diff --git a/.gitignore b/.gitignore
index b0fe02d..30ff1a2 100644
--- a/.gitignore
+++ b/.gitignore
@@ -58,3 +58,5 @@ imports/plugins/custom/*
 coverage/*
 
 .reaction/pluginConfig.js
+
+docker-compose.override.yml
diff --git a/Dockerfile-dev b/Dockerfile-dev
new file mode 100644
index 0000000..b35a61d
--- /dev/null
+++ b/Dockerfile-dev
@@ -0,0 +1,22 @@
+FROM reactioncommerce/meteor:1.8.1-v1
+
+# hadolint ignore=DL3002
+USER root
+
+# Ensure that all files will be linked in owned by node user.
+# Every directory that will be listed in `volumes` section of
+# docker-compose.yml needs to be pre-created and chown'd here.
+# See https://github.com/docker/compose/issues/3270#issuecomment-363478501
+RUN mkdir -p /usr/local/src/app/node_modules \
+  && mkdir -p /usr/local/src/app/.meteor/local \
+  && chown node /usr/local/src/app \
+  && chown node /usr/local/src/app/node_modules \
+  && chown node /usr/local/src/app/.meteor/local
+
+WORKDIR /usr/local/src/app
+
+USER node
+
+ENV PATH $PATH:/usr/local/src/app/node_modules/.bin:/home/node/.meteor
+
+CMD ["npm", "run", "start:dev"]
diff --git a/docker-compose.dev.yml b/docker-compose.dev.yml
new file mode 100644
index 0000000..e74dab3
--- /dev/null
+++ b/docker-compose.dev.yml
@@ -0,0 +1,34 @@
+# This docker-compose file is used to run the project in Docker for development.
+# The local files are mounted into the created container.
+#
+# Usage:
+#  ln -s docker-compose.dev.yml docker-compose.override.yml
+#  docker-compose up [-d]
+#
+# To go back to running the published image:
+#  rm docker-compose.override.yml
+
+version: '3.4'
+
+services:
+  identity:
+    # The main `docker-compose.yml` has an `image` prop. Unfortunately, when we
+    # add `build` prop here, it changes the meaning of that `image` prop to
+    # "tag the built image with this image name". This has the effect of breaking
+    # the app after you've run with the override and then go back to running without
+    # it, because now `reactioncommerce/identity:trunk` would actually be your dev image.
+    # To work around this issue, we specify a different tag name here, which does not
+    # match any of our published tags.
+    image: reactioncommerce/identity:local-dev
+    build:
+      context: .
+      dockerfile: Dockerfile-dev
+    command: bash -c "time /home/node/.meteor/meteor npm install --no-audit && /home/node/.meteor/meteor npm start"
+    volumes:
+      - .:/usr/local/src/app:cached
+      - reaction_meteor_local:/usr/local/src/app/.meteor/local
+      - reaction_node_modules:/usr/local/src/app/node_modules # do not link node_modules in, and persist it between dc up runs
+
+volumes:
+  reaction_node_modules:
+  reaction_meteor_local:
diff --git a/docker-compose.yml b/docker-compose.yml
index e6279b1..57a57eb 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -1,35 +1,34 @@
-# This docker-compose file is used to run the reaction app in docker for development
-# The local files are mounted into the created container.
+# This docker-compose file is used to run the project's published image
+#
 # Usage: docker-compose up [-d]
+#
+# See comment in docker-compose.dev.yml if you want to run for development.
 
 version: '3.4'
 
 networks:
+  api:
+    external:
+      name: api.reaction.localhost
   auth:
     external:
       name: auth.reaction.localhost
+  reaction:
+    external:
+      name: reaction.localhost
+  streams:
+    external:
+      name: streams.reaction.localhost
 
 services:
-
   identity:
-    build:
-      context: .
-      target: meteor-dev
-    command: bash -c "time meteor npm install --no-audit && meteor npm start"
+    image: reactioncommerce/identity:trunk
     env_file:
       - ./.env
     networks:
-      default:
       api:
       auth:
+      reaction:
       streams:
     ports:
       - "4100:4100"
-    volumes:
-      - .:/opt/reaction/src:cached
-      - reaction_meteor_local:/opt/reaction/src/.meteor/local
-      - reaction_node_modules:/opt/reaction/src/node_modules # do not link node_modules in, and persist it between dc up runs
-
-volumes:
-  reaction_node_modules:
-  reaction_meteor_local: