diff --git a/localnet/Dockerfile b/localnet/Dockerfile
new file mode 100644
index 00000000..469ab915
--- /dev/null
+++ b/localnet/Dockerfile
@@ -0,0 +1,57 @@
+FROM ubuntu:20.04
+
+RUN apt-get update && apt-get install -y git build-essential wget
+RUN wget https://github.com/mikefarah/yq/releases/download/v4.9.3/yq_linux_amd64 -O /usr/bin/yq && chmod +x /usr/bin/yq
+
+COPY install-golang.sh install-golang.sh
+
+RUN sh install-golang.sh
+
+ENV GOROOT /usr/local/go
+ENV GOPATH /go
+ENV GOBIN /go/bin
+ENV PATH $GOBIN:$GOROOT/bin:$PATH
+
+RUN git clone https://github.com/bitsongofficial/go-bitsong
+
+WORKDIR /go-bitsong
+
+# Change the commit hash if you want.
+RUN git fetch && git checkout testnet
+
+# Build daemon.
+RUN make build
+
+WORKDIR /go-bitsong/build
+
+RUN ./bitsongd init localnet --chain-id localnet-1
+
+# configurations
+RUN sed -i 's#tcp://127.0.0.1:26657#tcp://0.0.0.0:26657#g' ~/.bitsongd/config/config.toml
+RUN sed -i 's/cors_allowed_origins = \[\]/cors_allowed_origins = \["*"\]/g' ~/.bitsongd/config/config.toml
+RUN sed -i 's/timeout_commit = "5s"/timeout_commit = "1s"/g' ~/.bitsongd/config/config.toml
+RUN sed -i 's/seeds = ".*"/seeds = ""/g' ~/.bitsongd/config/config.toml
+RUN sed -i 's/"stake"/"ubtsg"/g' ~/.bitsongd/config/genesis.json
+RUN sed -i 's/pruning = "default"/pruning = "nothing"/g' ~/.bitsongd/config/app.toml
+RUN sed -i 's/enable = false/enable = true/g' ~/.bitsongd/config/app.toml
+RUN sed -i 's/swagger = false/swagger = true/g' ~/.bitsongd/config/app.toml
+RUN sed -i 's/enabled-unsafe-cors = false/enabled-unsafe-cors = true/g' ~/.bitsongd/config/app.toml
+RUN sed -i 's/"voting_period": "172800s"/"voting_period": "300s"/g' ~/.bitsongd/config/genesis.json
+
+RUN echo "memory fault antenna oppose warfare mutual clap fossil earth solution matrix feel alley tired mix oppose melt plug marriage fiber pride hint cheap hand" | ./bitsongd keys add validator --recover --keyring-backend test
+RUN echo "silk cricket salt museum voice unable unaware piece excess blue crawl juice soda during learn arrange amused pony excess float grit manage notice dinner" | ./bitsongd keys add user1 --recover --keyring-backend test
+RUN echo "expose drastic inhale gain match pause alter drift across cluster sorry oven capital river wolf used soccer slim twelve wheel notice focus put dad" | ./bitsongd keys add user2 --recover --keyring-backend test
+RUN echo "gap wave quantum merge online sausage process grow upset fossil capital high alcohol cost mansion oak truck like ask cancel random bachelor odor rich" | ./bitsongd keys add user3 --recover --keyring-backend test
+
+RUN ./bitsongd add-genesis-account $(./bitsongd keys show validator -a --keyring-backend test) 1000000000000ubtsg
+RUN ./bitsongd add-genesis-account $(./bitsongd keys show user1 -a --keyring-backend test) 1000000000000ubtsg
+RUN ./bitsongd add-genesis-account $(./bitsongd keys show user2 -a --keyring-backend test) 1000000000000ubtsg
+RUN ./bitsongd add-genesis-account $(./bitsongd keys show user3 -a --keyring-backend test) 1000000000000ubtsg
+
+RUN ./bitsongd gentx validator 10000000000ubtsg --chain-id localnet-1 --keyring-backend test
+RUN ./bitsongd collect-gentxs
+
+EXPOSE 26657
+EXPOSE 1317
+EXPOSE 9090
+CMD ./bitsongd start --trace
\ No newline at end of file
diff --git a/localnet/install-golang.sh b/localnet/install-golang.sh
new file mode 100644
index 00000000..b3fd1c07
--- /dev/null
+++ b/localnet/install-golang.sh
@@ -0,0 +1,14 @@
+#! /bin/bash -x
+set -e
+
+GOLANG_URL=https://dl.google.com/go/go1.17.3.linux-amd64.tar.gz
+GOLANG_FILENAME=go1.17.3.linux-amd64.tar.gz
+
+if [ "aarch64" = $(uname -m) ]; then
+  GOLANG_URL=https://dl.google.com/go/go1.17.3.linux-arm64.tar.gz
+  GOLANG_FILENAME=go1.17.3.linux-arm64.tar.gz
+fi
+
+wget $GOLANG_URL
+tar -xvf $GOLANG_FILENAME
+mv go /usr/local
\ No newline at end of file
diff --git a/localnet/mnemonics.txt b/localnet/mnemonics.txt
new file mode 100644
index 00000000..915aece7
--- /dev/null
+++ b/localnet/mnemonics.txt
@@ -0,0 +1,4 @@
+memory fault antenna oppose warfare mutual clap fossil earth solution matrix feel alley tired mix oppose melt plug marriage fiber pride hint cheap hand
+silk cricket salt museum voice unable unaware piece excess blue crawl juice soda during learn arrange amused pony excess float grit manage notice dinner
+expose drastic inhale gain match pause alter drift across cluster sorry oven capital river wolf used soccer slim twelve wheel notice focus put dad
+gap wave quantum merge online sausage process grow upset fossil capital high alcohol cost mansion oak truck like ask cancel random bachelor odor rich
\ No newline at end of file
diff --git a/package.json b/package.json
index f42d9ce4..6fd0a6ea 100644
--- a/package.json
+++ b/package.json
@@ -7,7 +7,9 @@
   "private": true,
   "scripts": {
     "lint": "eslint --ext .js,.ts,.vue ./",
-    "test": "echo \"No test specified\" && exit 0"
+    "test": "echo \"No test specified\" && exit 0",
+    "localnet:start": "sh ./scripts/run-localnet.sh",
+    "localnet:stop": "docker rm --force bitsong_localnet"
   },
   "dependencies": {
     "@bitsongjs/sdk": "1.0.0-dev-9",
diff --git a/scripts/run-localnet.sh b/scripts/run-localnet.sh
new file mode 100755
index 00000000..df79068b
--- /dev/null
+++ b/scripts/run-localnet.sh
@@ -0,0 +1,22 @@
+#!/bin/bash
+
+#DIR="$( cd "$( dirname "${BASH_SOURCE[0]}" )" &> /dev/null && pwd )"
+DIR=$(pwd)
+
+# Build the docker image first.
+docker build --tag bitsong/localnet "$DIR"/localnet
+
+# Make sure that previous container not exist.
+docker rm --force bitsong_localnet
+
+# Start container as daemon with some ports opening.
+docker run -d -p 1317:1317 -p 26657:26657 -p 9090:9090 --name bitsong_localnet bitsong/localnet
+
+echo "Validator mnemonic: memory fault antenna oppose warfare mutual clap fossil earth solution matrix feel alley tired mix oppose melt plug marriage fiber pride hint cheap hand"
+echo "Account1 mnemonic: silk cricket salt museum voice unable unaware piece excess blue crawl juice soda during learn arrange amused pony excess float grit manage notice dinner"
+echo "Account2 mnemonic: expose drastic inhale gain match pause alter drift across cluster sorry oven capital river wolf used soccer slim twelve wheel notice focus put dad"
+echo "Account2 mnemonic: gap wave quantum merge online sausage process grow upset fossil capital high alcohol cost mansion oak truck like ask cancel random bachelor odor rich"
+echo "Each account has the balances (1000000000000ubtsg)"
+
+echo "Docker container is running on \"bitsong_localnet\""
+echo "After testing, to remove existing container, run \"sudo docker rm --force bitsong_localnet\""
\ No newline at end of file