diff --git a/Dockerfile b/Dockerfile
index e3434920cd2..3fa75841031 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -23,7 +23,7 @@ COPY --from=build /osmosis/build/osmosisd /bin/osmosisd
 ENV HOME /osmosis
 WORKDIR $HOME
 
-EXPOSE 26656 
+EXPOSE 26656
 EXPOSE 26657
 EXPOSE 1317
 
diff --git a/Makefile b/Makefile
index 622be1491c3..3aedf967983 100644
--- a/Makefile
+++ b/Makefile
@@ -266,32 +266,17 @@ format:
 ###                                Localnet                                 ###
 ###############################################################################
 
-build-docker-osmosisdnode:
-	$(MAKE) -C contrib/localtestnet
-
-# Run a 4-node testnet locally
-localnet-start: build-linux build-docker-osmosisdnode # localnet-stop
-	@if ! [ -f $(BUILDDIR)/node0/osmosisd/config/genesis.json ]; \
-	then docker run --rm -v $(BUILDDIR):/osmosisd:Z osmosis-labs/osmosisdnode testnet --v 4 -o . --starting-ip-address 192.168.10.2 --keyring-backend=test ; \
-	fi
-	docker-compose up -d
-
-# Stop testnet
-localnet-stop:
-	docker-compose down
-
-clean-localnet: localnet-stop
-	rm -rf $(BUILDDIR)/node* $(BUILDDIR)/gentxs
-
-test-docker:
-	@docker build -f contrib/Dockerfile.test -t ${TEST_DOCKER_REPO}:$(shell git rev-parse --short HEAD) .
-	@docker tag ${TEST_DOCKER_REPO}:$(shell git rev-parse --short HEAD) ${TEST_DOCKER_REPO}:$(shell git rev-parse --abbrev-ref HEAD | sed 's#/#_#g')
-	@docker tag ${TEST_DOCKER_REPO}:$(shell git rev-parse --short HEAD) ${TEST_DOCKER_REPO}:latest
-
-test-docker-push: test-docker
-	@docker push ${TEST_DOCKER_REPO}:$(shell git rev-parse --short HEAD)
-	@docker push ${TEST_DOCKER_REPO}:$(shell git rev-parse --abbrev-ref HEAD | sed 's#/#_#g')
-	@docker push ${TEST_DOCKER_REPO}:latest
+localnet-keys:
+	. tests/localosmosis/keys.sh
+
+localnet-build:
+	@docker build -t local:osmosis -f tests/localosmosis/Dockerfile .
+
+localnet-start:
+	@docker-compose -f tests/localosmosis/docker-compose.yml up
+
+localnet-remove:
+	@docker-compose -f tests/localosmosis/docker-compose.yml down
 
 .PHONY: all build-linux install format lint \
 	go-mod-cache draw-deps clean build \
diff --git a/tests/localosmosis/Dockerfile b/tests/localosmosis/Dockerfile
new file mode 100644
index 00000000000..85f681e5889
--- /dev/null
+++ b/tests/localosmosis/Dockerfile
@@ -0,0 +1,51 @@
+# syntax=docker/dockerfile:1
+
+# --------------------------------------------------------
+# Build
+# --------------------------------------------------------
+
+FROM golang:1.18.2-alpine3.15 as build
+
+RUN set -eux; apk add --no-cache ca-certificates build-base;
+RUN apk add git
+# Needed by github.com/zondax/hid
+RUN apk add linux-headers
+
+WORKDIR /osmosis
+COPY . /osmosis
+
+
+# CosmWasm: see https://github.com/CosmWasm/wasmvm/releases
+ADD https://github.com/CosmWasm/wasmvm/releases/download/v1.0.0/libwasmvm_muslc.aarch64.a /lib/libwasmvm_muslc.aarch64.a
+ADD https://github.com/CosmWasm/wasmvm/releases/download/v1.0.0/libwasmvm_muslc.x86_64.a /lib/libwasmvm_muslc.x86_64.a
+RUN sha256sum /lib/libwasmvm_muslc.aarch64.a | grep 7d2239e9f25e96d0d4daba982ce92367aacf0cbd95d2facb8442268f2b1cc1fc
+RUN sha256sum /lib/libwasmvm_muslc.x86_64.a | grep f6282df732a13dec836cda1f399dd874b1e3163504dbd9607c6af915b2740479
+
+# CosmWasm: copy the right library according to architecture. The final location will be found by the linker flag `-lwasmvm_muslc`
+RUN cp /lib/libwasmvm_muslc.$(uname -m).a /lib/libwasmvm_muslc.a
+
+RUN BUILD_TAGS=muslc LINK_STATICALLY=true make build
+
+# --------------------------------------------------------
+# Runner
+# --------------------------------------------------------
+
+FROM alpine
+
+COPY --from=build /osmosis/build/osmosisd /bin/osmosisd
+COPY /tests/localosmosis/setup.sh /setup.sh
+
+ENV HOME /osmosis
+WORKDIR $HOME
+RUN apk update
+RUN apk add jq
+RUN apk add moreutils
+RUN rm -rf /var/cache/apk/*
+RUN chmod +x /setup.sh
+RUN /setup.sh
+EXPOSE 26656
+EXPOSE 26657
+EXPOSE 1317
+
+ENTRYPOINT ["osmosisd"]
+CMD ["start"]
diff --git a/tests/localosmosis/README.md b/tests/localosmosis/README.md
new file mode 100644
index 00000000000..4c99ab03184
--- /dev/null
+++ b/tests/localosmosis/README.md
@@ -0,0 +1,38 @@
+# LocalOsmosis
+
+You can now quickly test your changes to Osmosis with just a few commands:
+
+1. Make any change to the osmosis code that you want to test
+
+2. From the Osmosis home folder, run `make localnet-build`
+    - This compiles all your changes to docker image called local:osmosis (~60 seconds)
+
+3. Once complete, run `make localnet-start`
+    - You will now be running a local network with your changes!
+
+4. To add your validator wallet and 9 other preloaded wallets automatically, run `make localnet-keys`
+    - These keys are added to your --keyring-backend test
+    - If the keys are already on your keyring, you will get an "Error: aborted"
+    - Ensure you use the name of the account as listed in the table below, as well as ensure you append the `--keyring-backend test` to your txs
+        - Example: `osmosisd tx bank send lo-test2 osmo1cyyzpxplxdzkeea7kwsydadg87357qnahakaks --keyring-backend test --chain-id localosmosis`
+
+5. To remove all block history and start from scratch, run `make localnet-remove`
+
+## Accounts
+
+LocalOsmosis is pre-configured with one validator and 9 accounts with ION and OSMO balances.
+
+
+| Account   | Address                                                                                                  | Mnemonic                                                                                                                                                                   |
+| --------- | -------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
+| lo-val | `osmo1phaxpevm5wecex2jyaqty2a4v02qj7qmlmzk5a`<br/>`osmovaloper1phaxpevm5wecex2jyaqty2a4v02qj7qm9v24r6` | `satisfy adjust timber high purchase tuition stool faith fine install that you unaware feed domain license impose boss human eager hat rent enjoy dawn`                    |
+| lo-test1     | `osmo1cyyzpxplxdzkeea7kwsydadg87357qnahakaks`                                                           | `notice oak worry limit wrap speak medal online prefer cluster roof addict wrist behave treat actual wasp year salad speed social layer crew genius`                       |
+| lo-test2     | `osmo18s5lynnmx37hq4wlrw9gdn68sg2uxp5rgk26vv`                                                           | `quality vacuum heart guard buzz spike sight swarm shove special gym robust assume sudden deposit grid alcohol choice devote leader tilt noodle tide penalty`              |
+| lo-test3     | `osmo1qwexv7c6sm95lwhzn9027vyu2ccneaqad4w8ka`                                                           | `symbol force gallery make bulk round subway violin worry mixture penalty kingdom boring survey tool fringe patrol sausage hard admit remember broken alien absorb`        |
+| lo-test4     | `osmo14hcxlnwlqtq75ttaxf674vk6mafspg8xwgnn53`                                                           | `bounce success option birth apple portion aunt rural episode solution hockey pencil lend session cause hedgehog slender journey system canvas decorate razor catch empty` |
+| lo-test5     | `osmo12rr534cer5c0vj53eq4y32lcwguyy7nndt0u2t`                                                           | `second render cat sing soup reward cluster island bench diet lumber grocery repeat balcony perfect diesel stumble piano distance caught occur example ozone loyal`        |
+| lo-test6     | `osmo1nt33cjd5auzh36syym6azgc8tve0jlvklnq7jq`                                                           | `spatial forest elevator battle also spoon fun skirt flight initial nasty transfer glory palm drama gossip remove fan joke shove label dune debate quick`                  |
+| lo-test7     | `osmo10qfrpash5g2vk3hppvu45x0g860czur8ff5yx0`                                                           | `noble width taxi input there patrol clown public spell aunt wish punch moment will misery eight excess arena pen turtle minimum grain vague inmate`                       |
+| lo-test8     | `osmo1f4tvsdukfwh6s9swrc24gkuz23tp8pd3e9r5fa`                                                           | `cream sport mango believe inhale text fish rely elegant below earth april wall rug ritual blossom cherry detail length blind digital proof identify ride`                 |
+| lo-test9     | `osmo1myv43sqgnj5sm4zl98ftl45af9cfzk7nhjxjqh`                                                           | `index light average senior silent limit usual local involve delay update rack cause inmate wall render magnet common feature laundry exact casual resource hundred`       |
+| lo-test10    | `osmo14gs9zqh8m49yy9kscjqu9h72exyf295afg6kgk`                                                           | `prefer forget visit mistake mixture feel eyebrow autumn shop pair address airport diesel street pass vague innocent poem method awful require hurry unhappy shoulder`     |
diff --git a/tests/localosmosis/docker-compose.yml b/tests/localosmosis/docker-compose.yml
new file mode 100644
index 00000000000..a52d6c5a56b
--- /dev/null
+++ b/tests/localosmosis/docker-compose.yml
@@ -0,0 +1,14 @@
+version: "3"
+
+services:
+  osmosisd:
+    image: local:osmosis
+    user: "root:root"
+    command:
+      - start
+      - --rpc.laddr=tcp://0.0.0.0:26657
+    ports:
+      - "26657:26657"
+      - "1317:1317"
+      - "9090:9090"
+      - "9091:9091"
diff --git a/tests/localosmosis/keys.sh b/tests/localosmosis/keys.sh
new file mode 100755
index 00000000000..084337ee464
--- /dev/null
+++ b/tests/localosmosis/keys.sh
@@ -0,0 +1,13 @@
+#!/bin/bash
+
+echo "satisfy adjust timber high purchase tuition stool faith fine install that you unaware feed domain license impose boss human eager hat rent enjoy dawn" | osmosisd keys add lo-val --recover --keyring-backend test
+echo "notice oak worry limit wrap speak medal online prefer cluster roof addict wrist behave treat actual wasp year salad speed social layer crew genius" | osmosisd keys add lo-test1 --recover --keyring-backend test
+echo "quality vacuum heart guard buzz spike sight swarm shove special gym robust assume sudden deposit grid alcohol choice devote leader tilt noodle tide penalty" | osmosisd keys add lo-test2 --recover --keyring-backend test
+echo "symbol force gallery make bulk round subway violin worry mixture penalty kingdom boring survey tool fringe patrol sausage hard admit remember broken alien absorb" | osmosisd keys add lo-test3 --recover --keyring-backend test
+echo "bounce success option birth apple portion aunt rural episode solution hockey pencil lend session cause hedgehog slender journey system canvas decorate razor catch empty" | osmosisd keys add lo-test4 --recover --keyring-backend test
+echo "second render cat sing soup reward cluster island bench diet lumber grocery repeat balcony perfect diesel stumble piano distance caught occur example ozone loyal" | osmosisd keys add lo-test5 --recover --keyring-backend test
+echo "spatial forest elevator battle also spoon fun skirt flight initial nasty transfer glory palm drama gossip remove fan joke shove label dune debate quick" | osmosisd keys add lo-test6 --recover --keyring-backend test
+echo "noble width taxi input there patrol clown public spell aunt wish punch moment will misery eight excess arena pen turtle minimum grain vague inmate" | osmosisd keys add lo-test7 --recover --keyring-backend test
+echo "cream sport mango believe inhale text fish rely elegant below earth april wall rug ritual blossom cherry detail length blind digital proof identify ride" | osmosisd keys add lo-test8 --recover --keyring-backend test
+echo "index light average senior silent limit usual local involve delay update rack cause inmate wall render magnet common feature laundry exact casual resource hundred" | osmosisd keys add lo-test9 --recover --keyring-backend test
+echo "prefer forget visit mistake mixture feel eyebrow autumn shop pair address airport diesel street pass vague innocent poem method awful require hurry unhappy shoulder" | osmosisd keys add lo-test10 --recover --keyring-backend test
diff --git a/tests/localosmosis/setup.sh b/tests/localosmosis/setup.sh
new file mode 100755
index 00000000000..cc2cf878026
--- /dev/null
+++ b/tests/localosmosis/setup.sh
@@ -0,0 +1,46 @@
+#!/bin/sh
+
+# change staking denom to uosmo
+osmosisd init --chain-id=localosmosis val
+echo "satisfy adjust timber high purchase tuition stool faith fine install that you unaware feed domain license impose boss human eager hat rent enjoy dawn" | osmosisd keys add val --recover --keyring-backend=test
+cat $HOME/.osmosisd/config/genesis.json | jq '.app_state["staking"]["params"]["bond_denom"]="uosmo"' | sponge $HOME/.osmosisd/config/genesis.json
+osmosisd add-genesis-account osmo1phaxpevm5wecex2jyaqty2a4v02qj7qmlmzk5a 100000000000uosmo,100000000000uion
+osmosisd add-genesis-account osmo1cyyzpxplxdzkeea7kwsydadg87357qnahakaks 100000000000uosmo,100000000000uion
+osmosisd add-genesis-account osmo18s5lynnmx37hq4wlrw9gdn68sg2uxp5rgk26vv 100000000000uosmo,100000000000uion
+osmosisd add-genesis-account osmo1qwexv7c6sm95lwhzn9027vyu2ccneaqad4w8ka 100000000000uosmo,100000000000uion
+osmosisd add-genesis-account osmo14hcxlnwlqtq75ttaxf674vk6mafspg8xwgnn53 100000000000uosmo,100000000000uion
+osmosisd add-genesis-account osmo12rr534cer5c0vj53eq4y32lcwguyy7nndt0u2t 100000000000uosmo,100000000000uion
+osmosisd add-genesis-account osmo1nt33cjd5auzh36syym6azgc8tve0jlvklnq7jq 100000000000uosmo,100000000000uion
+osmosisd add-genesis-account osmo10qfrpash5g2vk3hppvu45x0g860czur8ff5yx0 100000000000uosmo,100000000000uion
+osmosisd add-genesis-account osmo1f4tvsdukfwh6s9swrc24gkuz23tp8pd3e9r5fa 100000000000uosmo,100000000000uion
+osmosisd add-genesis-account osmo1myv43sqgnj5sm4zl98ftl45af9cfzk7nhjxjqh 100000000000uosmo,100000000000uion
+osmosisd add-genesis-account osmo14gs9zqh8m49yy9kscjqu9h72exyf295afg6kgk 100000000000uosmo,100000000000uion
+osmosisd gentx val 500000000uosmo --keyring-backend=test --chain-id=localosmosis
+osmosisd collect-gentxs
+# update staking genesis
+cat $HOME/.osmosisd/config/genesis.json | jq '.app_state["staking"]["params"]["unbonding_time"]="240s"' | sponge $HOME/.osmosisd/config/genesis.json
+# update crisis variable to uosmo
+cat $HOME/.osmosisd/config/genesis.json | jq '.app_state["crisis"]["constant_fee"]["denom"]="uosmo"' | sponge $HOME/.osmosisd/config/genesis.json
+# udpate gov genesis
+cat $HOME/.osmosisd/config/genesis.json | jq '.app_state["gov"]["voting_params"]["voting_period"]="60s"' | sponge $HOME/.osmosisd/config/genesis.json
+cat $HOME/.osmosisd/config/genesis.json | jq '.app_state["gov"]["deposit_params"]["min_deposit"][0]["denom"]="uosmo"' | sponge $HOME/.osmosisd/config/genesis.json
+# update epochs genesis
+cat $HOME/.osmosisd/config/genesis.json | jq '.app_state["epochs"]["epochs"][1]["duration"]="60s"' | sponge $HOME/.osmosisd/config/genesis.json
+# update poolincentives genesis
+cat $HOME/.osmosisd/config/genesis.json | jq '.app_state["poolincentives"]["lockable_durations"][0]="120s"' | sponge $HOME/.osmosisd/config/genesis.json
+cat $HOME/.osmosisd/config/genesis.json | jq '.app_state["poolincentives"]["lockable_durations"][1]="180s"' | sponge $HOME/.osmosisd/config/genesis.json
+cat $HOME/.osmosisd/config/genesis.json | jq '.app_state["poolincentives"]["lockable_durations"][2]="240s"' | sponge $HOME/.osmosisd/config/genesis.json
+cat $HOME/.osmosisd/config/genesis.json | jq '.app_state["poolincentives"]["params"]["minted_denom"]="uosmo"' | sponge $HOME/.osmosisd/config/genesis.json
+# update incentives genesis
+cat $HOME/.osmosisd/config/genesis.json | jq '.app_state["incentives"]["lockable_durations"][0]="1s"' | sponge $HOME/.osmosisd/config/genesis.json
+cat $HOME/.osmosisd/config/genesis.json | jq '.app_state["incentives"]["lockable_durations"][1]="120s"' | sponge $HOME/.osmosisd/config/genesis.json
+cat $HOME/.osmosisd/config/genesis.json | jq '.app_state["incentives"]["lockable_durations"][2]="180s"' | sponge $HOME/.osmosisd/config/genesis.json
+cat $HOME/.osmosisd/config/genesis.json | jq '.app_state["incentives"]["lockable_durations"][3]="240s"' | sponge $HOME/.osmosisd/config/genesis.json
+cat $HOME/.osmosisd/config/genesis.json | jq '.app_state["incentives"]["params"]["distr_epoch_identifier"]="day"' | sponge $HOME/.osmosisd/config/genesis.json
+# update mint genesis
+cat $HOME/.osmosisd/config/genesis.json | jq '.app_state["mint"]["params"]["mint_denom"]="uosmo"' | sponge $HOME/.osmosisd/config/genesis.json
+cat $HOME/.osmosisd/config/genesis.json | jq '.app_state["mint"]["params"]["epoch_identifier"]="day"' | sponge $HOME/.osmosisd/config/genesis.json
+# update gamm genesis
+cat $HOME/.osmosisd/config/genesis.json | jq '.app_state["gamm"]["params"]["pool_creation_fee"][0]["denom"]="uosmo"' | sponge $HOME/.osmosisd/config/genesis.json
+# remove seeds
+sed -i.bak -E 's#^(seeds[[:space:]]+=[[:space:]]+).*$#\1""#' ~/.osmosisd/config/config.toml