diff --git a/docs/source/guides/state.rst b/docs/source/guides/state.rst
index 7cc6b20a..df794005 100644
--- a/docs/source/guides/state.rst
+++ b/docs/source/guides/state.rst
@@ -138,17 +138,10 @@ Run the SQL schema to create the required table:
 Configuration
 ^^^^^^^^^^^^^
 
-Once the database table is created, configure Plano to use PostgreSQL storage:
+Once the database table is created, configure Plano to use PostgreSQL storage.
 
-.. code-block:: yaml
-
-   state_storage:
-     type: postgres
-     connection_string: "postgresql://user:password@host:5432/database"
-
-**Using Environment Variables**
-
-You should **never** hardcode credentials. Use environment variables instead:
+.. important::
+   **Never** hardcode credentials. Always use environment variables in your connection string.
 
 .. code-block:: yaml
 
diff --git a/docs/source/resources/db_setup/README.md b/docs/source/resources/db_setup/README.md
index 34aff973..987a431d 100644
--- a/docs/source/resources/db_setup/README.md
+++ b/docs/source/resources/db_setup/README.md
@@ -64,8 +64,9 @@ After setting up the database table, configure your application to use Supabase
 
 **Example:**
 ```bash
-# If your password is "MyPass#123", encode it as "MyPass%23123"
-export DATABASE_URL="postgresql://postgres.myproject:MyPass%23123@aws-0-us-west-2.pooler.supabase.com:5432/postgres"
+# If your password is "MyPass#123", URL-encode special characters (# becomes %23)
+export DB_PASSWORD="MyPass%23123"
+export DATABASE_URL="postgresql://postgres.myproject:${DB_PASSWORD}@aws-0-us-west-2.pooler.supabase.com:5432/postgres"
 ```
 
 ### Testing the Connection