diff --git a/docker-compose.yml b/docker-compose.yml
new file mode 100644
index 0000000..179f7e1
--- /dev/null
+++ b/docker-compose.yml
@@ -0,0 +1,15 @@
+services:
+  postgres:
+    image: postgres:16-alpine
+    restart: always
+    environment:
+      POSTGRES_USER: dev
+      POSTGRES_PASSWORD: password
+      POSTGRES_DB: swisssignchallenge
+    ports:
+      - "5432:5432"
+    volumes:
+      - postgres_data:/var/lib/postgresql/data # Persist data across container restarts
+
+volumes:
+  postgres_data:
\ No newline at end of file
diff --git a/pom.xml b/pom.xml
index c60be67..46bd3de 100644
--- a/pom.xml
+++ b/pom.xml
@@ -42,6 +42,11 @@
             <groupId>org.liquibase</groupId>
             <artifactId>liquibase-core</artifactId>
         </dependency>
+        <dependency>
+            <groupId>org.postgresql</groupId>
+            <artifactId>postgresql</artifactId>
+            <scope>runtime</scope>
+        </dependency>
 
         <dependency>
             <groupId>org.projectlombok</groupId>
diff --git a/src/main/resources/application.yml b/src/main/resources/application.yml
index 1b11e43..baf14da 100644
--- a/src/main/resources/application.yml
+++ b/src/main/resources/application.yml
@@ -1,3 +1,13 @@
 spring:
   application:
-    name: swisssign-challenge
\ No newline at end of file
+    name: swisssign-challenge
+  datasource:
+    url: jdbc:postgresql://${DB_HOST:localhost}:${DB_PORT:5432}/${DB_NAME:swisssignchallenge}
+    username: ${DB_USER:dev}
+    password: ${DB_PASSWORD:password}
+    driver-class-name: org.postgresql.Driver
+    jpa:
+      hibernate:
+        ddl-auto: update # Adjust as needed
+      show-sql: true
+      database-platform: org.hibernate.dialect.PostgreSQLDialect