diff --git a/Changelog.md b/Changelog.md
index 46518d9..8462a11 100644
--- a/Changelog.md
+++ b/Changelog.md
@@ -3,6 +3,7 @@
 **latest**
 - complete rewrite
 - `PSQL_TRUST_LOCALNET` config parameter renamed to `PG_TRUST_LOCALNET`
+- `PSQL_MODE` config parameter renamed to `REPLICATION_MODE`
 
 **9.4-2**
 - added replication options
diff --git a/README.md b/README.md
index 5eadc87..294d867 100644
--- a/README.md
+++ b/README.md
@@ -168,15 +168,15 @@ host    all             all             samenet                 trust
 
 # Creating a Snapshot or Slave Database
 
-You may use the `PSQL_MODE` variable along with `REPLICATION_HOST`, `REPLICATION_PORT`, `REPLICATION_USER` and `REPLICATION_PASS` to create a snapshot of an existing database and enable stream replication.
+You may use the `REPLICATION_MODE` variable along with `REPLICATION_HOST`, `REPLICATION_PORT`, `REPLICATION_USER` and `REPLICATION_PASS` to create a snapshot of an existing database and enable stream replication.
 
-Your master database must support replication or super-user access for the credentials you specify. The `PSQL_MODE` variable should be set to `master`, for replication on your master node and `slave` or `snapshot` respectively for streaming replication or a point-in-time snapshot of a running instance.
+Your master database must support replication or super-user access for the credentials you specify. The `REPLICATION_MODE` variable should be set to `master`, for replication on your master node and `slave` or `snapshot` respectively for streaming replication or a point-in-time snapshot of a running instance.
 
 Create a master instance
 
 ```bash
 docker run --name='psql-master' -it --rm \
-  -e 'PSQL_MODE=master' -e 'PG_TRUST_LOCALNET=true' \
+  -e 'REPLICATION_MODE=master' -e 'PG_TRUST_LOCALNET=true' \
   -e 'REPLICATION_USER=replicator' -e 'REPLICATION_PASS=replicatorpass' \
   -e 'DB_NAME=dbname' -e 'DB_USER=dbuser' -e 'DB_PASS=dbpass' \
   sameersbn/postgresql:9.4-8
@@ -187,7 +187,7 @@ Create a streaming replication instance
 ```bash
 docker run --name='psql-slave' -it --rm  \
   --link psql-master:psql-master  \
-  -e 'PSQL_MODE=slave' -e 'PG_TRUST_LOCALNET=true' \
+  -e 'REPLICATION_MODE=slave' -e 'PG_TRUST_LOCALNET=true' \
   -e 'REPLICATION_HOST=psql-master' -e 'REPLICATION_PORT=5432' \
   -e 'REPLICATION_USER=replicator' -e 'REPLICATION_PASS=replicatorpass' \
   sameersbn/postgresql:9.4-8
diff --git a/entrypoint.sh b/entrypoint.sh
index c808ed8..924a235 100755
--- a/entrypoint.sh
+++ b/entrypoint.sh
@@ -1,12 +1,13 @@
 #!/bin/bash
 set -e
 
-PSQL_MODE=${PSQL_MODE:-}
 PSQL_SSLMODE=${PSQL_SSLMODE:-}
 
 PG_TRUST_LOCALNET=${PG_TRUST_LOCALNET:-$PSQL_TRUST_LOCALNET} # backward compatibility
 PG_TRUST_LOCALNET=${PG_TRUST_LOCALNET:-false}
 
+REPLICATION_MODE=${REPLICATION_MODE:-$PSQL_MODE} # backward compatibility
+REPLICATION_MODE=${REPLICATION_MODE:-}
 REPLICATION_USER=${REPLICATION_USER:-}
 REPLICATION_PASS=${REPLICATION_PASS:-}
 REPLICATION_HOST=${REPLICATION_HOST:-}
@@ -105,7 +106,7 @@ set_hba_param() {
 }
 
 configure_hot_standby() {
-  case ${PSQL_MODE} in
+  case ${REPLICATION_MODE} in
     slave|snapshot) ;;
     *)
       echo "Configuring hot standby..."
@@ -120,7 +121,7 @@ configure_hot_standby() {
 
 initialize_database() {
   if [[ ! -f ${PG_DATADIR}/PG_VERSION ]]; then
-    case ${PSQL_MODE} in
+    case ${REPLICATION_MODE} in
       slave|snapshot)
         # default params
         REPLICATION_PORT=${REPLICATION_PORT:-5432}
@@ -155,7 +156,7 @@ initialize_database() {
         done
         echo
 
-        case ${PSQL_MODE} in
+        case ${REPLICATION_MODE} in
           slave)
             echo "Replicating initial data from $REPLICATION_HOST..."
             exec_as_postgres PGPASSWORD=$REPLICATION_PASS ${PG_BINDIR}/pg_basebackup -D ${PG_DATADIR} \
@@ -272,7 +273,7 @@ create_database() {
 }
 
 create_replication_user() {
-  case $PSQL_MODE in
+  case $REPLICATION_MODE in
     slave|snapshot) ;; # replication user can only be created on the master
     *)
       if [[ -n ${REPLICATION_USER} ]]; then
@@ -293,7 +294,7 @@ create_replication_user() {
 
 configure_recovery() {
   if [[ ! -f ${PG_RECOVERY_CONF} ]]; then
-    if [[ ${PSQL_MODE} == slave ]]; then
+    if [[ ${REPLICATION_MODE} == slave ]]; then
       # initialize recovery.conf on the firstrun (slave only)
       echo "Configuring recovery..."
       exec_as_postgres touch ${PG_RECOVERY_CONF}