diff --git a/proxy/src/auth/backend/mod.rs b/proxy/src/auth/backend/mod.rs
index 83feed5094..6e5c0a3954 100644
--- a/proxy/src/auth/backend/mod.rs
+++ b/proxy/src/auth/backend/mod.rs
@@ -80,10 +80,22 @@ impl std::fmt::Display for Backend<'_, ()> {
                     .field(&endpoint.url())
                     .finish(),
                 #[cfg(any(test, feature = "testing"))]
-                ControlPlaneClient::PostgresMock(endpoint) => fmt
-                    .debug_tuple("ControlPlane::PostgresMock")
-                    .field(&endpoint.url())
-                    .finish(),
+                ControlPlaneClient::PostgresMock(endpoint) => {
+                    let url = endpoint.url();
+                    match url::Url::parse(url) {
+                        Ok(mut url) => {
+                            let _ = url.set_password(Some("_redacted_"));
+                            let url = url.as_str();
+                            fmt.debug_tuple("ControlPlane::PostgresMock")
+                                .field(&url)
+                                .finish()
+                        }
+                        Err(_) => fmt
+                            .debug_tuple("ControlPlane::PostgresMock")
+                            .field(&url)
+                            .finish(),
+                    }
+                }
                 #[cfg(test)]
                 ControlPlaneClient::Test(_) => fmt.debug_tuple("ControlPlane::Test").finish(),
             },
diff --git a/proxy/src/binary/proxy.rs b/proxy/src/binary/proxy.rs
index f40d5041c1..5f24940985 100644
--- a/proxy/src/binary/proxy.rs
+++ b/proxy/src/binary/proxy.rs
@@ -1,9 +1,13 @@
+#[cfg(any(test, feature = "testing"))]
+use std::env;
 use std::net::SocketAddr;
 use std::path::PathBuf;
 use std::pin::pin;
 use std::sync::Arc;
 use std::time::Duration;
 
+#[cfg(any(test, feature = "testing"))]
+use anyhow::Context;
 use anyhow::{bail, ensure};
 use arc_swap::ArcSwapOption;
 use futures::future::Either;
@@ -35,6 +39,8 @@ use crate::scram::threadpool::ThreadPool;
 use crate::serverless::GlobalConnPoolOptions;
 use crate::serverless::cancel_set::CancelSet;
 use crate::tls::client_config::compute_client_config_with_root_certs;
+#[cfg(any(test, feature = "testing"))]
+use crate::url::ApiUrl;
 use crate::{auth, control_plane, http, serverless, usage_metrics};
 
 project_git_version!(GIT_VERSION);
@@ -777,7 +783,13 @@ fn build_auth_backend(
 
         #[cfg(any(test, feature = "testing"))]
         AuthBackendType::Postgres => {
-            let url = args.auth_endpoint.parse()?;
+            let mut url: ApiUrl = args.auth_endpoint.parse()?;
+            if url.password().is_none() {
+                let password = env::var("PGPASSWORD")
+                    .with_context(|| "auth-endpoint does not contain a password and environment variable `PGPASSWORD` is not set")?;
+                url.set_password(Some(&password))
+                    .expect("Failed to set password");
+            }
             let api = control_plane::client::mock::MockControlPlane::new(
                 url,
                 !args.is_private_access_proxy,
diff --git a/proxy/src/url.rs b/proxy/src/url.rs
index 270cd7c24d..7dce36be2f 100644
--- a/proxy/src/url.rs
+++ b/proxy/src/url.rs
@@ -43,6 +43,12 @@ impl std::ops::Deref for ApiUrl {
     }
 }
 
+impl std::ops::DerefMut for ApiUrl {
+    fn deref_mut(&mut self) -> &mut Self::Target {
+        &mut self.0
+    }
+}
+
 impl std::fmt::Display for ApiUrl {
     fn fmt(&self, f: &mut std::fmt::Formatter<'_>) -> std::fmt::Result {
         self.0.fmt(f)