diff --git a/README.md b/README.md
new file mode 100644
index 00000000..627cdae2
--- /dev/null
+++ b/README.md
@@ -0,0 +1,5 @@
+# Deployment Portal Backend
+
+- Docker Setup
+    - To run the application just do `docker-compose up`
+    - It is assumed that `deployment-portal-frontend` repository is present in parallel to this folder.
\ No newline at end of file
diff --git a/docker-compose.yml b/docker-compose.yml
new file mode 100644
index 00000000..64fb016d
--- /dev/null
+++ b/docker-compose.yml
@@ -0,0 +1,27 @@
+version: '3'
+services:
+  deployment_portal_backend_service:
+   build: ./
+   image: deployment_portal_backend_service
+   depends_on:
+    - postgres
+   ports:
+    - 9090:9090
+
+  deployment_portal_frontend_service:
+   build: ../deployment-portal-frontend
+   image: deployment_portal_frontend_service
+   depends_on:
+    - deployment_portal_backend_service
+   ports:
+    - 8080:8080
+
+  postgres:
+   container_name: postgres
+   image: postgres
+   environment:
+    POSTGRES_USER: ${POSTGRES_USER:-postgres}
+    POSTGRES_PASSWORD: ${POSTGRES_PASSWORD:-admin}
+    POSTGRES_DB: ${POSTGRES_DB:-deployment_portal}
+   ports:
+    - 5432:5432
\ No newline at end of file
diff --git a/src/main/resources/application-dev.properties b/src/main/resources/application-dev.properties
index 63d6e894..b75ae0c2 100644
--- a/src/main/resources/application-dev.properties
+++ b/src/main/resources/application-dev.properties
@@ -1,7 +1,7 @@
 spring.jpa.hibernate.ddl-auto=create
-spring.datasource.url=jdbc:postgresql://localhost:5432/deployment_portal
-spring.datasource.username=postgres
-spring.datasource.password=
+spring.datasource.url=${DATASOURCE_URL:jdbc:postgresql://postgres/deployment_portal}
+spring.datasource.username=${DATASOURCE_USER:postgres}
+spring.datasource.password=${DATASOURCE_PASSWORD:admin}
 spring.datasource.driver-class-name=org.postgresql.Driver
 spring.jpa.database-platform=org.hibernate.dialect.PostgreSQL9Dialect
 spring.jpa.properties.hibernate.jdbc.lob.non_contextual_creation=true
diff --git a/src/main/resources/application.properties b/src/main/resources/application.properties
index d9e734c8..01023d4c 100644
--- a/src/main/resources/application.properties
+++ b/src/main/resources/application.properties
@@ -1,7 +1,7 @@
 spring.jpa.hibernate.ddl-auto=create
-spring.datasource.url=jdbc:postgresql://localhost:5432/deployment_portal
-spring.datasource.username=postgres
-spring.datasource.password=
+spring.datasource.url=${DATASOURCE_URL:jdbc:postgresql://postgres/deployment_portal}
+spring.datasource.username=${DATASOURCE_USER:postgres}
+spring.datasource.password=${DATASOURCE_PASSWORD:admin}
 spring.datasource.driver-class-name=org.postgresql.Driver
 spring.jpa.database-platform=org.hibernate.dialect.PostgreSQL9Dialect
 spring.jpa.properties.hibernate.jdbc.lob.non_contextual_creation=true