diff --git a/config/webpacker.yml b/config/webpacker.yml
index e1bc412b7..1142329cf 100644
--- a/config/webpacker.yml
+++ b/config/webpacker.yml
@@ -54,7 +54,7 @@ development:
   compile: true
 
   # Verifies that correct packages and versions are installed by inspecting package.json, yarn.lock, and node_modules
-  check_yarn_integrity: true
+  check_yarn_integrity: false
 
   # Reference: https://webpack.js.org/configuration/dev-server/
   dev_server:
diff --git a/docker-compose.yaml b/docker-compose.yaml
index 446508e25..3c487612d 100644
--- a/docker-compose.yaml
+++ b/docker-compose.yaml
@@ -1,12 +1,27 @@
 version: '3'
+
+volumes:
+  postgres:
+  redis:
+  bundle:
+  packs:
+  node_modules:
+
 services:
 
   server: &server
     build:
       context: .
       dockerfile: ./docker/Dockerfile
+      args:
+        BUNDLE_WITHOUT: ''
+        RAILS_ENV: 'development'
+        RAILS_SERVE_STATIC_FILES: 'false'
     volumes:
-      - ./:/app
+      - ./:/app:cached
+      - bundle:/bundle:delegated
+      - packs:/app/public/packs
+      - node_modules:/app/node_modules
     links:
       - postgres
       - redis
@@ -16,8 +31,25 @@ services:
       - REDIS_URL=redis://redis:6379
       - POSTGRES_HOST=postgres
       - RAILS_ENV=development
-    command: ["foreman", "start", "-f", "./docker/Procfile.docker.dev"]
+      - WEBPACKER_DEV_SERVER_HOST=webpacker
+    command: ["bundle", "exec", "rails", "s", "-p", "3000", "-b", "0.0.0.0"]
 
+  webpacker:
+    <<: *server
+    command: ./bin/webpack-dev-server
+    depends_on:
+      - "server"
+    ports:
+      - '3035:3035'
+    volumes:
+      - .:/app:cached
+      - bundle:/bundle
+      - node_modules:/app/node_modules
+      - packs:/app/public/packs
+    environment:
+      - "NODE_ENV=development"
+      - "RAILS_ENV=development"
+      - "WEBPACKER_DEV_SERVER_HOST=0.0.0.0"
   postgres:
     image: postgres:9.6
     restart: always
@@ -37,9 +69,3 @@ services:
       - redis:/data/redis
     ports:
       - '6379:6379'
-
-volumes:
-  postgres:
-    external: true
-  redis:
-    external: true
diff --git a/docker/Dockerfile b/docker/Dockerfile
index b99daf952..02c4d1374 100644
--- a/docker/Dockerfile
+++ b/docker/Dockerfile
@@ -1,5 +1,16 @@
 FROM ruby:2.6.5-slim
 
+# ARG default to production settings
+# For development docker-compose file overrides ARGS
+ARG BUNDLE_WITHOUT="development:test"
+ENV BUNDLE_WITHOUT ${BUNDLE_WITHOUT}
+
+ARG RAILS_SERVE_STATIC_FILES=true
+ENV RAILS_SERVE_STATIC_FILES ${RAILS_SERVE_STATIC_FILES}
+
+ARG RAILS_ENV=production
+ENV RAILS_ENV ${RAILS_ENV}
+
 RUN apt-get update \
     && apt-get -qq -y install \
     build-essential \
@@ -18,13 +29,24 @@ RUN apt-get update \
 
 RUN mkdir -p /app
 WORKDIR /app
+
+COPY Gemfile Gemfile.lock ./
+
+# Do not install development or test gems in production
+RUN if [ "$RAILS_ENV" = "production" ]; then \
+  bundle install -j 4 -r 3 --without development test; \
+  else bundle install -j 4 -r 3; \
+  fi
+
+COPY package.json yarn.lock ./
+RUN yarn install
+
 COPY . /app
 
-ENV RAILS_SERVE_STATIC_FILES true
-ENV RAILS_ENV=production
-
-RUN bundle
-RUN SECRET_KEY_BASE=precompile_placeholder bundle exec rake assets:precompile
+# generate production assets if production environment
+RUN if [ "$RAILS_ENV" = "production" ]; then \
+  SECRET_KEY_BASE=precompile_placeholder bundle exec rake assets:precompile; \
+  fi
 
 # Add a script to be executed every time the container starts.
 COPY ./docker/entrypoint.sh /usr/bin/
diff --git a/docker/Procfile.docker.dev b/docker/Procfile.docker.dev
deleted file mode 100644
index e2d095a4b..000000000
--- a/docker/Procfile.docker.dev
+++ /dev/null
@@ -1,2 +0,0 @@
-backend: ../bin/rails server -b 0.0.0.0 -p 3000
-frontend: ../bin/webpack-dev-server
\ No newline at end of file
diff --git a/docker/entrypoint.sh b/docker/entrypoint.sh
index eb40a5ea3..9b7e12d0b 100755
--- a/docker/entrypoint.sh
+++ b/docker/entrypoint.sh
@@ -5,4 +5,4 @@ set -e
 rm -f /app/tmp/pids/server.pid
 
 # Then exec the container's main process (what's set as CMD in the Dockerfile).
-exec "$@"
\ No newline at end of file
+exec "$@"
diff --git a/docs/development/project-setup/quick-setup.md b/docs/development/project-setup/quick-setup.md
index 96d5ff991..23b08e5ff 100644
--- a/docs/development/project-setup/quick-setup.md
+++ b/docs/development/project-setup/quick-setup.md
@@ -42,40 +42,45 @@ password: 123456
 
 ### Docker for development
 
-If you are using docker for the development follow the following steps.
-
-We are running postgres and redis services along with chatwoot server using docker-compose.
-
-Create a volume for postgres and redis so that you data will persist even if the containers goes down.
+The first time you start your development environment run the following two commands:
 
 ```bash
-docker volume create --name=postgres
-docker volume create --name=redis
+# build and start the services
+docker-compose up --build
+# prepare the database
+docker-compose exec server bundle exec rails db:prepare
+```
+Then browse http://localhost:3000
+
+```bash
+# To stop your environment use Control+C (on Mac) CTRL+C (on Win) or
+docker-compose down
+# start the services
+docker-compose up
+```
+
+When you change the service’s Dockerfile or the contents of the build directory, run stop then build. (For example after modifying package.json or Gemfile)
+
+```bash
+docker-compose stop
 docker-compose build
 ```
 
-Remove the `node_modules` directory from the root if it exists and run the following command.
 
-```bash
-docker-compose run server yarn install
-```
+The docker-compose environment consists of:
+- chatwoot server
+- postgres
+- redis
+- webpacker-dev-server
 
 If in case you encounter a seeding issue or you want reset the database you can do it using the following command :
 
 ```bash
-docker-compose run server bundle exec rake db:reset
+docker-compose run -rm server bundle exec rake db:reset
 ```
 
 This command essentially runs postgres and redis containers and then run the rake command inside the chatwoot server container.
 
-Now you should be able to run :
-
-```bash
-docker-compose up
-```
-
-to see the application up and running.
-
 ### Docker for production
 
 You can use our official Docker image from [https://hub.docker.com/r/chatwoot/chatwoot](https://hub.docker.com/r/chatwoot/chatwoot)