diff --git a/changes/pr316.yaml b/changes/pr316.yaml
new file mode 100644
index 00000000..b46705da
--- /dev/null
+++ b/changes/pr316.yaml
@@ -0,0 +1,2 @@
+fix:
+  - "Remove PGPASSWORD from towel helm chart. - [#316](https://github.com/PrefectHQ/server/pull/316)"
diff --git a/helm/prefect-server/templates/towel/deployment.yaml b/helm/prefect-server/templates/towel/deployment.yaml
index 6f9a45e9..43014307 100644
--- a/helm/prefect-server/templates/towel/deployment.yaml
+++ b/helm/prefect-server/templates/towel/deployment.yaml
@@ -51,10 +51,7 @@ spec:
             - src/prefect_server/services/towel/__main__.py
           env:
             - name: PREFECT_SERVER__HASURA__HOST
-              value: {{ include "prefect-server.hasura-hostname" . }}
-            - name: PGPASSWORD
-              valueFrom:
-              {{- include "prefect-server.postgres-secret-ref" . | nindent 16 }}
+              value: {{ include "prefect-server.hasura-hostname" . }}            
             {{- with .Values.towel.env }}
               {{- toYaml . | nindent 12 }}
             {{- end }}