diff --git a/docker-compose.yml b/docker-compose.yml
index 1d8e496..259bc97 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -29,18 +29,20 @@ services:
 
   timetrack:
     build: .
-    environment:
-      FLASK_ENV: ${FLASK_ENV:-production}
-      SECRET_KEY: ${SECRET_KEY}
-      DATABASE_URL: postgresql://${POSTGRES_USER}:${POSTGRES_PASSWORD}@db:5432/${POSTGRES_DB}
-      MAIL_SERVER: ${MAIL_SERVER}
-      MAIL_PORT: ${MAIL_PORT}
-      MAIL_USE_TLS: ${MAIL_USE_TLS}
-      MAIL_USERNAME: ${MAIL_USERNAME}
-      MAIL_PASSWORD: ${MAIL_PASSWORD}
-      MAIL_DEFAULT_SENDER: ${MAIL_DEFAULT_SENDER}
     ports:
       - "${TIMETRACK_PORT:-5000}:5000"
+    environment:
+      - DATABASE_URL=${DATABASE_URL}
+      - POSTGRES_HOST=db
+      - POSTGRES_DB=${POSTGRES_DB}
+      - POSTGRES_USER=${POSTGRES_USER}
+      - POSTGRES_PASSWORD=${POSTGRES_PASSWORD}
+      - FLASK_ENV=${FLASK_ENV}
+      - SECRET_KEY=${SECRET_KEY}
+      - MAIL_SERVER=${MAIL_SERVER}
+      - MAIL_USERNAME=${MAIL_USERNAME}
+      - MAIL_PASSWORD=${MAIL_PASSWORD}
+      - MAIL_DEFAULT_SENDER=${MAIL_DEFAULT_SENDER}
     depends_on:
       db:
         condition: service_healthy
diff --git a/migrations/run_postgres_migrations.py b/migrations/run_postgres_migrations.py
index ff28f71..681b323 100755
--- a/migrations/run_postgres_migrations.py
+++ b/migrations/run_postgres_migrations.py
@@ -53,16 +53,28 @@ def run_migration(migration_file):
         # Check if it's a SQL file
         if migration_file.endswith('.sql'):
             # Run SQL file using psql
-            import os
-            db_host = os.environ.get('POSTGRES_HOST', 'db')
-            db_name = os.environ.get('POSTGRES_DB', 'timetrack')
-            db_user = os.environ.get('POSTGRES_USER', 'timetrack')
+            # Try to parse DATABASE_URL first, fall back to individual env vars
+            database_url = os.environ.get('DATABASE_URL')
+            if database_url:
+                # Parse DATABASE_URL: postgresql://user:password@host:port/dbname
+                from urllib.parse import urlparse
+                parsed = urlparse(database_url)
+                db_host = parsed.hostname or 'db'
+                db_port = parsed.port or 5432
+                db_name = parsed.path.lstrip('/') or 'timetrack'
+                db_user = parsed.username or 'timetrack'
+                db_password = parsed.password or 'timetrack'
+            else:
+                db_host = os.environ.get('POSTGRES_HOST', 'db')
+                db_name = os.environ.get('POSTGRES_DB', 'timetrack')
+                db_user = os.environ.get('POSTGRES_USER', 'timetrack')
+                db_password = os.environ.get('POSTGRES_PASSWORD', 'timetrack')
             
             result = subprocess.run(
                 ['psql', '-h', db_host, '-U', db_user, '-d', db_name, '-f', script_path],
                 capture_output=True,
                 text=True,
-                env={**os.environ, 'PGPASSWORD': os.environ.get('POSTGRES_PASSWORD', 'timetrack')}
+                env={**os.environ, 'PGPASSWORD': db_password}
             )
         else:
             # Run Python migration script