diff --git a/services/iam-service/src/__tests__/integration/setup.ts b/services/iam-service/src/__tests__/integration/setup.ts
index cebbd561..919c0764 100644
--- a/services/iam-service/src/__tests__/integration/setup.ts
+++ b/services/iam-service/src/__tests__/integration/setup.ts
@@ -29,9 +29,9 @@ export async function setupTestDatabase() {
     }
 
     // Initialize Prisma client with test database
-    prisma = new PrismaClient({
-      datasourceUrl: TEST_DATABASE_URL,
-    });
+    // Set DATABASE_URL for test database
+    process.env.DATABASE_URL = TEST_DATABASE_URL;
+    prisma = new PrismaClient();
 
     // Connect to database
     await prisma.$connect();