diff --git a/CONTRIBUTING.md b/CONTRIBUTING.md
index b974654..6ee5fc1 100644
--- a/CONTRIBUTING.md
+++ b/CONTRIBUTING.md
@@ -9,16 +9,21 @@ The current areas of focus are:
 
 ## Table of Contents 📖
 
-1. [Roadmap](#roadmap)
-1. [Support questions & reporting bugs](#support-questions--reporting-bugs)
-1. [Development](#development)
-    1. [Project structure](#project-structure)
-    1. [Environment setup](#environment-setup)
-    1. [Coding style](#coding-style)
-    1. [Checks & Testing](#checks--testing)
-    1. [Docs](#docs)
-1. [Release](#release)
-1. [Finally](#finally)
+
+- [Contributing](#contributing)
+  - [Table of Contents 📖](#table-of-contents-)
+  - [Roadmap](#roadmap)
+  - [Support questions & reporting bugs](#support-questions--reporting-bugs)
+  - [Development](#development)
+    - [Project structure](#project-structure)
+    - [Environment setup using docker](#environment-setup-using-docker)
+    - [Environment setup without docker](#environment-setup-without-docker)
+    - [Coding style](#coding-style)
+    - [Checks & Testing](#checks--testing)
+    - [Docs](#docs)
+  - [Release](#release)
+  - [Finally](#finally)
+
 
 ## Roadmap
 
@@ -64,7 +69,22 @@ root/
 * `tests` is the source of the entire test suite, consisting of unit and integration tests.
 * The top level `Makefile` is a toolbox of useful commands for installing dependencies as well as testing, linting and packaging the code. It is also used as the entrypoint interface for all CI/CD operations.
 
-### Environment setup
+
+
+### Environment setup using docker
+
+For convenience, you can setup the development environment using the Dockerfile and docker-compose files provided in the repo.
+
+To set it up, run the command:
+
+``` bash
+docker-compose run asynction
+```
+
+It will install everything and start the container with bash attached.
+
+### Environment setup without docker
+
 
 Use python3.7 or higher.
 
@@ -92,9 +112,9 @@ Use python3.7 or higher.
 
 1. Install the pre-commit hooks
 
-    ```bash
-    $ precommit install
-    ```
+``` bash
+    $ pre-commit install
+```
 
 ### Coding style
 
@@ -102,7 +122,9 @@ Use python3.7 or higher.
 * Type annotations are mandatory (even in tests). Avoid the use of `typing.Any` and `# type: ignore`.
 * All parts of the public API (exposed via `asynction.__init__.py`) should be documented with docstrings.
 
-__Make sure you run `precommit` before every commit!__
+
+__Make sure you run `pre-commit` before every commit!__
+
 
 ### Checks & Testing
 
diff --git a/Dockerfile b/Dockerfile
new file mode 100644
index 0000000..00fde4a
--- /dev/null
+++ b/Dockerfile
@@ -0,0 +1,8 @@
+FROM python:3.7
+WORKDIR /usr/app
+ADD . /usr/app
+RUN python -m pip install --upgrade pip setuptools
+RUN make all-install
+RUN pre-commit install
+# initializes all pre-commit envs
+RUN pre-commit
\ No newline at end of file
diff --git a/docker-compose.yml b/docker-compose.yml
new file mode 100644
index 0000000..48a59fb
--- /dev/null
+++ b/docker-compose.yml
@@ -0,0 +1,13 @@
+version: "3.9"
+
+services:
+  asynction:
+    image: asynction
+    volumes: 
+      - .:/usr/app
+      # use the .git from the container because it
+      # has pre-commit setup
+      - /usr/app/.git/hooks
+    build: .
+    entrypoint: bash
+