diff --git a/.github/workflows/on-pr.yaml b/.github/workflows/on-pr.yaml
index 581ca99b..d33adc7a 100644
--- a/.github/workflows/on-pr.yaml
+++ b/.github/workflows/on-pr.yaml
@@ -28,11 +28,11 @@ jobs:
           go-version: ${{ matrix.go-version }}
       - uses: actions/checkout@v2
       - name: Run database
-        run: docker-compose up -d db
+        run: docker-compose up -d ipld-eth-db
       - name: Test
         run: |
           sleep 10
-          PGPASSWORD=password DATABASE_USER=vdbm DATABASE_PORT=8077 DATABASE_PASSWORD=password DATABASE_HOSTNAME=127.0.0.1 make test
+          PGPASSWORD=password DATABASE_USER=vdbm DATABASE_PORT=8077 DATABASE_PASSWORD=password DATABASE_HOSTNAME=127.0.0.1 DATABASE_NAME=vulcanize_testing make test
 
   integrationtest:
     name: Run integration tests
@@ -52,7 +52,7 @@ jobs:
           go-version: ${{ matrix.go-version }}
       - uses: actions/checkout@v2
       - name: Run database
-        run: docker-compose -f docker-compose.test.yml -f docker-compose.yml up -d db dapptools contract eth-server
+        run: docker-compose -f docker-compose.test.yml -f docker-compose.yml up -d ipld-eth-db dapptools contract eth-server
       - name: Test
         run: |
           while [ "$(curl -s -o /dev/null -w ''%{http_code}'' localhost:8081)" != "200" ]; do echo "waiting for ipld-eth-server..." && sleep 5; done && \
diff --git a/Makefile b/Makefile
index 49636c89..3da04bf9 100644
--- a/Makefile
+++ b/Makefile
@@ -57,10 +57,6 @@ TEST_CONNECT_STRING_LOCAL = postgresql://$(USER)@$(HOST_NAME):$(PORT)/$(TEST_DB)
 test: | $(GINKGO) $(GOOSE)
 	go vet ./...
 	go fmt ./...
-	export PGPASSWORD=$(DATABASE_PASSWORD)
-	dropdb -h $(DATABASE_HOSTNAME) -p $(DATABASE_PORT) -U $(DATABASE_USER) --if-exists $(TEST_DB)
-	createdb -h $(DATABASE_HOSTNAME) -p $(DATABASE_PORT) -U $(DATABASE_USER) $(TEST_DB)
-	$(GOOSE) -dir db/migrations postgres "$(TEST_CONNECT_STRING)" up
 	$(GINKGO) -r --skipPackage=test
 
 .PHONY: integrationtest
diff --git a/docker-compose.yml b/docker-compose.yml
index 5ed1cfca..889a207f 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -4,36 +4,24 @@ services:
   dapptools:
     restart: unless-stopped
     depends_on:
-      - statediff-migrations
+      - ipld-eth-db
     image: vulcanize/dapptools:v0.30.0-v1.10.9-statediff-0.0.27
     environment:
       DB_USER: vdbm
-      DB_NAME: vulcanize_public
-      DB_HOST: db
+      DB_NAME: vulcanize_testing
+      DB_HOST: ipld-eth-db
       DB_PORT: 5432
       DB_PASSWORD: password
     ports:
       - "127.0.0.1:8545:8545"
       - "127.0.0.1:8546:8546"
 
-  statediff-migrations:
-    restart: on-failure
-    depends_on:
-      - db
-    image: vulcanize/statediff-migrations:v0.8.0
-    environment:
-      DATABASE_USER: vdbm
-      DATABASE_NAME: vulcanize_public
-      DATABASE_HOSTNAME: db
-      DATABASE_PORT: 5432
-      DATABASE_PASSWORD: password
-
-  db:
+  ipld-eth-db:
     restart: always
-    image: postgres:10.12-alpine
+    image: vulcanize/ipld-eth-db:v0.2.0
     environment:
       POSTGRES_USER: "vdbm"
-      POSTGRES_DB: "vulcanize_public"
+      POSTGRES_DB: "vulcanize_testing"
       POSTGRES_PASSWORD: "password"
     volumes:
      - vdb_db_eth_server:/var/lib/postgresql/data
@@ -44,7 +32,7 @@ services:
   eth-server:
     restart: unless-stopped
     depends_on:
-      - db
+      - ipld-eth-db
     build:
       context: ./
       cache_from:
@@ -56,8 +44,8 @@ services:
       ETH_SERVER_HTTPPATH: 0.0.0.0:8081
       VDB_COMMAND: "serve"
       ETH_CHAIN_CONFIG: "/tmp/chain.json"
-      DATABASE_NAME: "vulcanize_public"
-      DATABASE_HOSTNAME: "db"
+      DATABASE_NAME: "vulcanize_testing"
+      DATABASE_HOSTNAME: "ipld-eth-db"
       DATABASE_PORT: 5432
       DATABASE_USER: "vdbm"
       DATABASE_PASSWORD: "password"
@@ -73,7 +61,7 @@ services:
   graphql:
     restart: unless-stopped
     depends_on:
-      - db
+      - ipld-eth-db
     image: vulcanize/postgraphile:v1.0.1
     environment:
       - PG_HOST=db
diff --git a/pkg/eth/api_test.go b/pkg/eth/api_test.go
index fa5025c2..13a6336b 100644
--- a/pkg/eth/api_test.go
+++ b/pkg/eth/api_test.go
@@ -19,6 +19,7 @@ package eth_test
 import (
 	"context"
 	"math/big"
+	"os"
 	"strconv"
 
 	"github.com/ethereum/go-ethereum/common"
@@ -184,12 +185,13 @@ var (
 
 // SetupDB is use to setup a db for watcher tests
 func SetupDB() (*postgres.DB, error) {
+	port, _ := strconv.Atoi(os.Getenv("DATABASE_PORT"))
 	uri := postgres.DbConnectionString(postgres.ConnectionParams{
-		User:     "vdbm",
-		Password: "password",
-		Hostname: "localhost",
-		Name:     "vulcanize_testing",
-		Port:     8077,
+		User:     os.Getenv("DATABASE_USER"),
+		Password: os.Getenv("DATABASE_PASSWORD"),
+		Hostname: os.Getenv("DATABASE_HOSTNAME"),
+		Name:     os.Getenv("DATABASE_NAME"),
+		Port:     port,
 	})
 	return postgres.NewDB(uri, postgres.ConnectionConfig{}, node.Info{})
 }
diff --git a/pkg/graphql/graphql_test.go b/pkg/graphql/graphql_test.go
index 68e394db..ceb87c9d 100644
--- a/pkg/graphql/graphql_test.go
+++ b/pkg/graphql/graphql_test.go
@@ -20,6 +20,8 @@ import (
 	"context"
 	"fmt"
 	"math/big"
+	"os"
+	"strconv"
 
 	"github.com/ethereum/go-ethereum/common"
 	"github.com/ethereum/go-ethereum/common/hexutil"
@@ -45,12 +47,13 @@ import (
 
 // SetupDB is use to setup a db for watcher tests
 func SetupDB() (*postgres.DB, error) {
+	port, _ := strconv.Atoi(os.Getenv("DATABASE_PORT"))
 	uri := postgres.DbConnectionString(postgres.ConnectionParams{
-		User:     "vdbm",
-		Password: "password",
-		Hostname: "localhost",
-		Name:     "vulcanize_testing",
-		Port:     8077,
+		User:     os.Getenv("DATABASE_USER"),
+		Password: os.Getenv("DATABASE_PASSWORD"),
+		Hostname: os.Getenv("DATABASE_HOSTNAME"),
+		Name:     os.Getenv("DATABASE_NAME"),
+		Port:     port,
 	})
 	return postgres.NewDB(uri, postgres.ConnectionConfig{}, node.Info{})
 }
diff --git a/scripts/run_intregration_test.sh b/scripts/run_intregration_test.sh
index 929e6297..211df86e 100755
--- a/scripts/run_intregration_test.sh
+++ b/scripts/run_intregration_test.sh
@@ -7,7 +7,7 @@ docker-compose down --remove-orphans --volumes
 # Build and start the containers.
 # Note: Build only if `ipld-eth-server` or other container code is modified. Otherwise comment this line.
 docker-compose -f docker-compose.test.yml -f docker-compose.yml build eth-server
-docker-compose -f docker-compose.test.yml -f docker-compose.yml up -d db dapptools contract eth-server
+docker-compose -f docker-compose.test.yml -f docker-compose.yml up -d ipld-eth-db dapptools contract eth-server
 
 export PGPASSWORD=password
 export DATABASE_USER=vdbm
diff --git a/scripts/run_unit_test.sh b/scripts/run_unit_test.sh
index 1e15f03b..bcbeced7 100755
--- a/scripts/run_unit_test.sh
+++ b/scripts/run_unit_test.sh
@@ -1,2 +1,5 @@
-docker-compose -f docker-compose.test.yml -f docker-compose.yml up -d db
-PGPASSWORD=password DATABASE_USER=vdbm DATABASE_PORT=8077 DATABASE_PASSWORD=password DATABASE_HOSTNAME=127.0.0.1 make test
\ No newline at end of file
+# Clear up existing docker images and volume.
+docker-compose down --remove-orphans --volumes
+
+docker-compose -f docker-compose.test.yml -f docker-compose.yml up -d ipld-eth-db
+PGPASSWORD=password DATABASE_USER=vdbm DATABASE_PORT=8077 DATABASE_PASSWORD=password DATABASE_HOSTNAME=127.0.0.1 DATABASE_NAME=vulcanize_testing make test
\ No newline at end of file