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Paperclip uses PostgreSQL via [Drizzle ORM](https://orm.drizzle.team/). There are three ways to run the database, from simplest to most production-ready.
## 1. Embedded PostgreSQL — zero config
If you don't set `DATABASE_URL`, the server automatically starts an embedded PostgreSQL instance and manages a local data directory.
```sh
pnpm dev
```
That's it. On first start the server:
1. Creates a `~/.paperclip/instances/default/db/` directory for storage
2. Ensures the `paperclip` database exists
3. Runs migrations automatically for empty databases
4. Starts serving requests
Data persists across restarts in `~/.paperclip/instances/default/db/`. To reset local dev data, delete that directory.
If you need to apply pending migrations manually, run:
```sh
pnpm db:migrate
```
When `DATABASE_URL` is unset, this command targets the current embedded PostgreSQL instance for your active Paperclip config/instance.
This mode is ideal for local development and one-command installs.
Docker note: the Docker quickstart image also uses embedded PostgreSQL by default. Persist `/paperclip` to keep DB state across container restarts (see `doc/DOCKER.md`).
## 2. Local PostgreSQL (Docker)
For a full PostgreSQL server locally, use the included Docker Compose setup:
```sh
docker compose up -d
```
This starts PostgreSQL 17 on `localhost:5432`. Then set the connection string:
```sh
cp .env.example .env
# .env already contains:
# DATABASE_URL=postgres://paperclip:paperclip@localhost:5432/paperclip
```
Run migrations (once the migration generation issue is fixed) or use `drizzle-kit push`:
```sh
DATABASE_URL=postgres://paperclip:paperclip@localhost:5432/paperclip \
npx drizzle-kit push
```
Start the server:
```sh
pnpm dev
```
## 3. Hosted PostgreSQL (Supabase)
For production, use a hosted PostgreSQL provider. [Supabase](https://supabase.com/) is a good option with a free tier.
### Setup
1. Create a project at [database.new](https://database.new)
2. Go to **Project Settings > Database > Connection string**
3. Copy the URI and replace the password placeholder with your database password
### Connection string
Supabase offers two connection modes:
**Direct connection** (port 5432) — use for migrations and one-off scripts:
```
postgres://postgres.[PROJECT-REF]:[PASSWORD]@aws-0-[REGION].pooler.supabase.com:5432/postgres
```
**Connection pooling via Supavisor** (port 6543) — use for the application:
```
postgres://postgres.[PROJECT-REF]:[PASSWORD]@aws-0-[REGION].pooler.supabase.com:6543/postgres
```
### Configure
Set `DATABASE_URL` in your `.env`:
```sh
DATABASE_URL=postgres://postgres.[PROJECT-REF]:[PASSWORD]@aws-0-[REGION].pooler.supabase.com:6543/postgres
```
If using connection pooling (port 6543), the `postgres` client must disable prepared statements. Update `packages/db/src/client.ts`:
```ts
export function createDb(url: string) {
const sql = postgres(url, { prepare: false });
return drizzlePg(sql, { schema });
}
```
### Push the schema
```sh
# Use the direct connection (port 5432) for schema changes
DATABASE_URL=postgres://postgres.[PROJECT-REF]:[PASSWORD]@...5432/postgres \
npx drizzle-kit push
```
### Free tier limits
- 500 MB database storage
- 200 concurrent connections
- Projects pause after 1 week of inactivity
See [Supabase pricing](https://supabase.com/pricing) for current details.
## Switching between modes
The database mode is controlled by `DATABASE_URL`:
| `DATABASE_URL` | Mode |
|---|---|
| Not set | Embedded PostgreSQL (`~/.paperclip/instances/default/db/`) |
| `postgres://...localhost...` | Local Docker PostgreSQL |
| `postgres://...supabase.com...` | Hosted Supabase |
Your Drizzle schema (`packages/db/src/schema/`) stays the same regardless of mode.
## Secret storage
Paperclip stores secret metadata and versions in:
- `company_secrets`
- `company_secret_versions`
For local/default installs, the active provider is `local_encrypted`:
- Secret material is encrypted at rest with a local master key.
- Default key file: `~/.paperclip/instances/default/secrets/master.key` (auto-created if missing).
- CLI config location: `~/.paperclip/instances/default/config.json` under `secrets.localEncrypted.keyFilePath`.
Optional overrides:
- `PAPERCLIP_SECRETS_MASTER_KEY` (32-byte key as base64, hex, or raw 32-char string)
- `PAPERCLIP_SECRETS_MASTER_KEY_FILE` (custom key file path)
Strict mode to block new inline sensitive env values:
```sh
PAPERCLIP_SECRETS_STRICT_MODE=true
```
You can set strict mode and provider defaults via:
```sh
pnpm paperclipai configure --section secrets
```
Inline secret migration command:
```sh
pnpm secrets:migrate-inline-env --apply
```
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