diff --git a/README.md b/README.md
index 318cd4866..dfd280343 100644
--- a/README.md
+++ b/README.md
@@ -33,12 +33,12 @@ make -f docker test
 ### Setting up a local single node database
 After starting the Docker image or local PostgreSQL server, you can initiate a local single node database:
 ```bash
-psql -U postgres -h localhost < scripts/sql/setup_single_node_db.psql
+DB_NAME=iobeamdb ./scripts/setup-db.sh
 ```
 
 This will set up a database named `iobeamdb` which can be accessed with:
 ```bash
-psql -U postgres -h localhost -d iobeamdb
+psql -U postgres -d iobeamdb
 ```
 
 #### Creating a table
diff --git a/scripts/setup-db.sh b/scripts/setup-db.sh
new file mode 100755
index 000000000..b7006d725
--- /dev/null
+++ b/scripts/setup-db.sh
@@ -0,0 +1,31 @@
+#!/bin/bash
+
+set -e
+
+if [[ -z "$DB_NAME" ]]; then
+  echo "The DB_NAME must be set"
+  exit 1
+fi
+
+# Create data directories for tablespaces tests
+psql -U postgres -v ON_ERROR_STOP=1 << EOF
+\echo 'Creating database: ${DB_NAME}'
+CREATE DATABASE ${DB_NAME};
+
+\c ${DB_NAME}
+CREATE EXTENSION IF NOT EXISTS iobeamdb CASCADE;
+
+\o /dev/null
+\echo 'Set up database as meta node...'
+select setup_meta();
+\echo 'Set up database as data node...'
+select setup_main();
+
+SELECT add_cluster_user('postgres', NULL);
+
+\echo 'Adding database iobeam to the single-node cluster...'
+SELECT set_meta('${DB_NAME}' :: NAME, 'localhost');
+SELECT add_node('${DB_NAME}' :: NAME, 'localhost');
+
+\echo 'Success'
+EOF
diff --git a/scripts/sql/setup_single_node_db.psql b/scripts/sql/setup_single_node_db.psql
deleted file mode 100644
index ed1c91175..000000000
--- a/scripts/sql/setup_single_node_db.psql
+++ /dev/null
@@ -1,19 +0,0 @@
-\set ON_ERROR_STOP 1
-CREATE DATABASE iobeam;
-
-\c iobeam
-CREATE EXTENSION IF NOT EXISTS iobeamdb CASCADE;
-
-\o /dev/null
-\echo 'Set up database as meta node...'
-select setup_meta();
-\echo 'Set up database as data node...'
-select setup_main();
-
-SELECT add_cluster_user('postgres', NULL);
-
-\echo 'Adding database iobeam to the single-node cluster...'
-SELECT set_meta('iobeam' :: NAME, 'localhost');
-SELECT add_node('iobeam' :: NAME, 'localhost');
-
-\echo 'Success'