diff --git a/.github/workflows/docker_build.yaml b/.github/workflows/docker_build.yaml
index 26fc69a0f5..ec8bdf7306 100644
--- a/.github/workflows/docker_build.yaml
+++ b/.github/workflows/docker_build.yaml
@@ -30,6 +30,7 @@ jobs:
           context: ./docker
           platforms: linux/amd64,linux/arm64,linux/arm/v7
           push: true
+          target: production
           repository: inventree/inventree
           tags: inventree/inventree:latest
       - name: Image Digest
diff --git a/.github/workflows/docker_publish.yaml b/.github/workflows/docker_publish.yaml
index c25696d6dd..4a8cef0952 100644
--- a/.github/workflows/docker_publish.yaml
+++ b/.github/workflows/docker_publish.yaml
@@ -28,4 +28,5 @@ jobs:
           repository: inventree/inventree
           tag_with_ref: true
           dockerfile: ./Dockerfile
+          target: production
           platforms: linux/amd64,linux/arm64,linux/arm/v7
diff --git a/.gitignore b/.gitignore
index 54ad8f07b6..7c360a8231 100644
--- a/.gitignore
+++ b/.gitignore
@@ -31,6 +31,7 @@ var/
 *.log
 local_settings.py
 *.sqlite3
+*.sqlite3-journal
 *.backup
 *.old
 
diff --git a/InvenTree/InvenTree/settings.py b/InvenTree/InvenTree/settings.py
index 680389272a..7ff90fc7c3 100644
--- a/InvenTree/InvenTree/settings.py
+++ b/InvenTree/InvenTree/settings.py
@@ -431,11 +431,15 @@ It can be specified in config.yaml (or envvar) as either (for example):
 - django.db.backends.postgresql
 """
 
-db_engine = db_config['ENGINE']
+db_engine = db_config['ENGINE'].lower()
 
-if db_engine.lower() in ['sqlite3', 'postgresql', 'mysql']:
+# Correct common misspelling
+if db_engine == 'sqlite':
+    db_engine = 'sqlite3'
+
+if db_engine in ['sqlite3', 'postgresql', 'mysql']:
     # Prepend the required python module string
-    db_engine = f'django.db.backends.{db_engine.lower()}'
+    db_engine = f'django.db.backends.{db_engine}'
     db_config['ENGINE'] = db_engine
 
 db_name = db_config['NAME']
diff --git a/docker/Dockerfile b/docker/Dockerfile
index c95c2867df..3e0a7e1230 100644
--- a/docker/Dockerfile
+++ b/docker/Dockerfile
@@ -1,4 +1,4 @@
-FROM python:alpine as production
+FROM python:alpine as base
 
 # GitHub source
 ARG repository="https://github.com/inventree/InvenTree.git"
@@ -73,6 +73,7 @@ RUN pip install --no-cache-dir -U invoke
 RUN pip install --no-cache-dir -U psycopg2 mysqlclient pgcli mariadb
 RUN pip install --no-cache-dir -U gunicorn
 
+FROM base as production
 # Clone source code
 RUN echo "Downloading InvenTree from ${INVENTREE_REPO}"
 RUN git clone --branch ${INVENTREE_BRANCH} --depth 1 ${INVENTREE_REPO} ${INVENTREE_SRC_DIR}
@@ -85,11 +86,9 @@ COPY gunicorn.conf.py ${INVENTREE_HOME}/gunicorn.conf.py
 
 # Copy startup scripts
 COPY start_prod_server.sh ${INVENTREE_SRC_DIR}/start_prod_server.sh
-COPY start_dev_server.sh ${INVENTREE_SRC_DIR}/start_dev_server.sh
 COPY start_worker.sh ${INVENTREE_SRC_DIR}/start_worker.sh
 
 RUN chmod 755 ${INVENTREE_SRC_DIR}/start_prod_server.sh
-RUN chmod 755 ${INVENTREE_SRC_DIR}/start_dev_server.sh
 RUN chmod 755 ${INVENTREE_SRC_DIR}/start_worker.sh
 
 # exec commands should be executed from the "src" directory
@@ -97,3 +96,17 @@ WORKDIR ${INVENTREE_SRC_DIR}
 
 # Let us begin
 CMD ["bash", "./start_prod_server.sh"]
+
+FROM base as dev
+
+# The development image requires the source code to be mounted to /home/inventree/src/
+# So from here, we don't actually "do" anything
+
+WORKDIR ${INVENTREE_SRC_DIR}
+
+COPY start_dev_server.sh ${INVENTREE_HOME}/start_dev_server.sh
+COPY start_dev_worker.sh ${INVENTREE_HOME}/start_dev_worker.sh
+RUN chmod 755 ${INVENTREE_HOME}/start_dev_server.sh
+RUN chmod 755 ${INVENTREE_HOME}/start_dev_worker.sh
+
+CMD ["bash", "/home/inventree/start_dev_server.sh"]
diff --git a/docker/dev-config.env b/docker/dev-config.env
new file mode 100644
index 0000000000..200c3db479
--- /dev/null
+++ b/docker/dev-config.env
@@ -0,0 +1,7 @@
+INVENTREE_DB_ENGINE=sqlite3
+INVENTREE_DB_NAME=/home/inventree/src/inventree_docker_dev.sqlite3
+INVENTREE_MEDIA_ROOT=/home/inventree/src/inventree_media
+INVENTREE_STATIC_ROOT=/home/inventree/src/inventree_static
+INVENTREE_CONFIG_FILE=/home/inventree/src/config.yaml
+INVENTREE_SECRET_KEY_FILE=/home/inventree/src/secret_key.txt
+INVENTREE_DEBUG=true
\ No newline at end of file
diff --git a/docker/docker-compose.dev.yml b/docker/docker-compose.dev.yml
new file mode 100644
index 0000000000..ddf50135c9
--- /dev/null
+++ b/docker/docker-compose.dev.yml
@@ -0,0 +1,59 @@
+version: "3.8"
+
+# Docker compose recipe for InvenTree development server
+# - Runs sqlite3 as the database backend
+# - Uses built-in django webserver
+
+# IMPORANT NOTE:
+# The InvenTree docker image does not clone source code from git.
+# Instead, you must specify *where* the source code is located,
+# (on your local machine).
+# The django server will auto-detect any code changes and reload the server.
+
+services:
+    # InvenTree web server services
+    # Uses gunicorn as the web server
+    inventree-server:
+        container_name: inventree-server
+        build:
+            context: .
+            target: dev
+        ports:
+            - 8000:8000
+        volumes:
+            # Ensure you specify the location of the 'src' directory at the end of this file
+            - src:/home/inventree/src
+        env_file:
+            # Environment variables required for the dev server are configured in dev-config.env
+            - dev-config.env
+
+        restart: unless-stopped
+
+    # Background worker process handles long-running or periodic tasks
+    inventree-worker:
+        container_name: inventree-worker
+        build:
+            context: .
+            target: dev
+        entrypoint: /home/inventree/start_dev_worker.sh
+        depends_on:
+            - inventree-server
+        volumes:
+            # Ensure you specify the location of the 'src' directory at the end of this file
+            - src:/home/inventree/src
+        env_file:
+            # Environment variables required for the dev server are configured in dev-config.env
+            - dev-config.env
+        restart: unless-stopped
+
+volumes:
+    # NOTE: Change /path/to/src to a directory on your local machine, where the InvenTree source code is located
+    # Persistent data, stored external to the container(s)
+    src:
+        driver: local
+        driver_opts:
+            type: none
+            o: bind
+            # This directory specified where InvenTree source code is stored "outside" the docker containers
+            # Note: This directory must conatin the file *manage.py*
+            device: /path/to/inventree/src
diff --git a/docker/start_dev_server.sh b/docker/start_dev_server.sh
index c22805b90b..0c1564076a 100644
--- a/docker/start_dev_server.sh
+++ b/docker/start_dev_server.sh
@@ -19,6 +19,14 @@ else
     cp $INVENTREE_SRC_DIR/InvenTree/config_template.yaml $INVENTREE_CONFIG_FILE
 fi
 
+# Setup a virtual environment
+python3 -m venv inventree-docker-dev
+
+source inventree-docker-dev/bin/activate
+
+echo "Installing required packages..."
+pip install --no-cache-dir -U -r ${INVENTREE_SRC_DIR}/requirements.txt
+
 echo "Starting InvenTree server..."
 
 # Wait for the database to be ready
@@ -27,16 +35,14 @@ python manage.py wait_for_db
 
 sleep 10
 
-echo "Running InvenTree database migrations and collecting static files..."
+echo "Running InvenTree database migrations..."
 
 # We assume at this stage that the database is up and running
 # Ensure that the database schema are up to date
 python manage.py check || exit 1
 python manage.py migrate --noinput || exit 1
 python manage.py migrate --run-syncdb || exit 1
-python manage.py prerender || exit 1
-python manage.py collectstatic --noinput || exit 1
 python manage.py clearsessions || exit 1
 
 # Launch a development server
-python manage.py runserver -a 0.0.0.0:$INVENTREE_WEB_PORT
\ No newline at end of file
+python manage.py runserver 0.0.0.0:$INVENTREE_WEB_PORT
diff --git a/docker/start_dev_worker.sh b/docker/start_dev_worker.sh
new file mode 100644
index 0000000000..099f447a9c
--- /dev/null
+++ b/docker/start_dev_worker.sh
@@ -0,0 +1,19 @@
+#!/bin/sh
+
+echo "Starting InvenTree worker..."
+
+cd $INVENTREE_SRC_DIR
+
+# Activate virtual environment
+source inventree-docker-dev/bin/activate
+
+sleep 5
+
+# Wait for the database to be ready
+cd $INVENTREE_MNG_DIR
+python manage.py wait_for_db
+
+sleep 10
+
+# Now we can launch the background worker process
+python manage.py qcluster