diff --git a/.gitignore b/.gitignore
index dc16015..0dc5d42 100644
--- a/.gitignore
+++ b/.gitignore
@@ -8,3 +8,4 @@ gradesa/playwright-report/*
 playwright-report
 screenshots
 secrets.yaml
+.vscode
diff --git a/README.md b/README.md
index ae3f441..a21d218 100644
--- a/README.md
+++ b/README.md
@@ -4,15 +4,6 @@ GRADESA is a freely accessible website where language learners at language centr
 
 ## Install
 
-This should be all that's needed:
-
-- `node`
-- `npm`
-- https://github.com/peterldowns/pgmigrate
-  - MAC: Install the newest version with `brew install peterldowns/tap/pgmigrate`
-  - Linux: # Install pgmigrate
-    - `wget https://github.com/peterldowns/pgmigrate/releases/download/v0.0.6%2Bcommit.4f90829/pgmigrate-linux-amd64 -O /usr/local/bin/pgmigrate`
-    - `chmod +x /usr/local/bin/pgmigrate`
 - Docker, either of these installation options work (if you're new to docker, I recommend Docker Desktop):
 
   - `brew install docker` + `brew install colima` (https://github.com/abiosoft/colima)
@@ -22,29 +13,14 @@ This should be all that's needed:
       - Turn on the WSL 2 feature during installation
       - Ensure **Use the WSL 2 based engine** is enabled in General Settings
 
-- psql: `brew install postgresql@15`
-
 ## Running locally
 
-- Run PostgreSQL:
-
-  - Init .env files `./init-env.sh` — This will create the required .env files for environment variables. The local db credentials are
-
-    - DB_HOST=localhost
-    - DB_PORT=7742
-    - DB_USER=ohtu
-    - DB_PASSWORD=password
-    - DB_NAME=gradesa
-
-    Create session secret key with `openssl rand -base64 32` adding it to .env
-
-    - SESSION_SECRET=your_secret_key
-
-  - `docker compose up -d` — This command starts the services defined in the docker-compose.yml file in detached mode, meaning the services run in the background and the terminal is freed up for other tasks. For more information, checkout [Docker Compose docs](https://docs.docker.com/compose/)
-  - `npm install` in project root
-  - `cd ./gradesa && npm install`
-  - `npm run dev` — Starts the dev server.
-  - You can now find the NextJS app on localhost:3000
+- `docker-compose up -d` — This command starts the development enviroment which includes two databases (one for development, one for automatic tests) and a development container named node-dev-env. If using VSCode dev-containers extension can be used to attach VSCode to the running container (see dev-containers documentation). It is also possible to run the commands with `docker-exec -it node-dev-env bash`. The codebase is mounted at /host. The next actions should be run inside node-dev-env.
+- `npm install` in project root
+- `npm run db:migrate`
+- `cd ./gradesa && npm install`
+- `npm run dev` — Starts the dev server.
+- You can now find the NextJS app on localhost:3000
 
 ## OpenShift
 
diff --git a/docker-compose.yml b/docker-compose.yml
index 7aad07c..0d1e4f6 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -1,28 +1,21 @@
 version: "3.6"
 services:
   db:
-    image: postgres:15
+    image: docker.io/library/postgres:15
     container_name: gradesa-db
     environment:
       POSTGRES_PASSWORD: password
     volumes:
       - pg-data:/var/lib/postgresql/data/
-      - ./provision_db.sql:/docker-entrypoint-initdb.d/1_provision_db.sql
     restart: unless-stopped
-    ports:
-      - "7742:5432"
     healthcheck:
       test: ["CMD", "pg_isready", "-U", "postgres"]
       interval: 10s
       retries: 20
-    command: >
-      sh -c "apt update && 
-             apt install -y wget && 
-             wget https://github.com/peterldowns/pgmigrate/releases/download/v0.0.6%2Bcommit.4f90829/pgmigrate-linux-amd64 -O /usr/local/bin/pgmigrate && 
-             chmod +x /usr/local/bin/pgmigrate && 
-             /usr/local/bin/docker-entrypoint.sh postgres"
+    command: -p 7742
+
   pgtestdb:
-    image: postgres:15
+    image: docker.io/library/postgres:15
     container_name: gradesa-pgtestdb
     environment:
       POSTGRES_PASSWORD: password
@@ -35,12 +28,30 @@ services:
     command: >
       sh -c "apt update && apt install -y postgresql-15-rum &&
              echo 'trusted = true' >> /usr/share/postgresql/15/extension/rum.control &&
-             /usr/local/bin/docker-entrypoint.sh -c fsync=off -c log_statement=all"
-    ports:
-      - "7741:5432"
+             /usr/local/bin/docker-entrypoint.sh -p 5432 -c fsync=off -c log_statement=all"
     healthcheck:
       test: ["CMD", "pg_isready", "-U", "postgres"]
       interval: 10s
       retries: 20
+
+  node-dev-env:
+    image: docker.io/library/node:20
+    container_name: node-dev-env
+    environment:
+      DB_HOST: gradesa-db
+      DB_PORT: 7742
+      DB_USER: postgres
+      DB_PASSWORD: password
+      DB_NAME: postgres
+      SESSION_SECRET: secret
+    volumes:
+      - .:/host:Z
+    ports:
+      - "3000:3000"
+    command: >
+      sh -c "apt install -y wget && 
+             wget https://github.com/peterldowns/pgmigrate/releases/download/v0.0.6%2Bcommit.4f90829/pgmigrate-linux-amd64 -O /usr/local/bin/pgmigrate && 
+             chmod +x /usr/local/bin/pgmigrate && 
+             /usr/local/bin/docker-entrypoint.sh sleep inf"
 volumes:
   pg-data: