diff --git a/go.mod b/go.mod
index 65ea1f49b..610b5b9b1 100644
--- a/go.mod
+++ b/go.mod
@@ -6,7 +6,7 @@ require (
 	github.com/AlecAivazis/survey/v2 v2.3.2
 	github.com/buger/goterm v1.0.4
 	github.com/cnabio/cnab-to-oci v0.3.1-beta1
-	github.com/compose-spec/compose-go v1.2.2
+	github.com/compose-spec/compose-go v1.2.3
 	github.com/containerd/console v1.0.3
 	github.com/containerd/containerd v1.6.2
 	github.com/distribution/distribution/v3 v3.0.0-20210316161203-a01c71e2477e
diff --git a/go.sum b/go.sum
index c3a871652..5c841e50d 100644
--- a/go.sum
+++ b/go.sum
@@ -302,8 +302,8 @@ github.com/cockroachdb/errors v1.2.4/go.mod h1:rQD95gz6FARkaKkQXUksEje/d9a6wBJoC
 github.com/cockroachdb/logtags v0.0.0-20190617123548-eb05cc24525f/go.mod h1:i/u985jwjWRlyHXQbwatDASoW0RMlZ/3i9yJHE2xLkI=
 github.com/codahale/hdrhistogram v0.0.0-20160425231609-f8ad88b59a58/go.mod h1:sE/e/2PUdi/liOCUjSTXgM1o87ZssimdTWN964YiIeI=
 github.com/compose-spec/compose-go v1.0.8/go.mod h1:REnCbBugoIdHB7S1sfkN/aJ7AJpNApGNjNiVjA9L8x4=
-github.com/compose-spec/compose-go v1.2.2 h1:y1dwl3KUTBnWPVur6EZno9zUIum6Q87/F5keljnGQB4=
-github.com/compose-spec/compose-go v1.2.2/go.mod h1:pAy7Mikpeft4pxkFU565/DRHEbDfR84G6AQuiL+Hdg8=
+github.com/compose-spec/compose-go v1.2.3 h1:r9zZfxQKG2A3fTy/MobMecUR1cd3uf7DlQQeB/NKVJ0=
+github.com/compose-spec/compose-go v1.2.3/go.mod h1:pAy7Mikpeft4pxkFU565/DRHEbDfR84G6AQuiL+Hdg8=
 github.com/compose-spec/godotenv v1.1.1/go.mod h1:zF/3BOa18Z24tts5qnO/E9YURQanJTBUf7nlcCTNsyc=
 github.com/containerd/aufs v0.0.0-20200908144142-dab0cbea06f4/go.mod h1:nukgQABAEopAHvB6j7cnP5zJ+/3aVcE7hCYqvIwAHyE=
 github.com/containerd/aufs v0.0.0-20201003224125-76a6863f2989/go.mod h1:AkGGQs9NM2vtYHaUen+NljV0/baGCAPELGm2q9ZXpWU=
diff --git a/pkg/compose/create.go b/pkg/compose/create.go
index e5e23e29f..6eb9c3572 100644
--- a/pkg/compose/create.go
+++ b/pkg/compose/create.go
@@ -713,11 +713,13 @@ func (s *composeService) buildContainerVolumes(ctx context.Context, p types.Proj
 MOUNTS:
 	for _, m := range mountOptions {
 		volumeMounts[m.Target] = struct{}{}
-		// `Bind` API is used when host path need to be created if missing, `Mount` is preferred otherwise
 		if m.Type == mount.TypeBind || m.Type == mount.TypeNamedPipe {
+			// `Mount` is preferred but does not offer option to created host path if missing
+			// so `Bind` API is used here with raw volume string
+			// see https://github.com/moby/moby/issues/43483
 			for _, v := range service.Volumes {
 				if v.Target == m.Target && v.Bind != nil && v.Bind.CreateHostPath {
-					binds = append(binds, fmt.Sprintf("%s:%s:%s", m.Source, m.Target, getBindMode(v.Bind, m.ReadOnly)))
+					binds = append(binds, v.String())
 					continue MOUNTS
 				}
 			}
@@ -727,23 +729,6 @@ MOUNTS:
 	return volumeMounts, binds, mounts, nil
 }
 
-func getBindMode(bind *types.ServiceVolumeBind, readOnly bool) string {
-	mode := "rw"
-
-	if readOnly {
-		mode = "ro"
-	}
-
-	switch bind.SELinux {
-	case types.SELinuxShared:
-		mode += ",z"
-	case types.SELinuxPrivate:
-		mode += ",Z"
-	}
-
-	return mode
-}
-
 func buildContainerMountOptions(p types.Project, s types.ServiceConfig, img moby.ImageInspect, inherit *moby.Container) ([]mount.Mount, error) {
 	var mounts = map[string]mount.Mount{}
 	if inherit != nil {
diff --git a/pkg/compose/create_test.go b/pkg/compose/create_test.go
index ea2ec88ad..6c6a4f198 100644
--- a/pkg/compose/create_test.go
+++ b/pkg/compose/create_test.go
@@ -143,15 +143,6 @@ func TestBuildContainerMountOptions(t *testing.T) {
 	assert.Equal(t, mounts[1].Target, "/var/myvolume2")
 }
 
-func TestGetBindMode(t *testing.T) {
-	assert.Equal(t, getBindMode(&composetypes.ServiceVolumeBind{}, false), "rw")
-	assert.Equal(t, getBindMode(&composetypes.ServiceVolumeBind{}, true), "ro")
-	assert.Equal(t, getBindMode(&composetypes.ServiceVolumeBind{SELinux: composetypes.SELinuxShared}, false), "rw,z")
-	assert.Equal(t, getBindMode(&composetypes.ServiceVolumeBind{SELinux: composetypes.SELinuxPrivate}, false), "rw,Z")
-	assert.Equal(t, getBindMode(&composetypes.ServiceVolumeBind{SELinux: composetypes.SELinuxShared}, true), "ro,z")
-	assert.Equal(t, getBindMode(&composetypes.ServiceVolumeBind{SELinux: composetypes.SELinuxPrivate}, true), "ro,Z")
-}
-
 func TestGetDefaultNetworkMode(t *testing.T) {
 	t.Run("returns the network with the highest priority when service has multiple networks", func(t *testing.T) {
 		service := composetypes.ServiceConfig{