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For connection locally to databases with choosing to test or development environment you need to create in the main root two files: .env.test .env.development
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Write down into these files
PGDATABASE=
and assign to PGDATABASE the database's name which you can find in the file db/setup-dbs.sql accordingly to the .env file's name (considering about what kind of environment you need to mention in the .env file: test or development).