diff --git a/build/bench/Dockerfile b/build/bench/Dockerfile
index 2cceb3b6..7d051e55 100644
--- a/build/bench/Dockerfile
+++ b/build/bench/Dockerfile
@@ -54,8 +54,6 @@ RUN apt-get update \
     ssh-client \
     # VSCode container requirements
     net-tools \
-    # For version 12
-    python2 \
     && rm -rf /var/lib/apt/lists/*
 
 RUN sed -i -e 's/# en_US.UTF-8 UTF-8/en_US.UTF-8 UTF-8/' /etc/locale.gen \
@@ -74,21 +72,27 @@ RUN groupadd -g 1000 frappe \
     && useradd --no-log-init -r -m -u 1000 -g 1000 -G sudo frappe \
     && echo "frappe ALL=(ALL) NOPASSWD: ALL" >> /etc/sudoers
 
+# Set user, workdir and home
 USER frappe
 WORKDIR /home/frappe
+ENV HOME=/home/frappe
+# Export python executables for Dockerfile
+ENV PATH /home/frappe/.local/bin:$PATH
+# Export python executables for interactive shell
+RUN echo "export PATH=/home/frappe/.local/bin:\$PATH" >> /home/frappe/.bashrc
+# Install pyenv for using multi python setup
+RUN git clone --depth=1 https://github.com/pyenv/pyenv.git .pyenv
+ENV PYENV_ROOT="${HOME}/.pyenv"
+ENV PATH="${PYENV_ROOT}/shims:${PYENV_ROOT}/bin:${PATH}"
+RUN pyenv install 3.7.12 \
+    && pyenv install 2.7.18 \
+    && pyenv global system 3.7.12 2.7.18
 
 # Clone and install bench in the local user home directory
 # For development, bench source is located in ~/.bench
 RUN git clone ${GIT_REPO} --depth 1 -b ${GIT_BRANCH} .bench \
     && pip install --user -e .bench
 
-# Export python executables for Dockerfile
-ENV PATH /home/frappe/.local/bin:$PATH
-# Export python executables for interactive shell
-RUN echo "export PATH=/home/frappe/.local/bin:\$PATH" >> /home/frappe/.bashrc
-
-ENV HOME=/home/frappe
-
 # Install nvm with node
 RUN wget -qO- https://raw.githubusercontent.com/nvm-sh/nvm/v0.39.0/install.sh | bash \
     && . ${NVM_DIR}/nvm.sh \
@@ -105,12 +109,6 @@ RUN wget -qO- https://raw.githubusercontent.com/nvm-sh/nvm/v0.39.0/install.sh |
     && echo '[ -s "$NVM_DIR/nvm.sh" ] && \. "$NVM_DIR/nvm.sh"  # This loads nvm' >> ~/.bashrc \
     && echo '[ -s "$NVM_DIR/bash_completion" ] && \. "$NVM_DIR/bash_completion"  # This loads nvm bash_completion' >> ~/.bashrc
 
-RUN git clone --depth=1 https://github.com/pyenv/pyenv.git .pyenv
-ENV PYENV_ROOT="${HOME}/.pyenv"
-ENV PATH="${PYENV_ROOT}/shims:${PYENV_ROOT}/bin:${PATH}"
-ENV PYTHON_VERSION=3.7.12
-RUN pyenv install ${PYTHON_VERSION}
-
 EXPOSE 8000-8005 9000-9005 6787
 
 FROM build as test
diff --git a/development/README.md b/development/README.md
index 8ae52b5a..c4b6ca11 100644
--- a/development/README.md
+++ b/development/README.md
@@ -62,7 +62,7 @@ bench init --skip-redis-config-generation --frappe-branch version-13 frappe-benc
 cd frappe-bench
 ```
 
-Note: For version 12 use python 3.7 by passing option to `bench init` command, e.g. `bench init --skip-redis-config-generation --frappe-branch version-12 --python ~/.pyenv/versions/3.7.12/bin/python frappe-bench`
+Note: For version 12 use python 3.7 by passing option to `bench init` command, e.g. `bench init --skip-redis-config-generation --frappe-branch version-12 --python python3.7 frappe-bench`
 
 ### Setup hosts