scenario_tests/collations/test.sh b/scenario_tests/collations/test.sh
new file mode 100755
index 0000000..1b36eef
--- /dev/null
+++ b/scenario_tests/collations/test.sh
@@ -0,0 +1,25 @@
+#!/usr/bin/env bash
+
+# exit immediately if test fails
+set -e
+
+source ../test-env.sh
+
+# Run service
+docker-compose up -d
+
+sleep 5
+
+services=("pg" "pg-new")
+
+for service in "${services[@]}"; do
+
+  # Execute tests
+  until docker-compose exec $service pg_isready; do
+    sleep 1
+  done;
+  docker-compose exec $service /bin/bash /tests/test.sh
+
+done
+
+docker-compose down -v
diff --git a/scenario_tests/collations/tests/__init__.py b/scenario_tests/collations/tests/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/scenario_tests/collations/tests/test.sh b/scenario_tests/collations/tests/test.sh
new file mode 100644
index 0000000..f1ad178
--- /dev/null
+++ b/scenario_tests/collations/tests/test.sh
@@ -0,0 +1,20 @@
+#!/usr/bin/env bash
+
+set -e
+
+source /env-data.sh
+
+# execute tests
+pushd /tests
+
+cat << EOF
+Settings used:
+
+DEFAULT_COLLATION: ${DEFAULT_COLLATION}
+DEFAULT_CTYPE: ${DEFAULT_CTYPE}
+EOF
+
+PGHOST=localhost \
+PGDATABASE=gis \
+PYTHONPATH=/lib \
+  python3 -m unittest -v ${TEST_CLASS}
diff --git a/scenario_tests/collations/tests/test_collation.py b/scenario_tests/collations/tests/test_collation.py
new file mode 100644
index 0000000..8b96094
--- /dev/null
+++ b/scenario_tests/collations/tests/test_collation.py
@@ -0,0 +1,95 @@
+import unittest
+import os
+from utils.utils import DBConnection
+
+
+class TestCollationBase(unittest.TestCase):
+
+    def setUp(self):
+        self.db = DBConnection()
+
+    def fetch_collation(self, cursor, dbname):
+        cursor.execute(
+            """
+            select datcollate, datctype from pg_database where datname = '{}';
+            """.format(dbname)
+        )
+
+        row = cursor.fetchone()
+        return row
+
+
+class TestCollationDefault(TestCollationBase):
+
+    def test_check_collation(self):
+        # create new table
+        self.db.conn.autocommit = True
+        with self.db.cursor() as c:
+
+            # Specified database created by entrypoint script should have
+            # the correct collation from database clusters
+            # DEFAULT_COLLATION and DEFAULT_CTYPE will be ignored
+            dbcollate, dbctype = self.fetch_collation(c, 'gis')
+            self.assertEqual(dbcollate, 'C.UTF-8')
+            self.assertEqual(dbctype, 'C.UTF-8')
+
+            c.execute(
+                """
+                drop database if exists sample_db;
+                """
+            )
+            c.execute(
+                """
+                create database sample_db;
+                """
+            )
+
+            # Database created manually will have default settings
+            dbcollate, dbctype = self.fetch_collation(c, 'sample_db')
+            self.assertEqual(dbcollate, 'C.UTF-8')
+            self.assertEqual(dbctype, 'C.UTF-8')
+
+            # Default database created by entrypoint script have
+            # default collation
+            dbcollate, dbctype = self.fetch_collation(c, 'postgres')
+            self.assertEqual(dbcollate, 'C.UTF-8')
+            self.assertEqual(dbctype, 'C.UTF-8')
+
+
+class TestCollationInitialization(TestCollationBase):
+
+    def test_check_collation_in_new_datadir(self):
+        # create new table
+        default_collation = os.environ.get('DEFAULT_COLLATION')
+        default_ctype = os.environ.get('DEFAULT_CTYPE')
+        self.db.conn.autocommit = True
+        with self.db.cursor() as c:
+
+            # Specified database created by entrypoint script should have
+            # the correct collation from database clusters
+            # DEFAULT_COLLATION and DEFAULT_CTYPE will be ignored
+            dbcollate, dbctype = self.fetch_collation(c, 'gis')
+            self.assertEqual(dbcollate, default_collation)
+            self.assertEqual(dbctype, default_ctype)
+
+            c.execute(
+                """
+                drop database if exists sample_db;
+                """
+            )
+            c.execute(
+                """
+                create database sample_db;
+                """
+            )
+
+            # Database created manually will have default settings
+            dbcollate, dbctype = self.fetch_collation(c, 'sample_db')
+            self.assertEqual(dbcollate, default_collation)
+            self.assertEqual(dbctype, default_ctype)
+
+            # Default database created by entrypoint script have
+            # default collation
+            dbcollate, dbctype = self.fetch_collation(c, 'postgres')
+            self.assertEqual(dbcollate, default_collation)
+            self.assertEqual(dbctype, default_ctype)
diff --git a/scenario_tests/datadir_init/docker-compose.yml b/scenario_tests/datadir_init/docker-compose.yml
new file mode 100644
index 0000000..6755a3d
--- /dev/null
+++ b/scenario_tests/datadir_init/docker-compose.yml
@@ -0,0 +1,57 @@
+version: '2.1'
+volumes:
+  default-pg-data-dir:
+  new-pg-data-dir:
+  recreate-pg-data-dir:
+services:
+  pg-default:
+    image: 'kartoza/postgis:${TAG:-manual-build}'
+    volumes:
+      # By default persisted volumes should be in /var/lib/postgresql
+      - default-pg-data-dir:/var/lib/postgresql
+      - ./tests:/tests
+      - ../utils:/lib/utils
+    environment:
+      # Default usage, no datadir location defined
+      TEST_CLASS: TestDefault
+    healthcheck:
+      interval: 60s
+      timeout: 30s
+      retries: 3
+      test: "pg_isready"
+
+  pg-new:
+    image: 'kartoza/postgis:${TAG:-manual-build}'
+    volumes:
+      # Mount to new locations where there are no initial data
+      - new-pg-data-dir:/opt/mypostgis/data
+      - ./tests:/tests
+      - ../utils:/lib/utils
+    environment:
+      # Tell the new location
+      TEST_CLASS: TestNew
+      DATADIR: /opt/mypostgis/data
+    healthcheck:
+      interval: 60s
+      timeout: 30s
+      retries: 3
+      test: "pg_isready"
+
+  pg-recreate:
+    image: 'kartoza/postgis:${TAG:-manual-build}'
+    volumes:
+      - recreate-pg-data-dir:/var/lib/postgresql
+      - ./tests:/tests
+      - ../utils:/lib/utils
+    environment:
+      # Tell that you are going to perform cluster reinitialization
+      TEST_CLASS: TestRecreate
+      RECREATE_DATADIR: "True"
+      DEFAULT_ENCODING: ${DEFAULT_ENCODING:-UTF-8}
+      DEFAULT_COLLATION: ${DEFAULT_COLLATION:-id_ID.utf8}
+      DEFAULT_CTYPE: ${DEFAULT_COLLATION:-id_ID.utf8}
+    healthcheck:
+      interval: 60s
+      timeout: 30s
+      retries: 3
+      test: "pg_isready"
diff --git a/scenario_tests/datadir_init/test.sh b/scenario_tests/datadir_init/test.sh
new file mode 100755
index 0000000..d46f2c6
--- /dev/null
+++ b/scenario_tests/datadir_init/test.sh
@@ -0,0 +1,25 @@
+#!/usr/bin/env bash
+
+# exit immediately if test fails
+set -e
+
+source ../test-env.sh
+
+# Run service
+docker-compose up -d
+
+sleep 5
+
+services=("pg-default" "pg-new" "pg-recreate")
+
+for service in "${services[@]}"; do
+
+  # Execute tests
+  until docker-compose exec $service pg_isready; do
+    sleep 1
+  done;
+  docker-compose exec $service /bin/bash /tests/test.sh
+
+done
+
+docker-compose down -v
diff --git a/scenario_tests/datadir_init/tests/__init__.py b/scenario_tests/datadir_init/tests/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/scenario_tests/datadir_init/tests/test.sh b/scenario_tests/datadir_init/tests/test.sh
new file mode 100644
index 0000000..b30adf9
--- /dev/null
+++ b/scenario_tests/datadir_init/tests/test.sh
@@ -0,0 +1,22 @@
+#!/usr/bin/env bash
+
+set -e
+
+source /env-data.sh
+
+# execute tests
+pushd /tests
+
+cat << EOF
+Settings used:
+
+RECREATE_DATADIR: ${RECREATE_DATADIR}
+DATADIR: ${DATADIR}
+PGDATA: ${PGDATA}
+INITDB_EXTRA_ARGS: ${INITDB_EXTRA_ARGS}
+EOF
+
+PGHOST=localhost \
+PGDATABASE=gis \
+PYTHONPATH=/lib \
+  python3 -m unittest -v test_datadir.${TEST_CLASS}
diff --git a/scenario_tests/datadir_init/tests/test_datadir.py b/scenario_tests/datadir_init/tests/test_datadir.py
new file mode 100644
index 0000000..99897b0
--- /dev/null
+++ b/scenario_tests/datadir_init/tests/test_datadir.py
@@ -0,0 +1,80 @@
+import unittest
+import os
+from utils.utils import DBConnection
+
+
+class TestCollationBase(unittest.TestCase):
+
+    def setUp(self):
+        self.db = DBConnection()
+
+    def fetch_collation(self, cursor, dbname):
+        cursor.execute(
+            """
+            select datcollate, datctype from pg_database where datname = '{}';
+            """.format(dbname)
+        )
+
+        row = cursor.fetchone()
+        return row
+
+    def fetch_datadir_location(self, cursor):
+        cursor.execute(
+            """
+            show data_directory;
+            """
+        )
+        row = cursor.fetchone()
+        return row[0]
+
+
+class TestDefault(TestCollationBase):
+
+    def test_check_collation(self):
+        # create new table
+        self.db.conn.autocommit = True
+        with self.db.cursor() as c:
+
+            # Check datadir locations
+            self.assertTrue(
+                self.fetch_datadir_location(c).startswith(
+                    '/var/lib/postgresql'
+                )
+            )
+
+
+class TestNew(TestCollationBase):
+
+    def test_check_collation_in_new_datadir(self):
+        # create new table
+        self.db.conn.autocommit = True
+        with self.db.cursor() as c:
+
+            # Check datadir locations
+            self.assertTrue(
+                self.fetch_datadir_location(c).startswith(
+                    os.environ.get('DATADIR')
+                )
+            )
+
+
+class TestRecreate(TestCollationBase):
+
+    def test_check_collation_in_new_datadir(self):
+        # create new table
+        self.db.conn.autocommit = True
+        with self.db.cursor() as c:
+
+            # Check datadir locations
+            self.assertTrue(
+                self.fetch_datadir_location(c).startswith(
+                    '/var/lib/postgresql'
+                )
+            )
+
+            # Check that the new cluster is not the default cluster
+            # from it's collations
+            dbcollate, dbctype = self.fetch_collation(c, 'gis')
+            self.assertEqual(dbcollate, os.environ.get('DEFAULT_COLLATION'))
+            self.assertEqual(dbctype, os.environ.get('DEFAULT_CTYPE'))
+
diff --git a/scenario_tests/replications/docker-compose.yml b/scenario_tests/replications/docker-compose.yml
new file mode 100644
index 0000000..e934b02
--- /dev/null
+++ b/scenario_tests/replications/docker-compose.yml
@@ -0,0 +1,100 @@
+
+version: '2.1'
+
+volumes:
+  pg-master-data-dir:
+  pg-node-data-dir:
+
+services:
+  pg-master:
+    image: 'kartoza/postgis:${TAG:-manual-build}'
+    restart: 'always'
+    # You can optionally mount to volume, to play with the persistence and
+    # observe how the node will behave after restarts.
+    volumes:
+      - pg-master-data-dir:/var/lib/postgresql
+      - ./tests:/tests
+      - ../utils:/lib/utils
+    environment:
+      # ALLOW_IP_RANGE option is used to specify additionals allowed domains
+      # in pg_hba.
+      # This range should allow nodes to connect to master
+      ALLOW_IP_RANGE: '0.0.0.0/0'
+
+      # We can specify optional credentials
+      REPLICATION_USER: 'replicator'
+      REPLICATION_PASS: 'replicator'
+      # Setup master replication variables
+      #PG_MAX_WAL_SENDERS: 8
+      #PG_WAL_KEEP_SEGMENTS: 100
+    # You can expose the port to observe it in your local machine
+    ports:
+      - "7777:5432"
+    healthcheck:
+      interval: 60s
+      timeout: 30s
+      retries: 3
+      test: "pg_isready"
+
+  pg-node:
+    image: 'kartoza/postgis:${TAG:-manual-build}'
+    restart: 'always'
+    # You can optionally mount to volume, but we're not able to scale it
+    # in that case.
+    # The node will always destroy its database and copy from master at
+    # runtime
+    volumes:
+      - pg-node-data-dir:/var/lib/postgresql
+      - ./tests:/tests
+      - ../utils:/lib/utils
+
+    environment:
+      # ALLOW_IP_RANGE option is used to specify additionals allowed domains
+      # in pg_hba.
+      # Not really needed in nodes for the replication, but optionally can
+      # be put when nodes are needed to be a failover server when master
+      # is down. The IP Range are generally needed if other services wants to
+      # connect to this node
+      ALLOW_IP_RANGE: '0.0.0.0/0'
+
+      # REPLICATE_FROM options accepts domain-name or IP address
+      # with this in mind, you can also put docker service name, because it
+      # will be resolved as host name.
+      REPLICATE_FROM: 'pg-master'
+
+      # REPLICATE_PORT will default to 5432 if not specified.
+      # REPLICATE_PORT: '5432'
+      # In the case where you need to replicate from outside service,
+      # you can put the server address and port here, as long as the target
+      # where configured as master, and replicable.
+#      REPLICATE_FROM: '192.168.1.8'
+#      REPLICATE_PORT: '7777'
+
+      # DESTROY_DATABASE_ON_RESTART will default to True if not specified.
+      # If specified other than True, it will prevent node from destroying
+      # database on restart
+      DESTROY_DATABASE_ON_RESTART: 'True'
+
+      # PROMOTE_MASTER Default empty.
+      # If specified with any value, then it will convert current node into
+      # a writable state. Useful if master is down and the current node needs
+      # to be promoted until manual recovery.
+#      PROMOTE_MASTER: 'True'
+
+      # For now we don't support different credentials for replication
+      # so we use the same credentials as master's superuser, or anything that
+      # have replication role.
+      REPLICATION_USER: 'replicator'
+      REPLICATION_PASS: 'replicator'
+    depends_on:
+        pg-master:
+          condition: service_healthy
+    # You can expose the port to observe it in your local machine
+    # For this sample, it was disabled by default to allow scaling test
+    ports:
+      - "7776:5432"
+    healthcheck:
+      interval: 60s
+      timeout: 30s
+      retries: 3
+      test: "pg_isready"
diff --git a/scenario_tests/replications/test.sh b/scenario_tests/replications/test.sh
new file mode 100755
index 0000000..cd7b07c
--- /dev/null
+++ b/scenario_tests/replications/test.sh
@@ -0,0 +1,29 @@
+#!/usr/bin/env bash
+
+# exit immediately if test fails
+set -e
+
+source ../test-env.sh
+
+# Run service
+docker-compose up -d
+
+sleep 5
+
+# Preparing master cluster
+until docker-compose exec pg-master pg_isready; do
+  sleep 1
+done;
+
+# Execute tests
+docker-compose exec pg-master /bin/bash /tests/test_master.sh
+
+# Preparing node cluster
+until docker-compose exec pg-node pg_isready; do
+  sleep 1
+done;
+
+# Execute tests
+docker-compose exec pg-node /bin/bash /tests/test_node.sh
+
+docker-compose down -v
diff --git a/scenario_tests/replications/tests/__init__.py b/scenario_tests/replications/tests/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/scenario_tests/replications/tests/test_master.sh b/scenario_tests/replications/tests/test_master.sh
new file mode 100644
index 0000000..e9f0840
--- /dev/null
+++ b/scenario_tests/replications/tests/test_master.sh
@@ -0,0 +1,13 @@
+#!/usr/bin/env bash
+
+set -e
+
+source /env-data.sh
+
+# execute tests
+pushd /tests
+
+PGHOST=localhost \
+PGDATABASE=gis \
+PYTHONPATH=/lib \
+  python3 -m unittest -v test_replication.TestReplicationMaster
diff --git a/scenario_tests/replications/tests/test_node.sh b/scenario_tests/replications/tests/test_node.sh
new file mode 100644
index 0000000..ca2068e
--- /dev/null
+++ b/scenario_tests/replications/tests/test_node.sh
@@ -0,0 +1,13 @@
+#!/usr/bin/env bash
+
+set -e
+
+source /env-data.sh
+
+# execute tests
+pushd /tests
+
+PGHOST=localhost \
+PGDATABASE=gis \
+PYTHONPATH=/lib \
+  python3 -m unittest -v test_replication.TestReplicationNode
diff --git a/scenario_tests/replications/tests/test_replication.py b/scenario_tests/replications/tests/test_replication.py
new file mode 100644
index 0000000..06bbf62
--- /dev/null
+++ b/scenario_tests/replications/tests/test_replication.py
@@ -0,0 +1,59 @@
+import unittest
+from utils.utils import DBConnection
+
+
+class TestReplicationMaster(unittest.TestCase):
+
+    def setUp(self):
+        self.db = DBConnection()
+
+    def test_create_new_data(self):
+        # create new table
+        self.db.conn.autocommit = True
+        with self.db.cursor() as c:
+            c.execute(
+                """
+                CREATE TABLE IF NOT EXISTS test_replication_table (
+                    id integer not null
+                        constraint pkey primary key,
+                    geom geometry(Point, 4326),
+                    name varchar(30),
+                    alias varchar(30),
+                    description varchar(255)
+                );
+                """
+            )
+
+            c.execute(
+                """
+                INSERT INTO test_replication_table (id, geom, name, alias, description)
+                VALUES 
+                (
+                    1,
+                    st_setsrid(st_point(107.6097, 6.9120), 4326),
+                    'Bandung',
+                    'Paris van Java',
+                    'Asia-Africa conference was held here'                     
+                ) ON CONFLICT DO NOTHING;
+                """
+            )
+
+
+class TestReplicationNode(unittest.TestCase):
+
+    def setUp(self):
+        self.db = DBConnection()
+
+    def test_read_data(self):
+        # create new table
+        self.db.conn.autocommit = True
+        with self.db.cursor() as c:
+            c.execute(
+                """
+                SELECT * FROM test_replication_table;
+                """
+            )
+
+            rows = c.fetchall()
+            self.assertEqual(len(rows), 1)
+
diff --git a/scenario_tests/test-env.sh b/scenario_tests/test-env.sh
new file mode 100644
index 0000000..e368c89
--- /dev/null
+++ b/scenario_tests/test-env.sh
@@ -0,0 +1,12 @@
+#!/usr/bin/env bash
+
+# Display test environment variable
+
+cat << EOF
+Test environment:
+
+Compose Project : ${COMPOSE_PROJECT_NAME}
+Compose File    : ${COMPOSE_PROJECT_FILE}
+Image tag       : ${TAG}
+
+EOF
diff --git a/scenario_tests/utils/__init__.py b/scenario_tests/utils/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/scenario_tests/utils/requirements.txt b/scenario_tests/utils/requirements.txt
new file mode 100644
index 0000000..37ec460
--- /dev/null
+++ b/scenario_tests/utils/requirements.txt
@@ -0,0 +1 @@
+psycopg2-binary
diff --git a/scenario_tests/utils/utils.py b/scenario_tests/utils/utils.py
new file mode 100644
index 0000000..1bae017
--- /dev/null
+++ b/scenario_tests/utils/utils.py
@@ -0,0 +1,43 @@
+import os
+
+import psycopg2
+
+
+class DBConnection:
+
+    def __init__(self):
+        self.conn = DBConnection.create_conn()
+
+    def table_exists(self, table_name, table_schema='public'):
+        cur = self.conn.cursor()
+        query = (
+            'select '
+            'exists('
+            'select 1 '
+            'from information_schema.tables '
+            'where table_name = %s and table_schema = %s)')
+        cur.execute(query, (table_name, table_schema))
+        try:
+            row = cur.fetchone()
+            return row[0]
+        except:
+            return False
+
+    @staticmethod
+    def create_conn():
+        """
+        :return: psycopg2.connection
+        """
+        return psycopg2.connect(
+            host=os.environ.get('POSTGRES_HOST'),
+            database=os.environ.get('POSTGRES_DB'),
+            user=os.environ.get('POSTGRES_USER'),
+            password=os.environ.get('POSTGRES_PASS'),
+            port=os.environ.get('POSTGRES_PORT')
+        )
+
+    def cursor(self):
+        """
+        :return: psycopg2.cursor
+        """
+        return self.conn.cursor()
diff --git a/setup-conf.sh b/setup-conf.sh
index 44325d6..e0fe92d 100644
--- a/setup-conf.sh
+++ b/setup-conf.sh
@@ -15,6 +15,11 @@ SINGLE_DB=${arr[0]}
 # Refresh configuration in case environment settings changed.
 cat $CONF.template > $CONF
 
+# Reflect DATADIR loaction
+# Delete any data_dir declarations
+sed -i '/data_directory/d' $CONF
+echo "data_directory = '${DATADIR}'" >> $CONF
+
 # This script will setup necessary configuration to optimise for PostGIS and to enable replications
 cat >> $CONF <<EOF
 archive_mode = ${ARCHIVE_MODE}
diff --git a/setup-database.sh b/setup-database.sh
index 0069289..ca48dba 100644
--- a/setup-database.sh
+++ b/setup-database.sh
@@ -2,38 +2,35 @@
 
 source /env-data.sh
 
-
-SETUP_LOCKFILE="${DATADIR}/.postgresql.init.lock"
-
-# This script will setup the necessary folder for database
-chown -R postgres /var/lib/postgresql
 # test if DATADIR has content
-if [[ -z "${EXISTING_DATA_DIR}" ]]; then \
-    if [[ ! -f "${SETUP_LOCKFILE}" ]]; then
-        # No content yet - first time pg is being run!
-        # No Replicate From settings. Assume that this is a master database.
-        # Initialise db
-        echo "Initializing Postgres Database at ${DATADIR}"
-        rm -rf ${DATADIR}/*
-        chown -R postgres /var/lib/postgresql
-        su - postgres -c "$INITDB -U postgres -E ${DEFAULT_ENCODING} --lc-collate=${DEFAULT_COLLATION} --lc-ctype=${DEFAULT_CTYPE} --wal-segsize=${WAL_SEGSIZE} -D ${DATADIR}"
-        touch ${SETUP_LOCKFILE}
-    fi
-
+# Do initialization if DATADIR is empty, or RECREATE_DATADIR is true
+if [[ -z "$(ls -A ${DATADIR} 2> /dev/null)" || "${RECREATE_DATADIR}" == 'TRUE' ]]; then
+    # Only attempt reinitializations if ${RECREATE_DATADIR} is true
+    # No Replicate From settings. Assume that this is a master database.
+    # Initialise db
+    echo "Initializing Postgres Database at ${DATADIR}"
+    mkdir -p ${DATADIR}
+    rm -rf ${DATADIR}/*
+    chown -R postgres:postgres ${DATADIR}
+    echo "Initializing with command:"
+    command="$INITDB -U postgres -E ${DEFAULT_ENCODING} --lc-collate=${DEFAULT_COLLATION} --lc-ctype=${DEFAULT_CTYPE} --wal-segsize=${WAL_SEGSIZE} -D ${DATADIR} ${INITDB_EXTRA_ARGS}"
+    su - postgres -c "$command"
 fi;
+
 # Set proper permissions
 # needs to be done as root:
 chown -R postgres:postgres ${DATADIR}
+chmod -R 750 ${DATADIR}
 
 # test database existing
 trap "echo \"Sending SIGTERM to postgres\"; killall -s SIGTERM postgres" SIGTERM
 
 
-
+# Run as local only for config setup phase to avoid outside access
 su - postgres -c "${POSTGRES} -D ${DATADIR} -c config_file=${CONF} ${LOCALONLY} &"
 
 # wait for postgres to come up
-until su - postgres -c "psql -l"; do
+until su - postgres -c "pg_isready"; do
   sleep 1
 done
 echo "postgres ready"
@@ -42,7 +39,7 @@ echo "postgres ready"
 source /setup-user.sh
 
 # enable extensions in template1 if env variable set to true
-if [ "$POSTGRES_TEMPLATE_EXTENSIONS" = true ] ; then
+if [[ "$(boolean ${POSTGRES_TEMPLATE_EXTENSIONS})" == TRUE ]] ; then
     for ext in $(echo ${POSTGRES_MULTIPLE_EXTENSIONS} | tr ',' ' '); do
         echo "Enabling ${ext} in the database template1"
         su - postgres -c "psql -c 'CREATE EXTENSION IF NOT EXISTS ${ext} cascade;' template1"
@@ -60,7 +57,7 @@ for db in $(echo ${POSTGRES_DBNAME} | tr ',' ' '); do
         RESULT=`su - postgres -c "psql -t -c \"SELECT count(1) from pg_database where datname='${db}';\""`
         if [[  ${RESULT} -eq 0 ]]; then
             echo "Create db ${db}"
-            su - postgres -c "createdb -O ${POSTGRES_USER}  ${db}"
+            su - postgres -c "createdb -O ${POSTGRES_USER} ${db}"
             for ext in $(echo ${POSTGRES_MULTIPLE_EXTENSIONS} | tr ',' ' '); do
                 echo "Enabling ${ext} in the database ${db}"
                 if [[ ${ext} = 'pg_cron' ]]; then
@@ -72,8 +69,7 @@ for db in $(echo ${POSTGRES_DBNAME} | tr ',' ' '); do
             echo "Loading legacy sql"
             su - postgres -c "psql ${db} -f ${SQLDIR}/legacy_minimal.sql" || true
             su - postgres -c "psql ${db} -f ${SQLDIR}/legacy_gist.sql" || true
-            export PGPASSWORD=${POSTGRES_PASS}
-            psql ${db} -U ${POSTGRES_USER} -p 5432 -h localhost -f custom.sql
+            PGPASSWORD=${POSTGRES_PASS} psql ${db} -U ${POSTGRES_USER} -p 5432 -h localhost -f custom.sql
 
         else
          echo "${db} db already exists"
@@ -87,4 +83,4 @@ fi
 
 rm custom.sql
 # This should show up in docker logs afterwards
-su - postgres -c "psql -l"
+su - postgres -c "psql -l 2>&1"