diff --git a/.github/workflows/rubyonrails.yml b/.github/workflows/rubyonrails.yml
index 9b9fe16f..37733244 100644
--- a/.github/workflows/rubyonrails.yml
+++ b/.github/workflows/rubyonrails.yml
@@ -17,7 +17,6 @@ jobs:
         ports:
           - "5432:5432"
         env:
-          POSTGRES_DB: hostedgpt_test
           POSTGRES_USER: rails
           POSTGRES_PASSWORD: password
         options: >-
@@ -27,7 +26,7 @@ jobs:
           --health-retries 5
     env:
       RAILS_ENV: test
-      DATABASE_URL: "postgres://rails:password@localhost:5432/hostedgpt_test"
+      DATABASE_URL: "postgres://rails:password@localhost:5432/hostedgpt"
     steps:
       - name: Checkout code
         uses: actions/checkout@v4
@@ -57,7 +56,6 @@ jobs:
         ports:
           - "5432:5432"
         env:
-          POSTGRES_DB: hostedgpt_test
           POSTGRES_USER: rails
           POSTGRES_PASSWORD: password
         options: >-
@@ -67,7 +65,7 @@ jobs:
           --health-retries 5
     env:
       RAILS_ENV: test
-      DATABASE_URL: "postgres://rails:password@localhost:5432/hostedgpt_test"
+      DATABASE_URL: "postgres://rails:password@localhost:5432/hostedgpt"
       DISPLAY: "=:99"
       CHROME_VERSION: "127.0.6533.119"
 
diff --git a/.gitignore b/.gitignore
index bab408d8..ed9ff777 100644
--- a/.gitignore
+++ b/.gitignore
@@ -8,6 +8,9 @@
 /.tool-versions
 /node_modules
 
+# Docker Compose override file
+*compose.override.y*ml
+
 # Ignore all environment files (except templates).
 /.env*
 !/.env*.erb
diff --git a/config/database.yml b/config/database.yml
index b657cbe2..66d20551 100644
--- a/config/database.yml
+++ b/config/database.yml
@@ -1,27 +1,53 @@
+<%
+  # first env with a value
+  def first_of(*envs)
+    envs.map { |env| ENV[env] }.compact.first
+  end
+
+  def puts_red(msg)
+    puts "\e[31m#{msg}\e[0m"
+  end
+
+  def deprecated(env, message)
+    puts_red "DEPRECATED: #{env} is deprecated, #{message}" if ENV[env]
+  end
+
+
+  deprecated("HOSTEDGPT_DATABASE_PORT", "use HOSTEDGPT_DB_PORT instead")
+  deprecated("HOSTEDGPT_DEV_DB", "use HOSTEDGPT_DB_NAME instead")
+  deprecated("HOSTEDGPT_TEST_DB", "provide HOSTEDGPT_DB_NAME and test database name is generated")
+  deprecated("HOSTEDGPT_DATABASE_PASSWORD", "use HOSTEDGPT_DB_PASSWORD instead")
+%>
+
 default: &default
   adapter: postgresql
+  # url format: postgres://username:password@localhost:5432/database_name
+  url: <%= ENV["DATABASE_URL"] %>
+  # It's best to set DATABASE_URL to configure database details. That overrides the following settings
+  username: <%= ENV["HOSTEDGPT_DB_USERNAME"] || "hostedgpt_user" %>
+  password: <%= first_of("HOSTEDGPT_DATABASE_PASSWORD", "HOSTEDGPT_DB_PASSWORD") %>
+  host: <%= ENV["HOSTEDGPT_DB_HOST"] %>
+  port: <%= first_of("HOSTEDGPT_DATABASE_PORT", "HOSTEDGPT_DB_PORT") || 5432 %>
+  database: <%= first_of("HOSTEDGPT_DEV_DB", "HOSTEDGPT_DB_NAME") || "hostedgpt" %>
   encoding: unicode
   pool: <%= ENV.fetch("RAILS_MAX_THREADS") { 5 } %>
-  port: <%= ENV['HOSTEDGPT_DATABASE_PORT'] || 5432 %>
 <% if RUBY_PLATFORM =~ /darwin/ %>
   gssencmode: disable
 <% end %>
-  url: <%= ENV['DATABASE_URL'] %>
-  # url format: postgres://username:password@localhost:5432/database_name
 
 development:
   <<: *default
-  database: <%= ENV['HOSTEDGPT_DEV_DB'] || "hostedgpt_development" %>
-  # It's best to set DATABASE_URL to configure database details. That overrides this "database" name. Note: Docker sets DATABASE_URL inside docker-compose.yml
 
 test:
   <<: *default
-  database: <%= ENV['HOSTEDGPT_TEST_DB'] || "hostedgpt_test" %>
+  # regex to match groups in the url: /(before db name)(db name)(after db name)/
+  url: <%= "#{ENV['DATABASE_URL']}".gsub(/(.*\/\/[^\/]+\/)([^?]+)(\??.*)/, '\1\2_test\3') %> # add "_test" to the database name if it's specified
   # It's best to set DATABASE_URL to configure database details. That overrides this "database" name.
+  database: <%= ENV["HOSTEDGPT_TEST_DB"] || "#{ENV['HOSTEDGPT_DB_NAME'] || 'hostedgpt'}_test" %>
 
 production:
   <<: *default
+  # It's best to set DATABASE_URL to configure database details. That overrides this "database" name.
   database: hostedgpt_production
   username: hostedgpt
-  password: <%= ENV["HOSTEDGPT_DATABASE_PASSWORD"] %>
-  # It's best to set DATABASE_URL to configure database details. That overrides this "database" name.
+  password: <%= first_of("HOSTEDGPT_DATABASE_PASSWORD", "HOSTEDGPT_DB_PASSWORD") %>
diff --git a/docker-compose.yml b/docker-compose.yml
index 012612c8..5f724d76 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -1,15 +1,18 @@
 services:
   postgres:
     image: postgres:16
+    container_name: hostedgpt_postgres
     restart: always
     environment:
-      POSTGRES_USER: app
-      POSTGRES_DB: app_development
-      POSTGRES_PASSWORD: secret
+      # NOTE: If you use DATABASE_URL, it needs to match these env vars
+      #  so you can either have it match the default values for these env vars
+      #  or you can set these env vars to match the user and password from the url
+      - POSTGRES_USER=${HOSTEDGPT_DB_USERNAME:-hostedgpt_user}
+      - POSTGRES_PASSWORD=${HOSTEDGPT_DB_PASSWORD:-secret}
     volumes:
       - hostedgpt_pgdata:/var/lib/postgresql/data
     healthcheck:
-      test: ["CMD", "pg_isready", "-U", "app", "-d", "app_development"]
+      test: pg_isready -U $$POSTGRES_USER
       interval: 1s
       retries: 5
 
@@ -22,7 +25,16 @@ services:
       target: development
     environment:
       # Be sure to add environment variables to config/options.yml
-      - DATABASE_URL=postgres://app:secret@postgres/app_development
+      - HOSTEDGPT_DB_USERNAME=${HOSTEDGPT_DB_USERNAME:-hostedgpt_user}
+      - HOSTEDGPT_DB_PASSWORD=${HOSTEDGPT_DB_PASSWORD:-secret}
+      - HOSTEDGPT_DB_HOST=${HOSTEDGPT_DB_HOST:-postgres}
+      - HOSTEDGPT_DB_PORT=${HOSTEDGPT_DB_PORT:-5432}
+      - HOSTEDGPT_DB_NAME=${HOSTEDGPT_DB_NAME:-hostedgpt}
+      - DATABASE_URL
+      - HOSTEDGPT_DATABASE_PORT # DEPRECATED: use HOSTEDGPT_DB_PORT
+      - HOSTEDGPT_DEV_DB # DEPRECATED: use HOSTEDGPT_DB_NAME
+      - HOSTEDGPT_TEST_DB # DEPRECATED: provide HOSTEDGPT_DB_NAME and test database name is generated
+      - HOSTEDGPT_DATABASE_PASSWORD # DEPRECATED: use HOSTEDGPT_DB_PASSWORD
       - DEV_HOST=${DEV_HOST:-localhost} # Set if you want to use a different hostname
       - OVERMIND_COLORS=2,3,5
       - ALLOWED_REQUEST_ORIGINS