diff --git a/sql/test_factory--0.5.0.sql b/sql/test_factory--0.5.0.sql
index 340e33f..75c4f90 100644
--- a/sql/test_factory--0.5.0.sql
+++ b/sql/test_factory--0.5.0.sql
@@ -15,6 +15,23 @@ EXCEPTION
 END
 $body$;
 
+/*
+ * As of PG16, CREATE ROLE no longer grants the creating role a SET-enabled
+ * membership in the new role, so SET ROLE test_factory__owner below fails
+ * unless the current role is a superuser (which bypasses the check). Grant it
+ * explicitly WITH SET so a non-superuser install works too. Runs
+ * unconditionally, even when the role already existed and CREATE ROLE was a
+ * no-op. Gated on PG16+, where the WITH SET syntax exists; pre-16 GRANT ... TO
+ * already confers the ability to SET ROLE.
+ */
+DO $body$
+BEGIN
+	IF current_setting('server_version_num')::int >= 160000 THEN
+		EXECUTE format('GRANT test_factory__owner TO %I WITH SET TRUE', current_user);
+	END IF;
+END
+$body$;
+
 CREATE SCHEMA tf AUTHORIZATION test_factory__owner;
 COMMENT ON SCHEMA tf IS $$Test factory. Tools for maintaining test data.$$;
 GRANT USAGE ON SCHEMA tf TO public;
diff --git a/sql/test_factory.sql b/sql/test_factory.sql
index c44b076..baf8a5f 100644
--- a/sql/test_factory.sql
+++ b/sql/test_factory.sql
@@ -14,6 +14,23 @@ EXCEPTION
 END
 $body$;
 
+/*
+ * As of PG16, CREATE ROLE no longer grants the creating role a SET-enabled
+ * membership in the new role, so SET ROLE test_factory__owner below fails
+ * unless the current role is a superuser (which bypasses the check). Grant it
+ * explicitly WITH SET so a non-superuser install works too. Runs
+ * unconditionally, even when the role already existed and CREATE ROLE was a
+ * no-op. Gated on PG16+, where the WITH SET syntax exists; pre-16 GRANT ... TO
+ * already confers the ability to SET ROLE.
+ */
+DO $body$
+BEGIN
+	IF current_setting('server_version_num')::int >= 160000 THEN
+		EXECUTE format('GRANT test_factory__owner TO %I WITH SET TRUE', current_user);
+	END IF;
+END
+$body$;
+
 CREATE SCHEMA tf AUTHORIZATION test_factory__owner;
 COMMENT ON SCHEMA tf IS $$Test factory. Tools for maintaining test data.$$;
 GRANT USAGE ON SCHEMA tf TO public;
diff --git a/test/expected/base.out b/test/expected/base.out
index 57f115a..de59c65 100644
--- a/test/expected/base.out
+++ b/test/expected/base.out
@@ -1,24 +1,25 @@
 \set ECHO none
 Creating extension test_factory
-ok 1 - Register test customers
-ok 2 - Create function customer__add
-ok 3 - Register test invoices
-ok 4 - Ensure original_role temp table was dropped
-ok 5 - Ensure role is put back after install
-ok 6 - Security definer function _tf.schema__getsert has search_path=pg_catalog
-ok 7 - Security definer function _tf.test_factory__get has search_path=pg_catalog
-ok 8 - Security definer function _tf.test_factory__set has search_path=pg_catalog
-ok 9 - Security definer function _tf.table_create has search_path=pg_catalog
-ok 10 - Security definer function _tf.get has search_path=pg_catalog
-ok 11 - customer table is empty
-ok 12 - invoice table is empty
-ok 13 - invoice factory output
-ok 14 - invoice table content
-ok 15 - customer table content
-ok 16 - invoice factory second call
-ok 17 - invoice table content stayed constant
-ok 18 - customer table content stayed constant
-ok 19 - Test function factory
-ok 20 - customer table has new row
-ok 21 - truncate invoice
-ok 22 - invoice factory get remains the same after truncate
+ok 1 - Installing role has SET-enabled membership in test_factory__owner (issue #14)
+ok 2 - Register test customers
+ok 3 - Create function customer__add
+ok 4 - Register test invoices
+ok 5 - Ensure original_role temp table was dropped
+ok 6 - Ensure role is put back after install
+ok 7 - Security definer function _tf.schema__getsert has search_path=pg_catalog
+ok 8 - Security definer function _tf.test_factory__get has search_path=pg_catalog
+ok 9 - Security definer function _tf.test_factory__set has search_path=pg_catalog
+ok 10 - Security definer function _tf.table_create has search_path=pg_catalog
+ok 11 - Security definer function _tf.get has search_path=pg_catalog
+ok 12 - customer table is empty
+ok 13 - invoice table is empty
+ok 14 - invoice factory output
+ok 15 - invoice table content
+ok 16 - customer table content
+ok 17 - invoice factory second call
+ok 18 - invoice table content stayed constant
+ok 19 - customer table content stayed constant
+ok 20 - Test function factory
+ok 21 - customer table has new row
+ok 22 - truncate invoice
+ok 23 - invoice factory get remains the same after truncate
diff --git a/test/sql/base.sql b/test/sql/base.sql
index f52bf4a..700342c 100644
--- a/test/sql/base.sql
+++ b/test/sql/base.sql
@@ -4,6 +4,36 @@
 \set extension_name test_factory
 \i test/helpers/create_extension.sql
 
+/*
+ * Regression test for issue #14. On PostgreSQL 16+, CREATE ROLE no longer
+ * grants the creating role a SET-enabled membership in the new role, so the
+ * install must GRANT test_factory__owner ... WITH SET TRUE or the SET ROLE
+ * performed during install fails for non-superuser installs (RDS/Aurora). A
+ * real superuser bypasses the SET ROLE check, so a plain install here cannot
+ * reproduce the failure; instead assert the SET-enabled membership the fix
+ * establishes. pg_auth_members.set_option only exists on PG16+, so the check is
+ * skipped (with identical TAP output) on older versions, where a plain
+ * GRANT ... TO already confers the ability to SET ROLE.
+ */
+SELECT (current_setting('server_version_num')::int >= 160000) AS pg16plus \gset
+\if :pg16plus
+SELECT ok(
+  EXISTS(
+    SELECT 1
+      FROM pg_auth_members
+      WHERE roleid = 'test_factory__owner'::regrole
+        AND member = current_user::regrole
+        AND set_option
+  )
+  , 'Installing role has SET-enabled membership in test_factory__owner (issue #14)'
+);
+\else
+SELECT ok(
+  true
+  , 'Installing role has SET-enabled membership in test_factory__owner (issue #14)'
+);
+\endif
+
 -- NOTE: This runs some tests itself
 \i test/helpers/create.sql