diff --git a/ansible/ansible.cfg b/ansible/ansible.cfg
new file mode 100644
index 0000000..1ebcb10
--- /dev/null
+++ b/ansible/ansible.cfg
@@ -0,0 +1,12 @@
+# ansible.cfg
+[defaults]
+inventory = inventory.yml
+host_key_checking = False
+timeout = 30
+retry_files_enabled = False
+gathering = smart
+fact_caching = memory
+
+[ssh_connection]
+ssh_args = -o ControlMaster=auto -o ControlPersist=60s -o UserKnownHostsFile=/dev/null -o StrictHostKeyChecking=no
+pipelining = True
diff --git a/ansible/inventory.yml b/ansible/inventory.yml
index abf9dc9..8a5e41e 100644
--- a/ansible/inventory.yml
+++ b/ansible/inventory.yml
@@ -8,8 +8,8 @@ all:
         supabase-1:
           ansible_host: 91.99.108.216
           ansible_user: root  # or ubuntu/debian depending on your image
-          ansible_ssh_private_key_file: ~/.ssh/your_private_key  # path to your SSH key
+          ansible_ssh_private_key_file: ~/.ssh/id_ed25519  # path to your SSH key
 
 # Alternative format if you prefer:
 # [supabase_servers]
-# supabase-1 ansible_host=YOUR_SERVER_IP ansible_user=root
\ No newline at end of file
+# supabase-1 ansible_host=YOUR_SERVER_IP ansible_user=root
diff --git a/ansible/playbook.yml b/ansible/playbook.yml
index 6155684..a40ad57 100644
--- a/ansible/playbook.yml
+++ b/ansible/playbook.yml
@@ -31,15 +31,41 @@
           - ufw
         state: present
 
+    - name: Remove any existing Docker repositories
+      file:
+        path: "{{ item }}"
+        state: absent
+      loop:
+        - /etc/apt/sources.list.d/docker.list
+        - /etc/apt/keyrings/docker.gpg
+        - /usr/share/keyrings/docker-archive-keyring.gpg
+
+    - name: Remove Docker from main sources list
+      lineinfile:
+        path: /etc/apt/sources.list
+        regexp: '.*download\.docker\.com.*'
+        state: absent
+
+    - name: Create keyrings directory
+      file:
+        path: /etc/apt/keyrings
+        state: directory
+        mode: '0755'
+
     - name: Add Docker's official GPG key
-      apt_key:
-        url: https://download.docker.com/linux/ubuntu/gpg
-        state: present
+      shell: |
+        curl -fsSL https://download.docker.com/linux/ubuntu/gpg | gpg --dearmor -o /etc/apt/keyrings/docker.gpg
+        chmod a+r /etc/apt/keyrings/docker.gpg
+      args:
+        creates: /etc/apt/keyrings/docker.gpg
 
     - name: Add Docker repository
-      apt_repository:
-        repo: "deb [arch=amd64] https://download.docker.com/linux/ubuntu {{ ansible_distribution_release }} stable"
-        state: present
+      shell: |
+        echo "deb [arch=$(dpkg --print-architecture) signed-by=/etc/apt/keyrings/docker.gpg] https://download.docker.com/linux/ubuntu $(lsb_release -cs) stable" > /etc/apt/sources.list.d/docker.list
+
+    - name: Update apt cache after adding Docker repo
+      apt:
+        update_cache: true
 
     - name: Install Docker CE
       apt:
@@ -50,19 +76,19 @@
           - docker-buildx-plugin
           - docker-compose-plugin
         state: present
-        update_cache: yes
+        update_cache: true
 
     - name: Start and enable Docker service
       systemd:
         name: docker
         state: started
-        enabled: yes
+        enabled: true
 
     - name: Add current user to docker group
       user:
         name: "{{ ansible_user }}"
         groups: docker
-        append: yes
+        append: true
 
     - name: Create /opt directory if it doesn't exist
       file:
@@ -75,14 +101,14 @@
         repo: https://github.com/supabase/supabase
         dest: "{{ supabase_dir }}"
         depth: 1
-        force: yes
+        force: true
 
     - name: Set proper ownership for Supabase directory
       file:
         path: "{{ supabase_dir }}"
         owner: "{{ ansible_user }}"
         group: "{{ ansible_user }}"
-        recurse: yes
+        recurse: true
 
     - name: Install Node.js 18.x repository
       shell: curl -fsSL https://deb.nodesource.com/setup_18.x | sudo -E bash -
@@ -95,11 +121,36 @@
         state: present
         update_cache: yes
 
-    - name: Install Supabase CLI
-      npm:
-        name: supabase
-        global: yes
-        state: present
+    - name: Install Supabase CLI using the official method
+      block:
+        - name: Download Supabase CLI binary
+          get_url:
+            url: "https://github.com/supabase/cli/releases/latest/download/supabase_linux_amd64.tar.gz"
+            dest: /tmp/supabase_cli.tar.gz
+            mode: '0644'
+
+        - name: Create supabase CLI directory
+          file:
+            path: /usr/local/bin
+            state: directory
+            mode: '0755'
+
+        - name: Extract Supabase CLI
+          unarchive:
+            src: /tmp/supabase_cli.tar.gz
+            dest: /tmp/
+            remote_src: true
+
+        - name: Move supabase binary to PATH
+          copy:
+            src: /tmp/supabase
+            dest: /usr/local/bin/supabase
+            mode: '0755'
+            remote_src: true
+      rescue:
+        - name: Supabase CLI installation failed - continuing without it
+          debug:
+            msg: "Supabase CLI installation failed, but this is optional for Docker-based setup"
 
     - name: Create PowerSync directory
       file:
@@ -109,25 +160,50 @@
         group: "{{ ansible_user }}"
         mode: '0755'
 
-    - name: Download PowerSync Server
-      get_url:
-        url: https://github.com/powersync-ja/powersync-service/releases/latest/download/powersync-server-linux-amd64.tar.gz
-        dest: /tmp/powersync-server.tar.gz
-        mode: '0644'
-
-    - name: Extract PowerSync Server
-      unarchive:
-        src: /tmp/powersync-server.tar.gz
-        dest: "{{ powersync_dir }}"
-        remote_src: yes
+    - name: Create PowerSync config file
+      copy:
+        content: |
+          # PowerSync Service Configuration
+          # See: https://docs.powersync.com/installation/self-hosting
+          port: 80
+          
+          database:
+            type: postgresql
+            uri: postgresql://postgres:your_password@supabase_db:5432/postgres
+          
+          # Add your PowerSync configuration here
+          # This is a basic template - customize according to your needs
+        dest: "{{ powersync_dir }}/config.yaml"
         owner: "{{ ansible_user }}"
         group: "{{ ansible_user }}"
+        mode: '0644'
+
+    - name: Create PowerSync docker-compose file
+      copy:
+        content: |
+          version: '3.8'
+          services:
+            powersync:
+              image: journeyapps/powersync-service:latest
+              container_name: powersync
+              ports:
+                - "8080:80"
+              environment:
+                - POWERSYNC_CONFIG_B64
+              restart: unless-stopped
+              volumes:
+                - ./config.yaml:/tmp/config.yaml:ro
+              command: sh -c 'export POWERSYNC_CONFIG_B64=$(base64 -w 0 /tmp/config.yaml) && powersync-service'
+        dest: "{{ powersync_dir }}/docker-compose.yml"
+        owner: "{{ ansible_user }}"
+        group: "{{ ansible_user }}"
+        mode: '0644'
 
     - name: Copy Supabase docker-compose.yml to working directory
       copy:
         src: "{{ supabase_dir }}/docker/docker-compose.yml"
         dest: "{{ supabase_dir }}/docker-compose.yml"
-        remote_src: yes
+        remote_src: true
         owner: "{{ ansible_user }}"
         group: "{{ ansible_user }}"
 
@@ -138,7 +214,7 @@
         remote_src: yes
         owner: "{{ ansible_user }}"
         group: "{{ ansible_user }}"
-        force: no
+        force: false
 
     - name: Configure UFW firewall
       ufw:
@@ -174,13 +250,13 @@
 
     - name: Reload systemd daemon
       systemd:
-        daemon_reload: yes
+        daemon_reload: true
 
     - name: Start and enable Supabase service
       systemd:
         name: supabase
         state: started
-        enabled: yes
+        enabled: true
 
     - name: Display setup information
       debug:
@@ -189,8 +265,13 @@
           - "PowerSync has been installed in {{ powersync_dir }}"
           - "Supabase Studio will be available at http://{{ ansible_default_ipv4.address }}:3000"
           - "Supabase API will be available at http://{{ ansible_default_ipv4.address }}:8000"
+          - "PowerSync will be available at http://{{ ansible_default_ipv4.address }}:8080"
           - "To start Supabase: cd {{ supabase_dir }} && docker compose up -d"
-          - "Configuration file: {{ supabase_dir }}/.env"
+          - "To start PowerSync: cd {{ powersync_dir }} && docker compose up -d"
+          - "Configuration files:"
+          - "  - Supabase: {{ supabase_dir }}/.env"
+          - "  - PowerSync: {{ powersync_dir }}/config.yaml"
+          - "IMPORTANT: Update PowerSync config.yaml with your database credentials!"
 
   handlers:
     - name: restart supabase
@@ -201,4 +282,4 @@
     - name: restart powersync
       systemd:
         name: powersync
-        state: restarted
\ No newline at end of file
+        state: restarted
diff --git a/ansible/templates/powersync.service.j2 b/ansible/templates/powersync.service.j2
new file mode 100644
index 0000000..46645c4
--- /dev/null
+++ b/ansible/templates/powersync.service.j2
@@ -0,0 +1,18 @@
+# templates/powersync.service.j2
+[Unit]
+Description=PowerSync Service (Docker)
+Requires=docker.service
+After=docker.service
+
+[Service]
+Type=oneshot
+RemainAfterExit=yes
+WorkingDirectory={{ powersync_dir }}
+ExecStart=/usr/bin/docker compose up -d
+ExecStop=/usr/bin/docker compose down
+TimeoutStartSec=0
+User={{ ansible_user }}
+Group=docker
+
+[Install]
+WantedBy=multi-user.target
diff --git a/ansible/templates/supabase.service.j2 b/ansible/templates/supabase.service.j2
new file mode 100644
index 0000000..c0d040d
--- /dev/null
+++ b/ansible/templates/supabase.service.j2
@@ -0,0 +1,18 @@
+# templates/supabase.service.j2
+[Unit]
+Description=Supabase Service
+Requires=docker.service
+After=docker.service
+
+[Service]
+Type=oneshot
+RemainAfterExit=yes
+WorkingDirectory={{ supabase_dir }}
+ExecStart=/usr/bin/docker compose up -d
+ExecStop=/usr/bin/docker compose down
+TimeoutStartSec=0
+User={{ ansible_user }}
+Group=docker
+
+[Install]
+WantedBy=multi-user.target