diff --git a/Makefile b/Makefile
index 720a196e..49636c89 100644
--- a/Makefile
+++ b/Makefile
@@ -67,33 +67,19 @@ test: | $(GINKGO) $(GOOSE)
 integrationtest: | $(GINKGO) $(GOOSE)
 	go vet ./...
 	go fmt ./...
-	#export PGPASSWORD=$(DATABASE_PASSWORD)
-	#dropdb -h $(DATABASE_HOSTNAME) -p $(DATABASE_PORT) -U $(DATABASE_USER) --if-exists $(TEST_DB)
-	#createdb -h $(DATABASE_HOSTNAME) -p $(DATABASE_PORT) -U $(DATABASE_USER) $(TEST_DB)
-	#$(GOOSE) -dir db/migrations postgres "$(TEST_CONNECT_STRING)" up
 	$(GINKGO) -r test/ -v
 
 .PHONY: test_local
 test_local: | $(GINKGO) $(GOOSE)
 	go vet ./...
 	go fmt ./...
-	dropdb -h $(HOST_NAME) -p $(PORT) -U $(USER) --if-exists $(TEST_DB)
-	createdb -h $(HOST_NAME) -p $(PORT) -U $(USER) $(TEST_DB)
-	$(GOOSE) -dir db/migrations postgres "$(TEST_CONNECT_STRING_LOCAL)" up
-	$(GOOSE) -dir db/migrations postgres "$(TEST_CONNECT_STRING_LOCAL)" reset
-	make migrate NAME=$(TEST_DB)
-	$(GINKGO) -r --skipPackage=test
+	./scripts/run_unit_test.sh
 
 .PHONY: integrationtest_local
 integrationtest_local: | $(GINKGO) $(GOOSE)
 	go vet ./...
 	go fmt ./...
-	dropdb -h $(HOST_NAME) -p $(PORT) -U $(USER) --if-exists $(TEST_DB)
-	createdb -h $(HOST_NAME) -p $(PORT) -U $(USER) $(TEST_DB)
-	$(GOOSE) -dir db/migrations postgres "$(TEST_CONNECT_STRING_LOCAL)" up
-	$(GOOSE) -dir db/migrations postgres "$(TEST_CONNECT_STRING_LOCAL)" reset
-	make migrate NAME=$(TEST_DB)
-	$(GINKGO) -r integration_test/
+	./scripts/run_intregration_test.sh
 
 build:
 	go fmt ./...
diff --git a/pkg/eth/api_test.go b/pkg/eth/api_test.go
index f4e8ad47..75152d11 100644
--- a/pkg/eth/api_test.go
+++ b/pkg/eth/api_test.go
@@ -194,7 +194,7 @@ var _ = Describe("API", func() {
 		backend, err := eth.NewEthBackend(db, &eth.Config{
 			ChainConfig: chainConfig,
 			VmConfig:    vm.Config{},
-			RPCGasCap:   big.NewInt(10000000000),
+			RPCGasCap:   big.NewInt(10000000000), // Max gas capacity for a rpc call.
 		})
 		Expect(err).ToNot(HaveOccurred())
 		api = eth.NewPublicEthAPI(backend, nil, false)
diff --git a/scripts/run_intregration_test.sh b/scripts/run_intregration_test.sh
new file mode 100755
index 00000000..f9056dc4
--- /dev/null
+++ b/scripts/run_intregration_test.sh
@@ -0,0 +1,21 @@
+set -e
+set -o xtrace
+
+# Clear up existing docker images and volume.
+docker-compose down --remove-orphans --volumes
+
+# Build and start the containers.
+# Note: Build only if `ipld-eth-server` code is modified. Otherwise comment this line.
+docker build -t ipld-eth-server_eth-server:latest .
+docker-compose -f docker-compose.test.yml -f docker-compose.yml up -d db dapptools contract eth-server
+
+export PGPASSWORD=password
+export DATABASE_USER=vdbm
+export DATABASE_PORT=8077
+export DATABASE_PASSWORD=password
+export DATABASE_HOSTNAME=127.0.0.1
+
+# Wait for containers to be up and execute the integration test.
+while [ "$(curl -s -o /dev/null -w ''%{http_code}'' localhost:8081)" != "200" ]; do echo "waiting for ipld-eth-server..." && sleep 5; done && \
+          while [ "$(curl -s -o /dev/null -w ''%{http_code}'' localhost:8545)" != "200" ]; do echo "waiting for geth-statediff..." && sleep 5; done && \
+          make integrationtest
\ No newline at end of file
diff --git a/scripts/run_unit_test.sh b/scripts/run_unit_test.sh
new file mode 100755
index 00000000..1e15f03b
--- /dev/null
+++ b/scripts/run_unit_test.sh
@@ -0,0 +1,2 @@
+docker-compose -f docker-compose.test.yml -f docker-compose.yml up -d db
+PGPASSWORD=password DATABASE_USER=vdbm DATABASE_PORT=8077 DATABASE_PASSWORD=password DATABASE_HOSTNAME=127.0.0.1 make test
\ No newline at end of file
diff --git a/test/README.md b/test/README.md
index 95e3b5f8..a2d93136 100644
--- a/test/README.md
+++ b/test/README.md
@@ -1,6 +1,15 @@
 
 Spin up services: 
 ```
-docker-compose -f docker-compose.test.yml -f ../docker-compose.yml up contract
+docker-compose -f docker-compose.test.yml -f docker-compose.yml up -d db dapptools contract eth-server
+```
 
+Running unit tests:
+```bash
+make test_local
+```
+
+Running intrgration test:
+```bash
+make integrationtest_local
 ```
\ No newline at end of file