diff --git a/README.md b/README.md
index 87885b687a..57e3195f97 100644
--- a/README.md
+++ b/README.md
@@ -32,7 +32,12 @@ To learn how to use zkSync, please refer to the [zkSync SDK documentation](https
 
 ## Development Documentation
 
-The repository architecture overview is available: [docs/architecture.md](docs/architecture.md).
+The following guides for developers are available:
+
+- Installing development dependencies: [docs/setup-dev.md](docs/setup-dev.md).
+- Launching zkSync locally: [docs/launch.md](docs/launch.md).
+- Development guide: [docs/development.md](docs/development.md).
+- Repository architecture overview: [docs/architecture.md](docs/architecture.md).
 
 ## Projects
 
diff --git a/docs/development.md b/docs/development.md
new file mode 100644
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--- /dev/null
+++ b/docs/development.md
@@ -0,0 +1,215 @@
+# Development guide
+
+This document covers development-related actions in zkSync.
+
+## Initializing the project
+
+To setup the main toolkit, `zk`, simply run:
+
+```
+zk
+```
+
+You may also configure autocompletion for your shell via:
+
+```
+zk completion install
+```
+
+Once all the dependencies were installed, project can be initialized:
+
+```
+zk init
+```
+
+This command will do the following:
+
+- Generate `$ZKSYNC_HOME/etc/env/dev.env` file with settings for the applications.
+- Initialize docker containers with `geth` Ethereum node and `postgres` database for local development.
+- Download and unpack files for cryptographical backend (`circuit`).
+- Generate required smart contracts.
+- Compile all the smart contracts.
+- Deploy smart contracts to the local Ethereum network.
+- Initialize database and apply migrations.
+- Insert required data into created database.
+- Create “genesis block” for server.
+
+Initializing may take pretty long, but many steps (such as downloading & unpacking keys and initializing containers)
+arerequired to be done only once.
+
+Usually, it is a good idea to do `zk init` once after each merge to the `dev` branch (as application setup may change).
+
+**Note:** If after getting new functionality from the `dev` branch your code stopped working and `zk init` doesn’t
+help,you may try removing `$ZKSYNC_HOME/etc/env/dev.env` and running `zk init` once again. This may help if the
+applicationconfiguration has changed.
+
+If you don’t need all of the `zk init` functionality, but just need to start/stop containers, use the followingcommands:
+
+```
+zk up   # Set up `geth` and `postgres` containers
+zk down # Shut down `geth` and `postgres` containers
+```
+
+## Committing changes
+
+`zksync` uses pre-commit and pre-push git hooks for basic code integrity checks. Hooks are set up automatically
+withinthe workspace initialization process. These hooks will not allow to commit the code which does not pass several
+checks.
+
+Currently the following criteria are checked:
+
+- Rust code should always be formatted via `cargo fmt`.
+- Other code should always be formatted via `zk fmt`.
+- Dummy Prover should not be staged for commit (see below for the explanation).
+
+## Using Dummy Prover
+
+Using the real prover for the development can be not really handy, since it’s pretty slow and resource consuming.
+
+Instead, one may want to use the Dummy Prover: lightweight version of the prover, which does not actually proveanything,
+but acts like it does.
+
+To enable the dummy prover, run:
+
+```
+zk dummy-prover enable
+```
+
+And after that you will be able to use the dummy prover instead of actual prover:
+
+```
+zk dummy-prover run # Instead of `zk prover`
+```
+
+**Warning:** `dummy-prover enable` subcommand changes the `Verifier.sol` contract, which is a part
+of `git` repository.Be sure not to commit these changes when using the dummy prover!
+
+If one will need to switch back to the real prover, a following command is required:
+
+```
+zk dummy-prover disable
+```
+
+This command will revert changes in the contract and redeploy it, so the actual prover will be usable again.
+
+Also you can always check the current status of the dummy verifier:
+
+```
+$ zk dummy-prover status
+Dummy Prover status: disabled
+```
+
+## Database migrations
+
+zkSync uses PostgreSQL as a database backend, and `diesel-cli` for database migrations management.
+
+Existing migrations are located in `core/lib/storage/migrations`.
+
+Adding a new migration requires the following actions:
+
+1. Go to the `storage` folder:
+
+   ```
+   cd core/lib/storage
+   ```
+
+2. Generate a blanket migration:
+
+   ```
+   diesel migration generate name-of-your-migration
+   ```
+
+3. Implement migration: `up.sql` must contain new changes for the DB, and `down.sql` must revert the migration andreturn
+   the database into previous state.
+4. Run `zk db migrate` to apply migration.
+5. Implement corresponding changes in the `storage` crate.
+6. Implement tests for new functionality.
+7. Run database tests:
+
+```
+zk test db
+```
+
+## Testing
+
+- Running the `rust` unit-tests (heavy tests such as ones for `circuit` and database will not be run):
+
+  ```
+  zk f cargo test
+  ```
+
+- Running the database tests:
+
+  ```
+  zk test db
+  ```
+
+- Running the integration test:
+
+  ```
+  zk server           # Has to be run in the 1st terminal
+  zk dummy-prover run # Has to be run in the 2nd terminal
+  zk test i server    # Has to be run in the 3rd terminal
+  ```
+
+- Running the circuit tests:
+
+  ```
+  zk test circuit
+  ```
+
+- Running the prover tests:
+
+  ```
+  zk test prover
+  ```
+
+- Running the benchmarks:
+
+  ```
+  zk f cargo bench
+  ```
+
+- Running the loadtest:
+
+  ```
+  zk server # Has to be run in the 1st terminal
+  zk prover # Has to be run in the 2nd terminal
+  zk run loadtest # Has to be run in the 3rd terminal
+  ```
+
+  **Note**. If you have compilation issues with `sqlx`, then make sure to run `zk up` before running the tests. Also,
+  ifyou see some tests fail, might need to call `zk db reset` and restart the tests.
+
+## Developing circuit
+
+- To generate proofs one must have the universal setup files (which are downloaded during the first initialization).
+- To verify generated proofs one must have verification keys. Verification keys are generated for specific circuit
+  &Verifier.sol contract; without these keys it is impossible to verify proofs on the Ethereum network.
+
+Steps to do after updating circuit:
+
+1. Update circuit version by updating `KEY_DIR` in your env file (don’t forget to place it to `dev.env.example`)
+   (lastparts of this variable usually means last commit where you updated circuit).
+2. Regenerate verification keys and Verifier contract using `zk run verify-keys gen` command.
+3. Pack generated verification keys using `zk run verify-keys pack` command and commit resulting file to repo.
+
+## Build and push Docker images to dockerhub
+
+```
+zk docker push <IMAGE>
+```
+
+## Contracts
+
+### Re-build contracts
+
+```
+zk contract build
+```
+
+### Publish source code on etherscan
+
+```
+zk contract publish
+```
diff --git a/docs/launch.md b/docs/launch.md
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--- /dev/null
+++ b/docs/launch.md
@@ -0,0 +1,117 @@
+# Running the application
+
+This document covers common scenarios of launching zkSync applications set locally.
+
+## Prerequisites
+
+Prepare dev environment prerequisites: see
+
+[Installing dependencies](./setup-dev.md)
+
+## Setup local dev environment
+
+Setup:
+
+```
+zk # installs and builds zk itself
+zk init
+```
+
+During the first initialization you have to download around 8 GB of setup files, this should be done once. If you have a
+problem on this step of the initialization, see help for the `zk run plonk-setup` command.
+
+If you face any other problems with the `zk init` command, go to the [Troubleshooting](##Troubleshooting) section at the
+end of this file. There are solutions for some common error cases.
+
+To completely reset the dev environment:
+
+- Stop services:
+
+  ```
+  zk down
+  ```
+
+- Repeat the setup procedure above
+
+If `zk init` has already been executed, and now you only need to start docker containers (e.g. after reboot),
+simplylaunch:
+
+```
+zk up
+```
+
+## (Re)deploy db and contraсts
+
+```
+zk contract redeploy
+```
+
+## Environment configurations
+
+Env config files are held in `etc/env/`
+
+List configurations:
+
+```
+zk env
+```
+
+Switch between configurations:
+
+```
+zk env <ENV_NAME>
+```
+
+Default confiruration is `dev.env`, which is generated automatically
+from `dev.env.example` during `zk init` commandexecution.
+
+## Build and run server + prover locally for development
+
+Run server:
+
+```
+zk server
+```
+
+Server is configured using env files in `./etc/env` directory. After the first initialization,
+file `./etc/env/dev.env`will be created. By default, this file is copied from the `./etc/env/dev.env.example` template.
+
+Server can produce block of different sizes, the list of available sizes is determined by
+the`SUPPORTED_BLOCK_CHUNKS_SIZES` environment variable. Block sizes which will actually be produced by the server can be
+configured using the `BLOCK_CHUNK_SIZES` environment variable.
+
+Note: for proof generation for large blocks requires a lot of resources and an average user machine is only capable
+ofcreating proofs for the smallest block sizes. As an alternative, a dummy-prover may be used for development
+(see`[development.md](https://hackmd.io/S7hTv1EwSpWu8VCReDmsBg)` for details).
+
+Run prover:
+
+```
+zk prover
+```
+
+Make sure you have environment variables set right, you can check it by running: `zk env`. You should
+see `* dev` inoutput.
+
+## Troubleshooting
+
+### SSL error: certificate verify failed
+
+**Problem**. `zk init` fails with the following error:
+
+```
+Initializing download: https://universal-setup.ams3.digitaloceanspaces.com/setup_2%5E20.key
+SSL error: certificate verify failed
+```
+
+**Solution**. Make sure that the version of `axel` on your computer is `2.17.10`.
+
+### rmSync is not a function
+
+**Problem**. `zk init` fails with the following error:
+
+```
+fs_1.default.rmSync is not a function
+```
+
+**Solution**. Make sure that the version of `node.js` installed on your computer is `14.14.0` or higher.
diff --git a/docs/setup-dev.md b/docs/setup-dev.md
new file mode 100644
index 0000000000..b753688198
--- /dev/null
+++ b/docs/setup-dev.md
@@ -0,0 +1,216 @@
+# Installing dependencies
+
+## `Docker`
+
+Install `docker`. It is recommended to follow the instructions from the
+[official site](https://docs.docker.com/install/).
+
+Installing `docker` via `snap` or from the default repository can cause troubles.
+
+You need to install both `docker` and `docker-compose`.
+
+**Note:** On linux you may encounter the following error when you’ll try to work with `zksync`:
+
+```
+ERROR: Couldn't connect to Docker daemon - you might need to run `docker-machine start default`.
+```
+
+If so, you **do not need** to install `docker-machine`. Most probably, it means that your user is not added to
+the`docker` group. You can check it as follows:
+
+```bash
+docker-compose up # Should raise the same error.
+sudo docker-compose up # Should start doing things.
+```
+
+If the first command fails, but the second succeeds, then you need to add your user to the `docker` group:
+
+```bash
+sudo usermod -a -G docker your_user_name
+```
+
+After that, you should logout and login again (user groups are refreshed after the login). The problem should be
+solvedat this step.
+
+If logging out does not help, restarting the computer should.
+
+## `Node` & `Yarn`
+
+1. Install `Node` (requires version 14.14.0 or higher). Since our team attempts to always use the latest LTS version
+   of`Node.js`, we suggest you to install [nvm](https://github.com/nvm-sh/nvm). It will allow you to
+   update `Node.js`version easily in the future.
+2. Install `yarn`. Instructions can be found on the [official site](https://classic.yarnpkg.com/en/docs/install/). Check
+   if `yarn` is installed by running `yarn -v`.If you face any problems when installing `yarn`, it might be the case
+   that your package manager installed the wrong package.Make sure to thoroughly follow the instructions above on the
+   official website. It contains a lot of troubleshootingguides in it.
+3. Run `yarn global add @vue/cli-service`
+
+## `Axel`
+
+Install `axel` for downloading keys:
+
+On mac:
+
+```bash
+brew install axel
+```
+
+On debian-based linux:
+
+```bash
+sudo apt-get install axel
+```
+
+Check the version of `axel` with the following command:
+
+```
+axel --version
+```
+
+Make sure the version is `2.17.10`.
+
+## `Rust`
+
+Install the latest `rust` version.
+
+Instructions can be found on the [official site](https://www.rust-lang.org/tools/install).
+
+Verify the `rust` installation:
+
+```bash
+rustc --version
+rustc 1.48.0 (7eac88abb 2020-11-16)
+```
+
+### `lld`
+
+Optionally, you may want to optimize the build time with the LLVM linker, `lld`. Make sure you have it installed and
+append `"-C", "link-arg=-fuse-ld=lld"` to the `rustflags` in your `.cargo/config` file, so it looks like this:
+
+```
+[target.x86_64-unknown-linux-gnu]
+rustflags = [
+    "-C", "link-arg=-fuse-ld=lld",
+]
+```
+
+**Warning:** This is only viable for linux since `lld` doesn’t work on mac.
+
+## PSQL
+
+Install `psql` CLI tool to interact with postgres.
+
+On debian-based linux:
+
+```bash
+sudo apt-get install postgresql-client
+```
+
+## `Diesel` CLI
+
+Install `[diesel](https://diesel.rs/)` CLI (it is used for migrations management only):
+
+```bash
+cargo install diesel_cli --no-default-features --features postgres
+```
+
+If at the install step you get the linkage errors, install the development version of `libpq`.
+
+On debian-based linux:
+
+```bash
+sudo apt-get install libpq-dev
+```
+
+If you still see the errors, install the `build-essential` package. On debian-based linux:
+
+```bash
+sudo apt install build-essential
+```
+
+## `sqlx` CLI
+
+Also, we need `[sqlx](https://github.com/launchbadge/sqlx)` CLI (it is used to generate database wrappers):
+
+```bash
+cargo install --version=0.2.0 sqlx-cli
+```
+
+If you face an error `Could not find directory of OpenSSL installation`, then you should do the following.
+Theinstruction is targeted on debian-based Linux, but generally, the steps are similar for all OS.
+
+- Install `libssl-dev`:
+
+```
+sudo apt install libssl-dev
+```
+
+- Install OpenSSL. Here is [the instruction for Ubuntu](https://www.spinup.com/installing-openssl-on-ubuntu/), but
+  thesteps should be similar for the debian-based Linux distros.
+- Add `OPENSSL_DIR` variable to your environment. This would typically be `/usr/local/ssl`. You can do this by addingthe
+  following line to your shell profile file (e.g. `~/.bash_profile`):
+
+```bash
+export OPENSSL_DIR=/usr/local/ssl
+```
+
+- Install `package-config`:
+
+```bash
+sudo apt-get install -y pkg-config
+```
+
+## `solc`
+
+You have to install `solc` v0.5.16. Instructions can be found at
+[readthedocs](https://solidity.readthedocs.io/en/v0.6.2/installing-solidity.html).
+
+The simplest option for linux is to use `snap`.
+
+For mac you can install it as follows:
+
+```bash
+brew update
+brew upgrade
+brew tap ethereum/ethereum
+brew install solidity@5
+```
+
+If you're Arch user, download the archived version from [here](https://archive.archlinux.org/packages/s/solidity/) and
+install it
+
+```bash
+pacman -U solidity-0.5.14-1-x86_64.pkg.tar.xz
+```
+
+Finally, to prevent pacman from upgrading it, add this line to your /etc/pacman.conf
+
+```
+IgnorePkg = solidity
+```
+
+## drone cli
+
+drone cli used to create promotion jobs [described here](https://docs.drone.io/cli/install/).
+
+## `cmake`
+
+Required by `binaryen` to build C++ sources. In order to speed it up, you might want to install `clang` and `lld` too.
+
+```bash
+sudo apt-get install cmake clang lld
+```
+
+## Environment
+
+Edit the lines below and add them to your shell profile file (e.g. `~/.bash_profile`):
+
+```bash
+# Add path here:
+export ZKSYNC_HOME=/path/to/zksync
+
+export PATH=$ZKSYNC_HOME/bin:$PATH
+
+# If you're like me, uncomment:
+# cd $ZKSYNC_HOME
+```