diff --git a/Dockerfile b/Dockerfile
index 6e3fcdb8db..693efe1606 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -1,22 +1,30 @@
-FROM us.gcr.io/vcm-ml/fv3gfs-compiled-default:latest
+FROM jupyter/base-notebook
 
 
-RUN apt-get update && apt-get install -y \
-    python3 \
-    python3-netcdf4 \
-    cython3
+ENV ENVIRONMENT_SCRIPTS=$FV3NET/.environment-scripts
+ENV PROJECT_NAME=fv3net
 
+# Install dependencies (slow)
+USER root
+RUN apt-get update && apt-get install -y gfortran
+ENV FV3NET=/home/$NB_USER/fv3net
+ADD environment.yml  $FV3NET/
+ADD Makefile  $FV3NET/
+ADD .environment-scripts $ENVIRONMENT_SCRIPTS
+RUN fix-permissions $FV3NET
+WORKDIR $FV3NET
 
-ADD docker/install_gcloud.sh install_gcloud.sh
-RUN bash install_gcloud.sh
+USER $NB_UID
 
-ADD docker/download_inputdata.sh download_inputdata.sh
-RUN bash download_inputdata.sh
+ENV PATH=/opt/conda/envs/fv3net/bin:$PATH
+RUN bash $ENVIRONMENT_SCRIPTS/build_environment.sh $PROJECT_NAME
 
-ADD requirements.txt requirements.txt
-RUN pip3 install -r requirements.txt
+# Add rest of fv3net directory
+USER root 
+ADD . $FV3NET
+RUN fix-permissions $FV3NET
+USER $NB_UID
 
-COPY . /code
-ENV PYTHONPATH=/code:$PYTHONPATH
-WORKDIR /code
+# setup the local python packages
 
+RUN bash $ENVIRONMENT_SCRIPTS/install_local_packages.sh $PROJECT_NAME
\ No newline at end of file
diff --git a/Makefile b/Makefile
index 4ac123d6da..756c1cd9a4 100644
--- a/Makefile
+++ b/Makefile
@@ -54,8 +54,15 @@ update_submodules:
 	git submodule update --recursive --init
 
 
+install_deps:
+	bash $(ENVIRONMENT_SCRIPTS)/build_environment.sh $(PROJECT_NAME)
+
+install_local_packages:
+	bash $(ENVIRONMENT_SCRIPTS)/install_local_packages.sh $(PROJECT_NAME)
+
 create_environment:
 	bash $(ENVIRONMENT_SCRIPTS)/build_environment.sh $(PROJECT_NAME)
+	bash $(ENVIRONMENT_SCRIPTS)/install_local_packages.sh $(PROJECT_NAME)
 
 
 overwrite_baseline_images:
diff --git a/environment.yml b/environment.yml
index 8e9bd0e475..717e6cc6ef 100644
--- a/environment.yml
+++ b/environment.yml
@@ -44,4 +44,5 @@ dependencies:
   - pip:
     - gsutil
     - nc-time-axis>=1.2.0
+    - yq
     - bump2version>=0.5.11