diff --git a/README.rst b/README.rst
index ee224dafa..5228c7c37 100644
--- a/README.rst
+++ b/README.rst
@@ -264,7 +264,7 @@ You will find the Swagger API documentation at http://127.0.0.1:8000/docs
 
 6. Labeling Tool
 ---------------------
-* Use the `hosted version <https://annotate.deepset.ai/login>`_  (Beta) or deploy it yourself via Docker images (coming soon)
+* Use the `hosted version <https://annotate.deepset.ai/login>`_ (Beta) or deploy it yourself with the `Docker Images <https://github.com/deepset-ai/haystack/blob/master/annotation_tool>`_.
 * Create labels with different techniques: Come up with questions (+ answers) while reading passages (SQuAD style) or have a set of predefined questions and look for answers in the document (~ Natural Questions).
 * Structure your work via organizations, projects, users
 * Upload your documents or import labels from an existing SQuAD-style dataset
diff --git a/annotation_tool/README.md b/annotation_tool/README.md
new file mode 100644
index 000000000..321e8f7e3
--- /dev/null
+++ b/annotation_tool/README.md
@@ -0,0 +1,30 @@
+# Haystack Annotation Tool
+
+This document describes setting up the Haystack Annotation Tool with the publicly available Docker Images. Alternatively,
+a hosted version of the tool is available at https://annotate.deepset.ai/login.
+
+
+
+# Setup Annotation Tool with Docker
+
+1. Configure credentials & database in the `docker-compose.yml` file:
+
+The credentials should match in database image and application configuration.
+
+    DEFAULT_ADMIN_EMAIL: "example@example.com"
+    DEFAULT_ADMIN_PASSWORD: "DEMO-PASSWORD"
+
+    PROD_DB_NAME: "databasename"
+    PROD_DB_USERNAME: "somesafeuser"
+    PROD_DB_PASSWORD: "somesafepassword"
+
+
+    POSTGRES_USER: "somesafeuser"
+    POSTGRES_PASSWORD: "somesafepassword"
+    POSTGRES_DB: "databasename"
+
+
+2. Run docker-compose by executing `docker-compose up`.
+
+
+3. The UI should be available at `localhost:7001`.
\ No newline at end of file
diff --git a/annotation_tool/docker-compose.yml b/annotation_tool/docker-compose.yml
new file mode 100644
index 000000000..7b88a9490
--- /dev/null
+++ b/annotation_tool/docker-compose.yml
@@ -0,0 +1,41 @@
+version: "3"
+services:
+  backend:
+    image: deepset/haystack-annotation:latest
+    container_name: haystack-annotation
+    environment:
+      DEFAULT_ADMIN_EMAIL: "example@example.com"
+      DEFAULT_ADMIN_PASSWORD: "DEMO_PASSWORD"
+      NODE_ENV: "production"
+      PROD_DB_HOSTNAME: "db"
+      PROD_DB_NAME: "databasename"
+      PROD_DB_USERNAME: "somesafeuser"
+      PROD_DB_PASSWORD: "somesafepassword"
+    ports:
+      - "7001:7001"
+    links:
+      - "db:database"
+    depends_on:
+      - db
+    networks:
+      - app-network
+    restart: unless-stopped
+
+  db:
+    image: "postgres:12"
+    container_name: "postgres"
+    environment:
+      POSTGRES_USER: "somesafeuser"
+      POSTGRES_PASSWORD: "somesafepassword"
+      POSTGRES_DB: "databasename"
+    ports:
+      - "5432:5432"
+    volumes:
+      - ./postgres-data:/var/lib/psql/data
+    networks:
+      - app-network
+    restart: unless-stopped
+
+networks:
+  app-network:
+    driver: bridge