Github Actions Rails Postgres database "test" does not exist

This Github Action flows failt at "Db create Migrate" step.

ActiveRecord::NoDatabaseError: FATAL: database "test" does not exist

I understand I might not exists. My purpose is to create it. Why is it not created?

name: Ruby
on: [push, pull_request]
jobs:
  test:
    runs-on: ubuntu-latest
    services:
      db:
        image: postgres:11@sha256:85d79cba2d4942dad7c99f84ec389a5b9cc84fb07a3dcd3aff0fb06948cdc03b
        ports: ['5432:5432']
        options: >-
          --health-cmd pg_isready
          --health-interval 10s
          --health-timeout 5s
          --health-retries 5
      redis:
        image: redis
        ports: ['6379:6379']
        options: --entrypoint redis-server

    steps:
      - uses: actions/checkout@v2
      - name: Setup Ruby
        uses: actions/setup-ruby@v1
        with:
          ruby-version: 2.7
      - name: Build and test with Rake
        env:
          RAILS_ENV: test
          RAILS_MASTER_KEY: ${{ secrets.RAILS_MASTER_KEY }}
        run: |
          sudo apt-get -yqq install libpq-dev
          gem install bundler
          bundle install --jobs 4 --retry 3
      - name: Db create Migrate
        env:
          DATABASE_URL: postgres://postgres:@localhost:5432/test
          REDIS_URL: redis://localhost:6379/0
          RAILS_ENV: test
          RAILS_MASTER_KEY: ${{ secrets.RAILS_MASTER_KEY }}
        run: |
          bundle exec rails db:create
          bundle exec rails db:migrate
          bundle exec rails db:test:prepare
          bundle exec rails test