diff --git a/.env b/.env
new file mode 100644
index 0000000..f8ddecd
--- /dev/null
+++ b/.env
@@ -0,0 +1,6 @@
+# Environment variables for development
+# You can add project-specific environment variables here
+
+# Example:
+# ALPINEBITS_CONFIG_DIR=./config
+# PYTHONPATH=./src
\ No newline at end of file
diff --git a/.vscode/settings.json b/.vscode/settings.json
index 6d1f9e5..42ff111 100644
--- a/.vscode/settings.json
+++ b/.vscode/settings.json
@@ -19,6 +19,20 @@
   "notebook.output.textLineLimit": 200,
   "jupyter.debugJustMyCode": false,
   "python.defaultInterpreterPath": "./.venv/bin/python",
+  "python.terminal.activateEnvironment": true,
+  "python.terminal.activateEnvInCurrentTerminal": true,
+  "python.envFile": "${workspaceFolder}/.env",
+  "terminal.integrated.env.linux": {
+    "VIRTUAL_ENV": "${workspaceFolder}/.venv",
+    "PATH": "${workspaceFolder}/.venv/bin:${env:PATH}"
+  },
+  "terminal.integrated.defaultProfile.linux": "bash",
+  "terminal.integrated.profiles.linux": {
+    "bash": {
+      "path": "bash",
+      "args": ["-c", "source ${workspaceFolder}/.venv/bin/activate && exec bash"]
+    }
+  },
   "python.testing.pytestEnabled": true,
   "python.testing.pytestArgs": [
     "tests",