diff --git a/Dockerfile b/Dockerfile
index 2439d5b2a2..35e1e20b56 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -1,10 +1,5 @@
-ARG BASE_IMAGE=ubuntu:latest
-
-FROM $BASE_IMAGE AS builder
-SHELL ["/bin/bash", "-c"]
-
-# Set noninteractive mode for apt-get
-ARG DEBIAN_FRONTEND=noninteractive
+ARG BASE_IMAGE=rust:1.83
+FROM $BASE_IMAGE AS base_builder
 
 LABEL ai.opentensor.image.authors="operations@opentensor.ai" \
   ai.opentensor.image.vendor="Opentensor Foundation" \
@@ -12,37 +7,56 @@ LABEL ai.opentensor.image.authors="operations@opentensor.ai" \
   ai.opentensor.image.description="Opentensor Subtensor Blockchain" \
   ai.opentensor.image.documentation="https://docs.bittensor.com"
 
+RUN rustup update stable
+RUN rustup target add wasm32-unknown-unknown --toolchain stable
+
+
 # Set up Rust environment
 ENV RUST_BACKTRACE=1
-RUN apt-get update && \
-  apt-get install -y curl build-essential protobuf-compiler clang git pkg-config libssl-dev && \
-  rm -rf /var/lib/apt/lists/*
+RUN apt-get update && apt-get install -y curl build-essential protobuf-compiler clang git pkg-config libssl-dev
+RUN rm -rf /var/lib/apt/lists/*
 
 # Copy entire repository
 COPY . /build
 WORKDIR /build
 
-# Install Rust
-RUN set -o pipefail && curl https://sh.rustup.rs -sSf | sh -s -- -y
-ENV PATH="/root/.cargo/bin:${PATH}"
-RUN rustup toolchain install
-RUN rustup target add wasm32-unknown-unknown
-
+#
+# Image for building prod
+#
+FROM base_builder AS prod_builder
 # Build the project
 RUN cargo build -p node-subtensor --profile production  --features="metadata-hash" --locked
-
-# Slim down image
-RUN rm -rf /root/.cargo
-
 # Verify the binary was produced
 RUN test -e /build/target/production/node-subtensor
-
 EXPOSE 30333 9933 9944
 
+#
+# Final prod image
+#
 FROM $BASE_IMAGE AS subtensor
-
 # Copy all chainspec files
-COPY --from=builder /build/chainspecs/*.json /
+COPY --from=prod_builder /build/*.json /
+# Copy final binary
+COPY --from=prod_builder /build/target/production/node-subtensor /usr/local/bin
+
+
+#
+# Image for building local
+#
+FROM base_builder AS local_builder
+# Build the project
+RUN cargo build --workspace --profile release --features="pow-faucet"
+# Verify the binary was produced
+RUN test -e /build/target/release/node-subtensor
+EXPOSE 30333 9933 9944
 
+
+#
+# Final local image
+#
+FROM $BASE_IMAGE AS subtensor-local
+# Copy all chainspec files
+COPY --from=local_builder /build/*.json /
 # Copy final binary
-COPY --from=builder /build/target/production/node-subtensor /usr/local/bin
+COPY --from=local_builder /build/target/release/node-subtensor /usr/local/bin
+RUN "node-subtensor" build-spec --disable-default-bootnode --raw --chain local > /localnet.json
diff --git a/docker-compose.localnet.yml b/docker-compose.localnet.yml
new file mode 100644
index 0000000000..30acb2fd94
--- /dev/null
+++ b/docker-compose.localnet.yml
@@ -0,0 +1,74 @@
+volumes:
+  subtensor-alice:
+  subtensor-bob:
+
+services:
+  common: &common
+    image: ghcr.io/opentensor/subtensor:latest-local
+    cpu_count: 4
+    mem_limit: 40000000000
+    memswap_limit: 80000000000
+    environment:
+      - CARGO_HOME=/var/www/node-subtensor/.cargo
+
+  alice:
+    <<: *common
+    container_name: subtensor-alice
+    build:
+      context: .
+      dockerfile: Dockerfile
+      target: subtensor-local
+    ports:
+      - "9944:9944"
+      - "30334:30334"
+    expose:
+      - 9944
+      - 30334
+    volumes:
+      - subtensor-alice:/tmp/blockchain
+    command:
+      - /bin/bash
+      - -c
+      - |
+        node-subtensor \
+          --base-path /tmp/blockchain \
+          --chain localnet.json \
+          --rpc-external \
+          --rpc-methods=unsafe \
+          --alice \
+          --port 30334 \
+          --rpc-port 9944 \
+          --validator \
+          --rpc-cors=all \
+          --allow-private-ipv4 \
+          --discover-local \
+          --unsafe-force-node-key-generation
+
+  bob:
+    <<: *common
+    container_name: subtensor-bob
+    expose:
+      - 9945
+      - 30335
+    ports:
+      - "9945:9945"
+      - "30335:30335"
+    volumes:
+      - subtensor-bob:/tmp/blockchain
+    command:
+      - /bin/bash
+      - -c
+      - |
+        node-subtensor \
+          --base-path /tmp/blockchain \
+          --chain localnet.json \
+          --bob \
+          --rpc-methods=unsafe \
+          --rpc-external \
+          --port 30335 \
+          --rpc-port 9945 \
+          --validator \
+          --rpc-cors=all \
+          --allow-private-ipv4 \
+          --discover-local \
+          --unsafe-force-node-key-generation
diff --git a/docs/running-subtensor-locally.md b/docs/running-subtensor-locally.md
index 82bb87356d..070d4edb50 100644
--- a/docs/running-subtensor-locally.md
+++ b/docs/running-subtensor-locally.md
@@ -1,3 +1,32 @@
 # Running subtensor node locally
 
-See the [**Subtensor Nodes** section in Bittensor Developer Documentation](https://docs.bittensor.com/subtensor-nodes).
+For General information on running Subtensors, see
+[**Subtensor Nodes** section in Bittensor Developer Documentation](https://docs.bittensor.com/subtensor-nodes).
+
+### Running a localnet subtensor node
+
+Running a localnet in docker compose is the easiest way to quickly iterate on
+chain state, like building on the evm.
+
+1. install docker and docker compose, along with cloning this repository.
+
+1. build the images from source on the desired branch using
+   `docker compose -f docker-compose.localnet.yml build`. Note this will take
+   quite a while.
+
+1. Run the docker compose file via
+   `docker compose -f docker-compose.localnet.yml up -d`
+
+Now you should have a full local validator running. To test your connection, you
+can use the following script to check `//Alice`'s balance. Alice is a sudo
+account in localnet.
+
+```py
+# pip install substrate-interface
+from substrateinterface import Keypair, SubstrateInterface
+
+substrate = SubstrateInterface(url="ws://127.0.0.1:9945")
+hotkey = Keypair.create_from_uri('//Alice')
+result = substrate.query("System", "Account", [hotkey.ss58_address])
+print(result.value)
+```