diff --git a/.dockerignore b/.dockerignore
new file mode 100644
index 0000000..5099812
--- /dev/null
+++ b/.dockerignore
@@ -0,0 +1,46 @@
+# Binaries for programs and plugins
+*.exe
+*.exe~
+*.dll
+*.so
+*.dylib
+cmd/versitygw/versitygw
+/versitygw
+
+# Test binary, built with `go test -c`
+*.test
+
+# Output of the go coverage tool, specifically when used with LiteIDE
+*.out
+
+# Go workspace file
+go.work
+
+# ignore IntelliJ directories
+.idea
+
+# auto generated VERSION file
+VERSION
+
+# build output
+/versitygw.spec
+/versitygw.spec.in
+*.tar
+*.tar.gz
+**/rand.data
+/profile.txt
+
+dist/
+
+# Release config files
+/.github
+
+# Docker configuration files
+*Dockerfile
+/docker-compose.yml
+
+# read files
+/LICENSE
+/NOTICE
+/CODE_OF_CONDUCT.md
+/README.md
\ No newline at end of file
diff --git a/.env.dev b/.env.dev
new file mode 100644
index 0000000..72a9eeb
--- /dev/null
+++ b/.env.dev
@@ -0,0 +1,4 @@
+POSIX_PORT=
+PROXY_PORT=
+ACCESS_KEY_ID=
+SECRET_ACCESS_KEY=
\ No newline at end of file
diff --git a/Dockerfile b/Dockerfile
new file mode 100644
index 0000000..23830a7
--- /dev/null
+++ b/Dockerfile
@@ -0,0 +1,15 @@
+FROM golang:1.20-alpine
+
+WORKDIR /app
+
+COPY go.mod ./
+RUN go mod download
+
+COPY ./ ./
+
+WORKDIR /app/cmd/versitygw
+RUN go build -o versitygw
+
+RUN mkdir /tmp/vgw
+
+ENTRYPOINT [ "./versitygw" ]
\ No newline at end of file
diff --git a/Dockerfile.dev b/Dockerfile.dev
new file mode 100644
index 0000000..f335d20
--- /dev/null
+++ b/Dockerfile.dev
@@ -0,0 +1,13 @@
+FROM golang:1.20
+
+WORKDIR /app
+
+COPY go.mod ./
+RUN go mod download
+
+COPY ./ ./
+
+RUN mkdir /tmp/vgw
+
+RUN go get github.com/githubnemo/CompileDaemon
+RUN go install github.com/githubnemo/CompileDaemon
\ No newline at end of file
diff --git a/Makefile b/Makefile
index 81509c9..97f7220 100644
--- a/Makefile
+++ b/Makefile
@@ -74,3 +74,18 @@ dist: $(BIN).spec
 	rm -f VERSION
 	rm -f $(BIN).spec
 	gzip -f $(TARFILE)
+
+# Creates and runs S3 gateway instance in a docker container
+.PHONY: up-posix
+up-posix:
+	docker compose up posix
+
+# Creates and runs S3 gateway proxy instance in a docker container
+.PHONY: up-proxy
+up-proxy:
+	docker compose up proxy
+
+# Creates and runs both S3 gateway and proxy server instances in docker containers
+.PHONY: up-app
+up-app:
+	docker compose --env-file .env.dev up
diff --git a/docker-compose.yml b/docker-compose.yml
new file mode 100644
index 0000000..481771c
--- /dev/null
+++ b/docker-compose.yml
@@ -0,0 +1,20 @@
+version: "3"
+services:
+  posix:
+    build: 
+      context: .
+      dockerfile: ./Dockerfile.dev
+    volumes:
+      - ./:/app
+    ports:
+      - "${POSIX_PORT}:${POSIX_PORT}"
+    command: ["sh", "-c", CompileDaemon -build="go build -C ./cmd/versitygw -o versitygw" -command="./cmd/versitygw/versitygw -p :$POSIX_PORT -a $ACCESS_KEY_ID -s $SECRET_ACCESS_KEY --iam-dir /tmp/vgw posix /tmp/vgw"]
+  proxy:
+    build: 
+      context: .
+      dockerfile: ./Dockerfile.dev
+    volumes:
+      - ./:/app
+    ports:
+      - "${PROXY_PORT}:${PROXY_PORT}"
+    command: ["sh", "-c", CompileDaemon -build="go build -C ./cmd/versitygw -o versitygw" -command="./cmd/versitygw/versitygw -a $ACCESS_KEY_ID -s $SECRET_ACCESS_KEY -p :$PROXY_PORT s3 --endpoint http://posix:$POSIX_PORT"]