From the PostgreSQL docs:
The concept of roles subsumes the concepts of \"users\" and \"groups\". In PostgreSQL versions before 8.1, users and group
The merge has many advantages and no disadvantages. For instance, you can now seamlessly convert a "user" to a "group" and vice versa by adding / removing the LOGIN privilege.
ALTER ROLE myrole LOGIN;
ALTER ROLE myrole NOLOGIN;
Or you can GRANT membership in any other login ("user") or non-login role ("group") to a role:
GRANT joe TO sue;
You can still:
CREATE USER james;
That's just a role with login privilege now. Or:
CREATE GROUP workers;
That's effectively the same as CREATE ROLE now.
The manual has it all.