diff --git a/.env.test b/.env.test
index 58f63bd2e..45f46888e 100644
--- a/.env.test
+++ b/.env.test
@@ -1,6 +1,6 @@
 DEBUG=true
 SECRET_KEY='tests'
-DATABASE_URL='postgresql:///opencraft-test'
+DATABASE_URL='postgres://localhost/opencraft'
 HUEY_ALWAYS_EAGER=true
 OPENSTACK_USER='test'
 OPENSTACK_PASSWORD='pass'
diff --git a/.gitignore b/.gitignore
index 69f0ee8a2..c012724c9 100644
--- a/.gitignore
+++ b/.gitignore
@@ -62,3 +62,6 @@ target/
 # Local configuration
 .env
 .env.integration
+
+# Vagrant
+.vagrant/
diff --git a/README.md b/README.md
index 7065e506b..c7bc79d9e 100644
--- a/README.md
+++ b/README.md
@@ -4,6 +4,35 @@ OpenCraft
 Install
 -------
 
+### Vagrant install
+
+You can use [vagrant][] to set up a virtual machine for local development and
+testing. This is useful to keep your development environment isolated from the
+rest of your system.
+
+First, install [virtualbox][] and [vagrant][]. Then run:
+
+    vagrant up
+
+This will provision a virtual machine running Ubuntu 14.04, set up local
+postgres and redis, install the dependencies and run the tests.
+
+Once the virtual machine is up and running, you can ssh into it with this
+command:
+
+    vagrant ssh
+
+Vagrant will set up a virtualbox share mapping your local development directory
+to `/vagrant` inside the virtual machine. Any changes you make locally will be
+reflected inside the virtual machine automatically.
+
+Vagrant will map port 5000 inside the virtual machine to port 5000 on the host,
+so you can access the development server using your web browser.
+
+
+### Local install
+
+If you prefer not to install vagrant, you can install OpenCraft manually.
 Instructions based on Ubuntu 14.04.
 
 Install the system package dependencies & virtualenv:
@@ -33,8 +62,14 @@ $ pip install -r requirements.txt
 Configure
 ---------
 
-Create an `.env` file at the root of the repository or set environment variables, customizing the
-settings from `opencraft/settings.py` which are loaded via `env()`.
+Honcho will set up environment variables defined in the `.env` file at the root
+of your repository. If you are using vagrant for development, a basic `.env`
+file will already have been created for you, but you will need to add
+credentials for third-party services manually in order to run the development
+server or the integration tests.
+
+The environment variables in `.env` customize the settings from
+`opencraft/settings.py` which are loaded via `env()`.
 
 
 Migrations
@@ -141,9 +176,9 @@ $ make test_unit
 $ make test_integration
 ```
 
-Note that the integration tests aren't run by default, as they require a working OpenStack cluster
-configured. To run them, create a `.env.test` file - your development environment is likely a good
-starting point:
+Note that the integration tests aren't run by default, as they require a working
+OpenStack cluster configured. To run them, create a `.env.integration` file -
+your development environment is likely a good starting point:
 
 ```
 $ ln -s .env .env.integration
@@ -168,3 +203,7 @@ You can also access the Django `manage.py` command directly, using honcho to loa
 ```
 $ honcho run ./manage.py config
 ```
+
+
+[virtualbox]: https://www.virtualbox.org/
+[vagrant]:    https://www.vagrantup.com/
diff --git a/Vagrantfile b/Vagrantfile
new file mode 100644
index 000000000..67d0ce6fa
--- /dev/null
+++ b/Vagrantfile
@@ -0,0 +1,61 @@
+# -*- mode: ruby -*-
+# vi: set ft=ruby :
+
+# This script provisions a vagrant development environment with local
+# postgres and redis servers for development and testing.
+PROVISION = <<SCRIPT
+set -e
+
+# cd to /vagrant on login
+cd /vagrant
+grep -Fq 'cd /vagrant' ~/.bashrc || echo 'cd /vagrant' >> ~/.bashrc
+
+# Install system packages
+sudo apt-get update --quiet
+sudo apt-get install -y $(cat debian_packages.lst) postgresql
+
+# Set up a virtualenv
+sudo pip3 install virtualenv
+mkdir -p ~/.virtualenvs
+virtualenv -p python3 ~/.virtualenvs/opencraft
+source ~/.virtualenvs/opencraft/bin/activate
+
+# Activate virtualenv on login
+grep -Fq 'source ~/.virtualenvs/opencraft/bin/activate' ~/.bashrc ||
+  echo 'source ~/.virtualenvs/opencraft/bin/activate' >> ~/.bashrc
+
+# Install python dependencies
+pip install -r requirements.txt
+
+# Create postgres user
+sudo -u postgres createuser -d vagrant
+
+# Allow access to postgres from localhost without password
+cat << EOF | sudo tee /etc/postgresql/9.3/main/pg_hba.conf
+local   all             postgres                                peer
+local   all             all                                     trust
+host    all             all             127.0.0.1/32            trust
+host    all             all             ::1/128                 trust
+EOF
+sudo service postgresql restart
+
+# Create postgres database
+createdb --encoding utf-8 --template template0 opencraft
+
+# Use test configuration for local development, excluding the line that
+# disables logging to the console.
+[ -e .env ] || grep -v '^BASE_HANDLERS' .env.test > .env
+
+# Run unit tests
+make test_unit
+SCRIPT
+
+Vagrant.configure(2) do |config|
+  config.vm.box = 'ubuntu/trusty64'
+  config.vm.network 'forwarded_port', guest: 2001, host: 2001
+  config.vm.network 'forwarded_port', guest: 5000, host: 5000
+  config.vm.provision 'shell',
+                      inline: PROVISION,
+                      privileged: false,
+                      keep_color: true
+end
diff --git a/manage.py b/manage.py
index 3358d98f1..adf68034c 100755
--- a/manage.py
+++ b/manage.py
@@ -1,4 +1,4 @@
-#!/usr/bin/env python
+#!/usr/bin/env python3
 # -*- coding: utf-8 -*-
 #
 # OpenCraft -- tools to aid developing and hosting free software projects
diff --git a/opencraft/settings.py b/opencraft/settings.py
index ba54fa75f..cea1b572d 100644
--- a/opencraft/settings.py
+++ b/opencraft/settings.py
@@ -152,7 +152,7 @@
 # Django-extensions ###########################################################
 
 SHELL_PLUS = "ipython"
-RUNSERVERPLUS_SERVER_ADDRESS_PORT = env('RUNDEV_SERVER_ADDRESS_PORT', default='localhost:5000')
+RUNSERVERPLUS_SERVER_ADDRESS_PORT = env('RUNDEV_SERVER_ADDRESS_PORT', default='0.0.0.0:5000')
 
 
 # Grappelli ###################################################################
@@ -208,8 +208,8 @@
 SWAMP_DRAGON_REDIS_HOST = REDIS_URL_OBJ.hostname
 SWAMP_DRAGON_REDIS_PORT = REDIS_URL_OBJ.port
 SWAMP_DRAGON_CONNECTION = ('swampdragon.connections.sockjs_connection.DjangoSubscriberConnection', '/data')
-DRAGON_SERVER_ADDRESS_PORT = env('DRAGON_SERVER_ADDRESS_PORT', default='localhost:2001')
-DRAGON_URL = env('DRAGON_URL', default='http://{}/'.format(DRAGON_SERVER_ADDRESS_PORT))
+DRAGON_SERVER_ADDRESS_PORT = env('DRAGON_SERVER_ADDRESS_PORT', default='0.0.0.0:2001')
+DRAGON_URL = env('DRAGON_URL', default='http://localhost:2001/')
 
 
 # OpenStack ###################################################################
diff --git a/websocket.py b/websocket.py
index 56c645d74..99dd6b2a3 100755
--- a/websocket.py
+++ b/websocket.py
@@ -1,4 +1,4 @@
-#!/usr/bin/env python
+#!/usr/bin/env python3
 # -*- coding: utf-8 -*-
 #
 # OpenCraft -- tools to aid developing and hosting free software projects