diff --git a/.env b/.env
new file mode 100644
index 0000000..4c4e05c
--- /dev/null
+++ b/.env
@@ -0,0 +1,32 @@
+#Webservice port
+API_LOCAL_PORT=8080
+API_DOCKER_PORT=8080
+
+#Postgres port
+POSTGRES_LOCAL_PORT=5432
+POSTGRES_DOCKER_PORT=5432
+
+#Database name (change this!)
+DATABASE_NAME=wheremoneydb
+#Database user (change this!)
+DATABASE_USER=admin
+#Database user password (change this!)
+DATABASE_PASSWORD=adminpass
+DATABASE_USE_SSL=false
+
+#Deafult webservice admin username (change this!)
+DEFAULT_ADMIN_USERNAME=admin
+#Deafult webservice admin password (CHANGE THIS!)
+DEFAULT_ADMIN_PASSWORD=changeme
+
+#Deafult JWT secret key (CHANGE THIS!)
+DEFAULT_JWT_SECRET_KEY=6jjzadtjrhbuwld8weh2fp2kn8eh
+#How long each generated token is valid.
+DEFAULT_JWT_VALIDITY_IN_MS=3600000
+
+#Maximum allowed fail login attempts.
+SESSION_MAX_LOGIN_ATTEMPTS=5
+#How long a user will be banned after failing to login to their account more times than allowed.
+SESSION_BAN_FOR_IN_HOURS=48
+
+
diff --git a/db/01-init.sh b/db/01-init.sh
new file mode 100644
index 0000000..b3fe508
--- /dev/null
+++ b/db/01-init.sh
@@ -0,0 +1,9 @@
+#!/bin/bash
+set -e
+export PGPASSWORD=$POSTGRES_PASSWORD;
+psql -v ON_ERROR_STOP=1 --username "$POSTGRES_USER" --dbname "$POSTGRES_DB" <<-EOSQL
+  CREATE USER $POSTGRES_DB_USER WITH PASSWORD '$POSTGRES_DB_PASSWORD';
+  CREATE DATABASE $POSTGRES_DB_NAME;
+  GRANT ALL PRIVILEGES ON DATABASE $POSTGRES_DB_NAME TO $POSTGRES_DB_USER;
+
+EOSQL
\ No newline at end of file
diff --git a/docker-compose.yml b/docker-compose.yml
new file mode 100644
index 0000000..a668968
--- /dev/null
+++ b/docker-compose.yml
@@ -0,0 +1,40 @@
+version: '3.1'
+services:
+  app-api:
+    image: 'where-money-api'
+    build: .
+    ports:
+      - "${API_LOCAL_PORT}:${API_DOCKER_PORT}"
+    depends_on:
+      - app-db
+
+    environment:
+      SPRING_APPLICATION_JSON: '{
+            "datasource.jdbc-url" : "jdbc:postgresql://app-db:$POSTGRES_DOCKER_PORT/$DATABASE_NAME?useSSL=$DATABASE_USE_SSL",
+      "datasource.username" : "$DATABASE_USER",
+      "datasource.password" : "$DATABASE_PASSWORD",
+      "spring.jpa.properties.hibernate.dialect" : "org.hibernate.dialect.PostgreSQLDialect",
+      "spring.jpa.hibernate.ddl-auto" : "update",
+      "security.jwt.username" : "$DEFAULT_ADMIN_USERNAME",
+      "security.jwt.password" : "$DEFAULT_ADMIN_PASSWORD",
+      "security.jwt.secret-key" : "$DEFAULT_JWT_SECRET_KEY",
+      "security.jwt.validity-in-ms" : "$DEFAULT_JWT_VALIDITY_IN_MS",
+      "session.ban-for-in-hours" : "$SESSION_BAN_FOR_IN_HOURS",
+      "session.max-login-attempts" : "$SESSION_MAX_LOGIN_ATTEMPTS"
+      }'
+
+  app-db:
+    image: postgres:latest
+    ports:
+      - "${POSTGRES_LOCAL_PORT}:${POSTGRES_DOCKER_PORT}"
+    env_file: ./.env
+    expose:
+      - $POSTGRES_DOCKER_PORT
+    environment:
+      - POSTGRES_USER=postgres
+      - POSTGRES_PASSWORD=admin
+      - POSTGRES_DB_PASSWORD=$DATABASE_PASSWORD
+      - POSTGRES_DB_USER=$DATABASE_USER
+      - POSTGRES_DB_NAME=$DATABASE_NAME
+    volumes:
+      - ./db:/docker-entrypoint-initdb.d/
diff --git a/src/main/resources/application.yml b/src/main/resources/application.yml
index a4a18b9..89da3d8 100644
--- a/src/main/resources/application.yml
+++ b/src/main/resources/application.yml
@@ -1,7 +1,7 @@
 datasource:
-  jdbc-url: jdbc:postgresql://localhost:5432/wheremoney
-  username: disqo
-  password: disqo@pass_123
+  jdbc-url: jdbc:postgresql://127.0.0.1:5434/wheremoneydb
+  username: admin
+  password: adminpass
   pool-size: 30
 
 spring: