diff --git a/docker/docker-compose.sqlite.yml b/docker/docker-compose.sqlite.yml
new file mode 100644
index 0000000000..e42c43a09c
--- /dev/null
+++ b/docker/docker-compose.sqlite.yml
@@ -0,0 +1,62 @@
+version: "3.8"
+
+# Docker compose recipe for InvenTree development server
+# - Runs sqlite database
+# - Uses built-in django webserver
+# - Runs the InvenTree background worker process
+# - Serves media and static content directly from Django webserver
+
+# IMPORANT NOTE:
+# The InvenTree docker image does not clone source code from git.
+# Instead, you must specify *where* the source code is located,
+# (on your local machine).
+# The django server will auto-detect any code changes and reload the server.
+
+services:
+
+    # InvenTree web server services
+    # Uses gunicorn as the web server
+    inventree-dev-server:
+        container_name: inventree-dev-server
+        build:
+            context: .
+            target: dev
+        ports:
+            # Expose web server on port 8000
+            - 8000:8000
+        volumes:
+            # Ensure you specify the location of the 'src' directory at the end of this file
+            - src:/home/inventree
+        env_file:
+            # Environment variables required for the dev server are configured in dev-config.env
+            - sqlite-config.env
+        restart: unless-stopped
+
+    # Background worker process handles long-running or periodic tasks
+    inventree-dev-worker:
+        container_name: inventree-dev-worker
+        build:
+            context: .
+            target: dev
+        command: invoke worker
+        depends_on:
+            - inventree-dev-server
+        volumes:
+            # Ensure you specify the location of the 'src' directory at the end of this file
+            - src:/home/inventree
+        env_file:
+            # Environment variables required for the dev server are configured in dev-config.env
+            - sqlite-config.env
+        restart: unless-stopped
+
+volumes:
+    # NOTE: Change "../" to a directory on your local machine, where the InvenTree source code is located
+    # Persistent data, stored external to the container(s)
+    src:
+        driver: local
+        driver_opts:
+            type: none
+            o: bind
+            # This directory specified where InvenTree source code is stored "outside" the docker containers
+            # By default, this directory is one level above the "docker" directory
+            device: ../