diff --git a/.env.development.example b/.env.development.example
index d76fdd074..d37a25ea2 100644
--- a/.env.development.example
+++ b/.env.development.example
@@ -5,6 +5,7 @@
 # Run in your terminal: `id -u` and `id -g` and that's the results
 USERID=
 GROUPID=
+PROJECT_PATH_ON_HOST=/Users/your-username-here/code/coollabsio/coolify
 ############################################################################################################
 
 APP_NAME=Coolify
diff --git a/_testing_hosts/host_2_proxy/.gitignore b/_testing_hosts/host_2_proxy/.gitignore
new file mode 100644
index 000000000..d6b7ef32c
--- /dev/null
+++ b/_testing_hosts/host_2_proxy/.gitignore
@@ -0,0 +1,2 @@
+*
+!.gitignore
diff --git a/app/Actions/Proxy/InstallProxy.php b/app/Actions/Proxy/InstallProxy.php
index 6dba178d0..f4d76f5e4 100644
--- a/app/Actions/Proxy/InstallProxy.php
+++ b/app/Actions/Proxy/InstallProxy.php
@@ -19,12 +19,14 @@ class InstallProxy
         );
 
         $activity = remoteProcess([
-            'mkdir -p proxy',
-            'mkdir -p proxy/letsencrypt',
-            'cd proxy',
+            'mkdir -p projects',
+            'mkdir -p projects/proxy',
+            'mkdir -p projects/proxy/letsencrypt',
+            'cd projects/proxy',
             "echo '$docker_compose_yml_base64' | base64 -d > docker-compose.yml",
             "echo '$env_file_base64' | base64 -d > .env",
-            'cat .env',
+            'docker compose up -d --remove-orphans',
+            'docker ps',
         ], $server, ActivityTypes::INLINE->value);
 
         return $activity;
@@ -40,6 +42,12 @@ class InstallProxy
      */
     protected function getComposeData(): array
     {
+        $cwd = config('app.env') === 'local'
+            ? config('coolify.project_path_on_host') . '_testing_hosts/host_2_proxy'
+            : '.';
+
+        ray($cwd);
+
         return [
             "version" => "3.7",
             "networks" => [
@@ -64,8 +72,8 @@ class InstallProxy
                     ],
                     "volumes" => [
                         "/var/run/docker.sock:/var/run/docker.sock:ro",
-                        "./letsencrypt:/letsencrypt",
-                        "./traefik.auth:/auth/traefik.auth",
+                        "{$cwd}/letsencrypt:/letsencrypt",
+                        "{$cwd}/traefik.auth:/auth/traefik.auth",
                     ],
                     "command" => [
                         "--api.dashboard=true",
diff --git a/config/coolify.php b/config/coolify.php
index 589548fb0..1420b5115 100644
--- a/config/coolify.php
+++ b/config/coolify.php
@@ -2,4 +2,6 @@
 
 return [
     'version' => '4.0.0-nightly.1',
+
+    'project_path_on_host' => env('PROJECT_PATH_ON_HOST', '/var/www/html')
 ];
diff --git a/docker-compose.dev.yml b/docker-compose.dev.yml
index 1eb7897fa..4793251d4 100644
--- a/docker-compose.dev.yml
+++ b/docker-compose.dev.yml
@@ -5,9 +5,6 @@ x-testing-host: &testing-host-base
   build:
     dockerfile: Dockerfile
     context: ./docker/testing-host
-  volumes:
-    - /var/run/docker.sock:/var/run/docker.sock
-    - ./docker/testing-host/supervisord.conf:/etc/supervisor/conf.d/supervisord.conf
   networks:
     - coolify
 
@@ -52,9 +49,14 @@ services:
   testing-host:
       <<: *testing-host-base
       container_name: coolify-testing-host
-  testing-host2:
+      volumes:
+        - /var/run/docker.sock:/var/run/docker.sock
+  testing-host-2:
       <<: *testing-host-base
       container_name: coolify-testing-host-2
+      volumes:
+        - /var/run/docker.sock:/var/run/docker.sock
+        - "./_testing_hosts/host_2_proxy:/root/projects/proxy"