diff --git a/.env.dev b/.env.dev
new file mode 100644
index 000000000..699740244
--- /dev/null
+++ b/.env.dev
@@ -0,0 +1,10 @@
+PYTHONPATH=/app/
+DJANGO_SETTINGS_MODULE=config.settings.local
+C_FORCE_ROOT=true
+DEBUG=0
+DATABASE_URL=psql://postgres:postgres@db:5432/postgres
+ETHEREUM_NODE_URL=http://ganache:8545
+ETHEREUM_TRACING_NODE_URL=
+ETH_L2_NETWORK=1
+REDIS_URL=redis://redis:6379/0
+CELERY_BROKER_URL=redis://redis:6379/1
diff --git a/README.md b/README.md
index 5a6db3274..797c65ede 100644
--- a/README.md
+++ b/README.md
@@ -20,6 +20,13 @@ a transaction that is pending to be sent to the blockchain.
 
 - [Docs](https://docs.gnosis.io/safe/docs/services_transactions/)
 
+## Setup for development
+```bash
+cp .env.dev .env
+docker-compose build --force-rm
+docker-compose -f docker-compose.yml -f docker-compose.dev.yml up
+```
+
 ## Setup for production (event indexing)
 Since **version 3.0.0** transaction service can be configured to rely on **event indexing**
 when [SafeL2 version](https://github.com/gnosis/safe-contracts/blob/v1.3.0/contracts/GnosisSafeL2.sol) is used. Only