diff --git a/Vagrantfile b/Vagrantfile
index af72177e..07c24a51 100644
--- a/Vagrantfile
+++ b/Vagrantfile
@@ -80,6 +80,46 @@ $make_devenv = <<DEVENV
   fi
 DEVENV
 
+$config_pgsql = <<PGSQL
+dnf install -y postgresql postgresql-server python2-psycopg2
+
+pg_hba_conf=/var/lib/pgsql/data/pg_hba.conf
+
+if [[ ! -e "$pg_hba_conf" ]]; then
+  postgresql-setup --initdb
+fi
+
+systemctl start postgresql
+systemctl enable postgresql
+
+cp "$pg_hba_conf" "${pg_hba_conf}.orig"
+
+# Allow to connect to PostgreSQL without password
+if ! grep "host all all 127.0.0.1/32 trust" "$pg_hba_conf" >/dev/null; then
+  echo "host all all 127.0.0.1/32 trust" > "$pg_hba_conf"
+fi
+
+# Avoid SQL query statement being truncated in pg_stat_activity, which is
+# convenient for debugging.
+pg_conf=/var/lib/pgsql/data/postgresql.conf
+if ! grep "track_activity_query_size = 4096" "$pg_conf" >/dev/null; then
+  echo "track_activity_query_size = 4096" >> "$pg_conf"
+fi
+
+# Restart to apply configuration changes
+systemctl restart postgresql
+
+psql -U postgres -h 127.0.0.1 -c "DROP DATABASE IF EXISTS mbstest"
+psql -U postgres -h 127.0.0.1 -c "CREATE DATABASE mbstest"
+
+bashrc=/home/vagrant/.bashrc
+
+echo "******** Run Tests with PostgreSQL ********"
+echo "Set this environment variable to test with PostgreSQL"
+echo "export DATABASE_URI=postgresql+psycopg2://postgres:@127.0.0.1/mbstest"
+echo
+PGSQL
+
 $script_services = <<SCRIPT_SERVICES
     bin_dir=~/devenv/bin
     cd /opt/module_build_service
@@ -98,6 +138,7 @@ Vagrant.configure("2") do |config|
   config.vm.network "forwarded_port", guest_ip: "0.0.0.0", guest: 13747, host: 13747
   config.vm.provision "shell", inline: $script
   config.vm.provision "shell", inline: "usermod -a -G mock vagrant"
+  config.vm.provision "shell", inline: $config_pgsql
   config.vm.provision "shell", inline: $make_devenv, privileged: false
   config.vm.provision "shell", inline: $script_services, privileged: false, run: "always"
   config.vm.provider "libvirt" do |v, override|
diff --git a/docs/CONTRIBUTING.rst b/docs/CONTRIBUTING.rst
index 3714da8b..6d5f8261 100644
--- a/docs/CONTRIBUTING.rst
+++ b/docs/CONTRIBUTING.rst
@@ -1,6 +1,9 @@
 Running Tests
 =============
 
+Inside Container
+----------------
+
 Since MBS requires Python dependencies that aren't available using PyPi (e.g.
 libsolv bindings), there are container images (based on CentOS and Fedora) that
 can be used to run the code analysis and unit tests.
@@ -38,6 +41,18 @@ the path of each test must start with ``/src/``. For example::
         /src/tests/test_mmd_resolver.py \
         /src/tests/test_builder/test_koji.py::TestKojiBuilder::test_tag_to_repo
 
+Inside Vagrant machine
+----------------------
+
+You can run tests with either SQLite or PostgreSQL as well. The former is default.
+
+To start to run tests with SQLite, you could simply run ``py.test`` or ``tox``.
+
+To start to run tests with PostgreSQL, set environment variable
+``DATABASE_URI`` before running ``py.test`` or ``tox``::
+
+    export DATABASE_URI=postgresql+psycopg2://postgres:@127.0.0.1/mbstest
+
 Style Guide
 ===========