diff --git a/README.md b/README.md
index 5fc88902..ed69524d 100644
--- a/README.md
+++ b/README.md
@@ -54,6 +54,28 @@ This monorepo contains the following components:
    [Bugout](https://bugout.dev). For more information on how that data is processed, check how the API
    inserts events from those sources into a stream.
 
+### Installation and setup
+
+#### Run server with Docker Compose
+
+If you want to deploy Moonstream in isolation against live services, then docker compose is your choice!
+
+- Run script `backend/configs/docker_generate_env.bash` which prepare for you:
+  - `backend/configs/docker.moonstreamapi.env` with environment variables
+- Run script `db/configs/docker_generate_env.bash` which prepare for you:
+  - `db/configs/alembic.moonstreamdb.ini` with postgresql uri
+
+```bash
+./backend/configs/docker_generate_env.bash
+./db/configs/docker_generate_env.bash
+```
+
+- Run local setup
+
+```bash
+docker-compose up --build
+```
+
 ## Contributing
 
 If you would like to contribute to Moonstream, please reach out to @zomglings on the [Moonstream Discord](https://discord.gg/pYE65FuNSz).
diff --git a/backend/.dockerignore b/backend/.dockerignore
new file mode 100644
index 00000000..da3de864
--- /dev/null
+++ b/backend/.dockerignore
@@ -0,0 +1,220 @@
+# Created by https://www.toptal.com/developers/gitignore/api/vim,visualstudiocode,linux,python
+# Edit at https://www.toptal.com/developers/gitignore?templates=vim,visualstudiocode,linux,python
+
+### Linux ###
+*~
+
+# temporary files which can be created if a process still has a handle open of a deleted file
+.fuse_hidden*
+
+# KDE directory preferences
+.directory
+
+# Linux trash folder which might appear on any partition or disk
+.Trash-*
+
+# .nfs files are created when an open file is removed but is still being accessed
+.nfs*
+
+### Python ###
+# Byte-compiled / optimized / DLL files
+__pycache__/
+*.py[cod]
+*$py.class
+
+# C extensions
+*.so
+
+# Distribution / packaging
+.Python
+build/
+develop-eggs/
+dist/
+downloads/
+eggs/
+.eggs/
+lib/
+lib64/
+parts/
+sdist/
+var/
+wheels/
+pip-wheel-metadata/
+share/python-wheels/
+*.egg-info/
+.installed.cfg
+*.egg
+MANIFEST
+
+# PyInstaller
+#  Usually these files are written by a python script from a template
+#  before PyInstaller builds the exe, so as to inject date/other infos into it.
+*.manifest
+*.spec
+
+# Installer logs
+pip-log.txt
+pip-delete-this-directory.txt
+
+# Unit test / coverage reports
+htmlcov/
+.tox/
+.nox/
+.coverage
+.coverage.*
+.cache
+nosetests.xml
+coverage.xml
+*.cover
+*.py,cover
+.hypothesis/
+.pytest_cache/
+
+# Translations
+*.mo
+*.pot
+
+# Django stuff:
+*.log
+local_settings.py
+db.sqlite3
+db.sqlite3-journal
+
+# Flask stuff:
+instance/
+.webassets-cache
+
+# Scrapy stuff:
+.scrapy
+
+# Sphinx documentation
+docs/_build/
+
+# PyBuilder
+target/
+
+# Jupyter Notebook
+.ipynb_checkpoints
+
+# IPython
+profile_default/
+ipython_config.py
+
+# pyenv
+.python-version
+
+# pipenv
+#   According to pypa/pipenv#598, it is recommended to include Pipfile.lock in version control.
+#   However, in case of collaboration, if having platform-specific dependencies or dependencies
+#   having no cross-platform support, pipenv may install dependencies that don't work, or not
+#   install all needed dependencies.
+#Pipfile.lock
+
+# PEP 582; used by e.g. github.com/David-OConnor/pyflow
+__pypackages__/
+
+# Celery stuff
+celerybeat-schedule
+celerybeat.pid
+
+# SageMath parsed files
+*.sage.py
+
+# Environments
+.env
+.venv
+env/
+venv/
+ENV/
+env.bak/
+venv.bak/
+
+# Spyder project settings
+.spyderproject
+.spyproject
+
+# Rope project settings
+.ropeproject
+
+# mkdocs documentation
+/site
+
+# mypy
+.mypy_cache/
+.dmypy.json
+dmypy.json
+
+# Pyre type checker
+.pyre/
+
+# pytype static type analyzer
+.pytype/
+
+### Vim ###
+# Swap
+[._]*.s[a-v][a-z]
+!*.svg  # comment out if you don't need vector files
+[._]*.sw[a-p]
+[._]s[a-rt-v][a-z]
+[._]ss[a-gi-z]
+[._]sw[a-p]
+
+# Session
+Session.vim
+Sessionx.vim
+
+# Temporary
+.netrwhist
+# Auto-generated tag files
+tags
+# Persistent undo
+[._]*.un~
+
+### VisualStudioCode ###
+.vscode/*
+!.vscode/settings.json
+!.vscode/tasks.json
+!.vscode/launch.json
+!.vscode/extensions.json
+*.code-workspace
+
+### Pycharm ###
+.idea
+
+### VisualStudioCode Patch ###
+# Ignore all local history of files
+.history
+
+# End of https://www.toptal.com/developers/gitignore/api/vim,visualstudiocode,linux,python
+
+### VSCode ###
+.vscode
+
+# Git
+.git
+.github
+
+# Envionments
+.moonstream
+.moonstreamapi
+.venv
+.env
+
+# Environment variables
+test.env
+dev.env
+prod.env
+
+configs/test.env
+configs/dev.env
+configs/prod.env
+configs/moonstreamapi.env
+configs/docker.env
+configs/docker.dev.env
+configs/docker.test.env
+configs/docker.prod.env
+
+.secrets/
+
+Dockerfile
+docker-compose.yml
diff --git a/backend/.gitignore b/backend/.gitignore
index 01ef8896..fad97d64 100644
--- a/backend/.gitignore
+++ b/backend/.gitignore
@@ -160,9 +160,21 @@ cython_debug/
 
 # End of https://www.toptal.com/developers/gitignore/api/python,visualstudiocode
 
-# Custom
+# Envionments
+.moonstream/
+.moonstreamapi/
+.venv/
+.env/
+
+# Environment variables
 dev.env
+test.env
 prod.env
-.moonstream
-.venv
-.secrets
+moonstreamapi.env
+docker.env
+docker.dev.env
+docker.test.dev
+docker.prod.env
+docker.moonstreamapi.env
+
+.secrets/
diff --git a/backend/Dockerfile b/backend/Dockerfile
new file mode 100644
index 00000000..fa529ace
--- /dev/null
+++ b/backend/Dockerfile
@@ -0,0 +1,20 @@
+FROM python:3.8-slim-buster
+
+# Update packages and
+# prepare alembic for docker compose setup
+RUN apt-get update && \
+    apt-get install -y libpq-dev gcc curl && \
+    rm -rf /var/lib/apt/lists/* && \
+    pip3 install --no-cache-dir --upgrade pip setuptools && \
+    pip3 install --no-cache-dir psycopg2-binary alembic
+
+WORKDIR /usr/src/moonstreamapi
+
+COPY . /usr/src/moonstreamapi
+
+# Install Moonstream API package
+RUN pip3 install --no-cache-dir -e .
+
+EXPOSE 7481
+
+ENTRYPOINT ["./dev.sh"]
\ No newline at end of file
diff --git a/backend/README.md b/backend/README.md
index 960f3b2c..a2e6e4d5 100644
--- a/backend/README.md
+++ b/backend/README.md
@@ -1 +1,43 @@
 # moonstream backend
+
+### Installation and setup
+
+To set up Moonstream API for development, do the following:
+
+- Clone the git repository
+- Install postgresql (https://www.postgresql.org/download/linux/ubuntu/)
+
+#### Run server with Docker
+
+To be able to run Moonstream API with your existing local or development services as database, you need to build your own setup. **Be aware! The files with environment variables `docker.dev.env` lives inside your docker container!**
+
+- Copy `configs/sample.env` to `configs/docker.dev.env`, or use your local configs from `configs/dev.env` to `configs/docker.dev.env`
+- Edit in `docker.dev.env` file `MOONSTREAM_DB_URI` and other variables if required
+- Clean environment file from `export ` prefix and quotation marks to be able to use it with Docker
+
+```bash
+sed --in-place 's|^export * ||' configs/docker.dev.env
+sed --in-place 's|"||g' configs/docker.dev.env
+```
+
+Build container on your machine
+
+```bash
+docker build -t moonstreamapi-dev .
+```
+
+Run `moonstreamapi-dev` container, with following command we specified `--network="host"` setting which allows to Docker container use localhost interface of your machine (https://docs.docker.com/network/host/)
+
+```bash
+docker run --name moonstreamapi-dev \
+  --network="host" \
+  --env-file="configs/docker.dev.env" \
+  -p 7481:7481/tcp \
+  -ti -d moonstreamapi-dev
+```
+
+Attach to container to see logs
+
+```bash
+docker container attach moonstreamapi-dev
+```
diff --git a/backend/configs/docker_generate_env.bash b/backend/configs/docker_generate_env.bash
new file mode 100755
index 00000000..f3db3b53
--- /dev/null
+++ b/backend/configs/docker_generate_env.bash
@@ -0,0 +1,46 @@
+#!/usr/bin/env bash
+
+# Prepare Moonstream API application for docker-compose use
+
+# Print help message
+function usage {
+  echo "Usage: $0 [-h] -d DATABASE_NAME"  
+  echo
+  echo "CLI to generate environment variables"
+  echo
+  echo "Optional arguments:"
+  echo "  -h  Show this help message and exit"
+  echo "  -d  Database name for postgres in docker-compose setup"
+}
+
+FLAG_DATABASE_NAME="moonstream_dev"
+
+while getopts 'd:' flag; do
+  case "${flag}" in
+    d) FLAG_DATABASE_NAME="${OPTARG}" ;;
+    h) usage
+      exit 1 ;;
+    *) usage
+      exit 1 ;;
+  esac
+done
+
+set -e
+
+SCRIPT_DIR="$(realpath $(dirname $0))"
+DOCKER_MOONSTREAM_DB_URI="postgresql://postgres:postgres@db/$FLAG_DATABASE_NAME"
+DOCKER_MOONSTREAM_ENV_FILE="docker.moonstreamapi.env"
+BUGOUT_BROOD_URL="http://brood:7474"
+BUGOUT_SPIRE_URL="http://spire:7475"
+
+# Generate environment variables
+
+cp "$SCRIPT_DIR/sample.env" "$SCRIPT_DIR/$DOCKER_MOONSTREAM_ENV_FILE"
+
+# Clean file with variables from export prefix and quotation marks
+sed --in-place 's|^export * ||' "$SCRIPT_DIR/$DOCKER_MOONSTREAM_ENV_FILE"
+sed --in-place 's|"||g' "$SCRIPT_DIR/$DOCKER_MOONSTREAM_ENV_FILE"
+
+sed -i "s|^MOONSTREAM_DB_URI=.*|MOONSTREAM_DB_URI=$DOCKER_MOONSTREAM_DB_URI|" "$SCRIPT_DIR/$DOCKER_MOONSTREAM_ENV_FILE"
+sed -i "s|^BUGOUT_BROOD_URL=.*|BUGOUT_BROOD_URL=$BUGOUT_BROOD_URL|" "$SCRIPT_DIR/$DOCKER_MOONSTREAM_ENV_FILE"
+sed -i "s|^BUGOUT_SPIRE_URL=.*|BUGOUT_SPIRE_URL=$BUGOUT_SPIRE_URL|" "$SCRIPT_DIR/$DOCKER_MOONSTREAM_ENV_FILE"
diff --git a/backend/configs/docker_wait.sh b/backend/configs/docker_wait.sh
new file mode 100755
index 00000000..86fd6d52
--- /dev/null
+++ b/backend/configs/docker_wait.sh
@@ -0,0 +1,13 @@
+#!/usr/bin/env sh
+
+set -e
+  
+HOST="$1"
+shift
+
+until curl --request GET --url "http://$HOST/ping"; do
+  >&2 echo "$HOST is unavailable, sleeping"
+  sleep 1
+done
+
+>&2 echo "$HOST is up"
diff --git a/backend/configs/sample.env b/backend/configs/sample.env
new file mode 100644
index 00000000..e4d7418a
--- /dev/null
+++ b/backend/configs/sample.env
@@ -0,0 +1,23 @@
+# Required environment variables
+export MOONSTREAM_DB_URI="postgresql://<username>:<password>@<db_host>:<db_port>/<db_name>"
+export MOONSTREAM_CORS_ALLOWED_ORIGINS="http://localhost:3000,https://moonstream.to,https://www.moonstream.to"
+export BUGOUT_BROOD_URL="https://auth.bugout.dev"
+export BUGOUT_SPIRE_URL="https://spire.bugout.dev"
+export MOONSTREAM_APPLICATION_ID="<issued_bugout_application_id>"
+export MOONSTREAM_ADMIN_ACCESS_TOKEN="<Access_token_to_application_resources>"
+export MOONSTREAM_POOL_SIZE=0
+
+# Blockchain, txpool, whalewatch data depends variables
+export MOONSTREAM_DATA_JOURNAL_ID="<bugout_journal_id_to_store_blockchain_data>"
+export HUMBUG_TXPOOL_CLIENT_ID="<Bugout_Humbug_client_id_for_txpool_transactions_in_journal>"
+export MOONSTREAM_ETHEREUM_WEB3_PROVIDER_URI="https://<connection_path_uri_to_ethereum_node>"
+export MOONSTREAM_NODE_ETHEREUM_IPC_PORT=8545
+
+# Set following parameters if AWS node instance and S3 smartcontracts configured
+export MOONSTREAM_INTERNAL_HOSTED_ZONE_ID="<moonstream_internal_hosted_zone_id>"
+export MOONSTREAM_S3_SMARTCONTRACTS_BUCKET="<AWS_S3_bucket_to_store_smart_contracts>"
+export MOONSTREAM_S3_SMARTCONTRACTS_ABI_BUCKET="<AWS_S3_bucket_to_store_smart_contracts_ABI>"
+export MOONSTREAM_S3_SMARTCONTRACTS_ABI_PREFIX="<Previx_for_AWS_S3_bucket_(prod,dev,..)>"
+
+# Set the following variables in the most reasonable manner for your development environment
+export HUMBUG_REPORTER_BACKEND_TOKEN="<Bugout_umbug_token_for_crash_reports>"
diff --git a/backend/dev.sh b/backend/dev.sh
index 90b30c34..3080c352 100755
--- a/backend/dev.sh
+++ b/backend/dev.sh
@@ -1,9 +1,19 @@
 #!/usr/bin/env sh
 
-# Expects access to Python environment with the requirements for this project installed.
+# Sets up Moonstream API server
+# Expects access to Python environment with the requirements 
+# for this project installed.
 set -e
 
-MOONSTREAM_HOST="${MOONSTREAM_HOST:-0.0.0.0}"
-MOONSTREAM_PORT="${MOONSTREAM_PORT:-7481}"
+MOONSTREAMAPI_HOST="${MOONSTREAMAPI_HOST:-127.0.0.1}"
+MOONSTREAMAPI_PORT="${MOONSTREAMAPI_PORT:-7481}"
+MOONSTREAMAPI_APP_DIR="${MOONSTREAMAPI_APP_DIR:-$PWD}"
+MOONSTREAMAPI_ASGI_APP="${MOONSTREAMAPI_ASGI_APP:-moonstreamapi.api:app}"
+MOONSTREAMAPI_UVICORN_WORKERS="${MOONSTREAMAPI_UVICORN_WORKERS:-2}"
 
-uvicorn --port "$MOONSTREAM_PORT" --host "$MOONSTREAM_HOST" moonstreamapi.api:app --reload
+uvicorn --reload \
+  --port "$MOONSTREAMAPI_PORT" \
+  --host "$MOONSTREAMAPI_HOST" \
+  --app-dir "$MOONSTREAMAPI_APP_DIR" \
+  --workers "$MOONSTREAMAPI_UVICORN_WORKERS" \
+  "$MOONSTREAMAPI_ASGI_APP"
\ No newline at end of file
diff --git a/backend/moonstreamapi/providers/bugout.py b/backend/moonstreamapi/providers/bugout.py
index df73711c..ca01a6e5 100644
--- a/backend/moonstreamapi/providers/bugout.py
+++ b/backend/moonstreamapi/providers/bugout.py
@@ -16,7 +16,7 @@ from sqlalchemy.orm import Session
 from .. import data
 from ..stream_queries import StreamQuery
 
-from ..settings import ETHTXPOOL_HUMBUG_CLIENT_ID
+from ..settings import HUMBUG_TXPOOL_CLIENT_ID
 
 logger = logging.getLogger(__name__)
 logger.setLevel(logging.WARN)
@@ -354,5 +354,5 @@ ethereum_txpool_provider = EthereumTXPoolProvider(
     description=ethereum_txpool_description,
     default_time_interval_seconds=5,
     estimated_events_per_time_interval=50,
-    tags=[f"client:{ETHTXPOOL_HUMBUG_CLIENT_ID}"],
+    tags=[f"client:{HUMBUG_TXPOOL_CLIENT_ID}"],
 )
diff --git a/backend/moonstreamapi/settings.py b/backend/moonstreamapi/settings.py
index c491ddc7..c2bfc750 100644
--- a/backend/moonstreamapi/settings.py
+++ b/backend/moonstreamapi/settings.py
@@ -39,14 +39,14 @@ DOCS_TARGET_PATH = "docs"
 
 DEFAULT_STREAM_TIMEINTERVAL = 5 * 60
 
-ETHTXPOOL_HUMBUG_CLIENT_ID = os.environ.get(
-    "ETHTXPOOL_HUMBUG_CLIENT_ID", "client:ethereum-txpool-crawler-0"
+HUMBUG_TXPOOL_CLIENT_ID = os.environ.get(
+    "HUMBUG_TXPOOL_CLIENT_ID", "client:ethereum-txpool-crawler-0"
 )
 
 # S3 Bucket
-ETHERSCAN_SMARTCONTRACTS_BUCKET = os.environ.get("AWS_S3_SMARTCONTRACT_BUCKET")
+ETHERSCAN_SMARTCONTRACTS_BUCKET = os.environ.get("MOONSTREAM_S3_SMARTCONTRACTS_BUCKET")
 if ETHERSCAN_SMARTCONTRACTS_BUCKET is None:
-    raise ValueError("AWS_S3_SMARTCONTRACT_BUCKET is not set")
+    raise ValueError("MOONSTREAM_S3_SMARTCONTRACTS_BUCKET is not set")
 
 MOONSTREAM_INTERNAL_HOSTED_ZONE_ID = os.environ.get(
     "MOONSTREAM_INTERNAL_HOSTED_ZONE_ID", ""
diff --git a/backend/moonstreamapi/version.py b/backend/moonstreamapi/version.py
index 50195ae0..a90de673 100644
--- a/backend/moonstreamapi/version.py
+++ b/backend/moonstreamapi/version.py
@@ -2,4 +2,4 @@
 Moonstream library and API version.
 """
 
-MOONSTREAMAPI_VERSION = "0.1.0"
+MOONSTREAMAPI_VERSION = "0.1.1"
diff --git a/backend/moonstreamapi/web3_provider.py b/backend/moonstreamapi/web3_provider.py
index 719de079..946eb380 100644
--- a/backend/moonstreamapi/web3_provider.py
+++ b/backend/moonstreamapi/web3_provider.py
@@ -32,7 +32,7 @@ def fetch_web3_provider_ip():
     return record_value
 
 
-if not MOONSTREAM_ETHEREUM_WEB3_PROVIDER_URI.replace(".", "").isnumeric():
+if not MOONSTREAM_ETHEREUM_WEB3_PROVIDER_URI.startswith("http"):
     web3_provider_ip = fetch_web3_provider_ip()
     if web3_provider_ip is None:
         raise ValueError("Unable to extract web3 provider IP")
diff --git a/backend/sample.env b/backend/sample.env
deleted file mode 100644
index 8b3d4fa4..00000000
--- a/backend/sample.env
+++ /dev/null
@@ -1,15 +0,0 @@
-export MOONSTREAM_CORS_ALLOWED_ORIGINS="http://localhost:3000,https://moonstream.to,https://www.moonstream.to"
-export MOONSTREAM_APPLICATION_ID="<issued_bugout_application_id>"
-export MOONSTREAM_DATA_JOURNAL_ID="<bugout_journal_id_to_store_blockchain_data>"
-export MOONSTREAM_DB_URI="postgresql://<username>:<password>@<db_host>:<db_port>/<db_name>"
-export MOONSTREAM_POOL_SIZE=0
-export MOONSTREAM_ADMIN_ACCESS_TOKEN="<Access token to application resources>"
-export MOONSTREAM_INTERNAL_HOSTED_ZONE_ID="<moonstream_internal_hosted_zone_id>"
-export MOONSTREAM_ETHEREUM_WEB3_PROVIDER_URI="<connection_path_uri_to_ethereum_node>"
-export AWS_S3_SMARTCONTRACT_BUCKET="<AWS S3 bucket to store smart contracts>"
-export MOONSTREAM_S3_SMARTCONTRACTS_ABI_BUCKET="<AWS S3 bucket to store smart contracts ABI>"
-export MOONSTREAM_S3_SMARTCONTRACTS_ABI_PREFIX="<Previx for AWS S3 bucket (prod,dev,..)>"
-export BUGOUT_BROOD_URL="https://auth.bugout.dev"
-export BUGOUT_SPIRE_URL="https://spire.bugout.dev"
-export HUMBUG_REPORTER_BACKEND_TOKEN="<Bugout Humbug token for crash reports>"
-export ETHTXPOOL_HUMBUG_CLIENT_ID="<Bugout Humbug client id for txpool transactions in journal>"
diff --git a/crawlers/mooncrawl/mooncrawl/etherscan.py b/crawlers/mooncrawl/mooncrawl/etherscan.py
index 5ec96ed6..0ee24441 100644
--- a/crawlers/mooncrawl/mooncrawl/etherscan.py
+++ b/crawlers/mooncrawl/mooncrawl/etherscan.py
@@ -29,9 +29,9 @@ BASE_API_URL = "https://api.etherscan.io/api?module=contract&action=getsourcecod
 
 ETHERSCAN_SMARTCONTRACTS_LABEL_NAME = "etherscan_smartcontract"
 
-bucket = os.environ.get("AWS_S3_SMARTCONTRACT_BUCKET")
+bucket = os.environ.get("MOONSTREAM_S3_SMARTCONTRACTS_BUCKET")
 if bucket is None:
-    raise ValueError("AWS_S3_SMARTCONTRACT_BUCKET must be set")
+    raise ValueError("MOONSTREAM_S3_SMARTCONTRACTS_BUCKET must be set")
 
 
 @dataclass
diff --git a/crawlers/mooncrawl/sample.env b/crawlers/mooncrawl/sample.env
index f6ff4d9b..a58f54ce 100644
--- a/crawlers/mooncrawl/sample.env
+++ b/crawlers/mooncrawl/sample.env
@@ -8,7 +8,7 @@ export MOONSTREAM_NODE_POLYGON_IPC_PORT="8545"
 export MOONSTREAM_CRAWL_WORKERS=4
 export MOONSTREAM_DB_URI="postgresql://<username>:<password>@<db_host>:<db_port>/<db_name>"
 export MOONSTREAM_ETHERSCAN_TOKEN="<Token for etherscan>"
-export AWS_S3_SMARTCONTRACT_BUCKET="<AWS S3 bucket for smart contracts>"
+export MOONSTREAM_S3_SMARTCONTRACTS_BUCKET="<AWS S3 bucket for smart contracts>"
 export MOONSTREAM_S3_SMARTCONTRACTS_ABI_PREFIX="<Previx for AWS S3 bucket (prod,dev,..)>"
 export MOONSTREAM_HUMBUG_TOKEN="<Token for crawlers store data via Humbug>"
 export COINMARKETCAP_API_KEY="<API key to parse conmarketcap>"
diff --git a/db/.dockerignore b/db/.dockerignore
new file mode 100644
index 00000000..984ce5b4
--- /dev/null
+++ b/db/.dockerignore
@@ -0,0 +1,225 @@
+# Created by https://www.toptal.com/developers/gitignore/api/vim,visualstudiocode,linux,python
+# Edit at https://www.toptal.com/developers/gitignore?templates=vim,visualstudiocode,linux,python
+
+### Linux ###
+*~
+
+# temporary files which can be created if a process still has a handle open of a deleted file
+.fuse_hidden*
+
+# KDE directory preferences
+.directory
+
+# Linux trash folder which might appear on any partition or disk
+.Trash-*
+
+# .nfs files are created when an open file is removed but is still being accessed
+.nfs*
+
+### Python ###
+# Byte-compiled / optimized / DLL files
+__pycache__/
+*.py[cod]
+*$py.class
+
+# C extensions
+*.so
+
+# Distribution / packaging
+.Python
+build/
+develop-eggs/
+dist/
+downloads/
+eggs/
+.eggs/
+lib/
+lib64/
+parts/
+sdist/
+var/
+wheels/
+pip-wheel-metadata/
+share/python-wheels/
+*.egg-info/
+.installed.cfg
+*.egg
+MANIFEST
+
+# PyInstaller
+#  Usually these files are written by a python script from a template
+#  before PyInstaller builds the exe, so as to inject date/other infos into it.
+*.manifest
+*.spec
+
+# Installer logs
+pip-log.txt
+pip-delete-this-directory.txt
+
+# Unit test / coverage reports
+htmlcov/
+.tox/
+.nox/
+.coverage
+.coverage.*
+.cache
+nosetests.xml
+coverage.xml
+*.cover
+*.py,cover
+.hypothesis/
+.pytest_cache/
+
+# Translations
+*.mo
+*.pot
+
+# Django stuff:
+*.log
+local_settings.py
+db.sqlite3
+db.sqlite3-journal
+
+# Flask stuff:
+instance/
+.webassets-cache
+
+# Scrapy stuff:
+.scrapy
+
+# Sphinx documentation
+docs/_build/
+
+# PyBuilder
+target/
+
+# Jupyter Notebook
+.ipynb_checkpoints
+
+# IPython
+profile_default/
+ipython_config.py
+
+# pyenv
+.python-version
+
+# pipenv
+#   According to pypa/pipenv#598, it is recommended to include Pipfile.lock in version control.
+#   However, in case of collaboration, if having platform-specific dependencies or dependencies
+#   having no cross-platform support, pipenv may install dependencies that don't work, or not
+#   install all needed dependencies.
+#Pipfile.lock
+
+# PEP 582; used by e.g. github.com/David-OConnor/pyflow
+__pypackages__/
+
+# Celery stuff
+celerybeat-schedule
+celerybeat.pid
+
+# SageMath parsed files
+*.sage.py
+
+# Environments
+.env
+.venv
+env/
+venv/
+ENV/
+env.bak/
+venv.bak/
+
+# Spyder project settings
+.spyderproject
+.spyproject
+
+# Rope project settings
+.ropeproject
+
+# mkdocs documentation
+/site
+
+# mypy
+.mypy_cache/
+.dmypy.json
+dmypy.json
+
+# Pyre type checker
+.pyre/
+
+# pytype static type analyzer
+.pytype/
+
+### Vim ###
+# Swap
+[._]*.s[a-v][a-z]
+!*.svg  # comment out if you don't need vector files
+[._]*.sw[a-p]
+[._]s[a-rt-v][a-z]
+[._]ss[a-gi-z]
+[._]sw[a-p]
+
+# Session
+Session.vim
+Sessionx.vim
+
+# Temporary
+.netrwhist
+# Auto-generated tag files
+tags
+# Persistent undo
+[._]*.un~
+
+### VisualStudioCode ###
+.vscode/*
+!.vscode/settings.json
+!.vscode/tasks.json
+!.vscode/launch.json
+!.vscode/extensions.json
+*.code-workspace
+
+### Pycharm ###
+.idea
+
+### VisualStudioCode Patch ###
+# Ignore all local history of files
+.history
+
+# End of https://www.toptal.com/developers/gitignore/api/vim,visualstudiocode,linux,python
+
+### VSCode ###
+.vscode
+
+# Git
+.git
+.github
+
+# Envionments
+.moonstream
+.moonstreamdb
+.venv
+.env
+
+# Environment variables
+test.env
+dev.env
+prod.env
+
+configs/test.env
+configs/dev.env
+configs/prod.env
+configs/moonstreamdb.env
+configs/docker.env
+configs/docker.dev.env
+configs/docker.test.env
+configs/docker.prod.env
+
+.secrets/
+
+# Alembic migrations
+configs/alembic.test.ini
+configs/alembic.dev.ini
+configs/alembic.prod.ini
+
+Dockerfile
+docker-compose.yml
diff --git a/db/.gitignore b/db/.gitignore
index dfdac9a2..512e870f 100644
--- a/db/.gitignore
+++ b/db/.gitignore
@@ -160,14 +160,29 @@ cython_debug/
 
 # End of https://www.toptal.com/developers/gitignore/api/python,visualstudiocode
 
-# Custom
-dev.env
-prod.env
-dev.env.ps1
-prod.env.ps1
-alembic.dev.ini
-alembic.prod.ini
+# Envionments
+.moonstream/
+.moonstreamdb/
 .db/
 .venv/
+.env/
+
+# Environment variables
+dev.env
+test.env
+prod.env
+moonstreamdb.env
+docker.env
+docker.dev.env
+docker.test.dev
+docker.prod.env
+docker.moonstreamdb.env
+
 .secrets/
-.moonstreamdb
+
+# Alembic migrations
+alembic.test.ini
+alembic.dev.ini
+alembic.prod.ini
+alembic.moonstreamdb.ini
+alembic.docker.ini
diff --git a/db/Dockerfile b/db/Dockerfile
new file mode 100644
index 00000000..df664b86
--- /dev/null
+++ b/db/Dockerfile
@@ -0,0 +1,18 @@
+FROM python:3.8-slim-buster
+
+# Update packages and
+# prepare alembic for docker compose setup
+RUN apt-get update && \
+    apt-get install -y libpq-dev gcc && \
+    rm -rf /var/lib/apt/lists/* && \
+    pip3 install --no-cache-dir --upgrade pip setuptools && \
+    pip3 install --no-cache-dir psycopg2-binary alembic
+
+WORKDIR /usr/src/moonstreamdb
+
+COPY . /usr/src/moonstreamdb
+
+# Install Moonstream DB package
+RUN pip3 install --no-cache-dir -e .
+
+ENTRYPOINT ["./migrate.sh"]
\ No newline at end of file
diff --git a/db/alembic.sample.ini b/db/configs/alembic.sample.ini
similarity index 100%
rename from db/alembic.sample.ini
rename to db/configs/alembic.sample.ini
diff --git a/db/configs/docker_generate_env.bash b/db/configs/docker_generate_env.bash
new file mode 100755
index 00000000..0ef9c16f
--- /dev/null
+++ b/db/configs/docker_generate_env.bash
@@ -0,0 +1,49 @@
+#!/usr/bin/env bash
+
+# Prepare Moonstream DB application for docker-compose use
+
+# Print help message
+function usage {
+  echo "Usage: $0 [-h] -d DATABASE_NAME"  
+  echo
+  echo "CLI to generate environment variables"
+  echo
+  echo "Optional arguments:"
+  echo "  -h  Show this help message and exit"
+  echo "  -d  Database name for postgres in docker-compose setup"
+}
+
+FLAG_DATABASE_NAME="moonstream_dev"
+
+while getopts 'd:' flag; do
+  case "${flag}" in
+    d) FLAG_DATABASE_NAME="${OPTARG}" ;;
+    h) usage
+      exit 1 ;;
+    *) usage
+      exit 1 ;;
+  esac
+done
+
+set -e
+
+SCRIPT_DIR="$(realpath $(dirname $0))"
+DOCKER_MOONSTREAMDB_DB_URI="postgresql://postgres:postgres@db/$FLAG_DATABASE_NAME"
+DOCKER_MOONSTREAMDB_ENV_FILE="docker.moonstreamdb.env"
+DOCKER_MOONSTREAMDB_ALEMBIC_FILE="alembic.moonstreamdb.ini"
+
+# Generate environment variables
+
+cp "$SCRIPT_DIR/sample.env" "$SCRIPT_DIR/$DOCKER_MOONSTREAMDB_ENV_FILE"
+
+# Clean file with variables from export prefix and quotation marks
+sed --in-place 's|^export * ||' "$SCRIPT_DIR/$DOCKER_MOONSTREAMDB_ENV_FILE"
+sed --in-place 's|"||g' "$SCRIPT_DIR/$DOCKER_MOONSTREAMDB_ENV_FILE"
+
+sed -i "s|^MOONSTREAM_DB_URI=.*|MOONSTREAM_DB_URI=$DOCKER_MOONSTREAMDB_DB_URI|" "$SCRIPT_DIR/$DOCKER_MOONSTREAMDB_ENV_FILE"
+
+# Generate alembic config
+
+cp "$SCRIPT_DIR/alembic.sample.ini" "$SCRIPT_DIR/$DOCKER_MOONSTREAMDB_ALEMBIC_FILE"
+
+sed -i "s|^sqlalchemy.url =.*|sqlalchemy.url = $DOCKER_MOONSTREAMDB_DB_URI|" "$SCRIPT_DIR/$DOCKER_MOONSTREAMDB_ALEMBIC_FILE"
diff --git a/db/sample.env b/db/configs/sample.env
similarity index 67%
rename from db/sample.env
rename to db/configs/sample.env
index 4e3db953..c5409401 100644
--- a/db/sample.env
+++ b/db/configs/sample.env
@@ -1,2 +1,3 @@
+# Required environment variables to work with database CLI
 export MOONSTREAM_DB_URI="postgresql://<username>:<password>@<db_host>:<db_port>/<db_name>"
 export MOONSTREAM_POOL_SIZE=0
diff --git a/db/migrate.sh b/db/migrate.sh
new file mode 100755
index 00000000..5f8e573a
--- /dev/null
+++ b/db/migrate.sh
@@ -0,0 +1,16 @@
+#!/usr/bin/env sh
+
+# Sets up Brood server for docker compose:
+# 1. Running alembic migrations to head (using config file specified 
+# by the ALEMBIC_CONFIG environment variable)
+# 2. Running dev.sh (from the directory from which this script was called)
+
+set -e
+
+if [ -z "$ALEMBIC_CONFIG" ]
+then
+    echo "Please explicitly set the ALEMBIC_CONFIG environment variable to point to an alembic configuration file"
+    exit 1
+fi
+
+ALEMBIC_CONFIG="$ALEMBIC_CONFIG" sh alembic.sh upgrade head
diff --git a/db/moonstreamdb/version.py b/db/moonstreamdb/version.py
index e8c442cb..66c24df8 100644
--- a/db/moonstreamdb/version.py
+++ b/db/moonstreamdb/version.py
@@ -2,4 +2,4 @@
 Moonstream database version.
 """
 
-MOONSTREAMDB_VERSION = "0.2.0"
+MOONSTREAMDB_VERSION = "0.2.1"
diff --git a/docker-compose.yml b/docker-compose.yml
new file mode 100644
index 00000000..614e353e
--- /dev/null
+++ b/docker-compose.yml
@@ -0,0 +1,57 @@
+# Compose version
+version: "3"
+
+services:
+  # Moonstream API application
+  moonstreamapi:
+    build:
+      context: ./backend/
+      dockerfile: ./Dockerfile
+    image: moonstreamapi:latest
+    ports:
+      - "127.0.0.1:7481:7481"
+    # Specify environment file for compose setup
+    env_file: ./backend/configs/docker.moonstreamapi.env
+    environment:
+      MOONSTREAMAPI_HOST: 0.0.0.0
+      MOONSTREAMAPI_PORT: 7481
+      MOONSTREAMAPI_UVICORN_WORKERS: 1
+    healthcheck:
+      test: ["CMD", "curl", "-f", "http://moonstreamapi:7481/ping"]
+      interval: 5s
+      timeout: 1s
+      retries: 2
+      start_period: 2s
+    depends_on:
+      db:
+        condition: service_healthy
+  
+  # Moonstream DB application
+  moonstreamdb:
+    build:
+      context: ./db/
+      dockerfile: ./Dockerfile
+    image: moonstreamdb:latest
+    # Specify environment file for compose setup
+    env_file: ./db/configs/docker.moonstreamdb.env
+    environment:
+      ALEMBIC_CONFIG: ./configs/alembic.moonstreamdb.ini
+    depends_on:
+      db:
+        condition: service_healthy
+
+  # DB postgres application
+  db:
+    image: postgres:13
+    ports:
+      - "127.0.0.1:5432:5432"
+    environment:
+      POSTGRES_PASSWORD: postgres
+      POSTGRES_USER: postgres
+      POSTGRES_DB: moonstream_dev
+    healthcheck:
+      test: ["CMD", "psql", "-U", "postgres", "-c", "SELECT 1;"]
+      interval: 5s
+      timeout: 1s
+      retries: 3
+      start_period: 2s