diff --git a/app/data/compose/docker-compose-watcher-mobymask-v2.yml b/app/data/compose/docker-compose-watcher-mobymask-v2.yml
index 601d13b6..c85953c5 100644
--- a/app/data/compose/docker-compose-watcher-mobymask-v2.yml
+++ b/app/data/compose/docker-compose-watcher-mobymask-v2.yml
@@ -54,6 +54,24 @@ services:
     extra_hosts:
       - "host.docker.internal:host-gateway"
 
+  watcher-ts-peer:
+    # TODO: Use watcher-ts local container or publish watcher-ts image
+    image: ghcr.io/cerc-io/watcher-ts:v0.2.37
+    restart: on-failure
+    environment:
+      CERC_SCRIPT_DEBUG: ${CERC_SCRIPT_DEBUG}
+    working_dir: /app/packages/peer
+    command: ["sh", "start-watcher-ts-shell.sh"]
+    volumes:
+      - ../config/watcher-mobymask-v2/start-watcher-ts-shell.sh:/app/packages/peer/start-watcher-ts-shell.sh
+      - peers_ids:/app/packages/peer
+    healthcheck:
+      test: ["CMD", "ls", /app/packages/peer/peer-id.json]
+      interval: 20s
+      timeout: 5s
+      retries: 15
+      start_period: 5s
+
   # Starts the mobymask-v2-watcher server
   mobymask-watcher-server:
     image: cerc/watcher-mobymask-v2:local
@@ -61,6 +79,8 @@ services:
     depends_on:
       mobymask-watcher-db:
         condition: service_healthy
+      watcher-ts-peer:
+        condition: service_healthy
       mobymask:
         condition: service_completed_successfully
     env_file:
@@ -76,9 +96,9 @@ services:
       CERC_DEPLOYED_CONTRACT: ${CERC_DEPLOYED_CONTRACT}
     command: ["sh", "start-server.sh"]
     volumes:
-      - ../config/watcher-mobymask-v2/watcher-config-template.toml:/app/packages/mobymask-v2-watcher/environments/watcher-config-template.toml
-      - ../config/watcher-mobymask-v2/start-server.sh:/app/packages/mobymask-v2-watcher/start-server.sh
-      - peers_ids:/app/packages/mobymask-v2-watcher/peers
+      - ../config/watcher-mobymask-v2/watcher-config-template.toml:/app/environments/watcher-config-template.toml
+      - ../config/watcher-mobymask-v2/start-server.sh:/app/start-server.sh
+      - peers_ids:/app/peers
       - mobymask_deployment:/server
       - fixturenet_geth_accounts:/geth-accounts:ro
     # Expose GQL, metrics and relay node ports
diff --git a/app/data/config/watcher-mobymask-v2/start-server.sh b/app/data/config/watcher-mobymask-v2/start-server.sh
index b5a3518e..02184842 100755
--- a/app/data/config/watcher-mobymask-v2/start-server.sh
+++ b/app/data/config/watcher-mobymask-v2/start-server.sh
@@ -14,26 +14,7 @@ CERC_DEPLOYED_CONTRACT="${CERC_DEPLOYED_CONTRACT:-${DEFAULT_CERC_DEPLOYED_CONTRA
 
 echo "Using L2 RPC endpoint ${CERC_L2_GETH_RPC}"
 
-# Check for peer ids in ./peers folder, create if not present
-if [ -f ./peers/relay-id.json ]; then
-  echo "Using peer id for relay node from the mounted volume"
-else
-  echo "Creating a new peer id for relay node"
-  cd ../peer
-  yarn create-peer -f ../mobymask-v2-watcher/peers/relay-id.json
-  cd ../mobymask-v2-watcher
-fi
-
-if [ -f ./peers/peer-id.json ]; then
-  echo "Using peer id for peer node from the mounted volume"
-else
-  echo "Creating a new peer id for peer node"
-  cd ../peer
-  yarn create-peer -f ../mobymask-v2-watcher/peers/peer-id.json
-  cd ../mobymask-v2-watcher
-fi
-
-CERC_RELAY_MULTIADDR="/dns4/mobymask-watcher-server/tcp/9090/ws/p2p/$(jq -r '.id' ./peers/relay-id.json)"
+CERC_RELAY_MULTIADDR="/dns4/mobymask-watcher-server/tcp/9090/ws/p2p/$(jq -r '.id' /app/peers/relay-id.json)"
 
 # Use contract address from environment variable or set from config.json in mounted volume
 if [ -n "$CERC_DEPLOYED_CONTRACT" ]; then
@@ -65,8 +46,5 @@ WATCHER_CONFIG=$(echo "$WATCHER_CONFIG_TEMPLATE" | \
 # Write the modified content to a new file
 echo "$WATCHER_CONFIG" > environments/local.toml
 
-# Write the relay node's multiaddr to /app/packages/peer/.env for running tests
-echo "RELAY=\"$CERC_RELAY_MULTIADDR\"" > /app/packages/peer/.env
-
 echo 'yarn server'
 yarn server
diff --git a/app/data/config/watcher-mobymask-v2/start-watcher-ts-shell.sh b/app/data/config/watcher-mobymask-v2/start-watcher-ts-shell.sh
new file mode 100644
index 00000000..7d823ef7
--- /dev/null
+++ b/app/data/config/watcher-mobymask-v2/start-watcher-ts-shell.sh
@@ -0,0 +1,32 @@
+#!/bin/sh
+set -e
+if [ -n "$CERC_SCRIPT_DEBUG" ]; then
+  set -x
+fi
+
+# TODO: Build in Dockerfile
+apk --update --no-cache add jq
+yarn build
+
+# Check for peer ids in ./peers folder, create if not present
+if [ -f ./relay-id.json ]; then
+  echo "Using peer id for relay node from the mounted volume"
+else
+  echo "Creating a new peer id for relay node"
+  yarn create-peer -f relay-id.json
+fi
+
+if [ -f ./peer-id.json ]; then
+  echo "Using peer id for peer node from the mounted volume"
+else
+  echo "Creating a new peer id for peer node"
+  yarn create-peer -f peer-id.json
+fi
+
+CERC_RELAY_MULTIADDR="/dns4/mobymask-watcher-server/tcp/9090/ws/p2p/$(jq -r '.id' ./relay-id.json)"
+
+# Write the relay node's multiaddr to /app/packages/peer/.env for running tests
+echo "RELAY=\"$CERC_RELAY_MULTIADDR\"" > ./.env
+
+# TODO: Discuss leave shell running
+tail -f .env
diff --git a/app/data/container-build/cerc-watcher-mobymask-v2/Dockerfile b/app/data/container-build/cerc-watcher-mobymask-v2/Dockerfile
index 18aff5cd..9d1a70b7 100644
--- a/app/data/container-build/cerc-watcher-mobymask-v2/Dockerfile
+++ b/app/data/container-build/cerc-watcher-mobymask-v2/Dockerfile
@@ -17,4 +17,4 @@ COPY . .
 RUN echo "Building watcher-ts" && \
     yarn && yarn build
 
-WORKDIR /app/packages/mobymask-v2-watcher
+WORKDIR /app
diff --git a/app/data/container-build/cerc-watcher-mobymask-v2/build.sh b/app/data/container-build/cerc-watcher-mobymask-v2/build.sh
index f8b59224..b26ad999 100755
--- a/app/data/container-build/cerc-watcher-mobymask-v2/build.sh
+++ b/app/data/container-build/cerc-watcher-mobymask-v2/build.sh
@@ -6,4 +6,4 @@ source ${CERC_CONTAINER_BASE_DIR}/build-base.sh
 # See: https://stackoverflow.com/a/246128/1701505
 SCRIPT_DIR=$( cd -- "$( dirname -- "${BASH_SOURCE[0]}" )" &> /dev/null && pwd )
 
-docker build -t cerc/watcher-mobymask-v2:local -f ${SCRIPT_DIR}/Dockerfile ${build_command_args} ${CERC_REPO_BASE_DIR}/watcher-ts
+docker build -t cerc/watcher-mobymask-v2:local -f ${SCRIPT_DIR}/Dockerfile ${build_command_args} ${CERC_REPO_BASE_DIR}/mobymask-v2-watcher-ts