diff --git a/docker/.env b/docker/.env
new file mode 100644
index 00000000..bc38ca40
--- /dev/null
+++ b/docker/.env
@@ -0,0 +1,24 @@
+# Project name for Docker Compose
+COMPOSE_PROJECT_NAME=folio-mod-notes
+
+# Module configuration
+MODULE_PORT=8081
+MODULE_REPLICAS=1
+DEBUG_PORT=5005
+
+# PostgreSQL configuration
+DB_HOST=postgres
+DB_PORT=5432
+DB_DATABASE=modules
+DB_USERNAME=folio_admin
+DB_PASSWORD=folio_admin
+
+# PgAdmin configuration
+PGADMIN_PORT=5050
+PGADMIN_DEFAULT_EMAIL=user@domain.com
+PGADMIN_DEFAULT_PASSWORD=admin
+
+# WireMock (Okapi mock) configuration
+WIREMOCK_PORT=9130
+OKAPI_URL=http://wiremock:8080
+
diff --git a/docker/README.md b/docker/README.md
new file mode 100644
index 00000000..c784caa7
--- /dev/null
+++ b/docker/README.md
@@ -0,0 +1,363 @@
+# 🐳 Docker Compose Setup for mod-notes
+
+Local development environment for mod-notes using Docker Compose.
+
+## 📋 Prerequisites
+
+- Docker and Docker Compose V2+
+- Java 21+ (for local development mode)
+- Maven 3.8+ (for building the module)
+
+## 🏗️ Architecture
+
+Two compose files provide flexible development workflows:
+
+- **`infra-docker-compose.yml`**: Infrastructure services only (PostgreSQL, pgAdmin, WireMock)
+- **`app-docker-compose.yml`**: Full stack including the module (uses `include` to incorporate infra services)
+
+## ⚙️ Configuration
+
+Configuration is managed via the `.env` file in this directory.
+
+### Key Environment Variables
+
+| Variable                  | Description                   | Default                |
+|---------------------------|-------------------------------|------------------------|
+| `MODULE_REPLICAS`         | Number of module instances    | `1`                    |
+| `MODULE_PORT`             | Module host port              | `8081`                 |
+| `DEBUG_PORT`              | Remote debugging port         | `5005`                 |
+| `DB_HOST`                 | PostgreSQL hostname           | `postgres`             |
+| `DB_PORT`                 | PostgreSQL port               | `5432`                 |
+| `DB_DATABASE`             | Database name                 | `modules`        |
+| `DB_USERNAME`             | Database user                 | `folio_admin`          |
+| `DB_PASSWORD`             | Database password             | `folio_admin`          |
+| `PGADMIN_PORT`            | PgAdmin port                  | `5050`                 |
+| `WIREMOCK_PORT`           | WireMock (Okapi mock) port    | `9130`                 |
+| `OKAPI_URL`               | Okapi URL for the module      | `http://wiremock:8080` |
+
+## 🚀 Services
+
+### PostgreSQL
+- **Purpose**: Primary database for module data
+- **Version**: PostgreSQL 16 Alpine
+- **Access**: localhost:5432 (configurable via `DB_PORT`)
+- **Credentials**: See `DB_USERNAME` and `DB_PASSWORD` in `.env`
+- **Database**: See `DB_DATABASE` in `.env`
+
+### pgAdmin
+- **Purpose**: Database administration interface
+- **Access**: http://localhost:5050 (configurable via `PGADMIN_PORT`)
+- **Login**: Use `PGADMIN_DEFAULT_EMAIL` and `PGADMIN_DEFAULT_PASSWORD` from `.env`
+
+### WireMock
+- **Purpose**: Mock Okapi and other FOLIO modules for local testing
+- **Access**: http://localhost:9130 (configurable via `WIREMOCK_PORT`)
+- **Mappings**: Located in `src/test/resources/mappings`
+
+## 📖 Usage
+
+> **Note**: All commands in this guide assume you are in the `docker/` directory. If you're at the project root, run `cd docker` first.
+
+### Starting the Environment
+
+```bash
+# Build the module first
+mvn -f ../pom.xml clean package -DskipTests
+
+# Start all services (infrastructure + module)
+docker compose -f app-docker-compose.yml up -d
+```
+
+```bash
+# Start only infrastructure services (for local development)
+docker compose -f infra-docker-compose.yml up -d
+```
+
+```bash
+# Start with build (if module code changed)
+docker compose -f app-docker-compose.yml up -d --build
+```
+
+```bash
+# Start specific service
+docker compose -f infra-docker-compose.yml up -d postgres
+```
+
+### Stopping the Environment
+
+```bash
+# Stop all services
+docker compose -f app-docker-compose.yml down
+```
+
+```bash
+# Stop infra services only
+docker compose -f infra-docker-compose.yml down
+```
+
+```bash
+# Stop and remove volumes (clean slate)
+docker compose -f app-docker-compose.yml down -v
+```
+
+### Viewing Logs
+
+```bash
+# All services
+docker compose -f app-docker-compose.yml logs
+```
+
+```bash
+# Specific service
+docker compose -f app-docker-compose.yml logs mod-notes
+```
+
+```bash
+# Follow logs in real-time
+docker compose -f app-docker-compose.yml logs -f mod-notes
+```
+
+```bash
+# Last 100 lines
+docker compose -f app-docker-compose.yml logs --tail=100 mod-notes
+```
+
+### Scaling the Module
+
+The module is configured with resource limits and deployment policies for production-like scaling:
+
+- **CPU Limits**: 1.0 CPU (max), 0.5 CPU (reserved)
+- **Memory Limits**: 512M (max), 256M (reserved)
+- **Restart Policy**: Automatic restart on failure
+- **Update Strategy**: Rolling updates with 1 instance at a time, 10s delay
+
+```bash
+# Scale to 3 instances
+docker compose -f app-docker-compose.yml up -d --scale mod-notes=3
+```
+
+```bash
+# Or modify MODULE_REPLICAS in .env and restart
+echo "MODULE_REPLICAS=3" >> .env
+docker compose -f app-docker-compose.yml up -d
+```
+
+### Cleanup and Reset
+
+```bash
+# Complete cleanup (stops containers, removes volumes)
+docker compose -f app-docker-compose.yml down -v
+```
+
+```bash
+# Remove all Docker resources
+docker compose -f app-docker-compose.yml down -v
+docker volume prune -f
+docker network prune -f
+```
+
+## 🔧 Development Workflows
+
+### Workflow 1: Full Docker Stack
+Run everything in Docker, including the module.
+
+```bash
+# Build the module
+mvn -f ../pom.xml clean package -DskipTests
+
+# Start all services
+docker compose -f app-docker-compose.yml up -d
+
+# View logs
+docker compose -f app-docker-compose.yml logs -f mod-notes
+```
+
+**Use Case**: Testing the full deployment, simulating production environment, scaling tests.
+
+### Workflow 2: Infrastructure Only + IDE
+Run infrastructure in Docker, develop the module in your IDE.
+
+```bash
+# Start infrastructure
+docker compose -f infra-docker-compose.yml up -d
+
+# Run module from IDE or command line
+mvn -f ../pom.xml spring-boot:run
+```
+
+**Use Case**: Active development with hot reload, debugging in IDE, faster iteration cycles.
+
+### Workflow 3: Spring Boot Docker Compose Integration
+Let Spring Boot manage Docker Compose automatically (recommended for rapid development).
+
+```bash
+# Run with dev profile (starts infrastructure automatically)
+mvn -f ../pom.xml spring-boot:run -Dspring-boot.run.profiles=dev
+```
+
+The `dev` profile is configured to:
+- Start services from `docker/infra-docker-compose.yml` automatically
+- Connect to services via localhost ports (PostgreSQL: 5432, WireMock: 9130)
+- Keep containers running after the application stops for faster subsequent startups
+
+**Use Case**: Quickest way to start development — no manual Docker commands needed.
+
+### Workflow 4: Spring Boot DevTools
+For rapid development with automatic restart on code changes.
+
+```bash
+# Start infrastructure
+docker compose -f infra-docker-compose.yml up -d
+
+# Run with devtools (automatic restart on code changes)
+mvn -f ../pom.xml spring-boot:run
+
+# Make code changes — application will automatically restart
+```
+
+**Use Case**: Continuous development with automatic reload, live code updates, rapid feedback loop.
+
+## 🛠️ Common Tasks
+
+### Building the Module
+
+```bash
+# Clean build (skip tests)
+mvn -f ../pom.xml clean package -DskipTests
+```
+
+```bash
+# Build with tests
+mvn -f ../pom.xml clean package
+```
+
+### Tenant Setup
+
+After starting the module, register a tenant by calling the `/_/tenant` API:
+
+```bash
+curl -X POST http://localhost:8081/_/tenant \
+  -H "Content-Type: application/json" \
+  -H "X-Okapi-Tenant: diku" \
+  -H "X-Okapi-Url: http://localhost:9130" \
+  -d '{"module_to": "mod-notes-8.0.0-SNAPSHOT", "parameters": [{"key": "loadReference", "value": "true"}]}'
+```
+
+> **Note**: Adjust `module_to` version to match the currently running module version.
+
+### Accessing Services
+
+```bash
+# PostgreSQL CLI
+docker compose -f infra-docker-compose.yml exec postgres psql -U folio_admin -d modules
+```
+
+```bash
+# View database tables
+docker compose -f infra-docker-compose.yml exec postgres psql -U folio_admin -d modules -c "\dt"
+```
+
+```bash
+# Check PostgreSQL health
+docker compose -f infra-docker-compose.yml exec postgres pg_isready -U folio_admin
+```
+
+### Rebuilding the Module
+
+```bash
+# Rebuild and restart the module
+mvn -f ../pom.xml clean package -DskipTests
+docker compose -f app-docker-compose.yml up -d --build mod-notes
+```
+
+```bash
+# Force rebuild without cache
+docker compose -f app-docker-compose.yml build --no-cache mod-notes
+docker compose -f app-docker-compose.yml up -d mod-notes
+```
+
+## 🐛 Troubleshooting
+
+### Port Conflicts
+
+If you encounter port conflicts, modify the ports in `.env`:
+
+```bash
+# Example: Change module port to 8082
+MODULE_PORT=8082
+```
+
+Then restart the services:
+
+```bash
+docker compose -f app-docker-compose.yml up -d
+```
+
+### Container Health Issues
+
+```bash
+# Check container status
+docker compose -f app-docker-compose.yml ps
+
+# Check specific container logs
+docker compose -f app-docker-compose.yml logs mod-notes
+
+# Restart a specific service
+docker compose -f app-docker-compose.yml restart mod-notes
+```
+
+### Database Connection Issues
+
+```bash
+# Verify PostgreSQL is running
+docker compose -f infra-docker-compose.yml ps postgres
+
+# Check PostgreSQL logs
+docker compose -f infra-docker-compose.yml logs postgres
+
+# Test database connection
+docker compose -f infra-docker-compose.yml exec postgres psql -U folio_admin -d modules -c "SELECT 1"
+```
+
+**`FATAL: database "modules" does not exist`** — PostgreSQL only creates the database defined in `POSTGRES_DB` on the very first startup with an empty data directory. If the `postgres-data` volume already existed from a previous run (with different settings), the init is skipped. Fix by recreating the volume:
+
+```bash
+docker compose -f infra-docker-compose.yml stop postgres pgadmin
+docker compose -f infra-docker-compose.yml rm -f postgres pgadmin
+docker volume rm folio-mod-notes_postgres-data
+docker compose -f infra-docker-compose.yml up -d postgres pgadmin
+```
+
+### Clean Start
+
+If you need to completely reset the environment:
+
+```bash
+# Stop and remove everything
+docker compose -f app-docker-compose.yml down -v
+
+# Remove any orphaned containers
+docker container prune -f
+
+# Remove unused networks
+docker network prune -f
+
+# Start fresh
+mvn -f ../pom.xml clean package -DskipTests
+docker compose -f app-docker-compose.yml up -d --build
+```
+
+## 📚 Additional Resources
+
+- [Docker Compose Documentation](https://docs.docker.com/compose/)
+- [Spring Boot Docker Compose Support](https://docs.spring.io/spring-boot/docs/current/reference/html/features.html#features.docker-compose)
+- [mod-notes Documentation](../README.md)
+
+## 💡 Tips
+
+- Use **Workflow 3** (Spring Boot Docker Compose) for the fastest development experience
+- Keep infrastructure running between development sessions to save startup time
+- Use **Workflow 1** (Full Docker Stack) when testing deployment or scaling scenarios
+- Use `docker compose -f infra-docker-compose.yml logs -f` to monitor all infrastructure services
+- pgAdmin provides a helpful web interface for inspecting the database at http://localhost:5050
+
diff --git a/docker/app-docker-compose.yml b/docker/app-docker-compose.yml
new file mode 100644
index 00000000..3b9d6d60
--- /dev/null
+++ b/docker/app-docker-compose.yml
@@ -0,0 +1,43 @@
+# Full application stack for mod-notes (infrastructure + module)
+# This includes all infrastructure services and the mod-notes module itself
+
+include:
+  - infra-docker-compose.yml
+
+services:
+  mod-notes:
+    image: dev.folio/mod-notes:latest
+    build:
+      context: ../
+      dockerfile: Dockerfile
+    ports:
+      - "${MODULE_PORT}:8081"
+      - "${DEBUG_PORT}:5005"
+    environment:
+      DB_HOST: ${DB_HOST}
+      DB_PORT: ${DB_PORT}
+      DB_DATABASE: ${DB_DATABASE}
+      DB_USERNAME: ${DB_USERNAME}
+      DB_PASSWORD: ${DB_PASSWORD}
+      OKAPI_URL: ${OKAPI_URL}
+      JAVA_OPTIONS: "-agentlib:jdwp=transport=dt_socket,server=y,suspend=n,address=*:5005"
+    networks:
+      - mod-notes-local
+    depends_on:
+      - postgres
+      - wiremock
+    deploy:
+      replicas: ${MODULE_REPLICAS:-1}
+      restart_policy:
+        condition: on-failure
+      update_config:
+        parallelism: 1
+        delay: 10s
+      resources:
+        limits:
+          cpus: "1.0"
+          memory: "512M"
+        reservations:
+          cpus: "0.5"
+          memory: "256M"
+
diff --git a/docker/infra-docker-compose.yml b/docker/infra-docker-compose.yml
new file mode 100644
index 00000000..005e7f10
--- /dev/null
+++ b/docker/infra-docker-compose.yml
@@ -0,0 +1,55 @@
+# Infrastructure services for mod-notes
+# This file contains all infrastructure dependencies (database, pgAdmin, WireMock/Okapi mock)
+# It can be used standalone for local development or included in app-docker-compose.yml
+
+services:
+  postgres:
+    image: postgres:16-alpine
+    ports:
+      - ${DB_PORT}:5432
+    environment:
+      POSTGRES_USER: ${DB_USERNAME}
+      POSTGRES_PASSWORD: ${DB_PASSWORD}
+      POSTGRES_DB: ${DB_DATABASE}
+    volumes:
+      - postgres-data:/var/lib/postgresql/data
+    networks:
+      - mod-notes-local
+
+  pgadmin:
+    image: dpage/pgadmin4:latest
+    ports:
+      - ${PGADMIN_PORT}:80
+    environment:
+      PGADMIN_DEFAULT_EMAIL: ${PGADMIN_DEFAULT_EMAIL}
+      PGADMIN_DEFAULT_PASSWORD: ${PGADMIN_DEFAULT_PASSWORD}
+      PGADMIN_CONFIG_SERVER_MODE: 'False'
+      PGADMIN_CONFIG_MASTER_PASSWORD_REQUIRED: 'False'
+      PGADMIN_SERVER_JSON_FILE: '/pgadmin4/servers.json'
+      PGADMIN_REPLACE_SERVERS_ON_STARTUP: 'True'
+    volumes:
+      - pgadmin-data:/var/lib/pgadmin
+      - ./pgadmin-servers.json:/pgadmin4/servers.json:ro
+    depends_on:
+      - postgres
+    networks:
+      - mod-notes-local
+
+  wiremock:
+    image: wiremock/wiremock:latest
+    ports:
+      - ${WIREMOCK_PORT}:8080
+    volumes:
+      - ../src/test/resources/mappings:/home/wiremock/mappings
+    entrypoint: ["/docker-entrypoint.sh", "--global-response-templating", "--disable-gzip", "--verbose"]
+    networks:
+      - mod-notes-local
+
+networks:
+  mod-notes-local:
+    driver: bridge
+
+volumes:
+  postgres-data:
+  pgadmin-data:
+
diff --git a/docker/pgadmin-servers.json b/docker/pgadmin-servers.json
new file mode 100644
index 00000000..b49fc3da
--- /dev/null
+++ b/docker/pgadmin-servers.json
@@ -0,0 +1,14 @@
+{
+  "Servers": {
+    "1": {
+      "Name": "mod-notes (local)",
+      "Group": "Servers",
+      "Host": "postgres",
+      "Port": 5432,
+      "MaintenanceDB": "modules",
+      "Username": "folio_admin",
+      "SSLMode": "prefer"
+    }
+  }
+}
+
diff --git a/pom.xml b/pom.xml
index f5529986..2af16b2c 100644
--- a/pom.xml
+++ b/pom.xml
@@ -110,6 +110,20 @@
       <version>${jsoup.version}</version>
     </dependency>
 
+    <dependency>
+      <groupId>org.springframework.boot</groupId>
+      <artifactId>spring-boot-docker-compose</artifactId>
+      <scope>runtime</scope>
+      <optional>true</optional>
+    </dependency>
+
+    <dependency>
+      <groupId>org.springframework.boot</groupId>
+      <artifactId>spring-boot-devtools</artifactId>
+      <scope>runtime</scope>
+      <optional>true</optional>
+    </dependency>
+
     <!-- Test dependencies -->
     <dependency>
       <groupId>org.springframework.boot</groupId>
diff --git a/src/main/resources/application-dev.yaml b/src/main/resources/application-dev.yaml
new file mode 100644
index 00000000..fa49cadd
--- /dev/null
+++ b/src/main/resources/application-dev.yaml
@@ -0,0 +1,121 @@
+# Development profile for local development with Spring Boot Docker Compose support
+# Activate this profile with: --spring.profiles.active=dev or SPRING_PROFILES_ACTIVE=dev
+
+spring:
+  application:
+    name: mod-notes
+  threads:
+    virtual:
+      enabled: true
+  datasource:
+    url: jdbc:postgresql://${DB_HOST:localhost}:${DB_PORT:5432}/${DB_DATABASE:modules}
+    username: ${DB_USERNAME:folio_admin}
+    password: ${DB_PASSWORD:folio_admin}
+    hikari:
+      connectionTimeout: ${DB_CONNECTION_TIMEOUT:30000}
+      idleTimeout: ${DB_IDLE_TIMEOUT:600000}
+      keepaliveTime: ${DB_KEEPALIVE_TIME:0}
+      maxLifetime: ${DB_MAX_LIFETIME:1800000}
+      validationTimeout: ${DB_VALIDATION_TIMEOUT:5000}
+      maximumPoolSize: ${DB_MAXPOOLSIZE:10}
+      minimumIdle: ${DB_MINIMUM_IDLE:10}
+      initializationFailTimeout: ${DB_INITIALIZATION_FAIL_TIMEOUT:30000}
+      leakDetectionThreshold: ${DB_LEAK_DETECTION_THRESHOLD:60000}
+  liquibase:
+    changeLog: classpath:db/changelog/changelog-master.xml
+    enabled: true
+  jpa:
+    open-in-view: true
+    hibernate:
+      ddl-auto: none
+    properties:
+      hibernate:
+        dialect: org.hibernate.dialect.PostgreSQLDialect
+        format_sql: true
+    show-sql: false
+  jackson:
+    default-property-inclusion: NON_NULL
+    deserialization:
+      fail-on-unknown-properties: false
+      accept-single-value-as-array: true
+  cache:
+    type: caffeine
+  sql:
+    init:
+      continue-on-error: true
+  docker:
+    compose:
+      enabled: true
+      file: ./docker/infra-docker-compose.yml
+
+folio:
+  okapi-url: ${OKAPI_URL:http://localhost:9130}
+  exchange:
+    enabled: true
+  tenant:
+    validation:
+      enabled: true
+  logging:
+    request:
+      enabled: true
+      level: basic
+    exchange:
+      enabled: true
+      level: basic
+  notes:
+    cache:
+      configs:
+        users-by-id:
+          initialCapacity: 20
+          maximumSize: 100
+          expireAfterWrite: 60
+    types:
+      defaults:
+        name: General note
+        limit: ${NOTES_TYPES_DEFAULTS_LIMIT:25}
+    content:
+      allowed:
+        tags:
+          - p
+          - strong
+          - em
+          - a
+          - u
+          - ol
+          - ul
+          - li
+          - h1
+          - h2
+          - h3
+          - br
+        attributes:
+          all:
+            - class
+          a:
+            - href
+            - rel
+            - target
+    response:
+      limit: ${MAX_RECORDS_COUNT:1000}
+
+management:
+  endpoints:
+    web:
+      exposure:
+        include: info,health,env,httptrace,loggers
+      base-path: /admin
+  health:
+    defaults:
+      enabled: false
+    readinessstate:
+      enabled: true
+  endpoint:
+    loggers:
+      access: unrestricted
+
+server:
+  port: 8081
+
+logging:
+  level:
+    org.folio.spring.filter.IncomingRequestLoggingFilter: DEBUG