diff --git a/docker/development.env b/docker/development.env
index e5ceba2cf0e..44202a2c501 100644
--- a/docker/development.env
+++ b/docker/development.env
@@ -12,12 +12,9 @@ SMTP_HOST=smtp_host
 SMTP_USERNAME=smtp_username
 SMTP_PASSWORD=smtp_password
 BASE64_WEDLOCKS_PRIVATE_KEY=pk
-
-# postgres
 POSTGRES_USER=graph-node
 POSTGRES_PASSWORD=let-me-in
 POSTGRES_DB=graph-node
-POSTGRES_INITDB_ARGS="-E UTF8 --locale=C" # required by graph-node since 0.30.0
 
 # for subgraph config
 postgres_host=postgres
diff --git a/docker/docker-compose.yml b/docker/docker-compose.yml
index 1615d586fbb..d739a737b4b 100644
--- a/docker/docker-compose.yml
+++ b/docker/docker-compose.yml
@@ -1,7 +1,7 @@
 version: '3.2'
 services:
   graph-node:
-    image: graphprotocol/graph-node:v0.33.0
+    image: graphprotocol/graph-node:v0.29.0
     ports:
       - '8000:8000'
       - '8001:8001'