diff --git a/.env.example b/.env.example
index e56c6fb..7ef40bf 100644
--- a/.env.example
+++ b/.env.example
@@ -1,6 +1,6 @@
 APP_PORT=8080
-DATABASE_URL=
-USE_EXTERNAL_POSTGRES=false
+# Update the host segment if PostgreSQL runs elsewhere (e.g., the Docker host's LAN IP on Linux).
+DATABASE_URL=postgresql://dockpilot:dockpilot@host.docker.internal:5432/dockpilot
 SESSION_SECRET=
 ADMIN_USERNAME=admin
 ADMIN_PASSWORD=change-me-now
diff --git a/README.md b/README.md
index ef0c5db..c3017e6 100644
--- a/README.md
+++ b/README.md
@@ -31,27 +31,18 @@ Follow the steps below to install and run DockPilot from a clean machine:
    ```
    Edit `.env` and provide secure values for `SESSION_SECRET`, `ADMIN_PASSWORD`, `APP_PORT`, and optional Docker / AI settings.
 4. **Prepare PostgreSQL**
-   - If you already have a PostgreSQL instance, ensure the database defined by `DATABASE_URL` exists and is reachable from the Docker host. Set `USE_EXTERNAL_POSTGRES=true` in `.env` and skip the bundled database profile when starting Compose.
-   - Otherwise, use the bundled `postgres` service (enabled via the `local-db` Compose profile).
+   - DockPilot relies on an existing PostgreSQL instance. Create the database referenced by `DATABASE_URL` and ensure the container can reach it over the network. When Docker runs on the same host as PostgreSQL, `host.docker.internal` (macOS/Windows) or the host's LAN IP (Linux) is typically the correct hostname.
 5. **Apply the database schema**
    ```bash
    psql "$DATABASE_URL" -f db/schema.pg.sql
    ```
    This initializes tables, triggers, and optional storage history support.
 6. **Build and start the Docker Compose stack**
-
-   **A. With the bundled PostgreSQL container**
    ```bash
-   docker compose --profile app --profile local-db up -d --build
+   docker compose up -d --build
    ```
 
-   **B. With an existing PostgreSQL instance**
-   ```bash
-   # Ensure DATABASE_URL points at your external database and USE_EXTERNAL_POSTGRES=true
-   docker compose --profile app up -d --build
-   ```
-
-   The command launches a single `dockpilot-app` container that hosts the API, UI, and lightweight gateway. Add the `local-db` profile only when you want Compose to run PostgreSQL for you.
+   This launches the single `dockpilot-app` container that hosts the API, UI, and lightweight gateway.
 7. **Verify service health**
    ```bash
    docker compose ps
@@ -71,11 +62,9 @@ If you update container dependencies (for example, adjusting `api/package.json`
 ```bash
 docker compose down
 docker compose build --no-cache
-docker compose --profile app --profile local-db up -d
+docker compose up -d
 ```
 
-Remove the `local-db` profile flag if you rely on an external PostgreSQL instance.
-
 ## Getting Started
 
 If you already have the prerequisites and configuration in place, the condensed setup is:
@@ -85,9 +74,9 @@ If you already have the prerequisites and configuration in place, the condensed
    psql "$DATABASE_URL" -f db/schema.pg.sql
    ```
 2. Copy `.env.example` to `.env` and fill in secrets.
-3. Build and launch the stack (choose the appropriate profile set):
+3. Build and launch the stack:
    ```bash
-   docker compose --profile app --profile local-db up -d --build
+   docker compose up -d --build
    ```
 4. Visit the UI and log in with the owner credentials from `.env`. Change the password on first login.
 
@@ -96,15 +85,13 @@ If you already have the prerequisites and configuration in place, the condensed
 | Service | Description |
 | ------- | ----------- |
 | `app` | Combined container that runs the API, UI (Nuxt Nitro server), and Express gateway on port 8080. |
-| `postgres` | PostgreSQL 16 database, enabled only when the `local-db` profile is used. |
 
 ## Environment Variables
 
 See `.env.example` for required configuration. Notable values:
 
 - `APP_PORT`: host port that exposes the combined gateway (defaults to 8080).
-- `DATABASE_URL`: PostgreSQL connection string. Leave empty when using the bundled database and it will default to the Compose service.
-- `USE_EXTERNAL_POSTGRES`: set to `true` when you do **not** want Compose to start PostgreSQL.
+- `DATABASE_URL`: PostgreSQL connection string that points to your existing database. Ensure the hostname is reachable from inside the container (for example, `host.docker.internal`).
 - `SESSION_SECRET`: 64-byte secret for encrypted cookies (hex or base64).
 - `ADMIN_USERNAME` / `ADMIN_PASSWORD`: bootstrap owner credentials.
 - `HEALTH_INTERVAL_MS`, `HEALTH_TIMEOUT_MS`: tweak health check cadence and timeout.
diff --git a/docker-compose.yml b/docker-compose.yml
index 62c99ff..7150074 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -6,7 +6,7 @@ services:
     image: dockpilot-app
     env_file: .env
     environment:
-      DATABASE_URL: ${DATABASE_URL:-postgresql://dockpilot:dockpilot@postgres:5432/dockpilot}
+      DATABASE_URL: ${DATABASE_URL}
       NODE_ENV: production
       PORT: ${APP_PORT:-8080}
       API_PORT: 3001
@@ -16,27 +16,8 @@ services:
     restart: unless-stopped
     volumes:
       - ./uploads:/app/uploads
-    profiles:
-      - app
     healthcheck:
       test: ["CMD-SHELL", "wget -q -O - http://127.0.0.1:8080/healthz || exit 1"]
       interval: 10s
       timeout: 3s
       retries: 10
-
-  postgres:
-    image: postgres:16
-    restart: unless-stopped
-    environment:
-      POSTGRES_DB: dockpilot
-      POSTGRES_USER: dockpilot
-      POSTGRES_PASSWORD: dockpilot
-    volumes:
-      - pgdata:/var/lib/postgresql/data
-    ports:
-      - "5432:5432"
-    profiles:
-      - local-db
-
-volumes:
-  pgdata: