diff --git a/.circleci/deploy.sh b/.circleci/deploy.sh
index ebe752cd35f..48874c76ea9 100755
--- a/.circleci/deploy.sh
+++ b/.circleci/deploy.sh
@@ -123,6 +123,24 @@ push_latest_cli_migrations_image_v2() {
     docker push "$LATEST_IMAGE_TAG"
 }
 
+# build and push container for auto-migrations-v3
+build_and_push_cli_migrations_image_v3() {
+    IMAGE_TAG="hasura/graphql-engine:${CIRCLE_TAG}.cli-migrations-v3"
+    docker load -i /build/_cli_migrations_output/v3.tar
+    docker tag cli-migrations-v3 "$IMAGE_TAG"
+    docker push "$IMAGE_TAG"
+}
+
+# build and push latest container for auto-migrations-v3
+push_latest_cli_migrations_image_v3() {
+    IMAGE_TAG="hasura/graphql-engine:${CIRCLE_TAG}.cli-migrations-v3"
+    LATEST_IMAGE_TAG="hasura/graphql-engine:latest.cli-migrations-v3"
+
+    # push latest.cli-migrations-v3 tag
+    docker tag "$IMAGE_TAG" "$LATEST_IMAGE_TAG"
+    docker push "$LATEST_IMAGE_TAG"
+}
+
 
 # copy docker-compose-https manifests to gcr for digital ocean one-click app
 deploy_do_manifests() {
@@ -177,12 +195,14 @@ deploy_console
 deploy_server
 if [[ ! -z "$CIRCLE_TAG" ]]; then
     build_and_push_cli_migrations_image_v2
+    build_and_push_cli_migrations_image_v3
 
     # if this is a stable release, update all latest assets
     if [ $IS_STABLE_RELEASE = true ]; then
         deploy_server_latest
         push_server_binary
         push_latest_cli_migrations_image_v2
+        push_latest_cli_migrations_image_v3
         send_pr_to_repo graphql-engine-heroku
         deploy_do_manifests
     fi
diff --git a/CHANGELOG.md b/CHANGELOG.md
index 8b0492aa76e..bd1bb805d40 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -39,6 +39,7 @@ While we want to fix this by offering, in the future, an explicit API that allow
 - console: data sidebar bug fixes and improvements (#921)
 - cli: fix seeds incorrectly being applied to databases in config v3 (#6683)
 - cli: add `--all-databases` flag for `migrate apply`, this allows applying migrations on all connected databases in one go
+- cli-migrations: add config v3 image
 - docs: add Hasura v2 upgrade guide (#1030)
 
 ## v2.0.0-alpha.6
diff --git a/docs/graphql/core/migrations/advanced/auto-apply-migrations.rst b/docs/graphql/core/migrations/advanced/auto-apply-migrations.rst
index 60d3348fd95..fab7e122163 100644
--- a/docs/graphql/core/migrations/advanced/auto-apply-migrations.rst
+++ b/docs/graphql/core/migrations/advanced/auto-apply-migrations.rst
@@ -7,69 +7,67 @@
 Auto-apply migrations/metadata when the server starts
 =====================================================
 
-`coming soon`
+.. contents:: Table of contents
+  :backlinks: none
+  :depth: 1
+  :local:
 
-.. .. contents:: Table of contents
-..   :backlinks: none
-..   :depth: 1
-..   :local:
+**cli-migrations** image
+------------------------
 
-.. **cli-migrations** image
-.. ------------------------
+Hasura ships a special Docker image which can be used to
+automatically apply migrations/metadata when the server starts:
 
-.. Hasura ships a special Docker image which can be used to
-.. automatically apply migrations/metadata when the server starts:
+.. code-block:: bash
 
-.. .. code-block:: bash
+   hasura/graphql-engine:<version>.cli-migrations-v3
 
-..    hasura/graphql-engine:<version>.cli-migrations-v2
+This container image includes the Hasura CLI at ``/bin/hasura-cli`` and can be
+used for running any other CI/CD scripts in your workflow.
 
-.. This container image includes the Hasura CLI at ``/bin/hasura-cli`` and can be
-.. used for running any other CI/CD scripts in your workflow.
+.. note::
 
-.. .. note::
+  For ``config v2``, see :ref:`auto_apply_migrations_v2`.
 
-..   For ``config v1``, see :ref:`auto_apply_migrations_v1`.
+Applying migrations
+-------------------
 
-.. Applying migrations
-.. -------------------
+The ``migrations`` and ``metadata`` directories created by the Hasura CLI in a
+Hasura project can be mounted at the ``/hasura-migrations`` and ``/hasura-metadata``
+path of this Docker container and the container's entry point script will apply the
+migrations and metadata before starting the server. If no directory is mounted at
+the designated paths, the server will start ignoring the migrations and/or metadata.
 
-.. The ``migrations`` and ``metadata`` directories created by the Hasura CLI in a
-.. Hasura project can be mounted at the ``/hasura-migrations`` and ``/hasura-metadata``
-.. path of this Docker container and the container's entry point script will apply the
-.. migrations and metadata before starting the server. If no directory is mounted at
-.. the designated paths, the server will start ignoring the migrations and/or metadata.
+If you want to mount the migrations/metadata directories at some location other
+than the above, set the following environment variables:
 
-.. If you want to mount the migrations/metadata directories at some location other
-.. than the above, set the following environment variables:
+.. code-block:: bash
 
-.. .. code-block:: bash
+   HASURA_GRAPHQL_MIGRATIONS_DIR=/custom-path-for-migrations
+   HASURA_GRAPHQL_METADATA_DIR=/custom-path-for-metadata
 
-..    HASURA_GRAPHQL_MIGRATIONS_DIR=/custom-path-for-migrations
-..    HASURA_GRAPHQL_METADATA_DIR=/custom-path-for-metadata
+Once the migrations and metadata are applied, the container resumes operation as
+a normal Hasura GraphQL engine server.
 
-.. Once the migrations and metadata are applied, the container resumes operation as
-.. a normal Hasura GraphQL engine server.
+Example:
 
-.. Example:
+.. code-block:: bash
 
-.. .. code-block:: bash
-
-..    # Start Hasura after applying the migrations and metadata present in the Hasura project
-..    docker run -p 8080:8080 \
-..           -v /home/me/my-project/migrations:/hasura-migrations \
-..           -v /home/me/my-project/metadata:/hasura-metadata \
-..           -e HASURA_GRAPHQL_DATABASE_URL=postgres://postgres:@postgres:5432/postgres \
-..           hasura/graphql-engine:v1.2.0.cli-migrations-v2
+   # Start Hasura after applying the migrations and metadata present in the Hasura project
+   docker run -p 8080:8080 \
+          -v /home/me/my-project/migrations:/hasura-migrations \
+          -v /home/me/my-project/metadata:/hasura-metadata \
+          -e HASURA_GRAPHQL_DATABASE_URL=postgres://postgres:@postgres:5432/postgres \
+          hasura/graphql-engine:v2.0.0-alpha.7.cli-migrations-v3
 
 
-.. .. _auto_apply_metadata:
+.. _auto_apply_metadata:
 
-.. Applying only metadata
-.. ----------------------
+Applying only metadata
+----------------------
 
-.. If you're managing migrations with a different tool and want to use this image
-.. to apply only the metadata, mount the ``metadata`` directory of your Hasura project
-.. at the ``/hasura-metadata`` path of this Docker container the container’s entry point
-.. script will apply the metadata before starting the server.
+If you're managing migrations with a different tool and want to use this image
+to apply only the metadata, mount the ``metadata`` directory of your Hasura project
+at the ``/hasura-metadata`` path of this Docker container the container’s entry point
+script will apply the metadata before starting the server.
 
diff --git a/scripts/cli-migrations/Makefile b/scripts/cli-migrations/Makefile
index a07ca49b3ef..4342f421c56 100644
--- a/scripts/cli-migrations/Makefile
+++ b/scripts/cli-migrations/Makefile
@@ -20,5 +20,34 @@ test-cli-migrations-v2:
 	cd v2/test
 	./test.sh
 
+.PHONY: build-cli-migrations-v3
+.ONESHELL:
+build-cli-migrations-v3:
+	cd v3
+	./build.sh $(SERVER_BUILD_OUTPUT) $(CLI_BUILD_OUTPUT) $(BUILD_OUTPUT)
+
+.PHONY: test-cli-migrations-v3
+.ONESHELL:
+test-cli-migrations-v3:
+	cd v3/test
+	./test.sh
+
+.ONESHELL:
+prepare-local-env:
+	# works on *nix systems
+	MAKEFILE_DIR=$(shell pwd)
+	mkdir /tmp/build
+	cd /tmp/build
+	mkdir _cli_migrations_output
+	# get server image and save it	
+	LATEST_RELEASE=$(shell curl --silent "https://api.github.com/repos/hasura/graphql-engine/releases" | jq '.[0]' | grep '"tag_name":' |  sed -E 's/.*"([^"]+)".*/\1/')
+	mkdir _server_output && cd _server_output && docker save -o image.tar hasura/graphql-engine:$$LATEST_RELEASE && cd -
+	mkdir -p _cli_output/binaries && cd _cli_output/binaries && curl -LO https://github.com/hasura/graphql-engine/releases/download/$$LATEST_RELEASE/cli-hasura-linux-amd64 && cd -
+
+	# edit makefile to use /tmp/build as BUILD_DIR
+	cd $$MAKEFILE_DIR && sed -i 's/BUILD_DIR ?= \/build/BUILD_DIR ?= \/tmp\/build/' Makefile
+reset-local-env:
+	sed -i 's/BUILD_DIR ?= \/tmp\/build/BUILD_DIR ?= \/build/' Makefile
+
 .PHONY: all
-all: build-cli-migrations-v2 test-cli-migrations-v2
+all: build-cli-migrations-v2 test-cli-migrations-v2 build-cli-migrations-v3 test-cli-migrations-v3
diff --git a/scripts/cli-migrations/v2/test/metadata/tables.yaml b/scripts/cli-migrations/v2/test/metadata/tables.yaml
index 0637a088a01..edb7665f15e 100644
--- a/scripts/cli-migrations/v2/test/metadata/tables.yaml
+++ b/scripts/cli-migrations/v2/test/metadata/tables.yaml
@@ -1 +1,3 @@
-[]
\ No newline at end of file
+- table:
+    schema: public
+    name: test
\ No newline at end of file
diff --git a/scripts/cli-migrations/v2/test/test.sh b/scripts/cli-migrations/v2/test/test.sh
index f8e948acd31..a3479558fdd 100755
--- a/scripts/cli-migrations/v2/test/test.sh
+++ b/scripts/cli-migrations/v2/test/test.sh
@@ -27,6 +27,6 @@ wait_for_server
 # export metadata and run diff with validation/metadata.json
 docker run --network container:graphql-engine appropriate/curl -s -f   -d'{"type" : "export_metadata", "args" : {} }' localhost:8080/v1/query | jq -j '.' | diff validation/metadata.json -
 # get list of migrations applied from graphql-engine server
-# docker run --network container:graphql-engine appropriate/curl -s -f   -d'{"type" : "run_sql", "args" : {"sql": "select * from hdb_catalog.schema_migrations"} }' localhost:8080/v1/query | jq -j '.' | diff validation/schema_migrations.json -
+docker run --network container:graphql-engine appropriate/curl -s -f   -d'{"type" : "run_sql", "args" : {"sql": "select * from hdb_catalog.schema_migrations"} }' localhost:8080/v1/query | jq -j '.' | diff validation/schema_migrations.json -
 # delete postgres and graphql-engine
 docker-compose down -v
\ No newline at end of file
diff --git a/scripts/cli-migrations/v2/test/validation/metadata.json b/scripts/cli-migrations/v2/test/validation/metadata.json
index 65c77eee025..d19e1161457 100644
--- a/scripts/cli-migrations/v2/test/validation/metadata.json
+++ b/scripts/cli-migrations/v2/test/validation/metadata.json
@@ -4,7 +4,14 @@
     {
       "name": "default",
       "kind": "postgres",
-      "tables": [],
+      "tables": [
+        {
+          "table": {
+            "schema": "public",
+            "name": "test"
+          }
+        }
+      ],
       "configuration": {
         "connection_info": {
           "database_url": "postgres://postgres:postgrespassword@postgres:5432/postgres",
diff --git a/scripts/cli-migrations/v3/.gitignore b/scripts/cli-migrations/v3/.gitignore
new file mode 100644
index 00000000000..94df10e6260
--- /dev/null
+++ b/scripts/cli-migrations/v3/.gitignore
@@ -0,0 +1,2 @@
+cli-hasura-linux-amd64
+manifest.yaml
\ No newline at end of file
diff --git a/scripts/cli-migrations/v3/Dockerfile b/scripts/cli-migrations/v3/Dockerfile
new file mode 100644
index 00000000000..e01fd4c62e8
--- /dev/null
+++ b/scripts/cli-migrations/v3/Dockerfile
@@ -0,0 +1,22 @@
+ARG SERVER_IMAGE_TAG
+
+FROM hasura/graphql-engine:${SERVER_IMAGE_TAG}
+
+RUN apt-get update && apt-get install -y netcat
+
+# set an env var to let the cli know that
+# update notification is disabled
+ENV HASURA_GRAPHQL_SHOW_UPDATE_NOTIFICATION=false
+
+COPY docker-entrypoint.sh /bin/
+COPY cli-hasura-linux-amd64 /bin/hasura-cli
+
+RUN chmod +x /bin/hasura-cli 
+
+# set an env var to let the cli know that
+# it is running in server environment
+ENV HASURA_GRAPHQL_CLI_ENVIRONMENT=server-on-docker
+
+ENTRYPOINT ["docker-entrypoint.sh"]
+
+CMD ["graphql-engine", "serve"]
\ No newline at end of file
diff --git a/scripts/cli-migrations/v3/README.md b/scripts/cli-migrations/v3/README.md
new file mode 100644
index 00000000000..30232d0a5da
--- /dev/null
+++ b/scripts/cli-migrations/v3/README.md
@@ -0,0 +1,111 @@
+# CLI Migrations
+
+This docker image provides a method to run migrations and metadata at docker entrypoint.
+A temporary server is booted, with the migrations API allowed, securely through localhost.
+Once migrations and metadata have been applied, the server will reboot in a secure mode for inbound graphql usage.
+
+See [./docker-entrypoint.sh](docker-entrypoint.sh)
+
+- [CLI Migrations](#cli-migrations)
+  - [Examples](#examples)
+    - [Local](#local)
+    - [Heroku](#heroku)
+      - [Provision](#provision)
+      - [Deploy](#deploy)
+  - [Configuration](#configuration)
+    - [Migrations Directory (Optional)](#migrations-directory-optional)
+    - [Metadata Directory (Optional)](#metadata-directory-optional)
+    - [Database (One of required)](#database-one-of-them-required)
+    - [GraphQL Server (Optional)](#graphql-server-optional)
+
+## Examples
+
+It is used in a docker file as:
+
+```dockerfile
+FROM hasura/graphql-engine:<version>.cli-migrations-v3
+
+CMD graphql-engine \
+  --metadata-database-url $METADATA_DATABASE_URL \
+  serve \
+  --server-port $PORT \
+  --enable-console
+```
+
+### Local
+
+This is covered in the documentation here: https://hasura.io/docs/latest/graphql/core/migrations/auto-apply-migrations.html
+The below [Configuration](#configuration) will also be applicable.
+
+### Heroku
+
+Using a docker build on heroku the manifest (`heroku.yml`) can look like:
+
+```yaml
+setup:
+  addons:
+    - plan: heroku-postgresql
+      as: DATABASE
+  config:
+    HASURA_METADATA_DATABASE_URL: DATABASE_URL
+build:
+  docker:
+    web: Dockerfile
+```
+
+This allows you to provision and migrate a database entirely without intervention.
+
+#### Provision
+
+Setup the app, with addons and the setup steps defined in the heroku.yml
+
+```bash
+heroku create heroku-migration-tester --manifest
+```
+
+#### Deploy
+
+```bash
+export HEROKU_GIT_REMOTE=https://git.heroku.com/heroku-migration-tester.git
+git init && git add .
+git commit -m "first commit"
+git remote add heroku HEROKU_GIT_REMOTE
+git push heroku master
+```
+
+## Configuration
+
+You may set the following environment variables to configure the way this image is run.
+
+### Migrations Directory (Optional)
+
+Migrations are either mounted or built into the image.
+
+If it has been stored in a directory other than the default then it can be configured using the following:
+
+- `HASURA_GRAPHQL_MIGRATIONS_DIR` (default=`/hasura-migrations`)
+
+  A path to the migrations directory.
+
+### Metadata Directory (Optional)
+
+Metadata are either mounted or built into the image.
+
+If it has been stored in a directory other than the default then it can be configured using the following:
+
+- `HASURA_GRAPHQL_METADATA_DIR` (default=`/hasura-metadata`)
+
+  A path to the metadata directory.
+
+### GraphQL Server (Optional)
+
+  Optional configuration for the server which boots during migrations.
+
+- `HASURA_GRAPHQL_MIGRATIONS_SERVER_PORT` (default=`9691`)
+
+  Specify the port running the graphql server during execution of the migration script.
+  It is advised that you do not specify a PORT that may be open e.g. 80/443 and the default should rarely require changing.
+
+- `HASURA_GRAPHQL_MIGRATIONS_SERVER_TIMEOUT` (default=`30s`)
+
+  Specify the server timeout threshold.
diff --git a/scripts/cli-migrations/v3/build.sh b/scripts/cli-migrations/v3/build.sh
new file mode 100755
index 00000000000..5172699a282
--- /dev/null
+++ b/scripts/cli-migrations/v3/build.sh
@@ -0,0 +1,20 @@
+#!/usr/bin/env bash
+
+set -evo pipefail
+
+SERVER_BUILD_OUTPUT="$1"
+CLI_BUILD_OUTPUT="$2"
+BUILD_OUTPUT="$3"
+CLI_MIGRATIONS_IMAGE="cli-migrations-v3"
+
+SERVER_IMAGE=$(docker load -i "${SERVER_BUILD_OUTPUT}/image.tar" | grep "^Loaded image: " | sed "s/Loaded image: //g")
+SERVER_IMAGE_TAG=$(echo "$SERVER_IMAGE" | sed "s/.*:\(.*\)$/\1/")
+
+echo "SERVER_IMAGE is ${SERVER_IMAGE}"
+echo "SERVER_IMAGE_TAG is ${SERVER_IMAGE_TAG}"
+
+BINARY=${CLI_BUILD_OUTPUT}/binaries/cli-hasura-linux-amd64
+cp ${BINARY} .
+
+docker build -t "${CLI_MIGRATIONS_IMAGE}" . --build-arg SERVER_IMAGE_TAG=$SERVER_IMAGE_TAG
+docker save -o "${BUILD_OUTPUT}/v3.tar" "${CLI_MIGRATIONS_IMAGE}"
\ No newline at end of file
diff --git a/scripts/cli-migrations/v3/docker-entrypoint.sh b/scripts/cli-migrations/v3/docker-entrypoint.sh
new file mode 100755
index 00000000000..4b939e03afe
--- /dev/null
+++ b/scripts/cli-migrations/v3/docker-entrypoint.sh
@@ -0,0 +1,101 @@
+#!/bin/sh
+
+set -e
+
+log() {
+    TIMESTAMP=$(date -u "+%Y-%m-%dT%H:%M:%S.000+0000")
+    LOGKIND=$1
+    MESSAGE=$2
+    echo "{\"timestamp\":\"$TIMESTAMP\",\"level\":\"info\",\"type\":\"startup\",\"detail\":{\"kind\":\"$LOGKIND\",\"info\":\"$MESSAGE\"}}"
+}
+
+DEFAULT_MIGRATIONS_DIR="/hasura-migrations"
+DEFAULT_METADATA_DIR="/hasura-metadata"
+TEMP_PROJECT_DIR="/tmp/hasura-project"
+
+# Use 9691 port for running temporary instance. 
+# In case 9691 is occupied (according to docker networking), then this will fail.
+# override with another port in that case
+# TODO: Find a proper random port
+if [ -z ${HASURA_GRAPHQL_MIGRATIONS_SERVER_PORT+x} ]; then
+    log "migrations-startup" "migrations server port env var is not set, defaulting to 9691"
+    HASURA_GRAPHQL_MIGRATIONS_SERVER_PORT=9691
+fi
+
+if [ -z ${HASURA_GRAPHQL_MIGRATIONS_SERVER_TIMEOUT+x} ]; then
+    log "migrations-startup" "server timeout is not set, defaulting to 30 seconds"
+    HASURA_GRAPHQL_MIGRATIONS_SERVER_TIMEOUT=30
+fi
+
+# wait for a port to be ready
+wait_for_port() {
+    local PORT=$1
+    log "migrations-startup" "waiting $HASURA_GRAPHQL_MIGRATIONS_SERVER_TIMEOUT for $PORT to be ready"
+    for i in `seq 1 $HASURA_GRAPHQL_MIGRATIONS_SERVER_TIMEOUT`;
+    do
+        nc -z localhost $PORT > /dev/null 2>&1 && log "migrations-startup" "port $PORT is ready" && return
+        sleep 1
+    done
+    log "migrations-startup" "failed waiting for $PORT, try increasing HASURA_GRAPHQL_MIGRATIONS_SERVER_TIMEOUT (default: 30)" && exit 1
+}
+
+log "migrations-startup" "starting graphql engine temporarily on port $HASURA_GRAPHQL_MIGRATIONS_SERVER_PORT"
+
+# start graphql engine with metadata api enabled
+graphql-engine serve --enabled-apis="metadata" \
+               --server-port=${HASURA_GRAPHQL_MIGRATIONS_SERVER_PORT}  &
+# store the pid to kill it later
+PID=$!
+
+# wait for port to be ready
+wait_for_port $HASURA_GRAPHQL_MIGRATIONS_SERVER_PORT
+
+# check if migration directory is set, default otherwise
+if [ -z ${HASURA_GRAPHQL_MIGRATIONS_DIR+x} ]; then
+    log "migrations-startup" "env var HASURA_GRAPHQL_MIGRATIONS_DIR is not set, defaulting to $DEFAULT_MIGRATIONS_DIR"
+    HASURA_GRAPHQL_MIGRATIONS_DIR="$DEFAULT_MIGRATIONS_DIR"
+fi
+
+# check if metadata directory is set, default otherwise
+if [ -z ${HASURA_GRAPHQL_METADATA_DIR+x} ]; then
+    log "migrations-startup" "env var HASURA_GRAPHQL_METADATA_DIR is not set, defaulting to $DEFAULT_METADATA_DIR"
+    HASURA_GRAPHQL_METADATA_DIR="$DEFAULT_METADATA_DIR"
+fi
+
+# apply metadata if the directory exist
+if [ -d "$HASURA_GRAPHQL_METADATA_DIR" ]; then
+    rm -rf "TEMP_PROJECT_DIR"
+    log "migrations-apply" "applying metadata from $HASURA_GRAPHQL_METADATA_DIR"
+    mkdir -p "$TEMP_PROJECT_DIR"
+    cp -a "$HASURA_GRAPHQL_METADATA_DIR/." "$TEMP_PROJECT_DIR/metadata/"
+    cd "$TEMP_PROJECT_DIR"
+    echo "version: 3" > config.yaml
+    echo "endpoint: http://localhost:$HASURA_GRAPHQL_MIGRATIONS_SERVER_PORT" >> config.yaml
+    echo "metadata_directory: metadata" >> config.yaml
+    hasura-cli metadata apply 
+else
+    log "migrations-apply" "directory $HASURA_GRAPHQL_METADATA_DIR does not exist, skipping metadata"
+fi
+
+# apply migrations if the directory exist
+if [ -d "$HASURA_GRAPHQL_MIGRATIONS_DIR" ]; then
+    log "migrations-apply" "applying migrations from $HASURA_GRAPHQL_MIGRATIONS_DIR"
+    mkdir -p "$TEMP_PROJECT_DIR"
+    cp -a "$HASURA_GRAPHQL_MIGRATIONS_DIR/." "$TEMP_PROJECT_DIR/migrations/"
+    cd "$TEMP_PROJECT_DIR"
+    echo "version: 3" > config.yaml
+    echo "endpoint: http://localhost:$HASURA_GRAPHQL_MIGRATIONS_SERVER_PORT" >> config.yaml
+    hasura-cli migrate apply --all-databases
+    log "migrations-apply" "reloading metadata"
+    hasura-cli metadata reload
+else
+    log "migrations-apply" "directory $HASURA_GRAPHQL_MIGRATIONS_DIR does not exist, skipping migrations"
+fi
+
+# kill graphql engine that we started earlier
+log "migrations-shutdown" "killing temporary server"
+kill $PID
+
+# pass control to CMD
+log "migrations-shutdown" "graphql-engine will now start in normal mode"
+exec "$@"
diff --git a/scripts/cli-migrations/v3/test/docker-compose.yaml b/scripts/cli-migrations/v3/test/docker-compose.yaml
new file mode 100644
index 00000000000..96f362ddda1
--- /dev/null
+++ b/scripts/cli-migrations/v3/test/docker-compose.yaml
@@ -0,0 +1,19 @@
+version: '3.6'
+services:
+  postgres:
+    image: postgres:12
+    restart: always
+    environment:
+      POSTGRES_PASSWORD: postgrespassword
+  graphql-engine:
+    container_name: graphql-engine
+    image: cli-migrations-v3
+    ports:
+    - "8080:8080"
+    depends_on:
+    - "postgres"
+    restart: always
+    environment:
+      HASURA_GRAPHQL_DATABASE_URL: postgres://postgres:postgrespassword@postgres:5432/postgres
+      HASURA_GRAPHQL_ENABLE_CONSOLE: "true" # set to "false" to disable console
+      HASURA_GRAPHQL_ENABLED_LOG_TYPES: startup, http-log, webhook-log, websocket-log, query-log
\ No newline at end of file
diff --git a/scripts/cli-migrations/v3/test/metadata/actions.graphql b/scripts/cli-migrations/v3/test/metadata/actions.graphql
new file mode 100644
index 00000000000..139597f9cb0
--- /dev/null
+++ b/scripts/cli-migrations/v3/test/metadata/actions.graphql
@@ -0,0 +1,2 @@
+
+
diff --git a/scripts/cli-migrations/v3/test/metadata/actions.yaml b/scripts/cli-migrations/v3/test/metadata/actions.yaml
new file mode 100644
index 00000000000..1edb4c2ffc5
--- /dev/null
+++ b/scripts/cli-migrations/v3/test/metadata/actions.yaml
@@ -0,0 +1,6 @@
+actions: []
+custom_types:
+  enums: []
+  input_objects: []
+  objects: []
+  scalars: []
diff --git a/scripts/cli-migrations/v3/test/metadata/allow_list.yaml b/scripts/cli-migrations/v3/test/metadata/allow_list.yaml
new file mode 100644
index 00000000000..fe51488c706
--- /dev/null
+++ b/scripts/cli-migrations/v3/test/metadata/allow_list.yaml
@@ -0,0 +1 @@
+[]
diff --git a/scripts/cli-migrations/v3/test/metadata/cron_triggers.yaml b/scripts/cli-migrations/v3/test/metadata/cron_triggers.yaml
new file mode 100644
index 00000000000..fe51488c706
--- /dev/null
+++ b/scripts/cli-migrations/v3/test/metadata/cron_triggers.yaml
@@ -0,0 +1 @@
+[]
diff --git a/scripts/cli-migrations/v3/test/metadata/databases/databases.yaml b/scripts/cli-migrations/v3/test/metadata/databases/databases.yaml
new file mode 100644
index 00000000000..89e25ec9bfd
--- /dev/null
+++ b/scripts/cli-migrations/v3/test/metadata/databases/databases.yaml
@@ -0,0 +1,12 @@
+- name: default
+  kind: postgres
+  configuration:
+    connection_info:
+      database_url:
+        from_env: HASURA_GRAPHQL_DATABASE_URL
+      pool_settings:
+        idle_timeout: 180
+        max_connections: 50
+        retries: 1
+  tables: "!include default/tables/tables.yaml"
+  functions: "!include default/functions/functions.yaml"
diff --git a/scripts/cli-migrations/v3/test/metadata/databases/default/functions/functions.yaml b/scripts/cli-migrations/v3/test/metadata/databases/default/functions/functions.yaml
new file mode 100644
index 00000000000..fe51488c706
--- /dev/null
+++ b/scripts/cli-migrations/v3/test/metadata/databases/default/functions/functions.yaml
@@ -0,0 +1 @@
+[]
diff --git a/scripts/cli-migrations/v3/test/metadata/databases/default/tables/public_test.yaml b/scripts/cli-migrations/v3/test/metadata/databases/default/tables/public_test.yaml
new file mode 100644
index 00000000000..f01bc69e97e
--- /dev/null
+++ b/scripts/cli-migrations/v3/test/metadata/databases/default/tables/public_test.yaml
@@ -0,0 +1,3 @@
+table:
+  name: test
+  schema: public
diff --git a/scripts/cli-migrations/v3/test/metadata/databases/default/tables/tables.yaml b/scripts/cli-migrations/v3/test/metadata/databases/default/tables/tables.yaml
new file mode 100644
index 00000000000..d279d30835f
--- /dev/null
+++ b/scripts/cli-migrations/v3/test/metadata/databases/default/tables/tables.yaml
@@ -0,0 +1 @@
+- "!include public_test.yaml"
diff --git a/scripts/cli-migrations/v3/test/metadata/inherited_roles.yaml b/scripts/cli-migrations/v3/test/metadata/inherited_roles.yaml
new file mode 100644
index 00000000000..fe51488c706
--- /dev/null
+++ b/scripts/cli-migrations/v3/test/metadata/inherited_roles.yaml
@@ -0,0 +1 @@
+[]
diff --git a/scripts/cli-migrations/v3/test/metadata/query_collections.yaml b/scripts/cli-migrations/v3/test/metadata/query_collections.yaml
new file mode 100644
index 00000000000..fe51488c706
--- /dev/null
+++ b/scripts/cli-migrations/v3/test/metadata/query_collections.yaml
@@ -0,0 +1 @@
+[]
diff --git a/scripts/cli-migrations/v3/test/metadata/remote_schemas.yaml b/scripts/cli-migrations/v3/test/metadata/remote_schemas.yaml
new file mode 100644
index 00000000000..fe51488c706
--- /dev/null
+++ b/scripts/cli-migrations/v3/test/metadata/remote_schemas.yaml
@@ -0,0 +1 @@
+[]
diff --git a/scripts/cli-migrations/v3/test/metadata/rest_endpoints.yaml b/scripts/cli-migrations/v3/test/metadata/rest_endpoints.yaml
new file mode 100644
index 00000000000..fe51488c706
--- /dev/null
+++ b/scripts/cli-migrations/v3/test/metadata/rest_endpoints.yaml
@@ -0,0 +1 @@
+[]
diff --git a/scripts/cli-migrations/v3/test/metadata/version.yaml b/scripts/cli-migrations/v3/test/metadata/version.yaml
new file mode 100644
index 00000000000..0a70affa4bd
--- /dev/null
+++ b/scripts/cli-migrations/v3/test/metadata/version.yaml
@@ -0,0 +1 @@
+version: 3
diff --git a/scripts/cli-migrations/v3/test/migrations/default/1616826329751_create_table_public_test/down.sql b/scripts/cli-migrations/v3/test/migrations/default/1616826329751_create_table_public_test/down.sql
new file mode 100644
index 00000000000..83ed71daadd
--- /dev/null
+++ b/scripts/cli-migrations/v3/test/migrations/default/1616826329751_create_table_public_test/down.sql
@@ -0,0 +1 @@
+DROP TABLE "public"."test";
diff --git a/scripts/cli-migrations/v3/test/migrations/default/1616826329751_create_table_public_test/up.sql b/scripts/cli-migrations/v3/test/migrations/default/1616826329751_create_table_public_test/up.sql
new file mode 100644
index 00000000000..225eecd6be2
--- /dev/null
+++ b/scripts/cli-migrations/v3/test/migrations/default/1616826329751_create_table_public_test/up.sql
@@ -0,0 +1 @@
+CREATE TABLE "public"."test" ("id" serial NOT NULL, "created_at" timestamptz NOT NULL DEFAULT now(), PRIMARY KEY ("id") );
diff --git a/scripts/cli-migrations/v3/test/test.sh b/scripts/cli-migrations/v3/test/test.sh
new file mode 100755
index 00000000000..9d5d0758eed
--- /dev/null
+++ b/scripts/cli-migrations/v3/test/test.sh
@@ -0,0 +1,32 @@
+#!/usr/bin/env bash
+
+set -evo pipefail
+IFS=$'\n\t'
+ROOT="$(readlink -f ${BASH_SOURCE[0]%/*}/../../)"
+
+wait_for_server() {
+    echo "waiting for server"
+    for _ in $(seq 1 60);
+    do
+      docker run --network container:graphql-engine appropriate/curl http://127.0.0.1:8080/v1/version && return
+      echo -n .
+      sleep 1
+    done
+    echo "Failed waiting for server" && exit 1
+}
+
+# start postgres
+docker-compose up --no-start graphql-engine
+# copy migrations directory to /hasura-migrations
+docker cp migrations/. graphql-engine:/hasura-migrations
+# copy metadata directory to /hasura-metadata
+docker cp metadata/. graphql-engine:/hasura-metadata
+# start graphql-engine
+docker-compose up -d --no-recreate graphql-engine
+wait_for_server
+# export metadata and run diff with validation/metadata.json
+docker run --network container:graphql-engine appropriate/curl -s -f   -d'{"type" : "export_metadata", "args" : {} }' localhost:8080/v1/metadata | jq -j '.' | diff validation/metadata.json -
+# get list of migrations applied from graphql-engine server
+docker run --network container:graphql-engine appropriate/curl -s -f   -d'{"type" : "get_catalog_state", "args" : {} }' localhost:8080/v1/metadata | jq .cli_state | diff validation/catalog_cli_state.json -
+# delete postgres and graphql-engine
+docker-compose down -v
\ No newline at end of file
diff --git a/scripts/cli-migrations/v3/test/validation/catalog_cli_state.json b/scripts/cli-migrations/v3/test/validation/catalog_cli_state.json
new file mode 100644
index 00000000000..5b94715921f
--- /dev/null
+++ b/scripts/cli-migrations/v3/test/validation/catalog_cli_state.json
@@ -0,0 +1,10 @@
+{
+  "settings": {
+    "migration_mode": "true"
+  },
+  "migrations": {
+    "default": {
+      "1616826329751": false
+    }
+  }
+}
diff --git a/scripts/cli-migrations/v3/test/validation/metadata.json b/scripts/cli-migrations/v3/test/validation/metadata.json
new file mode 100644
index 00000000000..82eb3328f17
--- /dev/null
+++ b/scripts/cli-migrations/v3/test/validation/metadata.json
@@ -0,0 +1,29 @@
+{
+  "version": 3,
+  "sources": [
+    {
+      "name": "default",
+      "kind": "postgres",
+      "tables": [
+        {
+          "table": {
+            "schema": "public",
+            "name": "test"
+          }
+        }
+      ],
+      "configuration": {
+        "connection_info": {
+          "database_url": {
+            "from_env": "HASURA_GRAPHQL_DATABASE_URL"
+          },
+          "pool_settings": {
+            "retries": 1,
+            "idle_timeout": 180,
+            "max_connections": 50
+          }
+        }
+      }
+    }
+  ]
+}
\ No newline at end of file