diff --git a/.env.docker b/.env.docker
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--- /dev/null
+++ b/.env.docker
@@ -0,0 +1,10 @@
+# Database URL for connecting from the API container to the Postgres container
+# The hostname 'postgres' matches the service name in docker-compose.yml
+DATABASE_URL=postgres://user:password@postgres:5432/rustforms_db
+
+# We can also move our other secrets here to keep them all in one place for Docker
+FORM_SECRET=your-super-secret-unguessable-token
+RECIPIENT_EMAIL=your-email@example.com
+SMTP_HOST=smtp.example.com
+SMTP_USERNAME=your-smtp-username
+SMTP_PASSWORD=your-smtp-password
\ No newline at end of file
diff --git a/apps/api/Dockerfile b/apps/api/Dockerfile
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+++ b/apps/api/Dockerfile
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+# ---- Stage 1: The Builder ----
+# Use the official Rust image as a build environment.
+FROM rust:1.79-slim as builder
+
+# Set the working directory
+WORKDIR /usr/src/rustforms
+
+# Copy the entire monorepo context to leverage Nx caching
+COPY . .
+
+# Build the API in release mode using Nx's runner
+# This creates an optimized binary.
+RUN npx nx run api:build --skip-nx-cache
+
+# ---- Stage 2: The Final Image ----
+# Use a minimal, secure base image for the final container.
+FROM debian:12-slim
+
+# Set the working directory
+WORKDIR /usr/src/rustforms
+
+# Copy the compiled binary from the 'builder' stage.
+COPY --from=builder /usr/src/rustforms/dist/apps/api/api .
+
+# Expose the port the app runs on.
+EXPOSE 3001
+
+# The command to run when the container starts.
+CMD ["./api"]
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diff --git a/docker-compose.yml b/docker-compose.yml
new file mode 100644
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+++ b/docker-compose.yml
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+# File: docker-compose.yml
+
+version: '3.8'
+
+services:
+  # 1. The PostgreSQL Database Service
+  postgres:
+    image: postgres:16-alpine
+    container_name: rustforms-db
+    ports:
+      - "5432:5432" # Expose the database port to your local machine
+    environment:
+      # These are the credentials your Rust app will use to connect.
+      # You can change these, but make sure they match your .env file.
+      POSTGRES_USER: user
+      POSTGRES_PASSWORD: password
+      POSTGRES_DB: rustforms_db
+    volumes:
+      - rustforms-data:/var/lib/postgresql/data # This saves your DB data even if the container stops
+    restart: unless-stopped
+
+  # 2. The Rust API Service (we will create its Dockerfile next)
+  api:
+    container_name: rustforms-api
+    build:
+      context: .
+      dockerfile: apps/api/Dockerfile
+    ports:
+      - "3001:3001" # Expose the API port
+    depends_on:
+      - postgres # Tells Docker to start the database before starting the API
+    environment:
+      # We will create this .env.docker file next
+      - .env.docker
+    restart: unless-stopped
+
+volumes:
+  rustforms-data: # Defines the persistent volume for the database
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