diff --git a/README.md b/README.md
index 0b6a441..fa8fc3d 100644
--- a/README.md
+++ b/README.md
@@ -8,6 +8,8 @@ Lean Go API backend for ISeeU Tracker.
 - [x] Entry point created (`cmd/api/main.go`)
 - [x] Env config package created (`internal/config/config.go`)
 - [x] `.env` loading added with required DB variables
+- [x] DB URL builder added in config (`DatabaseURL`) with schema `search_path`
+- [x] DB package scaffold created (`internal/db/`)
 - [x] Local Postgres service available in `compose.yaml` (dev profile)
 - [ ] Database connection package (`internal/db`) not implemented yet
 - [ ] Goose migrations folder/files not created yet
@@ -41,12 +43,13 @@ scripts/                    # optional local/dev scripts
 - [x] Create `cmd/api/main.go`
 - [x] Create `internal/config` package
 - [x] Load `.env` and validate required DB env vars
+- [x] Add DB URL builder method in config
 - [ ] Add `APP_PORT` env var with default fallback
 - [ ] Improve startup logs (without printing secrets)
 
 ### Chapter 2 - Database and Goose
 
-- [ ] Add `internal/db/postgres.go` with `sqlx` connection
+- [ ] Implement `internal/db/postgres.go` with `sqlx` connection (`pgx` driver)
 - [ ] Add `internal/db/migrate.go` to run Goose at startup
 - [ ] Create `migrations/` directory
 - [ ] Create first migration for `users` table
@@ -100,3 +103,5 @@ scripts/                    # optional local/dev scripts
 - Use `sqlx` for explicit SQL and scan helpers.
 - Use `goose` for schema versioning and run migrations automatically at startup.
 - Never store plain passwords; always use `password_hash`.
+- Keep one shared `*sqlx.DB` pool for the app lifetime; do not open DB per request.
+- Pass `context.Context` from handler (`r.Context()`) to service/repository methods.
diff --git a/internal/config/config.go b/internal/config/config.go
index fe6d8d7..ad985f4 100644
--- a/internal/config/config.go
+++ b/internal/config/config.go
@@ -1,7 +1,6 @@
 package config
 
 import (
-	"fmt"
 	"log"
 	"net"
 	"net/url"
diff --git a/internal/db/db.go b/internal/db/db.go
index e69de29..3a49c63 100644
--- a/internal/db/db.go
+++ b/internal/db/db.go
@@ -0,0 +1 @@
+package db
diff --git a/internal/db/postgres.go b/internal/db/postgres.go
new file mode 100644
index 0000000..3a49c63
--- /dev/null
+++ b/internal/db/postgres.go
@@ -0,0 +1 @@
+package db