diff --git a/main.go b/main.go
index 1b3a816..5940fe3 100644
--- a/main.go
+++ b/main.go
@@ -554,7 +554,7 @@ func runRPC(wg *sync.WaitGroup, ctx context.Context) {
 	var opts []_grpc.ServerOption
 	if !dev {
 		_log.Infow("adding auth interceptor")
-		ac := authv3.NewAuthContext(db)
+		ac := authv3.NewAuthContext(kc, ks, as)
 		o := authv3.Option{}
 		opts = append(opts, _grpc.UnaryInterceptor(
 			ac.NewAuthUnaryInterceptor(o),
diff --git a/pkg/auth/v3/auth.go b/pkg/auth/v3/auth.go
index 849bfcb..01bddea 100644
--- a/pkg/auth/v3/auth.go
+++ b/pkg/auth/v3/auth.go
@@ -1,6 +1,8 @@
 package authv3
 
 import (
+	"database/sql"
+	"fmt"
 	"os"
 
 	"github.com/RafayLabs/rcloud-base/pkg/enforcer"
@@ -8,6 +10,9 @@ import (
 	"github.com/RafayLabs/rcloud-base/pkg/service"
 	kclient "github.com/ory/kratos-client-go"
 	"github.com/uptrace/bun"
+
+	"github.com/uptrace/bun/dialect/pgdialect"
+	"github.com/uptrace/bun/driver/pgdriver"
 	"gorm.io/driver/postgres"
 	"gorm.io/gorm"
 )
@@ -32,15 +37,26 @@ type authContext struct {
 	as service.AuthzService
 }
 
-// NewAuthContext setup authentication and authorization dependencies.
-func NewAuthContext(db *bun.DB) authContext {
+// SetupAuthContext sets up new authContext along with its
+// dependencies. If the caller already has instances of authContext
+// fields created then use NewAuthContext instead.
+func SetupAuthContext() authContext {
 	var (
 		kc           *kclient.APIClient
 		kratosScheme string
 		kratosAddr   string
+		db           *bun.DB
 	)
-	// TODO: https://github.com/RafayLabs/prompt/pull/3#issuecomment-1073557206
-	// Where exactly should we be getting these values from?
+
+	// Initialize database
+	dbUser := getEnvWithDefault("DB_USER", "admindbuser")
+	dbPassword := getEnvWithDefault("DB_PASSWORD", "admindbpassword")
+	dbAddr := getEnvWithDefault("DB_ADDR", "localhost:5432")
+	dbName := getEnvWithDefault("DB_NAME", "admindb")
+	dsn := fmt.Sprintf("postgres://%s:%s@%s/%s?sslmode=disable", dbUser, dbPassword, dbAddr, dbName)
+	sqldb := sql.OpenDB(pgdriver.NewConnector(pgdriver.WithDSN(dsn)))
+	db = bun.NewDB(sqldb, pgdialect.New())
+
 	if v, ok := os.LookupEnv("KRATOS_SCHEME"); ok {
 		kratosScheme = v
 	} else {
@@ -71,3 +87,27 @@ func NewAuthContext(db *bun.DB) authContext {
 
 	return authContext{kc: kc, as: as, ks: service.NewApiKeyService(db)}
 }
+
+func getEnvWithDefault(env, def string) string {
+	val := os.Getenv(env)
+	if val == "" {
+		return def
+	}
+	return val
+}
+
+// NewAuthContext instantiate authContext. NewAuthContext creates
+// authContext reusing dependency instances from calling function
+// instead of creating new instances. To create authContext along with
+// its dependencies, use SetupAuthContext.
+func NewAuthContext(
+	kc *kclient.APIClient,
+	apiKeySvc service.ApiKeyService,
+	authzSvc service.AuthzService,
+) authContext {
+	return authContext{
+		kc: kc,
+		ks: apiKeySvc,
+		as: authzSvc,
+	}
+}
diff --git a/pkg/auth/v3/middleware.go b/pkg/auth/v3/middleware.go
index 3eae9b8..c49d48c 100644
--- a/pkg/auth/v3/middleware.go
+++ b/pkg/auth/v3/middleware.go
@@ -18,10 +18,9 @@ type authMiddleware struct {
 	opt Option
 }
 
-func NewAuthMiddleware(opt Option, db *bun.DB) negroni.Handler {
+func NewAuthMiddleware(opt Option) negroni.Handler {
 	return &authMiddleware{
-		db:  db,
-		ac:  NewAuthContext(db),
+		ac:  SetupAuthContext(),
 		opt: opt,
 	}
 }