diff --git a/README.md b/README.md
index 76836b5f2af..005b0610f58 100644
--- a/README.md
+++ b/README.md
@@ -61,6 +61,36 @@ to the instance you expect to. See
 [envvars](https://docs.docker.com/compose/reference/envvars/)
 to see more about `docker-compose` environment variables.
 
+## Environment setting defaults via ./moodle-docker.env
+
+In Linux and macOS it is also possible to created `moodle-docker.env` file
+in directory where `bin/moodle-docker-compose` is executed, the file contents are
+then used as default environment values.
+
+If `moodle-docker.env` is in Moodle code root, then MOODLE_DOCKER_WWWROOT default
+is set to Moodle directory and COMPOSE_PROJECT_NAME defaults to Moodle directory name.
+
+Example:
+
+1. Create `/path/to/moodle/moodle-docker.env` file with the following content:
+```
+# file location /path/to/moodle/moodle-docker.env
+MOODLE_DOCKER_DB=pgsql
+```
+2. Copy config.docker-template.php file to `/path/to/moodle/config.php`
+3. Start containers:
+```bash
+cd /path/to/moodle
+/path/to/moodle-docker/bin/moodle-docker-compose up -d
+```
+4. Switch to MariaDB temporarily:
+```bash
+cd /path/to/moodle
+/path/to/moodle-docker/bin/moodle-docker-compose down
+export MOODLE_DOCKER_DB=mariadb
+/path/to/moodle-docker/bin/moodle-docker-compose up -d
+```
+
 ## Use containers for running behat tests
 
 ```bash
diff --git a/bin/include/env.sh b/bin/include/env.sh
new file mode 100644
index 00000000000..3c1db339ae7
--- /dev/null
+++ b/bin/include/env.sh
@@ -0,0 +1,32 @@
+#!/usr/bin/env bash
+
+# If moodle-docker.env file found then use it as default environment values.
+filename="moodle-docker.env"
+if [ -f $filename ]; then
+    envbackup=$( export -p)
+    export $(grep -v '^#' moodle-docker.env | xargs)
+    eval "$envbackup"
+    if [ -z "$MOODLE_DOCKER_WWWROOT" ] && [ -f 'lib/moodlelib.php' ];
+    then
+        # We know that moodle is in current directory, so use it as default value.
+        currentdir="$( pwd -P )";
+        export MOODLE_DOCKER_WWWROOT="$currentdir";
+    fi
+    if [ -z "$COMPOSE_PROJECT_NAME" ] && [ -f 'lib/moodlelib.php' ];
+    then
+        # Use moodle directory name as default Compose project name.
+        name="$( basename "$( pwd -P )" )"
+        export COMPOSE_PROJECT_NAME="$name";
+    fi
+fi
+
+if [ ! -d "$MOODLE_DOCKER_WWWROOT" ]; then
+    echo 'Error: MOODLE_DOCKER_WWWROOT is not set or not an existing directory'
+    exit 1
+fi
+
+if [ -z "$MOODLE_DOCKER_DB" ];
+then
+    echo 'Error: MOODLE_DOCKER_DB is not set'
+    exit 1
+fi
diff --git a/bin/moodle-docker-compose b/bin/moodle-docker-compose
index 47057e79a9b..52587463eee 100755
--- a/bin/moodle-docker-compose
+++ b/bin/moodle-docker-compose
@@ -7,17 +7,8 @@ set -e
 thisfile=$( readlink "${BASH_SOURCE[0]}" ) || thisfile="${BASH_SOURCE[0]}"
 basedir="$( cd "$( dirname "$thisfile" )/../" && pwd -P )"
 
-if [ ! -d "$MOODLE_DOCKER_WWWROOT" ];
-then
-    echo 'Error: $MOODLE_DOCKER_WWWROOT is not set or not an existing directory'
-    exit 1
-fi
-
-if [ -z "$MOODLE_DOCKER_DB" ];
-then
-    echo 'Error: $MOODLE_DOCKER_DB is not set'
-    exit 1
-fi
+# Load all environment settings.
+source "${basedir}/bin/include/env.sh"
 
 export ASSETDIR="${basedir}/assets"
 
diff --git a/bin/moodle-docker-wait-for-app b/bin/moodle-docker-wait-for-app
index 2ec82806148..0f994d53ee1 100755
--- a/bin/moodle-docker-wait-for-app
+++ b/bin/moodle-docker-wait-for-app
@@ -4,6 +4,9 @@ set -e
 thisfile=$( readlink "${BASH_SOURCE[0]}" ) || thisfile="${BASH_SOURCE[0]}"
 basedir="$( cd "$( dirname "$thisfile" )/../" && pwd -P )"
 
+# Load all environment settings.
+source "${basedir}/bin/include/env.sh"
+
 if [[ ! -z "$MOODLE_DOCKER_BROWSER" ]] && [[ "$MOODLE_DOCKER_BROWSER" == "chrome" ]] && ([[ ! -z "$MOODLE_DOCKER_APP_PATH" ]] || [[ ! -z "$MOODLE_DOCKER_APP_VERSION" ]] || [[ ! -z "$MOODLE_APP_VERSION" ]]);
 then
     until $basedir/bin/moodle-docker-compose logs moodleapp | grep -q -E 'dev server running: |Angular Live Development Server is listening|Configuration complete; ready for start up';
diff --git a/bin/moodle-docker-wait-for-db b/bin/moodle-docker-wait-for-db
index 34c344a6c91..9774b5ec20f 100755
--- a/bin/moodle-docker-wait-for-db
+++ b/bin/moodle-docker-wait-for-db
@@ -4,11 +4,8 @@ set -e
 thisfile=$( readlink "${BASH_SOURCE[0]}" ) || thisfile="${BASH_SOURCE[0]}"
 basedir="$( cd "$( dirname "$thisfile" )/../" && pwd -P )"
 
-if [ -z "$MOODLE_DOCKER_DB" ];
-then
-    echo 'Error: $MOODLE_DOCKER_DB is not set'
-    exit 1
-fi
+# Load all environment settings.
+source "${basedir}/bin/include/env.sh"
 
 if [ "$MOODLE_DOCKER_DB" = "mssql" ];
 then