diff --git a/README.md b/README.md
index 9b5f7548..0336b48d 100644
--- a/README.md
+++ b/README.md
@@ -23,6 +23,8 @@ Refer to [INSTALL.md](INSTALL.md)
 
 Make sure `bitcoind` is running before running `teosd` (it will fail at startup if it cannot connect to `bitcoind`). [Here](DEPENDENCIES.md#installing-bitcoind) you can find a sample bitcoin.conf.
 
+Please see [Docker instructions](docker/README.md) for instructions on how to set up `teosd` in Docker.
+
 ### Starting the tower daemon ♖
 
 Once installed, you can start the tower by running:
diff --git a/docker/README.md b/docker/README.md
new file mode 100644
index 00000000..341e7cab
--- /dev/null
+++ b/docker/README.md
@@ -0,0 +1,87 @@
+## Running `teosd` in a docker container
+A `teos` image can be built from the Dockerfile located in `docker`. You can create the image by running:
+
+	cd rust-teos
+	docker build -f docker/Dockerfile -t teos .
+	
+Then you can create a container by running:
+
+	docker run -it -e <ENV_VARIABLES> teos
+	
+Notice that ENV variables are optional, if unset the corresponding default setting is used. The following ENVs are available:
+
+```
+- API_BIND=<teos_api_hostname>
+- API_PORT=<teos_api_port>
+- RPC_BIND=<teos_rpc_hostname>
+- RPC_PORT=<teos_rpc_port>
+- BTC_NETWORK=<btc_network>
+- BTC_RPC_CONNECT=<btc_node_hostname>
+- BTC_RPC_PORT=<btc_node_port>
+- BTC_RPC_USER=<btc_rpc_username>
+- BTC_RPC_PASSWORD=<btc_rpc_password>
+- DATA_DIR=<teos_data_dir>
+- DEBUG=<debug_bool>
+- DEPS_DEBUG=<deps_debug_bool>
+- OVERWRITE_KEY=<overwrite_key_bool>
+- FORCE_UPDATE=<force_update_bool>
+```
+
+You may also want to run docker with a volume, so you can have data persistence in `teosd` databases and keys.
+If so, run:
+
+    docker volume create teos-data
+    
+And add the the mount parameter to `docker run`:
+
+    --mount source=teos-data,target=/root/.teos
+
+If you are running `teosd` and `bitcoind` in the same machine, continue reading for how to create the container based on your OS.
+
+### `bitcoind` running on the same machine (UNIX)
+The easiest way to run both together in he same machine using UNIX is to set the container to use the host network.
+	
+For example, if both `teosd` and `bitcoind` are running on default settings, run
+    
+```
+docker run --network=host \
+  --name teos \
+  --mount source=teos-data,target=/root/.teos \
+  -e BTC_RPC_CONNECT=host.docker.internal \
+  -e BTC_RPC_USER=<rpc username> \
+  -e BTC_RPC_PASSWORD=<rpc password> \
+  -it teos
+```
+
+Notice that you may still need to set your RPC authentication details, since, hopefully, your credentials won't match the `teosd` defaults.
+
+### `bitcoind` running on the same machine (OSX or Windows)
+
+Docker for OSX and Windows does not allow to use the host network (nor to use the `docker0` bridge interface). To workaround this
+you can use the special `host.docker.internal` domain.
+
+```
+docker run -p 9814:9814 \
+  --name teos \
+  --mount source=teos-data,target=/root/.teos \
+  -e BTC_RPC_CONNECT=host.docker.internal \
+  -e BTC_RPC_USER=<rpc username> \
+  -e BTC_RPC_PASSWORD=<rpc password> \
+  -e API_BIND=0.0.0.0 \
+  -it teos
+```
+
+Notice that we also needed to add `API_BIND=0.0.0.0` to bind the API to all interfaces of the container.
+Otherwise it will bind to `localhost` and we won't be able to send requests to the tower from the host.
+
+### Using `teos-cli`
+
+With this set up, there are two ways you can use `teos-cli`
+
+You can open an `sh` shell using `docker exec`:
+
+`docker exec -it <CONTAINER NAME> sh`
+
+Then begin issuing whatever `teos-cli` commands you want.
+
+Secondly, you can try using teos-cli remotely following the instructions in [the main README](https://github.com/talaia-labs/rust-teos/blob/master/README.md#running-teos-cli-remotely).