diff --git a/setup.sh b/setup.sh
index 1c8eaa5..57f339a 100644
--- a/setup.sh
+++ b/setup.sh
@@ -106,16 +106,14 @@ echo -e "${YELLOW}→ Configuring environment...${NC}"
 if [ -f "src/.env.${DB}" ]; then
     cp "src/.env.${DB}" "src/.env"
     
-    # Append port configurations to .env for docker compose
-    # These override default ports when conflicts are detected
-    echo "" >> src/.env
-    echo "# Port Configuration (auto-assigned by setup)" >> src/.env
-    echo "APP_PORT=$APP_PORT" >> src/.env
-    echo "MAIL_DASHBOARD_PORT=$MAIL_DASHBOARD_PORT" >> src/.env
-    echo "MAIL_PORT=$MAIL_PORT" >> src/.env
-    echo "REDIS_PORT=$REDIS_PORT" >> src/.env
+    # Create .env in project root for docker compose port mapping
+    echo "# Docker Compose Port Configuration (auto-assigned by setup)" > .env
+    echo "APP_PORT=$APP_PORT" >> .env
+    echo "MAIL_DASHBOARD_PORT=$MAIL_DASHBOARD_PORT" >> .env
+    echo "MAIL_PORT=$MAIL_PORT" >> .env
+    echo "REDIS_PORT=$REDIS_PORT" >> .env
     if [ -n "$DB_PORT" ]; then
-        echo "DB_PORT=$DB_PORT" >> src/.env
+        echo "DB_PORT=$DB_PORT" >> .env
     fi
     
     echo -e "${GREEN}✓ Environment configured for ${DB}${NC}"