diff --git a/.env.example b/.env.example
index f61e3ef..1727d26 100644
--- a/.env.example
+++ b/.env.example
@@ -33,7 +33,9 @@ AWS_PROFILE=devops-agent-readonly   # optional — use named profile (local dev)
 # Agent behavior
 MAX_TOOL_CALLS=20
 INVESTIGATION_TIMEOUT=120
-LOG_LEVEL=INFO
+LOG_LEVEL=DEBUG                  # DEBUG | INFO | WARNING | ERROR
+LOG_CONSOLE_ENABLED=true        # false → suppress all console output (e.g. log to file only)
+LOG_CONSOLE_COLORIZE=true       # false → strip ANSI colour codes (CI pipelines, Docker logs)
 # TOOL_RESPONSE_MAX_CHARS=40000  # cap large tool responses before they reach the LLM; 0 = disabled
 # SUMMARIZATION_ENABLED=true
 # SUMMARIZATION_THRESHOLD_CHARS=60000  # compact session when total message chars exceed this (~15K tokens)
diff --git a/CLAUDE.md b/CLAUDE.md
index 834af7b..3c3d74b 100644
--- a/CLAUDE.md
+++ b/CLAUDE.md
@@ -25,9 +25,15 @@ OpenDevOps Agent is an open-source AWS incident investigation tool powered by an
 # Install / update dependencies
 uv sync
 
-# Run the web UI (FastAPI backend + serves built frontend)
+# Development server — FastAPI with hot reload (equivalent to uv run python src/run.py)
+uv run dev
+
+# Production web UI (FastAPI backend + serves built frontend, no reload)
 uv run devops-agent ui
 
+# Apply SQL migrations to PostgreSQL (requires CHECKPOINT_BACKEND=postgres + DATABASE_URL)
+uv run migrate
+
 # CLI investigation
 uv run devops-agent investigate "Lambda high error rate on payment service"
 uv run devops-agent ask "Why would an ECS task OOM?"
@@ -39,7 +45,6 @@ uv run devops-agent mcp --http       # HTTP+SSE transport, port 8001
 
 # Tests
 uv run pytest
-uv run pytest tests/test_api/ -v
 
 # Lint / format
 uv run ruff check src/
@@ -191,6 +196,8 @@ AWS_PROFILE=                           # optional named ~/.aws profile
 MAX_TOOL_CALLS=20                      # recursion_limit = MAX_TOOL_CALLS * 3 + 15
 INVESTIGATION_TIMEOUT=120              # seconds before asyncio.TimeoutError
 LOG_LEVEL=INFO
+LOG_CONSOLE_ENABLED=true               # false = suppress all console output
+LOG_CONSOLE_COLORIZE=true              # false = strip ANSI colours (CI / Docker)
 TOOL_RESPONSE_MAX_CHARS=40000          # 0 = disabled; ~10K tokens at 4 chars/token
 
 # Storage backend — pick exactly one
diff --git a/README.md b/README.md
index 2f26ea1..29aea28 100644
--- a/README.md
+++ b/README.md
@@ -92,7 +92,7 @@ CHECKPOINT_BACKEND=postgres
 DATABASE_URL=postgresql://dev:dev@localhost:5433/opendevops
 
 # Create app tables (safe to re-run)
-uv run python scripts/setup_db.py
+uv run migrate
 ```
 
 ### 5. Run
@@ -114,8 +114,8 @@ an IAM role to the instance/task instead.
 **Option B — Local dev (two terminals)**
 
 ```bash
-# Terminal 1 — FastAPI backend
-uv run uvicorn api.app:app --reload
+# Terminal 1 — FastAPI backend with hot reload
+uv run dev
 ```
 
 ```bash
diff --git a/pyproject.toml b/pyproject.toml
index a6c31bc..8bfe374 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -32,6 +32,8 @@ dependencies = [
 
 [project.scripts]
 devops-agent = "cli.main:app"
+dev          = "cli.dev:dev_cmd"
+migrate      = "cli.migrate:migrate_cmd"
 
 [build-system]
 requires = ["hatchling"]
@@ -54,6 +56,7 @@ dev = [
 
 [tool.pytest.ini_options]
 asyncio_mode = "auto"
+testpaths = ["tests"]
 
 [tool.ruff]
 line-length = 100
diff --git a/src/cli/dev.py b/src/cli/dev.py
new file mode 100644
index 0000000..601f39e
--- /dev/null
+++ b/src/cli/dev.py
@@ -0,0 +1,25 @@
+import sys
+from typing import Annotated
+
+import typer
+import uvicorn
+from rich.console import Console
+
+if sys.platform == "win32":
+    import asyncio
+    asyncio.set_event_loop_policy(asyncio.WindowsSelectorEventLoopPolicy())
+
+console = Console()
+
+
+def dev_cmd(
+    host: Annotated[str, typer.Option("--host", help="Bind host.")] = "127.0.0.1",
+    port: Annotated[int, typer.Option("--port", "-p", help="Port to listen on.")] = 8000,
+) -> None:
+    """Start the development server with hot reload enabled."""
+    console.print(
+        f"[bold green]OpenDevOps Dev Server[/bold green] → "
+        f"[link=http://{host}:{port}]http://{host}:{port}[/link]  "
+        "[dim](reload on)[/dim]"
+    )
+    uvicorn.run("api.app:app", host=host, port=port, reload=True)
diff --git a/src/cli/main.py b/src/cli/main.py
index ce61aa1..62f2dd3 100644
--- a/src/cli/main.py
+++ b/src/cli/main.py
@@ -16,7 +16,12 @@
 
 def _setup_logging() -> None:
     logger.remove()
-    logger.add(sys.stderr, level=settings.log_level.upper())
+    if settings.log_console_enabled:
+        logger.add(
+            sys.stderr,
+            level=settings.log_level.upper(),
+            colorize=settings.log_console_colorize,
+        )
 
 
 @app.callback()
@@ -30,9 +35,13 @@ def main() -> None:
 from cli.report import report_cmd  # noqa: E402
 from cli.ui import ui_cmd  # noqa: E402
 from cli.mcp import mcp_cmd  # noqa: E402
+from cli.dev import dev_cmd  # noqa: E402
+from cli.migrate import migrate_cmd  # noqa: E402
 
 app.command("investigate")(investigate_cmd)
 app.command("ask")(ask_cmd)
 app.command("report")(report_cmd)
 app.command("ui")(ui_cmd)
 app.command("mcp")(mcp_cmd)
+app.command("dev")(dev_cmd)
+app.command("migrate")(migrate_cmd)
diff --git a/src/cli/migrate.py b/src/cli/migrate.py
new file mode 100644
index 0000000..6c69305
--- /dev/null
+++ b/src/cli/migrate.py
@@ -0,0 +1,56 @@
+"""Run all SQL migrations in order against the configured PostgreSQL database."""
+
+from __future__ import annotations
+
+import sys
+from pathlib import Path
+
+import typer
+from rich.console import Console
+
+console = Console()
+
+
+def migrate_cmd() -> None:
+    """Apply all pending SQL migrations to the configured database."""
+    from config import settings
+
+    if settings.checkpoint_backend != "postgres" or not settings.database_url:
+        console.print(
+            "[bold red]migrate requires CHECKPOINT_BACKEND=postgres and DATABASE_URL to be set.[/bold red]"
+        )
+        raise typer.Exit(1)
+
+    try:
+        import psycopg
+    except ImportError:
+        console.print("[bold red]psycopg not installed. Run: uv add psycopg[binary,pool][/bold red]")
+        raise typer.Exit(1)
+
+    migrations_dir = Path(__file__).parent.parent.parent / "migrations"
+    sql_files = sorted(migrations_dir.glob("*.sql"))
+    if not sql_files:
+        console.print("[yellow]No migration files found in migrations/[/yellow]")
+        raise typer.Exit(0)
+
+    console.print(f"[bold]Running {len(sql_files)} migration(s) against database...[/bold]")
+
+    try:
+        conn = psycopg.connect(settings.database_url, autocommit=True)
+    except Exception as e:
+        console.print(f"[bold red]Could not connect to database: {e}[/bold red]")
+        raise typer.Exit(1)
+
+    with conn:
+        for path in sql_files:
+            sql = path.read_text(encoding="utf-8")
+            try:
+                conn.execute(sql)
+                console.print(f"  [green]✓[/green] {path.name}")
+            except Exception as e:
+                console.print(f"  [red]✗[/red] {path.name} — {e}")
+                conn.close()
+                raise typer.Exit(1)
+
+    conn.close()
+    console.print("[bold green]All migrations applied successfully.[/bold green]")
diff --git a/src/config/appsettings.py b/src/config/appsettings.py
index 97e79ac..4688449 100644
--- a/src/config/appsettings.py
+++ b/src/config/appsettings.py
@@ -24,6 +24,8 @@ class Settings(BaseSettings):
     max_tool_calls: int = 20
     investigation_timeout: int = 120
     log_level: str = "INFO"
+    log_console_enabled: bool = True
+    log_console_colorize: bool = True
 
     # Cap tool responses before feeding them back to the LLM.
     # Prevents large CloudWatch / CloudTrail payloads from exhausting the context window.