diff --git a/InvenTree/InvenTree/settings.py b/InvenTree/InvenTree/settings.py
index cc61748372..5591678e4e 100644
--- a/InvenTree/InvenTree/settings.py
+++ b/InvenTree/InvenTree/settings.py
@@ -430,11 +430,15 @@ 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 504236c131..61defc1607 100644
--- a/docker/Dockerfile
+++ b/docker/Dockerfile
@@ -86,11 +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
@@ -100,7 +98,13 @@ WORKDIR ${INVENTREE_SRC_DIR}
 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
+RUN chmod 755 ${INVENTREE_HOME}/start_dev_server.sh
+
+CMD ["bash", "/home/inventree/start_dev_server.sh"]
diff --git a/docker/docker-compose.dev.yml b/docker/docker-compose.dev.yml
index b2e64f026a..bde7130c70 100644
--- a/docker/docker-compose.dev.yml
+++ b/docker/docker-compose.dev.yml
@@ -15,46 +15,46 @@ services:
     # Uses gunicorn as the web server
     inventree-server:
         container_name: inventree-server
-        image: inventree/inventree:latest
-        entrypoint: ./start_dev_server.sh
+        build:
+            context: .
+            target: dev
         ports:
             - 8000
-        depends_on:
-            - inventree-db
         volumes:
             # Ensure you specify the location of the 'src' directory at the end of this file
             - src:/home/inventree/src
-            - data:/home/inventree/data
-            - static:/home/inventree/static
         environment:
             # Configure a simple sqlite server for development
             # Note: You can always change to a different database backend if required!
-            - INVENTREE_DB_ENGINE=sqlite
-            - INVENTREE_DB_NAME=inventree
+            - INVENTREE_DB_ENGINE=sqlite3
+            - INVENTREE_DB_NAME=/home/inventree/data/inventree_database.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
         restart: unless-stopped
 
     # Background worker process handles long-running or periodic tasks
     inventree-worker:
         container_name: inventree-worker
-        image: inventree/inventree:latest
-        entrypoint: ./start_worker.sh
-        depends_on:
-            - inventree-db
+        build:
+            context: .
+            target: dev
+        entrypoint: invoke worker
             - inventree-server
         volumes:
             # Ensure you specify the location of the 'src' directory at the end of this file
-            - data:/home/inventree/data
-            - static:/home/inventree/static
+            - src:/home/inventree/src
         environment:
             # Configure a simple sqlite server for development
             # Note: You can always change to a different database backend if required!
-            - INVENTREE_DB_ENGINE=sqlite
-            - INVENTREE_DB_NAME=inventree
+            - INVENTREE_DB_ENGINE=sqlite3
+            - INVENTREE_DB_NAME=/home/inventree/data/inventree_database.sqlite3
+            - INVENTREE_MEDIA_ROOT=/home/inventree/src/inventree_media
+            - INVENTREE_STATIC_ROOT=/home/inventree/src/inventree_static
         restart: unless-stopped
 
 volumes:
     # NOTE: Change /path/to/src to a directory on your local machine, where the InvenTree source code is located
-    # This directory must conatin the file *manage.py*
     # Persistent data, stored external to the container(s)
     src:
         driver: local
@@ -63,8 +63,4 @@ volumes:
             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/src
-    # Uploaded data / media files, shared between containers
-    data:
-    # Static files, shared between containers
-    static:
\ No newline at end of file
+            device: /path/to/inventree/src
diff --git a/docker/start_dev_server.sh b/docker/start_dev_server.sh
index c22805b90b..47eb25f9ef 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