EDITED the developing locally doc.

docs/developing-locally.rst

@@ -29,7 +29,7 @@ First things first.
 
 #. Create a new PostgreSQL database using createdb_: ::
 
-    $ createdb <what you've entered as the project_slug at setup stage>
+    $ createdb <what you have entered as the project_slug at setup stage> -U postgres --password <password>
 
    .. note::
 

docs/index.rst

@@ -17,6 +17,7 @@ Contents:
    developing-locally-docker
    settings
    linters
+   testing
    deployment-on-pythonanywhere
    deployment-on-heroku
    deployment-with-docker

docs/testing.rst

@@ -0,0 +1,56 @@
+.. _testing:
+
+Testing
+========
+
+We encourage users to build application tests. As best practice, this should be done immediately after documentation of the application being built, before starting on any coding.
+
+Pytest
+------
+
+This project uses the Pytest_, a framework for easily building simple and scalable tests.
+After you have set up to `develop locally`_, run the following commands to make sure the testing environment is ready: ::
+
+    $ pytest
+
+You will get a readout of the `users` app that has already been set up with tests. If you do not want to run the `pytest` on the entire project, you can target a particular app by typing in its location: ::
+
+   $ pytest <path-to-app-in-project/app>
+
+If you set up your project to `develop locally with docker`_, run the following command: ::
+
+   $ docker-compose -f local.yml run django pytest 
+
+Targetting particular apps for testing in ``docker`` follows a similar pattern as previously shown above.
+
+Coverage
+--------
+
+You should build your tests to provide the highest level of **code coverage**. You can run the ``pytest`` with code ``coverage`` by typing in the following command: ::
+
+   $ docker-compose -f local.yml run django coverage run -m pytest
+
+Once the tests are complete, in order to see the code coverage, run the following command: ::
+
+   $ docker-compose -f local.yml run django coverage report
+
+.. note::
+
+   At the root of the project folder, you will find the `pytest.ini` file. You can use this to customize_ the ``pytest`` to your liking. 
+
+   There is also the `.coveragerc`. This is the configuration file for the ``coverage`` tool. You can find out more about `configuring`_ ``coverage``. 
+
+.. seealso::
+
+   For unit tests, run: ::
+
+      $ python manage.py test
+
+   Since this is a fresh install, and there are no tests built using the Python `unittest`_ library yet, you should get feedback that says there were no tests carried out.
+
+.. _Pytest: https://docs.pytest.org/en/latest/example/simple.html
+.. _develop locally: ../developing-locally.rst
+.. _develop locally with docker: ..../developing-locally-docker.rst
+.. _customize: https://docs.pytest.org/en/latest/customize.html
+.. _unittest: https://docs.python.org/3/library/unittest.html#module-unittest
+.. _configuring: https://coverage.readthedocs.io/en/v4.5.x/config.html