diff --git a/CONTRIBUTING.md b/CONTRIBUTING.md
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+++ b/CONTRIBUTING.md
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+# Contribution Guidelines
+
+## Development Setup
+
+Run `bin/setup` to install development and testing dependencies with
+Bundler and create the necessary local databases.
+
+You will need mysql and PostgreSQL installed on your local machine for
+Bundler to properly install and for the database to be created.
+
+If you're using macOS you can easily install both mysql and Postgres
+with [Homebrew][1]:
+
+`brew install mysql postgresql`
+
+Please pay close attention to the post-installation instructions given
+to you by Homebrew since `bundle install` will not succeed until you
+properly configure bundler to look for the appropriate build flags for
+MySQL.
+
+[1]: https://brew.sh/
diff --git a/bin/setup b/bin/setup
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+++ b/bin/setup
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+#!/usr/bin/env ruby
+
+def system!(*args)
+  system(*args) || abort("\n== Command #{args} failed ==")
+end
+
+puts "Installing development dependencies..."
+system!("bundle install")
+
+puts "Creating local databases for tests..."
+
+if ARGV.include?("--mysql-user")
+  mysql_user = "-u #{ARGV[ARGV.index("--mysql-user").next]}"
+end
+
+system!("mysql #{mysql_user} -e 'CREATE DATABASE IF NOT EXISTS sequel_rails_test;'")
+system!("mysql #{mysql_user} -e 'CREATE DATABASE IF NOT EXISTS sequel_rails_test_mysql2;'")
+system!("mysql #{mysql_user} -e 'CREATE DATABASE IF NOT EXISTS sequel_rails_test_storage_dev;'")
+system!("createdb sequel_rails_test_storage_dev")
+system!("createdb sequel_rails_test")
+