diff --git a/CHANGELOG.md b/CHANGELOG.md
index a504ccc4..5dd793c0 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -14,6 +14,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 ### Changed
 
 - Updated **stac-fastapi-pgstac** to v2.4.5 [#163](https://github.com/microsoft/planetary-computer-apis/pull/163)
+- Updated tiler to use conda to manage dependencies, support LERC [#169](https://github.com/microsoft/planetary-computer-apis/pull/169)
 
 ## [2022.4.0]
 
diff --git a/pctiler/Dockerfile b/pctiler/Dockerfile
index e418eb8a..86a0cd15 100644
--- a/pctiler/Dockerfile
+++ b/pctiler/Dockerfile
@@ -1,7 +1,8 @@
-FROM python:3.9-slim
+FROM mambaorg/micromamba:1.4.0
+COPY --chown=$MAMBA_USER:$MAMBA_USER pctiler/environment.yaml /tmp/env.yaml
 
-# git required for pip installs from git
-RUN apt update && apt install -y git
+RUN micromamba install -y -n base -f /tmp/env.yaml && \
+    micromamba clean --all --yes
 
 # The devops Personal Access Token for accessing
 # Azure Artifacts. Note: This will be visible as
@@ -15,10 +16,11 @@ ARG DEVOPS_PAT
 EXPOSE 8000
 
 WORKDIR /opt/src
+ARG MAMBA_DOCKERFILE_ACTIVATE=1
 
-COPY pccommon /opt/src/pccommon
-COPY pctiler /opt/src/pctiler
-RUN pip install -e ./pccommon -e ./pctiler[server]
+COPY --chown=$MAMBA_USER:$MAMBA_USER pccommon /opt/src/pccommon
+COPY --chown=$MAMBA_USER:$MAMBA_USER pctiler /opt/src/pctiler
+RUN python3 -m pip install -e ./pccommon -e ./pctiler[server]
 
 # GDAL config
 ENV GDAL_CACHEMAX 200
diff --git a/pctiler/Dockerfile.dev b/pctiler/Dockerfile.dev
index 5b0dc900..9c268f6f 100644
--- a/pctiler/Dockerfile.dev
+++ b/pctiler/Dockerfile.dev
@@ -1,6 +1,8 @@
 FROM pc-apis-tiler
 
-COPY requirements-dev.txt requirements-dev.txt
-RUN pip install -r requirements-dev.txt
+ARG MAMBA_DOCKERFILE_ACTIVATE=1
 
-RUN pip install -e ./pccommon -e ./pctiler
+COPY --chown=$MAMBA_USER:$MAMBA_USER requirements-dev.txt requirements-dev.txt
+
+RUN python3 -m pip install -r requirements-dev.txt
+RUN python3 -m pip install -e ./pccommon -e ./pctiler
diff --git a/pctiler/environment.yaml b/pctiler/environment.yaml
new file mode 100644
index 00000000..f4b8e1e0
--- /dev/null
+++ b/pctiler/environment.yaml
@@ -0,0 +1,25 @@
+name: base
+channels:
+  - conda-forge
+dependencies:
+  - python=3.9.16
+  - pystac==1.7.1
+  - jinja2==3.0.3
+  - rasterio==1.3.6
+  - pyproj==3.4.1
+  - planetary-computer==0.4.9
+  - geojson-pydantic==0.4.2
+  # colormap dependencies
+  - matplotlib==3.4.3
+  - git
+  - pip
+  - pip:
+    - "titiler.core==0.10.2"
+    - "titiler.mosaic==0.10.2"
+
+    - # titiler-pgstac
+    - "psycopg[binary,pool]"
+    - "titiler.pgstac==0.2.2"
+
+    # - "importlib_resources>=1.1.0;python_version<'3.9'"
+    # - "pccommon"
\ No newline at end of file