diff --git a/guardrails_api/cli/start.py b/guardrails_api/cli/start.py
index 61cb8b8..eb8f027 100644
--- a/guardrails_api/cli/start.py
+++ b/guardrails_api/cli/start.py
@@ -2,7 +2,7 @@
 from typing import Optional
 from guardrails_api.cli.cli import cli
 from guardrails_api.app import create_app
-
+from guardrails_api.utils.configuration import valid_configuration
 
 @cli.command("start")
 def start(
@@ -23,5 +23,5 @@ def start(
     #   look for them in a .guardrailsrc in the current directory.
     env = env or None
     config = config or None
-
+    valid_configuration(config)
     create_app(env, config, port).run(port=port)
diff --git a/guardrails_api/utils/configuration.py b/guardrails_api/utils/configuration.py
new file mode 100644
index 0000000..742f8f4
--- /dev/null
+++ b/guardrails_api/utils/configuration.py
@@ -0,0 +1,22 @@
+from guardrails_api.clients.postgres_client import postgres_is_enabled
+from typing import Optional
+import os
+
+def valid_configuration(config: Optional[str]=""):
+    default_config_file = os.path.join(os.path.dirname(__file__), "config.py")
+
+    config_file_path = os.path.abspath(config)
+    default_config_file_path = os.path.abspath(default_config_file)
+    # If config.py is not present and 
+    # if a config filepath is not passed and
+    # if postgres is not there (i.e. we’re using in-mem db) 
+    # then raise ConfigurationError
+    has_default_config_file = os.path.isfile(default_config_file_path)
+    has_config_file = config != "" and os.path.isfile(config_file_path)
+    if not has_default_config_file and not has_config_file and not postgres_is_enabled():
+        raise ConfigurationError("Can not start. Configuration not provided and default"
+                        " configuration not found and postgres is not enabled.")
+    return True
+
+class ConfigurationError(Exception):
+    pass
\ No newline at end of file
diff --git a/tests/cli/test_start.py b/tests/cli/test_start.py
index 2e31da8..2fd10da 100644
--- a/tests/cli/test_start.py
+++ b/tests/cli/test_start.py
@@ -1,5 +1,5 @@
 from unittest.mock import MagicMock
-
+import os
 
 def test_start(mocker):
     mocker.patch("guardrails_api.cli.start.cli")
@@ -10,7 +10,8 @@ def test_start(mocker):
     )
 
     from guardrails_api.cli.start import start
-
+    # pg enabled
+    os.environ["PGHOST"] = "localhost"
     start("env", "config", 8000)
-
+    os.environ.pop("PGHOST")
     mock_create_app.assert_called_once_with("env", "config", 8000)
diff --git a/tests/utils/test_configuration.py b/tests/utils/test_configuration.py
new file mode 100644
index 0000000..635893a
--- /dev/null
+++ b/tests/utils/test_configuration.py
@@ -0,0 +1,27 @@
+import os
+import pytest
+from guardrails_api.utils.configuration import valid_configuration, ConfigurationError
+
+def test_valid_configuration(mocker):
+    with pytest.raises(ConfigurationError):
+        valid_configuration()
+    
+    # pg enabled
+    os.environ["PGHOST"] = "localhost"
+    valid_configuration("config.py")
+    os.environ.pop("PGHOST")
+    
+    # custom config
+    mock_isfile = mocker.patch("os.path.isfile")
+    mock_isfile.side_effect = [False, True]
+    valid_configuration("config.py")
+
+    # no config
+    mock_isfile.side_effect = [False, False]
+    with pytest.raises(ConfigurationError):
+        valid_configuration("")
+    
+    # default config
+    mock_isfile = mocker.patch("os.path.isfile")
+    mock_isfile.side_effect = [True, False]
+    valid_configuration()