diff --git a/README.md b/README.md
index 42d6e75..068d88a 100644
--- a/README.md
+++ b/README.md
@@ -4,6 +4,8 @@ Welcome to Superhog's DWH dbt project. Here we model the entire DWH.
 
 ## How to set up your environment
 
+### Basics
+
 - Pre-requisites
   - You need a Linux environment. That can be Linux, macOS or WSL.
   - You need to have Python `>=3.10` installed.
@@ -23,6 +25,24 @@ Welcome to Superhog's DWH dbt project. Here we model the entire DWH.
   - If you are in VSCode, you most probably want to have this extension installed: [dbt Power User](https://marketplace.visualstudio.com/items?itemName=innoverio.vscode-dbt-power-user)
   - It is advised to use [this autoformatter](https://sqlfmt.com/) and to automatically [run it on save](https://docs.sqlfmt.com/integrations/vs-code).
 
+### Local DWH
+
+Having a database where you can run your WIP models is very useful to ease development. But obviously, we can't do that in production. We could do it in a shared dev instance, but then we would step into each others toes when developing.
+
+To overcome these issues, we rely on local clones of the DWH. The idea is to have a PostgreSQL instance running on your laptop. You perform your `dbt run` statements for testing and you validate the outcome of your work there. When you are confident and have tested properly, you can PR to master.
+
+You will find a docker compose file named `dev-dwh.docker-compose.yml`. It will simply start a PostgreSQL 16 database in your device. You can raise it, adjust it to your needs, and adapt the `profiles.yml` file to point to it when you are developing locally.
+
+The only missing bit to make your local deployment be like the production DWH is to have the source data from the source systems. The current policy is to generate a dump from the production database with what you need and restore it in your local postgres. That way, you are using accurate and representative data to do your work.
+
+For example, if you are working on models that use data from Core, you can dump and restore from your terminal with something roughly like this:
+
+```bash
+pg_dump -h superhog-dwh-prd.postgres.database.azure.com -U airbyte_user -W -F t dwh -n sync_core > core.dump
+
+pg_restore -h localhost -U postgres -W -d dwh core.dump
+```
+
 ## Branching strategy
 
 This repo works in a trunk-based-development philosophy (<https://trunkbaseddevelopment.com/>).
diff --git a/dev-dwh.docker-compose.yml b/dev-dwh.docker-compose.yml
new file mode 100644
index 0000000..32a493b
--- /dev/null
+++ b/dev-dwh.docker-compose.yml
@@ -0,0 +1,14 @@
+version: '3.8'
+services:
+  dwh-local:
+    image: postgres:16
+    environment:
+      - POSTGRES_USER=postgres
+      - POSTGRES_PASSWORD=postgres
+    ports:
+      - '5432:5432'
+    volumes: 
+      - dwh-local:/var/lib/postgresql/data
+volumes:
+  dwh-local:
+    driver: local
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