diff --git a/BUILD.md b/BUILD.md
index 5d5420684..5a0152368 100644
--- a/BUILD.md
+++ b/BUILD.md
@@ -23,6 +23,13 @@ When poetry is done installing all dependencies you can start using the tool.
 poetry run python -m uvicorn tad.main:app --log-level warning
 ```
 
+### Suggested development ENVIRONMENT settings
+To use a demo environment during local development, you can use the following environment options. You can leave out the TRUNCATE_TABLES option if you wish to keep the state between runs.
+```shell
+export ENVIRONMENT=demo AUTO_CREATE_SCHEMA=true TRUNCATE_TABLES=true
+```
+
+
 ## Database
 
 We support most SQL database types. You can use the variable `APP_DATABASE_SCHEME` to change the database. The default scheme is sqlite.
diff --git a/tad/core/config.py b/tad/core/config.py
index 71b802014..4b1113b8d 100644
--- a/tad/core/config.py
+++ b/tad/core/config.py
@@ -33,6 +33,7 @@ class Settings(BaseSettings):
 
     DEBUG: bool = False
     AUTO_CREATE_SCHEMA: bool = False
+    TRUNCATE_TABLES: bool = False
 
     # todo(berry): create submodel for database settings
     APP_DATABASE_SCHEME: DatabaseSchemaType = "sqlite"
diff --git a/tad/core/db.py b/tad/core/db.py
index e07be8b13..2b489de6a 100644
--- a/tad/core/db.py
+++ b/tad/core/db.py
@@ -3,7 +3,7 @@
 
 from sqlalchemy.engine import Engine
 from sqlalchemy.pool import QueuePool, StaticPool
-from sqlmodel import Session, SQLModel, create_engine, select
+from sqlmodel import Session, SQLModel, create_engine, delete, select
 
 from tad.core.config import get_settings
 from tad.models import Status, Task, User
@@ -31,7 +31,20 @@ def check_db():
     with Session(get_engine()) as session:
         session.exec(select(1))
 
-    logger.info("Finisch Checking database connection")
+    logger.info("Finish Checking database connection")
+
+
+def remove_old_demo_objects(session: Session):
+    user = session.exec(select(User).where(User.name == "Robbert")).first()
+    if user:
+        session.delete(user)
+    status = session.exec(select(Status).where(Status.name == "Todo")).first()
+    if status:
+        session.delete(status)
+    task = session.exec(select(Task).where(Task.title == "First task")).first()
+    if task:
+        session.delete(task)
+    session.commit()
 
 
 def init_db():
@@ -43,21 +56,59 @@ def init_db():
 
     with Session(get_engine()) as session:
         if get_settings().ENVIRONMENT == "demo":
+            if get_settings().TRUNCATE_TABLES:
+                truncate_tables(session)
             logger.info("Creating demo data")
-
-            user = session.exec(select(User).where(User.name == "Robbert")).first()
-            if not user:
-                user = User(name="Robbert", avatar=None)
-                session.add(user)
-
-            status = session.exec(select(Status).where(Status.name == "Todo")).first()
-            if not status:
-                status = Status(name="Todo", sort_order=1)
-                session.add(status)
-
-            task = session.exec(select(Task).where(Task.title == "First task")).first()
-            if not task:
-                task = Task(title="First task", description="This is the first task", sort_order=1, status_id=status.id)
-                session.add(task)
-            session.commit()
+            remove_old_demo_objects(session)
+            add_demo_users(session, ["default user"])
+            demo_statuses = add_demo_statuses(session, ["todo", "review", "in_progress", "done"])
+            add_demo_tasks(session, demo_statuses[0], 3)
     logger.info("Finished initializing database")
+
+
+def truncate_tables(session: Session) -> None:
+    logger.info("Truncating tables")
+    session.exec(delete(Task))  # type: ignore
+    session.exec(delete(User))  # type: ignore
+    session.exec(delete(Status))  # type: ignore
+    session.commit()
+
+
+def add_demo_users(session: Session, user_names: list[str]) -> None:
+    for user_name in user_names:
+        user = session.exec(select(User).where(User.name == user_name)).first()
+        if not user:
+            session.add(User(name=user_name, avatar=None))
+    session.commit()
+
+
+def add_demo_tasks(session: Session, status: Status | None, number_of_tasks: int) -> None:
+    if status is None:
+        return
+    for index in range(1, number_of_tasks + 1):
+        title = "Example task " + str(index)
+        task = session.exec(select(Task).where(Task.title == title)).first()
+        if not task:
+            session.add(
+                Task(
+                    title=title,
+                    description="Example description " + str(index),
+                    sort_order=index,
+                    status_id=status.id,
+                )
+            )
+    session.commit()
+
+
+def add_demo_statuses(session: Session, statuses: list[str]) -> list[Status]:
+    return_statuses: list[Status] = []
+    for index, status_name in enumerate(statuses):
+        status = session.exec(select(Status).where(Status.name == status_name)).first()
+        if not status:
+            status = Status(name=status_name, sort_order=index + 1)
+            session.add(status)
+        return_statuses.append(status)
+    session.commit()
+    for return_status in return_statuses:
+        session.refresh(return_status)
+    return return_statuses
diff --git a/tad/migrations/versions/b62dbd9468e4_create_status_user_and_task_table.py b/tad/migrations/versions/b62dbd9468e4_create_status_user_and_task_table.py
index d5912d550..ab57151a7 100644
--- a/tad/migrations/versions/b62dbd9468e4_create_status_user_and_task_table.py
+++ b/tad/migrations/versions/b62dbd9468e4_create_status_user_and_task_table.py
@@ -21,7 +21,7 @@
 
 def upgrade() -> None:
     # ### commands auto generated by Alembic - please adjust! ###
-    status = op.create_table(
+    op.create_table(
         "status",
         sa.Column("id", sa.Integer(), nullable=False),
         sa.Column("name", sqlmodel.sql.sqltypes.AutoString(), nullable=False),
@@ -56,17 +56,6 @@ def upgrade() -> None:
     )
     # ### end Alembic commands ###
 
-    # ### custom commands ###
-    op.bulk_insert(
-        status,
-        [
-            {"name": "Todo", "sort_order": 1},
-            {"name": "In Progress", "sort_order": 2},
-            {"name": "Review", "sort_order": 3},
-            {"name": "Done", "sort_order": 4},
-        ],
-    )
-
 
 def downgrade() -> None:
     # ### commands auto generated by Alembic - please adjust! ###
diff --git a/tests/core/test_db.py b/tests/core/test_db.py
index dbc7a8a99..5e9fa5030 100644
--- a/tests/core/test_db.py
+++ b/tests/core/test_db.py
@@ -1,12 +1,28 @@
 import logging
+from typing import Any
 from unittest.mock import MagicMock
 
 import pytest
 from sqlmodel import Session, select
 from tad.core.config import Settings
-from tad.core.db import check_db, init_db
+from tad.core.db import (
+    add_demo_statuses,
+    add_demo_tasks,
+    add_demo_users,
+    check_db,
+    init_db,
+    remove_old_demo_objects,
+    truncate_tables,
+)
 from tad.models import Status, Task, User
 
+from tests.constants import (
+    default_status,
+    default_task,
+    default_user,
+)
+from tests.database_test_utils import DatabaseTestUtils
+
 logger = logging.getLogger(__name__)
 
 
@@ -22,46 +38,114 @@ def test_check_database():
 
 @pytest.mark.parametrize(
     "patch_settings",
-    [{"ENVIRONMENT": "demo", "AUTO_CREATE_SCHEMA": True}],
-    indirect=True,
-)
-def test_init_database_none(patch_settings: Settings):
-    org_exec = Session.exec
-    Session.exec = MagicMock()
-    Session.exec.return_value.first.return_value = None
-
-    init_db()
-
-    expected = [
-        (select(User).where(User.name == "Robbert"),),
-        (select(Status).where(Status.name == "Todo"),),
-        (select(Task).where(Task.title == "First task"),),
-    ]
-
-    for i, call_args in enumerate(Session.exec.call_args_list):
-        assert str(expected[i][0]) == str(call_args.args[0])
-
-    Session.exec = org_exec
-
-
-@pytest.mark.parametrize(
-    "patch_settings",
-    [{"ENVIRONMENT": "demo", "AUTO_CREATE_SCHEMA": True}],
+    [
+        {"ENVIRONMENT": "demo", "AUTO_CREATE_SCHEMA": True},
+        {"ENVIRONMENT": "demo", "AUTO_CREATE_SCHEMA": False},
+        {"ENVIRONMENT": "demo", "TRUNCATE_TABLES": True},
+        {"ENVIRONMENT": "production", "TRUNCATE_TABLES": True},
+    ],
     indirect=True,
 )
 def test_init_database(patch_settings: Settings):
-    org_exec = Session.exec
-    Session.exec = MagicMock()
-
     init_db()
 
-    expected = [
-        (select(User).where(User.name == "Robbert"),),
-        (select(Status).where(Status.name == "Todo"),),
-        (select(Task).where(Task.title == "First task"),),
-    ]
 
-    for i, call_args in enumerate(Session.exec.call_args_list):
-        assert str(expected[i][0]) == str(call_args.args[0])
-
-    Session.exec = org_exec
+def test_remove_old_demo_objects(db: DatabaseTestUtils, monkeypatch: pytest.MonkeyPatch):
+    user = User(name="Robbert", avatar=None)
+    status = Status(name="Todo", sort_order=1)
+    task = Task(title="First task", description="This is the first task", sort_order=1, status_id=status.id)
+
+    db.given([user, status, task])
+    session_delete_counter = count_calls(monkeypatch, db.get_session(), db.get_session().delete)
+    remove_old_demo_objects(db.get_session())
+    assert session_delete_counter.get() == 3
+
+    session_delete_counter = count_calls(monkeypatch, db.get_session(), db.get_session().delete)
+    remove_old_demo_objects(db.get_session())
+    assert session_delete_counter.get() == 0
+
+
+def test_truncate_tables(db: DatabaseTestUtils):
+    db.given([default_task(), default_user(), default_status()])
+    truncate_tables(db.get_session())
+    assert not db.exists(Task.title, default_task().title)
+    assert not db.exists(User.name, default_user().name)
+    assert not db.exists(Status.name, default_status().name)
+
+
+def test_add_demo_user(db: DatabaseTestUtils, monkeypatch: pytest.MonkeyPatch):
+    user_names = [default_user().name]
+
+    session_add_counter = count_calls(monkeypatch, db.get_session(), db.get_session().add)
+    add_demo_users(db.get_session(), user_names)
+    assert db.exists(User.name, user_names[0])
+    assert session_add_counter.get() == 1
+    # test again, the user already exists so new new user should be created
+    session_add_counter = count_calls(monkeypatch, db.get_session(), db.get_session().add)
+    add_demo_users(db.get_session(), user_names)
+    assert db.exists(User.name, user_names[0])
+    assert session_add_counter.get() == 0
+
+
+def test_add_demo_status(db: DatabaseTestUtils, monkeypatch: pytest.MonkeyPatch):
+    session_add_counter = count_calls(monkeypatch, db.get_session(), db.get_session().add)
+    add_demo_statuses(db.get_session(), [default_status().name])
+    assert db.exists(Status.name, default_status().name)
+    assert session_add_counter.get() == 1
+    # test again, the status already exists so no new status should be created
+    session_add_counter = count_calls(monkeypatch, db.get_session(), db.get_session().add)
+    add_demo_statuses(db.get_session(), [default_status().name])
+    assert db.exists(Status.name, default_status().name)
+    assert session_add_counter.get() == 0
+
+
+def test_add_demo_tasks(db: DatabaseTestUtils, monkeypatch: pytest.MonkeyPatch):
+    db.given([default_status()])
+    session_add_counter = count_calls(monkeypatch, db.get_session(), db.get_session().add)
+    add_demo_tasks(db.get_session(), default_status(), 3)
+    assert session_add_counter.get() == 3
+    assert db.exists(Task.title, "Example task 1")
+    # test again, the tasks already exist so no new cards should be created
+    session_add_counter = count_calls(monkeypatch, db.get_session(), db.get_session().add)
+    add_demo_tasks(db.get_session(), default_status(), 3)
+    assert session_add_counter.get() == 0
+    assert db.exists(Task.title, "Example task 1")
+    # test without status
+    session_add_counter = count_calls(monkeypatch, db.get_session(), db.get_session().add)
+    add_demo_tasks(db.get_session(), None, 1)
+    assert session_add_counter.get() == 0
+
+
+class MutableCounter:
+    """
+    Used by "count_calls".
+    """
+
+    n = 0
+
+    def inc(self):
+        self.n += 1
+
+    def get(self):
+        return self.n
+
+    def reset(self):
+        self.n = 0
+
+
+def count_calls(monkeypatch: pytest.MonkeyPatch, module: object, fn: object) -> MutableCounter:
+    """
+    Returns a mutable object containing the number of times the given function
+    "fn", from the module "module", was called.
+    Intended to be used inside pytest functions.
+    """
+    cnt = MutableCounter()
+
+    def mock_fn(*args: Any, **kwargs: Any) -> Any:
+        nonlocal cnt
+        cnt.inc()
+        return fn(*args, **kwargs)  # type: ignore
+
+    mock_fn.__name__ = fn.__name__  # type: ignore
+    monkeypatch.setattr(module, fn.__name__, mock_fn)  # type: ignore
+    return cnt
diff --git a/tests/database_test_utils.py b/tests/database_test_utils.py
index 539efb609..c5aa1dcf2 100644
--- a/tests/database_test_utils.py
+++ b/tests/database_test_utils.py
@@ -1,5 +1,5 @@
 from pydantic import BaseModel
-from sqlmodel import Session, SQLModel
+from sqlmodel import Session, SQLModel, exists
 from tad.core.db import get_engine
 
 
@@ -29,3 +29,7 @@ def given(self, models: list[BaseModel]) -> None:
 
     def get_session(self) -> Session:
         return self.session
+
+    def exists(self, model_field: str, field_value: str | int) -> SQLModel | None:
+        # todo (robbert): this should be an exec
+        return self.get_session().query(exists().where(model_field == field_value)).scalar()  # type: ignore