diff --git a/apps/api/alembic/env.py b/apps/api/alembic/env.py
index 37e8332..cf5ad7d 100644
--- a/apps/api/alembic/env.py
+++ b/apps/api/alembic/env.py
@@ -1,5 +1,6 @@
 import os
 from logging.config import fileConfig
+from urllib.parse import unquote
 
 from sqlalchemy import engine_from_config, pool
 
@@ -14,6 +15,9 @@ database_url = os.environ.get("DATABASE_URL")
 if database_url:
     # Alembic needs the synchronous driver
     database_url = database_url.replace("postgresql+asyncpg://", "postgresql://")
+    # Decode URL-encoded characters (e.g. %40 -> @) so ConfigParser
+    # interpolation doesn't choke on them
+    database_url = unquote(database_url)
     config.set_main_option("sqlalchemy.url", database_url)
 
 # Set up Python logging from the config file