diff --git a/Changes b/Changes
index fc48f64..c99296d 100644
--- a/Changes
+++ b/Changes
@@ -1,6 +1,12 @@
 Revision history for Perl extension Test::PostgreSQL.
 
 {{$NEXT}}
+    - Use pg_version attribute to better handle -b and -f psql switches
+      depending on installed PostgreSQL version
+    - Updated docs to reflect the changes
+    - Tests are passing with PostgreSQL 9.3+
+    - pg_version attribute holds PostgreSQL version detected at startup
+    - Improved test diagnostics
 
 1.26
     - Fix postgresql.conf test on PostgreSQL prior to 9.2
diff --git a/README.md b/README.md
index 95f7c41..b09da6a 100644
--- a/README.md
+++ b/README.md
@@ -170,7 +170,7 @@ Default is `-1Xqb -v ON_ERROR_STOP=1`. This means:
 - 1: Run all SQL statements in passed scripts as single transaction
 - X: Skip `.psqlrc` files
 - q: Run quietly, print only notices and errors on stderr (if any)
-- b: Echo SQL statements that cause PostgreSQL exceptions
+- b: Echo SQL statements that cause PostgreSQL exceptions (version 9.5+)
 - -v ON\_ERROR\_STOP=1: Stop processing SQL statements after the first error
 
 ## seed\_scripts
@@ -178,6 +178,11 @@ Default is `-1Xqb -v ON_ERROR_STOP=1`. This means:
 Arrayref with the list of SQL scripts to run after the database was instanced
 and set up. Default is `[]`.
 
+**NOTE** that `psql` older than 9.6 does not support multiple `-c` and `-f`
+switches in arguments so `seed_scripts` will be executed one by one. This
+implies multiple transactions instead of just one; if you need all seed statements
+to apply within a single transaction, combine them into one seed script.
+
 ## auto\_start
 
 Integer value that controls whether PostgreSQL server is started and setup
@@ -257,10 +262,14 @@ to escape them manually like shown above. `run_psql` will not quote them for you
 The actual command line to execute `psql` will be concatenated from ["psql\_args"](#psql_args),
 ["extra\_psql\_args"](#extra_psql_args), and ["run\_psql\_args"](#run_psql_args).
 
+**NOTE** that `psql` older than 9.6 does not support multiple `-c` and/or `-f`
+switches in arguments.
+
 ## run\_psql\_scripts
 
 Given a list of script file paths, invoke ["run\_psql"](#run_psql) once with `-f 'script'`
-for every path.
+for every path in PostgreSQL 9.6+, or once per `-f 'script'` for older PostgreSQL
+versions.
 
 # ENVIRONMENT
 
diff --git a/lib/Test/PostgreSQL.pm b/lib/Test/PostgreSQL.pm
index 7e5b66e..abdcc8a 100644
--- a/lib/Test/PostgreSQL.pm
+++ b/lib/Test/PostgreSQL.pm
@@ -147,6 +147,25 @@ has unix_socket => (
   default => 0,
 );
 
+has pg_version => (
+    is => 'ro',
+    isa => Str,
+    lazy => 1,
+    predicate => 1,
+    builder => "_pg_version_builder",
+);
+
+method _pg_version_builder() {
+    my $ver_cmd = join ' ', (
+        $self->postmaster,
+        '--version'
+    );
+    
+    my ($ver) = qx{$ver_cmd} =~ /(\d+(?:\.\d+)?)/;
+    
+    return $ver;
+}
+
 has pg_ctl => (
   is => "ro",
   isa => Maybe[Str],
@@ -201,10 +220,24 @@ has extra_psql_args => (
 has run_psql_args => (
     is => 'ro',
     isa => Str,
-    # Single transaction, skip .psqlrc, be quiet, echo errors, stop on first error
-    default => '-1Xqb -v ON_ERROR_STOP=1',
+    lazy => 1,
+    builder => "_build_run_psql_args",
 );
 
+method _build_run_psql_args() {
+    my @args = (
+        '-1', # Single transaction
+        '-X', # Ignore .psqlrc
+        '-q', # Quiet
+        '-v ON_ERROR_STOP=1', # Stop on first error
+    );
+    
+    # Echo errors, available in psql 9.5+
+    push @args, '-b' if $self->pg_version >= 9.5;
+    
+    return join ' ', @args;
+}
+
 has seed_scripts => (
     is => 'ro',
     isa => ArrayRef[Str],
@@ -613,12 +646,12 @@ method setup() {
 
 method _find_program($prog) {
     undef $errstr;
-    my $path = which $prog;
-    return $path if $path;
     for my $sp (@{$self->search_paths}) {
         return "$sp/bin/$prog" if -x "$sp/bin/$prog";
         return "$sp/$prog" if -x "$sp/$prog";
     }
+    my $path = which $prog;
+    return $path if $path;
     $errstr = "could not find $prog, please set appropriate PATH or POSTGRES_HOME";
     return;
 }
@@ -664,9 +697,19 @@ method run_psql(@psql_args) {
 }
 
 method run_psql_scripts(@script_paths) {
-    my $psql_args = join ' ', map {; "-f $_" } @script_paths;
+    my @psql_commands;
     
-    $self->run_psql($psql_args);
+    # psql 9.6+ supports multiple -c and -f commands invoked at once,
+    # older psql does not. Executing psql multiple times breaks single
+    # transaction semantics but is unlikely to cause problems in real world.
+    if ( $self->pg_version > 9.6 ) {
+        push @psql_commands, join ' ', map {; "-f $_" } @script_paths;
+    }
+    else {
+        @psql_commands = map {; "-f $_" } @script_paths;
+    }
+    
+    $self->run_psql($_) for @psql_commands;
 }
 
 1;
@@ -860,7 +903,7 @@ q: Run quietly, print only notices and errors on stderr (if any)
 
 =item *
 
-b: Echo SQL statements that cause PostgreSQL exceptions
+b: Echo SQL statements that cause PostgreSQL exceptions (version 9.5+)
 
 =item *
 
@@ -873,6 +916,11 @@ b: Echo SQL statements that cause PostgreSQL exceptions
 Arrayref with the list of SQL scripts to run after the database was instanced
 and set up. Default is C<[]>.
 
+B<NOTE> that C<psql> older than 9.6 does not support multiple C<-c> and C<-f>
+switches in arguments so C<seed_scripts> will be executed one by one. This
+implies multiple transactions instead of just one; if you need all seed statements
+to apply within a single transaction, combine them into one seed script.
+
 =head2 auto_start
 
 Integer value that controls whether PostgreSQL server is started and setup
@@ -956,10 +1004,14 @@ to escape them manually like shown above. C<run_psql> will not quote them for yo
 The actual command line to execute C<psql> will be concatenated from L</psql_args>,
 L</extra_psql_args>, and L</run_psql_args>.
 
+B<NOTE> that C<psql> older than 9.6 does not support multiple C<-c> and/or C<-f>
+switches in arguments.
+
 =head2 run_psql_scripts
 
 Given a list of script file paths, invoke L</run_psql> once with C<-f 'script'>
-for every path.
+for every path in PostgreSQL 9.6+, or once per C<-f 'script'> for older PostgreSQL
+versions.
 
 =head1 ENVIRONMENT
 
diff --git a/t/01-raii.t b/t/01-raii.t
index 621e5ee..e7806f3 100644
--- a/t/01-raii.t
+++ b/t/01-raii.t
@@ -9,6 +9,22 @@ use Try::Tiny;
 my $pgsql = try { Test::PostgreSQL->new }
             catch { plan skip_all => $_ };
 
+plan tests => 5;
+
+my $version_cmd = join ' ', (
+    $pgsql->postmaster, '--version'
+);
+
+my $version_str = qx{$version_cmd};
+
+my ($want_version) = $version_str =~ /(\d+(?:\.\d+)?)/;
+my $have_version = $pgsql->pg_version;
+
+is $have_version, $want_version, "pg_version";
+
+# diag() here is deliberate, to show Postgres version in smoker reports
+diag "PostgreSQL version: $want_version";
+
 my $dsn = $pgsql->dsn;
 
 is(
@@ -22,12 +38,10 @@ ok($dbh->ping, 'connected to PostgreSQL');
 undef $dbh;
 
 my $uri = $pgsql->uri;
-like($uri, qr/^postgresql:\/\/postgres\@127.0.0.1/);
+like($uri, qr/^postgresql:\/\/postgres\@127.0.0.1/, "uri");
 
 undef $pgsql;
 ok(
     ! DBI->connect($dsn, undef, undef, { PrintError => 0 }),
     "Removing variable causes shutdown of postgresql"
 );
-
-done_testing;
diff --git a/t/08-postgresql_conf.t b/t/08-postgresql_conf.t
index 5d96e67..1bf98f8 100644
--- a/t/08-postgresql_conf.t
+++ b/t/08-postgresql_conf.t
@@ -19,16 +19,11 @@ ok defined($pg), "test instance 1 created";
 my $datadir = File::Spec->catfile($pg->base_dir, 'data');
 my $conf_file = File::Spec->catfile($datadir, 'postgresql.conf');
 
-my $ver_cmd = join' ', (
-    $pg->postmaster,
-    '--version'
-);
-
-my ($ver) = qx{$ver_cmd} =~ /(\d+(?:\.\d+)?)/;
-
 # By default postgresql.conf is truncated
 is -s $conf_file, 0, "test 1 postgresql.conf size 0";
 
+my $ver = $pg->pg_version;
+
 SKIP: {
     skip "No -C switch on PostgreSQL $ver (9.2 required)", 1 if $ver < 9.2;
     skip "Can't run postgres as root", 1 if (getuid == 0);
diff --git a/t/09-run_psql.t b/t/09-run_psql.t
index b54d2e4..6643c1b 100644
--- a/t/09-run_psql.t
+++ b/t/09-run_psql.t
@@ -14,13 +14,22 @@ plan tests => 3;
 
 ok defined($pg), "new instance created";
 
-eval {
-    $pg->run_psql(
+my @psql_command;
+
+# psql 9.6+ supports multiple -c commands
+if ( $pg->pg_version >= 9.6 ) {
+    @psql_command = (
         '-c', q|'CREATE TABLE foo (bar int)'|,
         '-c', q|'INSERT INTO foo (bar) VALUES (42)'|,
-    )
-};
-
+    );
+}
+else {
+    @psql_command = (
+        '-c', q|'CREATE TABLE foo (bar int); INSERT INTO foo (bar) VALUES (42);'|,
+    );
+}
+
+eval { $pg->run_psql(@psql_command) };
 is $@, '', "run_psql no exception" . ($@ ? ": $@" : "");