diff --git a/.app_version b/.app_version
index d8980711..783dfe1f 100644
--- a/.app_version
+++ b/.app_version
@@ -1 +1 @@
-0.25.7
+0.25.8
diff --git a/CHANGELOG.md b/CHANGELOG.md
index 467f8c26..6c01862a 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -5,6 +5,16 @@ The format is based on [Keep a Changelog](http://keepachangelog.com/)
 and this project adheres to [Semantic Versioning](http://semver.org/).
 
 
+# 0.25.8 - 2025-04-24
+
+## Fixed
+
+- Database was not being created if it didn't exist. #1076
+
+## Removed
+
+- `RAILS_MASTER_KEY` environment variable is no longer being set. You can safely remove it from your environment variables.
+
 # 0.25.7 - 2025-04-24
 
 ## Fixed
diff --git a/docker/docker-compose.yml b/docker/docker-compose.yml
index b52cf3fa..dc32f337 100644
--- a/docker/docker-compose.yml
+++ b/docker/docker-compose.yml
@@ -70,7 +70,6 @@ services:
       PROMETHEUS_EXPORTER_HOST: 0.0.0.0
       PROMETHEUS_EXPORTER_PORT: 9394
       SELF_HOSTED: "true"
-      RAILS_MASTER_KEY: ${RAILS_MASTER_KEY}
     logging:
       driver: "json-file"
       options:
@@ -123,7 +122,6 @@ services:
       PROMETHEUS_EXPORTER_HOST: dawarich_app
       PROMETHEUS_EXPORTER_PORT: 9394
       SELF_HOSTED: "true"
-      RAILS_MASTER_KEY: ${RAILS_MASTER_KEY}
     logging:
       driver: "json-file"
       options:
diff --git a/docker/web-entrypoint.sh b/docker/web-entrypoint.sh
index 6819f779..a4c275b7 100644
--- a/docker/web-entrypoint.sh
+++ b/docker/web-entrypoint.sh
@@ -27,20 +27,17 @@ fi
 # Remove pre-existing puma/passenger server.pid
 rm -f $APP_PATH/tmp/pids/server.pid
 
+echo "Attempting to create database $DATABASE_NAME if it doesn't exist..."
+PGPASSWORD=$DATABASE_PASSWORD createdb -h "$DATABASE_HOST" -p "$DATABASE_PORT" -U "$DATABASE_USERNAME" "$DATABASE_NAME" 2>/dev/null || echo "Note: Database may already exist or couldn't be created now"
+
 # Wait for the database to become available
 echo "⏳ Waiting for database to be ready..."
-until PGPASSWORD=$DATABASE_PASSWORD psql -h "$DATABASE_HOST" -p "$DATABASE_PORT" -U "$DATABASE_USERNAME" -d "$DATABASE_NAME" -c '\q'; do
+until PGPASSWORD=$DATABASE_PASSWORD psql -h "$DATABASE_HOST" -p "$DATABASE_PORT" -U "$DATABASE_USERNAME" -d "$DATABASE_NAME" -c '\q' 2>/dev/null; do
   >&2 echo "Postgres is unavailable - retrying..."
   sleep 2
 done
 echo "✅ PostgreSQL is ready!"
 
-# Create database if it doesn't exist
-if ! PGPASSWORD=$DATABASE_PASSWORD psql -h "$DATABASE_HOST" -p "$DATABASE_PORT" -U "$DATABASE_USERNAME" -d "$DATABASE_NAME" -c "SELECT 1 FROM pg_database WHERE datname='$DATABASE_NAME'" | grep -q 1; then
-  echo "Creating database $DATABASE_NAME..."
-  PGPASSWORD=$DATABASE_PASSWORD createdb -h "$DATABASE_HOST" -p "$DATABASE_PORT" -U "$DATABASE_USERNAME" "$DATABASE_NAME"
-fi
-
 # Run database migrations
 echo "PostgreSQL is ready. Running database migrations..."
 bundle exec rails db:migrate