diff --git a/src/mcp_services/postgres/postgres_state_manager.py b/src/mcp_services/postgres/postgres_state_manager.py
index 12b7122a..71c24103 100644
--- a/src/mcp_services/postgres/postgres_state_manager.py
+++ b/src/mcp_services/postgres/postgres_state_manager.py
@@ -77,65 +77,6 @@ def _test_connection(self):
         conn = psycopg2.connect(**self.conn_params, database="postgres")
         conn.close()
     
-    def _setup_database(self):
-        """Setup all required databases by downloading and restoring from backup."""
-        databases = ['employees', 'chinook', 'dvdrental', 'sports', 'lego']
-        
-        for db_name in databases:
-            if not self._database_exists(db_name):
-                logger.info(f"Setting up {db_name} database...")
-                
-                # Path to backup file
-                backup_dir = Path(__file__).parent.parent.parent.parent / "postgres_state"
-                backup_file = backup_dir / f"{db_name}.backup"
-                
-                # Download backup if not exists
-                if not backup_file.exists():
-                    backup_dir.mkdir(parents=True, exist_ok=True)
-                    logger.info(f"Downloading {db_name} backup...")
-                    try:
-                        import urllib.request
-                        urllib.request.urlretrieve(
-                            f'https://storage.mcpmark.ai/postgres/{db_name}.backup',
-                            str(backup_file)
-                        )
-                        logger.info(f"{db_name} backup downloaded")
-                    except Exception as e:
-                        logger.warning(f"Failed to download {db_name} backup: {e}")
-                        continue
-                
-                # Create database
-                try:
-                    self._create_empty_database(db_name)
-                    logger.info(f"Created {db_name} database")
-                except Exception as e:
-                    logger.warning(f"Failed to create {db_name} database: {e}")
-                    continue
-                
-                # Restore from backup
-                env = os.environ.copy()
-                env['PGPASSWORD'] = self.password
-                
-                try:
-                    result = subprocess.run([
-                        'pg_restore',
-                        '-h', str(self.host),
-                        '-p', str(self.port),
-                        '-U', self.username,
-                        '-d', db_name,
-                        '-v',
-                        str(backup_file)
-                    ], env=env, capture_output=True, text=True)
-                    
-                    if result.returncode != 0:
-                        logger.warning(f"pg_restore had errors for {db_name}: {result.stderr}")
-                    else:
-                        logger.info(f"{db_name} database restored successfully")
-                except Exception as e:
-                    logger.warning(f"Failed to restore {db_name} database: {e}")
-            else:
-                logger.debug(f"{db_name} database already exists")
-
     def _setup_database(self):
         """Setup all required databases by downloading and restoring from backup."""
         databases = ['employees', 'chinook', 'dvdrental', 'sports', 'lego']