diff --git a/alembic.ini b/alembic.ini
index 48cc44c..917b25b 100644
--- a/alembic.ini
+++ b/alembic.ini
@@ -35,7 +35,8 @@ script_location = alembic
 # are written from script.py.mako
 # output_encoding = utf-8
 
-sqlalchemy.url = sqlite:////app/storage/db/db.sqlite
+# Using a relative path with SQLite - will be replaced by env.py
+sqlalchemy.url = driver://user:pass@localhost/dbname
 
 
 [post_write_hooks]
diff --git a/alembic/env.py b/alembic/env.py
index d08f1ec..c908228 100644
--- a/alembic/env.py
+++ b/alembic/env.py
@@ -1,14 +1,26 @@
 from logging.config import fileConfig
+import os
+import sys
+from pathlib import Path
 
 from sqlalchemy import engine_from_config
 from sqlalchemy import pool
 
 from alembic import context
 
+# Add the project root directory to Python's path
+BASE_DIR = Path(os.path.dirname(os.path.dirname(os.path.abspath(__file__))))
+sys.path.append(str(BASE_DIR))
+
 # this is the Alembic Config object, which provides
 # access to the values within the .ini file in use.
 config = context.config
 
+# Import the db session configuration
+from app.db.session import SQLALCHEMY_DATABASE_URL
+# Override the sqlalchemy.url with our dynamic configuration
+config.set_main_option("sqlalchemy.url", SQLALCHEMY_DATABASE_URL)
+
 # Interpret the config file for Python logging.
 # This line sets up loggers basically.
 fileConfig(config.config_file_name)
diff --git a/app/db/session.py b/app/db/session.py
index fdbba60..5c4108d 100644
--- a/app/db/session.py
+++ b/app/db/session.py
@@ -1,8 +1,11 @@
 from sqlalchemy import create_engine
 from sqlalchemy.orm import sessionmaker
 from pathlib import Path
+import os
 
-DB_DIR = Path("/app") / "storage" / "db"
+# Use relative path for development environment
+BASE_DIR = Path(os.path.dirname(os.path.dirname(os.path.dirname(os.path.abspath(__file__)))))
+DB_DIR = BASE_DIR / "app" / "storage" / "db"
 DB_DIR.mkdir(parents=True, exist_ok=True)
 
 SQLALCHEMY_DATABASE_URL = f"sqlite:///{DB_DIR}/db.sqlite"