diff --git a/docs/setup.md b/docs/setup.md
index 18d12c3..017c464 100644
--- a/docs/setup.md
+++ b/docs/setup.md
@@ -9,16 +9,21 @@ $ yarn  # or (yarn install)
 ```
 
 ## Database
-
-* Install [postgres](https://www.postgresql.org/) and [pgAdmin](https://www.pgadmin.org/)
-* Create new database called *reactseeddb*. Use following credentials: 
-    * user: `postgres`
-    * password: `Password.01`
+You can install Postgres or run your server in a Docker container.
+### Postgres
+* Install [postgres](https://www.postgresql.org/). When prompted to enter the `postgres` user password, use `sa.pg.01` or one of your choice. Make sure to update the password in `server/datastore/create/knexfile.js` if you picked a different password.
 * For more information about setting up the server see [official docs](https://wiki.postgresql.org/wiki/First_steps)
+### Docker
+* Install [Docker](https://docs.docker.com/engine/installation/) and [docker-compose](https://docs.docker.com/compose/install/)
+* Run `yarn database:docker-server` to create the docker container for the SQL Server (volume to persist data will be mounted)
+
+Once you have configured your Postgres server, run the following commands:
+* Create the `reactseeddb` database, `pg` user and grant access to database:
+    * `yarn database:create`
 * Create tables running migrations: 
-    * `yarn run migrate:latest`
+    * `yarn migrate:latest`
 * Populate database running the seeds: 
-    * `yarn run seed:run`
+    * `yarn seed:run`
 
 
 ## Start the app
diff --git a/package.json b/package.json
index b684487..c04e696 100644
--- a/package.json
+++ b/package.json
@@ -33,6 +33,8 @@
 		"coveralls": "npm run test:coverage && cat ./client/coverage/lcov.info | coveralls",
 		"tdd": "cd client && npm run tdd",
 		"serve": "npm run build && http-server build/ -p 8081",
+		"database:docker-server": "cd server && npm run database:docker-server",
+		"database:create": "cd server && npm run database:create",
 		"migrate:make": "cd server && npm run migrate:make",
 		"migrate:latest": "cd server && npm run migrate:latest",
 		"migrate:rollback": "cd server && npm run migrate:rollback",
diff --git a/server/README.md b/server/README.md
index cedc4d5..f42f2f5 100644
--- a/server/README.md
+++ b/server/README.md
@@ -39,9 +39,4 @@ yarn run seed:make
 yarn run seed:run
 ```
 
-## Tools and Config.
-
-* [PostgreSQL](https://www.postgresql.org/)
-* [pgAdmin](https://www.pgadmin.org/)
-
 ### [Setup info here](../docs/setup.md)
diff --git a/server/config/index.js b/server/config/index.js
index dfb650c..e4928c2 100644
--- a/server/config/index.js
+++ b/server/config/index.js
@@ -1,6 +1,6 @@
 const commonConfig = {
 	database: {
-		connectionString: process.env.DATABASE_URL || 'postgres://postgres:Password.01@localhost:5432/reactseeddb'
+		connectionString: process.env.DATABASE_URL || 'postgres://pg:pg@localhost:5432/reactseeddb'
 	},
 	port: 3000,
 	sslPort: 4443
diff --git a/server/datastore/postgres/knexfile.js b/server/datastore/connection/knexfile.js
similarity index 100%
rename from server/datastore/postgres/knexfile.js
rename to server/datastore/connection/knexfile.js
diff --git a/server/datastore/create/knexfile.js b/server/datastore/create/knexfile.js
new file mode 100644
index 0000000..cf28509
--- /dev/null
+++ b/server/datastore/create/knexfile.js
@@ -0,0 +1,16 @@
+const path = require('path');
+
+const connection = {
+	client: 'postgresql',
+	connection: {
+		host: 'localhost',
+		user: 'postgres',
+		password: 'sa.pg.01',
+		database: 'postgres'
+	},
+	seeds: {
+		directory: path.resolve(__dirname, './seeds')
+	}
+};
+
+module.exports = connection;
diff --git a/server/datastore/create/seeds/create.js b/server/datastore/create/seeds/create.js
new file mode 100644
index 0000000..1d074f0
--- /dev/null
+++ b/server/datastore/create/seeds/create.js
@@ -0,0 +1,11 @@
+exports.seed = function(knex) {
+	const db = 'reactseeddb';
+	const user = 'pg';
+	const pass = 'pg';
+
+	const createDb = () => knex.raw(`CREATE DATABASE ${db}`);
+	const createUser = () => knex.raw(`CREATE USER ${user} WITH PASSWORD '${pass}'`);
+	const grantUserToDb = () => knex.raw(`GRANT ALL ON DATABASE ${db} TO ${user}`);
+
+	return createDb().then(createUser).then(grantUserToDb);
+};
diff --git a/server/datastore/server/docker-compose.yml b/server/datastore/server/docker-compose.yml
new file mode 100644
index 0000000..d981bed
--- /dev/null
+++ b/server/datastore/server/docker-compose.yml
@@ -0,0 +1,14 @@
+version: '2'
+
+services:
+  postgres:
+    image: postgres
+    environment:
+      - POSTGRES_PASSWORD=sa.pg.01
+    volumes:
+      - data:/var/lib/postgresql/data
+    ports:
+      - "5432:5432"
+
+volumes:
+  data:
diff --git a/server/datastore/stores/base.store.js b/server/datastore/stores/base.store.js
index 5e09194..3e80103 100644
--- a/server/datastore/stores/base.store.js
+++ b/server/datastore/stores/base.store.js
@@ -1,4 +1,4 @@
-const knexfile = require('../postgres/knexfile');
+const knexfile = require('../connection/knexfile');
 const Knex = require('knex')(knexfile);
 
 const PostgresErrors = require('../constants/postgres-errors');
diff --git a/server/package.json b/server/package.json
index 03ea7b3..7409c51 100644
--- a/server/package.json
+++ b/server/package.json
@@ -9,11 +9,13 @@
 	"scripts": {
 		"start": "node index.js",
 		"dev": "nodemon app.dev.js",
-		"migrate:make": "knex migrate:make --knexfile ./datastore/postgres/knexfile.js",
-		"migrate:latest": "knex migrate:latest --knexfile ./datastore/postgres/knexfile.js",
-		"migrate:rollback": "knex migrate:rollback --knexfile ./datastore/postgres/knexfile.js",
-		"seed:make": "knex seed:make --knexfile ./datastore/postgres/knexfile.js",
-		"seed:run": "knex seed:run --knexfile ./datastore/postgres/knexfile.js",
+		"database:docker-server": "docker-compose --file datastore/server/docker-compose.yml up -d",
+		"database:create": "knex seed:run --knexfile ./datastore/create/knexfile.js",
+		"migrate:make": "knex migrate:make --knexfile ./datastore/connection/knexfile.js",
+		"migrate:latest": "knex migrate:latest --knexfile ./datastore/connection/knexfile.js",
+		"migrate:rollback": "knex migrate:rollback --knexfile ./datastore/connection/knexfile.js",
+		"seed:make": "knex seed:make --knexfile ./datastore/connection/knexfile.js",
+		"seed:run": "knex seed:run --knexfile ./datastore/connection/knexfile.js",
 		"test": "tape tests/*.js | tap-spec"
 	},
 	"dependencies": {