diff --git a/CHANGELOG.md b/CHANGELOG.md
index b468de0..4cdb280 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,6 +1,10 @@
 Changelog
 =========
 
+1.1.0
+-----
+* Support for Nitrous.IO
+
 1.0.6
 -----
 * Updated gems
diff --git a/README.md b/README.md
index 405121d..e30f24d 100644
--- a/README.md
+++ b/README.md
@@ -22,3 +22,27 @@ This is a starter web application based on the following technology stack:
 Starter App is deployable on [Heroku](http://www.heroku.com/). Demo: http://ruby2-rails4-bootstrap-heroku.herokuapp.com/
 
 ```Gemfile``` also contains a set of useful gems for performance, security, api building...
+
+### Nitrous.IO
+
+Starter App supports online development on [Nitrous.IO](http://www.nitrous.io).
+
+You need:
+* A Nitrous.IO box with **at least** 512MB of memory.
+* Two "Dev Plan" heroku databases (one for development and one for test)
+* The following environment variables on your Nitrous.IO box's `.bashrc`:
+  ```bash
+  export STARTER_APP_DEV_DB_DATABASE=YOUR_DEV_DB_DATABASE
+  export STARTER_APP_DEV_DB_USER=YOUR_DEV_DB_USER
+  export STARTER_APP_DEV_DB_PASSWORD=YOUR_DEV_DB_PASSWORD
+  export STARTER_APP_DEV_DB_HOST=YOUR_DEV_DB_HOST
+  export STARTER_APP_DEV_DB_PORT=YOUR_DEV_DB_PORT
+
+  export STARTER_APP_TEST_DB_DATABASE=YOUR_TEST_DB_DATABASE
+  export STARTER_APP_TEST_DB_USER=YOUR_TEST_DB_USER
+  export STARTER_APP_TEST_DB_PASSWORD=YOUR_TEST_DB_PASSWORD
+  export STARTER_APP_TEST_DB_HOST=YOUR_TEST_DB_HOST
+  export STARTER_APP_TEST_DB_PORT=YOUR_TEST_DB_PORT
+  ```
+
+A guide for creating heroku databases and edit `.bashrc` on Nitrous.IO is available here: http://help.nitrous.io/postgres/
diff --git a/VERSION b/VERSION
index af0b7dd..9084fa2 100644
--- a/VERSION
+++ b/VERSION
@@ -1 +1 @@
-1.0.6
+1.1.0
diff --git a/config/database.yml b/config/database.yml
index d058fd0..3ef9df2 100644
--- a/config/database.yml
+++ b/config/database.yml
@@ -17,19 +17,19 @@
 development:
   adapter: postgresql
   encoding: unicode
-  database: starterapp_development
+  database: <%= ENV['STARTER_APP_DEV_DB_DATABASE'] || 'starterapp_development' %>
   pool: 5
-  username: postgres
-  password:
+  username: <%= ENV['STARTER_APP_DEV_DB_USER'] || 'postgres' %>
+  password: <%= ENV['STARTER_APP_DEV_DB_PASSWORD'] %>
 
   # Connect on a TCP socket. Omitted by default since the client uses a
   # domain socket that doesn't need configuration. Windows does not have
   # domain sockets, so uncomment these lines.
-  #host: localhost
+  host: <%= ENV['STARTER_APP_DEV_DB_HOST'] || 'localhost' %>
 
   # The TCP port the server listens on. Defaults to 5432.
   # If your server runs on a different port number, change accordingly.
-  #port: 5432
+  port: <%= ENV['STARTER_APP_DEV_DB_PORT'] || '5432' %>
 
   # Schema search path. The server defaults to $user,public
   #schema_search_path: myapp,sharedapp,public
@@ -46,10 +46,12 @@ development:
 test:
   adapter: postgresql
   encoding: unicode
-  database: starterapp_test
+  database: <%= ENV['STARTER_APP_TEST_DB_DATABASE'] || 'starterapp_test' %>
   pool: 5
-  username: postgres
-  password:
+  username: <%= ENV['STARTER_APP_TEST_DB_USER'] || 'postgres' %>
+  password: <%= ENV['STARTER_APP_TEST_DB_PASSWORD'] %>
+  host: <%= ENV['STARTER_APP_TEST_DB_HOST'] || 'localhost' %>
+  port: <%= ENV['STARTER_APP_TEST_DB_PORT'] || '5432' %>
 
 production:
   adapter: postgresql