diff --git a/.devcontainer/.env.example b/.devcontainer/.env.example
new file mode 100644
index 0000000..85e5df8
--- /dev/null
+++ b/.devcontainer/.env.example
@@ -0,0 +1,13 @@
+# GitHub MCP Server Configuration
+GITHUB_PERSONAL_ACCESS_TOKEN=your_token_here
+
+# PostgreSQL Configuration
+POSTGRES_USER=financeuser
+POSTGRES_PASSWORD=changeme
+POSTGRES_DB=finance
+POSTGRES_PORT=5432
+
+# pgAdmin Configuration
+PGADMIN_DEFAULT_EMAIL=peter@peterwood.dev
+PGADMIN_DEFAULT_PASSWORD=admin
+PGADMIN_PORT=5050
\ No newline at end of file
diff --git a/.devcontainer/devcontainer.json b/.devcontainer/devcontainer.json
index 825c526..82aac0e 100644
--- a/.devcontainer/devcontainer.json
+++ b/.devcontainer/devcontainer.json
@@ -2,7 +2,9 @@
   "name": "Finance App Development",
   "image": "mcr.microsoft.com/devcontainers/typescript-node:1-20-bullseye",
   "features": {
-    "ghcr.io/devcontainers/features/git:1": {}
+    "ghcr.io/devcontainers/features/git:1": {},
+    "ghcr.io/devcontainers/features/docker-in-docker:2": {},
+    "ghcr.io/devcontainers/features/github-cli:1": {}
   },
   "customizations": {
     "vscode": {
@@ -40,12 +42,23 @@
           "**/node_modules": true,
           "**/.idea": true
         },
-        "terminal.integrated.defaultProfile.linux": "bash"
+        "terminal.integrated.defaultProfile.linux": "bash",
+        "mcp.servers.github": {
+          "command": "docker",
+          "args": ["run", "-i", "--rm", "--env-file", "${containerWorkspaceFolder}/.devcontainer/.env", "ghcr.io/github/github-mcp-server"],
+          "env": {}
+        }
       }
     }
   },
   "forwardPorts": [3000],
   "postCreateCommand": "npm install && npm run check",
   "remoteUser": "node",
-  "mounts": ["type=bind,source=${localEnv:HOME}/.ssh,target=/home/node/.ssh,readonly"]
+  "mounts": [
+    "type=bind,source=${localEnv:HOME}/.ssh,target=/home/node/.ssh,readonly"
+  ],
+  "remoteEnv": {
+    "GITHUB_PERSONAL_ACCESS_TOKEN": "${localEnv:GITHUB_PERSONAL_ACCESS_TOKEN}"
+  },
+  "postStartCommand": "gh auth status || gh auth login"
 }
diff --git a/.gitignore b/.gitignore
index d46f4b7..2a60110 100644
--- a/.gitignore
+++ b/.gitignore
@@ -27,3 +27,6 @@ pnpm-debug.log*
 
 # Test coverage
 coverage/
+
+# DevContainer environment files
+.devcontainer/.env
diff --git a/README.md b/README.md
index d18d704..5509c4c 100644
--- a/README.md
+++ b/README.md
@@ -11,4 +11,33 @@ A web application for managing financial transactions across multiple bank accou
 *   **Key Features (Implemented & Planned):** Account switching, transaction listing, adding, editing, and deleting transactions.
 
 ## Logs
-This app is currently deployed using Cloudflare Pages. The logs can be viewed with the `npx wrangler pages deployment tail --project-name finance` command. T
\ No newline at end of file
+This app is currently deployed using Cloudflare Pages. The logs can be viewed with the `npx wrangler pages deployment tail --project-name finance` command.
+
+## Development Environment Setup
+
+### Prerequisites
+- VS Code with Remote Containers extension
+- Docker and Docker Compose
+- Git
+
+### Initial Setup
+1. Clone the repository
+2. Copy `.devcontainer/.env.example` to `.devcontainer/.env`
+3. Update the environment variables in `.devcontainer/.env`
+4. Open the project in VS Code and select "Reopen in Container" when prompted
+
+### GitHub MCP Server
+The project uses GitHub's MCP server for development tasks. The server runs in a Docker container and is automatically configured when you open the project in a devcontainer.
+
+#### Configuration
+- The MCP server uses GitHub authentication via Personal Access Token
+- Token is stored securely in `.devcontainer/.env` (not committed to repository)
+- GitHub CLI is installed in the devcontainer for easier authentication management
+- Container health monitoring is configured
+
+#### Usage
+The MCP server will automatically start when you open the project in a devcontainer. If you need to manually authenticate:
+1. Run `gh auth login` in the terminal
+2. Follow the prompts to authenticate with your GitHub account
+
+### Database Setup
\ No newline at end of file