How To Set Up n8n Locally with PostgreSQL and Ngrok Using Docker

Test and expose your local n8n instance without deploying to a server

Want to test webhooks locally without paying for hosting or domain name?

This setup lets you run n8n on your machine, connect it to PostgreSQL, and expose it to the internet using Ngrok in just a few steps.

1. Download the Project Files

Download and extract the ZIP file containing the Docker setup.

2. Create an Ngrok Account

A. Sign up at Ngrok
B. Copy your auth token from the dashboard
C. Add your auth token to the docker-compose.yml file:

ngrok:
    image: ngrok/ngrok:latest
    container_name: ngrok
    command: http n8n:5678
    environment:
      - NGROK_AUTHTOKEN=XXXX
    ports:
      - "4040:4040"
    depends_on:
      - n8n
    restart: always

Ngrok provides a free way to expose your local services to the internet.

4. Start the Services

Run the following command:

docker-compose up -d

This starts four services: n8n, n8n-runner, PostgreSQL, and Ngrok.

5. Access Ngrok Dashboard

http://localhost:4040

Go to the configuration section and look for a URL like:

URL: https://abc123.ngrok.io

This is your public URL

6. Configure n8n Webhook URL (Important)

Update the WEBHOOK_URL in your docker-compose.yml:

 n8n:
    image: docker.n8n.io/n8nio/n8n:${N8N_VERSION}
    restart: always
    environment:
      - ...
      - WEBHOOK_URL=https://abc123.ngrok.io

Restart the services to apply changes:

docker-compose up -d

This allows external services such as Telegram or Slack to connect to your local n8n instance.

7. Test webhook

Create a Webhook node in n8n. Your endpoint will look like:

https://abc123.ngrok.io/webhook/your-path

You can test it using:

• Postman

• Browser

• External service (Stripe, Telegram, etc.)

⚠️ Important Notes

Free Ngrok URLs change every time the service restarts

You need to update WEBHOOK_URL each time the URL changes

For a fixed domain, use a paid Ngrok plan

Conclusion

You now have a working local setup for testing real webhooks. From here, you can start building and validating workflows before moving to production.