diff --git a/ChangeLog.md b/ChangeLog.md
--- a/ChangeLog.md
+++ b/ChangeLog.md
@@ -1,4 +1,15 @@
-# Changelog for password-instances
+# Changelog for `password-instances`
+
+## 3.0.0.0
+
+-   The `password-instances` library now depends on the new
+    `password-types` package, instead of on the `password` package.
+    [#40](https://github.com/cdepillabout/password/pull/40)
+    Thanks to [@Vlix](https://github.com/Vlix)
+-   Small update to the README
+-   Changed `PersistField` instance of `PasswordHash` to use
+    `decodeUtf8'` for better handling of UTF8 decoding exceptions.
+    [#43](https://github.com/cdepillabout/password/pull/43)
 
 ## 2.0.0.2
 
diff --git a/README.md b/README.md
--- a/README.md
+++ b/README.md
@@ -1,6 +1,6 @@
 # password-instances
 
-[![Build Status](https://secure.travis-ci.org/cdepillabout/password.svg)](http://travis-ci.org/cdepillabout/password)
+[![Build Status](https://github.com/cdepillabout/password/workflows/password/badge.svg)](http://github.com/cdepillabout/password)
 [![Hackage](https://img.shields.io/hackage/v/password-instances.svg)](https://hackage.haskell.org/package/password-instances)
 [![Stackage LTS](http://stackage.org/package/password-instances/badge/lts)](http://stackage.org/lts/package/password-instances)
 [![Stackage Nightly](http://stackage.org/package/password-instances/badge/nightly)](http://stackage.org/nightly/package/password-instances)
diff --git a/password-instances.cabal b/password-instances.cabal
--- a/password-instances.cabal
+++ b/password-instances.cabal
@@ -1,7 +1,7 @@
 cabal-version: 1.12
 
 name:           password-instances
-version:        2.0.0.2
+version:        3.0.0.0
 category:       Data
 synopsis:       typeclass instances for password package
 description:    A library providing typeclass instances for common libraries for the types from the password package.
@@ -38,7 +38,7 @@
       base          >= 4.9 && < 5
     , aeson         >= 0.2
     , http-api-data
-    , password      >= 2
+    , password-types          < 2
     , persistent    >= 1.2
     , text
   ghc-options:
@@ -59,6 +59,7 @@
       base >=4.9 && <5
     , base-compat
     , doctest
+    , password
     , password-instances
     , QuickCheck
     , quickcheck-instances
@@ -78,7 +79,7 @@
   build-depends:
       base >=4.9 && <5
     , password-instances
-    , password
+    , password-types
     , aeson
     , http-api-data
     , persistent
diff --git a/src/Data/Password/Instances.hs b/src/Data/Password/Instances.hs
--- a/src/Data/Password/Instances.hs
+++ b/src/Data/Password/Instances.hs
@@ -1,7 +1,8 @@
+{-# LANGUAGE CPP #-}
 {-# LANGUAGE DataKinds #-}
 {-# LANGUAGE DerivingStrategies #-}
-{-# LANGUAGE InstanceSigs #-}
 {-# LANGUAGE GeneralizedNewtypeDeriving #-}
+{-# LANGUAGE LambdaCase #-}
 {-# LANGUAGE OverloadedStrings #-}
 {-# LANGUAGE ScopedTypeVariables #-}
 {-# LANGUAGE StandaloneDeriving #-}
@@ -20,14 +21,18 @@
 This module provides additional typeclass instances
 for 'Password' and 'PasswordHash'.
 
-See the "Data.Password" module for more information.
+See the "Data.Password.Types" module for more information.
 -}
 
 module Data.Password.Instances () where
 
 import Data.Aeson (FromJSON(..), ToJSON(..))
-import Data.Password (Password, PasswordHash(..), mkPassword)
-import Data.Text.Encoding as TE (decodeUtf8)
+import Data.Password.Types (Password, PasswordHash(..), mkPassword)
+#if !MIN_VERSION_base(4,13,0)
+import Data.Semigroup ((<>))
+#endif
+import Data.Text (pack)
+import Data.Text.Encoding as TE (decodeUtf8')
 import Database.Persist (PersistValue(..))
 import Database.Persist.Class (PersistField(..))
 import Database.Persist.Sql (PersistFieldSql(..))
@@ -42,8 +47,7 @@
 -- Import needed functions.
 --
 -- >>> import Data.Aeson (decode)
--- >>> import Data.Password (Salt(..), unsafeShowPassword)
--- >>> import Data.Password.Scrypt (defaultParams, hashPasswordWithSalt)
+-- >>> import Data.Password.Bcrypt (Salt(..), hashPasswordWithSalt, unsafeShowPassword)
 -- >>> import Database.Persist.Class (PersistField(toPersistValue))
 -- >>> import Web.HttpApiData (parseUrlPiece)
 
@@ -87,11 +91,11 @@
 -- | This instance allows a 'PasswordHash' to be stored as a field in a database using
 -- "Database.Persist".
 --
--- >>> let salt = Salt "abcdefghijklmnopqrstuvwxyz012345"
+-- >>> let salt = Salt "abcdefghijklmnop"
 -- >>> let pass = mkPassword "foobar"
--- >>> let hashedPassword = hashPasswordWithSalt defaultParams salt pass
+-- >>> let hashedPassword = hashPasswordWithSalt 10 salt pass
 -- >>> toPersistValue hashedPassword
--- PersistText "14|8|1|YWJjZGVmZ2hpamtsbW5vcHFyc3R1dnd4eXowMTIzNDU=|nENDaqWBmPKapAqQ3//H0iBImweGjoTqn5SvBS8Mc9FPFbzq6w65maYPZaO+SPamVZRXQjARQ8Y+5rhuDhjIhw=="
+-- PersistText "$2b$10$WUHhXETkX0fnYkrqZU3ta.N8Utt4U77kW4RVbchzgvBvBBEEdCD/u"
 --
 -- In the example above, the long 'PersistText' will be the value you store in
 -- the database.
@@ -100,9 +104,13 @@
 -- want to make it easy to store a plain-text password in the database.
 instance PersistField (PasswordHash a) where
   toPersistValue (PasswordHash hpw) = PersistText hpw
-  fromPersistValue (PersistText txt) = Right $ PasswordHash txt
-  fromPersistValue (PersistByteString bs) = Right $ PasswordHash $ TE.decodeUtf8 bs
-  fromPersistValue _ = Left "did not parse PasswordHash from PersistValue"
+  fromPersistValue = \case
+      PersistText txt -> Right $ PasswordHash txt
+      PersistByteString bs ->
+        either failed (Right . PasswordHash) $ TE.decodeUtf8' bs
+      _ -> Left "did not parse PasswordHash from PersistValue"
+    where
+      failed e = Left $ "Failed decoding PasswordHash to UTF8: " <> pack (show e)
 
 -- | This instance allows a 'PasswordHash' to be stored as a field in an SQL
 -- database in "Database.Persist.Sql".
diff --git a/test/tasty/Spec.hs b/test/tasty/Spec.hs
--- a/test/tasty/Spec.hs
+++ b/test/tasty/Spec.hs
@@ -10,7 +10,7 @@
 import Test.QuickCheck.Instances.Text ()
 import Web.HttpApiData (FromHttpApiData(..))
 
-import Data.Password (Password, PasswordHash(..), unsafeShowPassword)
+import Data.Password.Types (Password, PasswordHash(..), unsafeShowPassword)
 import Data.Password.Instances()