diff --git a/Cargo.lock b/Cargo.lock
index c64fb8cdf7..1a09bf9494 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -242,6 +242,7 @@ dependencies = [
  "async-trait",
  "bb8-postgres",
  "chainstate-test-framework",
+ "clap",
  "common",
  "crypto",
  "futures",
diff --git a/api-server/api-server-common/Cargo.toml b/api-server/api-server-common/Cargo.toml
index 7bcd0708fb..c116b57beb 100644
--- a/api-server/api-server-common/Cargo.toml
+++ b/api-server/api-server-common/Cargo.toml
@@ -14,12 +14,14 @@ logging = {path = '../../logging'}
 serialization = { path = "../../serialization" }
 
 async-trait.workspace = true
+bb8-postgres = "0.8"
+clap = { workspace = true, features = ["derive"] }
 futures = { workspace = true, default-features = false }
 parity-scale-codec.workspace = true
 thiserror.workspace = true
 tokio = { workspace = true, features = ["full"] }
 tokio-postgres = "0.7"
-bb8-postgres = "0.8"
+
 
 [dev-dependencies]
 chainstate-test-framework = { path = '../../chainstate/test-framework' }
diff --git a/api-server/api-server-common/src/lib.rs b/api-server/api-server-common/src/lib.rs
index 29b4f8fac7..dce8861cdf 100644
--- a/api-server/api-server-common/src/lib.rs
+++ b/api-server/api-server-common/src/lib.rs
@@ -14,3 +14,38 @@
 // limitations under the License.
 
 pub mod storage;
+
+use clap::Parser;
+
+#[derive(Parser, Debug)]
+pub struct PostgresConfig {
+    /// Postgres host
+    #[clap(long, default_value = "localhost")]
+    pub postgres_host: String,
+
+    /// Postgres port
+    #[clap(long, default_value = "5432")]
+    pub postgres_port: u16,
+
+    /// Postgres user
+    #[clap(long, default_value = "postgres")]
+    pub postgres_user: String,
+
+    /// Postgres password
+    #[clap(long)]
+    pub postgres_password: Option<String>,
+
+    /// Postgres database
+    #[clap(long)]
+    pub postgres_database: Option<String>,
+
+    /// Postgres max connections
+    #[clap(long, default_value = "10")]
+    pub postgres_max_connections: u32,
+}
+
+impl Default for PostgresConfig {
+    fn default() -> Self {
+        Self::parse()
+    }
+}
diff --git a/api-server/scanner-daemon/src/config.rs b/api-server/scanner-daemon/src/config.rs
index 123c58f27e..2aa2f9d3e2 100644
--- a/api-server/scanner-daemon/src/config.rs
+++ b/api-server/scanner-daemon/src/config.rs
@@ -13,6 +13,7 @@
 // See the License for the specific language governing permissions and
 // limitations under the License.
 
+use api_server_common::PostgresConfig;
 use clap::Parser;
 use common::chain::config::ChainType;
 use std::net::SocketAddr;
@@ -46,6 +47,10 @@ pub struct ApiServerScannerArgs {
     /// RPC password (either provide a username and password, or use a cookie file. You cannot use both)
     #[clap(long)]
     pub rpc_password: Option<String>,
+
+    /// Postgres config values
+    #[clap(flatten)]
+    pub postgres_config: PostgresConfig,
 }
 
 impl From<Network> for ChainType {
diff --git a/api-server/scanner-daemon/src/main.rs b/api-server/scanner-daemon/src/main.rs
index 27ef292060..7433ce99fc 100644
--- a/api-server/scanner-daemon/src/main.rs
+++ b/api-server/scanner-daemon/src/main.rs
@@ -16,9 +16,10 @@
 use std::sync::Arc;
 
 use api_server_common::storage::{
-    impls::in_memory::transactional::TransactionalApiServerInMemoryStorage,
+    impls::postgres::TransactionalApiServerPostgresStorage,
     storage_api::{
-        ApiServerStorage, ApiServerStorageRead, ApiServerStorageWrite, ApiServerTransactionRw,
+        ApiServerStorage, ApiServerStorageError, ApiServerStorageRead, ApiServerStorageWrite,
+        ApiServerTransactionRw,
     },
 };
 use blockchain_scanner_lib::blockchain_state::BlockchainState;
@@ -31,9 +32,26 @@ use rpc::RpcAuthData;
 use utils::{cookie::COOKIE_FILENAME, default_data_dir::default_data_dir_for_chain};
 mod config;
 
-#[must_use]
-pub fn make_in_memory_storage(chain_config: &ChainConfig) -> TransactionalApiServerInMemoryStorage {
-    TransactionalApiServerInMemoryStorage::new(chain_config)
+pub async fn make_postgres_storage(
+    postgres_host: String,
+    postgres_port: u16,
+    postgres_user: String,
+    postgres_password: Option<String>,
+    postgres_database: Option<String>,
+    postgres_max_connections: u32,
+    chain_config: &ChainConfig,
+) -> Result<TransactionalApiServerPostgresStorage, ApiServerScannerError> {
+    TransactionalApiServerPostgresStorage::new(
+        &postgres_host,
+        postgres_port,
+        &postgres_user,
+        postgres_password.as_deref(),
+        postgres_database.as_deref(),
+        postgres_max_connections,
+        chain_config,
+    )
+    .await
+    .map_err(ApiServerScannerError::PostgresConnectionError)
 }
 
 pub async fn run<S: ApiServerStorage>(
@@ -83,6 +101,8 @@ pub enum ApiServerScannerError {
     RpcError(node_comm::rpc_client::NodeRpcError),
     #[error("Invalid config: {0}")]
     InvalidConfig(String),
+    #[error("Postgres connection error: {0}")]
+    PostgresConnectionError(ApiServerStorageError),
 }
 
 #[tokio::main]
@@ -104,6 +124,7 @@ async fn main() -> Result<(), ApiServerScannerError> {
         rpc_cookie_file,
         rpc_username,
         rpc_password,
+        postgres_config,
     } = args;
 
     let chain_type: ChainType = network.into();
@@ -134,7 +155,16 @@ async fn main() -> Result<(), ApiServerScannerError> {
         .await
         .map_err(ApiServerScannerError::RpcError)?;
 
-    let storage = make_in_memory_storage(&chain_config);
+    let storage = make_postgres_storage(
+        postgres_config.postgres_host,
+        postgres_config.postgres_port,
+        postgres_config.postgres_user,
+        postgres_config.postgres_password,
+        postgres_config.postgres_database,
+        postgres_config.postgres_max_connections,
+        &chain_config,
+    )
+    .await?;
 
     run(&chain_config, &rpc_client, storage).await?;
 
diff --git a/api-server/web-server/src/config.rs b/api-server/web-server/src/config.rs
index 23cfc5eef8..97bbb88ab4 100644
--- a/api-server/web-server/src/config.rs
+++ b/api-server/web-server/src/config.rs
@@ -13,6 +13,7 @@
 // See the License for the specific language governing permissions and
 // limitations under the License.
 
+use api_server_common::PostgresConfig;
 use clap::Parser;
 use std::{net::SocketAddr, ops::Deref};
 
@@ -27,6 +28,10 @@ pub struct ApiServerWebServerConfig {
     /// Default: `127.0.0.1:3000`
     #[clap(long)]
     pub address: Option<ListenAddress>,
+
+    /// Postgres config values
+    #[clap(flatten)]
+    pub postgres_config: PostgresConfig,
 }
 
 #[derive(Clone, Debug, Parser)]
diff --git a/api-server/web-server/src/main.rs b/api-server/web-server/src/main.rs
index 7f3194471c..ce9095572b 100644
--- a/api-server/web-server/src/main.rs
+++ b/api-server/web-server/src/main.rs
@@ -17,7 +17,7 @@ mod api;
 mod config;
 mod error;
 
-use api_server_common::storage::impls::in_memory::transactional::TransactionalApiServerInMemoryStorage;
+use api_server_common::storage::impls::postgres::TransactionalApiServerPostgresStorage;
 use axum::{response::IntoResponse, routing::get, Json, Router};
 use clap::Parser;
 use common::chain::config::create_unit_test_config;
@@ -43,9 +43,23 @@ async fn main() {
     // TODO: generalize network configuration
     let chain_config = Arc::new(create_unit_test_config());
 
-    // TODO: point database to PostgreSQL from command line arguments
+    let storage = TransactionalApiServerPostgresStorage::new(
+        &args.postgres_config.postgres_host,
+        args.postgres_config.postgres_port,
+        &args.postgres_config.postgres_user,
+        args.postgres_config.postgres_password.as_deref(),
+        args.postgres_config.postgres_database.as_deref(),
+        args.postgres_config.postgres_max_connections,
+        &chain_config,
+    )
+    .await
+    .unwrap_or_else(|e| {
+        log::error!("Error creating Postgres storage: {}", e);
+        std::process::exit(1);
+    });
+
     let state = APIServerWebServerState {
-        db: Arc::new(TransactionalApiServerInMemoryStorage::new(&chain_config)),
+        db: Arc::new(storage),
         chain_config,
     };