diff --git a/docker-compose.yml b/docker-compose.yml
index 5e890a8a..b0aeb0c7 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -1,5 +1,3 @@
-version: '3'
-
 services:
   db:
     image: postgres:11.5
diff --git a/test_locally.sh b/test_locally.sh
new file mode 100755
index 00000000..bc6c441a
--- /dev/null
+++ b/test_locally.sh
@@ -0,0 +1,51 @@
+#!/usr/bin/env bash
+
+set -euo pipefail  # Exit on error, unset variable, and fail on pipe errors
+
+log() {
+  echo "[$(date +'%Y-%m-%dT%H:%M:%S%z')] $@"
+}
+
+create_venv="python -m venv .venv"
+install_pip=". .venv/bin/activate && curl https://bootstrap.pypa.io/get-pip.py | python"
+install_requirements=".venv/bin/pip install django==3.2.25 -r ci-requirements.txt"
+create_db="psql -h localhost -U postgres -d postgres -c 'CREATE DATABASE binder_test;'"
+run_tests=".venv/bin/coverage run --include="binder/*" -m unittest discover -vt ."
+
+
+setup_python() {
+	log "Seting up python evironment"
+	# Execute the check and creation of the virtual environment in the 'backend' container
+	if ! docker-compose exec -T binder [ -d ".venv" ]; then
+		log "Creating new venv in docker container"
+		docker compose exec binder $create_venv
+		log "Installing pip"
+		docker compose exec binder $install_pip
+	else
+		log "Already found existing venv"
+	fi
+	log "Installing ci-requirements.txt and django"
+	docker compose exec binder $install_requirements
+}
+
+setup_database() {
+	log "Seting up db evironment"
+	# Check if the database exists using the `docker exec` command
+	if ! docker compose exec db psql -U postgres -lqt | cut -d \| -f 1 | grep -qw binder_test; then
+	  log "No database found, creating new one"
+	  docker compose exec -T db bash -c "$create_db"
+	else
+	  log "Already existing DB, not creating new one"
+	fi
+}
+
+run_tests() {
+	log "Running tests"
+	args=("$@")
+	docker compose exec -T binder bash -c "$run_tests ${args[@]}"
+}
+
+
+setup_python
+setup_database
+run_tests "$@"