diff --git a/.devcontainer/Dockerfile b/.devcontainer/Dockerfile
new file mode 100644
index 0000000000..bde97605f6
--- /dev/null
+++ b/.devcontainer/Dockerfile
@@ -0,0 +1,16 @@
+# Additions for dev container
+FROM aiidateam/aiida-core:main
+
+# Add test dependencies (not installed in image)
+RUN pip install ./aiida-core[tests,rest,docs,pre-commit]
+# the `locate` command is needed by many tests
+RUN apt-get update \
+    && apt-get install -y mlocate \
+    && rm -rf /var/lib/apt/lists/*
+
+# add aiida user
+RUN /etc/my_init.d/10_create-system-user.sh
+
+# copy updated aiida configuration script
+# this line can be deleted after the new script has been merged
+COPY ../.docker/opt/configure-aiida.sh /opt/configure-aiida.sh
diff --git a/.devcontainer/devcontainer.json b/.devcontainer/devcontainer.json
new file mode 100644
index 0000000000..5bbcf39152
--- /dev/null
+++ b/.devcontainer/devcontainer.json
@@ -0,0 +1,12 @@
+{
+    "dockerComposeFile": "docker-compose.yml",
+    "service": "aiida",
+    "workspaceFolder": "/home/aiida/aiida-core",
+    "postCreateCommand": "bash ./.devcontainer/post_create.sh",
+    "waitFor": "postCreateCommand",
+	"customizations": {
+        "vscode": {
+            "extensions": ["ms-python.python", "eamodio.gitlens"]
+        }
+    }
+}
diff --git a/.devcontainer/docker-compose.yml b/.devcontainer/docker-compose.yml
new file mode 100644
index 0000000000..380a0a4760
--- /dev/null
+++ b/.devcontainer/docker-compose.yml
@@ -0,0 +1,54 @@
+version: '3.4'
+
+services:
+
+  rabbitmq:
+    image: rabbitmq:3.8.3-management
+    environment:
+        RABBITMQ_DEFAULT_USER: guest
+        RABBITMQ_DEFAULT_PASS: guest
+    ports:
+      - '5672:5672'
+      - '15672:15672'
+
+    healthcheck:
+      test: rabbitmq-diagnostics -q ping
+      interval: 30s
+      timeout: 30s
+      retries: 5
+    networks:
+      - aiida
+
+  postgres:
+    image: postgres:12
+    ports:
+      - '5432:5432'
+    networks:
+      - aiida
+    environment:
+      POSTGRES_HOST_AUTH_METHOD: trust
+
+  aiida:
+    #image: "aiidateam/aiida-core:main"
+    image: "aiida-core-dev"
+    build:
+      # need to add the parent directory to context to copy over new configure-aiida.sh
+      context: ..
+      dockerfile: .devcontainer/Dockerfile
+    user: aiida
+    environment:
+      DB_HOST: postgres
+      BROKER_HOST: rabbitmq
+
+    # no need for /sbin/my_init
+    entrypoint: tail -f /dev/null
+    volumes:
+      - ..:/home/aiida/aiida-core:cached
+    networks:
+      - aiida
+    depends_on:
+      - rabbitmq
+      - postgres
+
+networks:
+  aiida:
diff --git a/.devcontainer/post_create.sh b/.devcontainer/post_create.sh
new file mode 100644
index 0000000000..71f8330853
--- /dev/null
+++ b/.devcontainer/post_create.sh
@@ -0,0 +1,4 @@
+ #!/bin/bash
+
+# configure aiida
+/opt/configure-aiida.sh
diff --git a/.docker/opt/configure-aiida.sh b/.docker/opt/configure-aiida.sh
index b0f1326584..92aa3ab45d 100755
--- a/.docker/opt/configure-aiida.sh
+++ b/.docker/opt/configure-aiida.sh
@@ -29,7 +29,8 @@ if [[ ${NEED_SETUP_PROFILE} == true ]]; then
         --first-name "${USER_FIRST_NAME}"      \
         --last-name "${USER_LAST_NAME}"        \
         --institution "${USER_INSTITUTION}"    \
-        --db-backend "${AIIDADB_BACKEND}"
+        --db-host "${DB_HOST:localhost}"    \
+        --broker-host "${BROKER_HOST:localhost}"
 
     # Setup and configure local computer.
     computer_name=localhost