diff --git a/app/data/compose/docker-compose-watcher-mobymask-v2.yml b/app/data/compose/docker-compose-watcher-mobymask-v2.yml
index 9835ada4..dc4f6928 100644
--- a/app/data/compose/docker-compose-watcher-mobymask-v2.yml
+++ b/app/data/compose/docker-compose-watcher-mobymask-v2.yml
@@ -23,9 +23,6 @@ services:
 
   mobymask:
     restart: unless-stopped
-    depends_on:
-      mobymask-watcher-db:
-        condition: service_healthy
     image: cerc/mobymask:local
     working_dir: /app/packages/server
     environment:
@@ -46,12 +43,17 @@ services:
     depends_on:
       mobymask-watcher-db:
         condition: service_healthy
+      mobymask:
+        condition: service_healthy
     image: cerc/watcher-mobymask-v2:local
-    command: ["sh", "-c", "yarn server"]
+    command: ["sh", "server-start.sh"]
     volumes:
-      - ../config/watcher-mobymask-v2/watcher.toml:/app/packages/mobymask-v2-watcher/environments/local.toml
+      - ../config/watcher-mobymask-v2/watcher-config-template.toml:/app/packages/mobymask-v2-watcher/environments/watcher-config-template.toml
       - ../config/watcher-mobymask-v2/peer.env:/app/packages/peer/.env
       - ../config/watcher-mobymask-v2/relay-id.json:/app/packages/mobymask-v2-watcher/relay-id.json
+      - ../config/watcher-mobymask-v2/peer-id.json:/app/packages/mobymask-v2-watcher/peer-id.json
+      - ../config/watcher-mobymask-v2/server-start.sh:/app/packages/mobymask-v2-watcher/server-start.sh
+      - moby_data_server:/server
     ports:
       - "0.0.0.0:3001:3001"
       - "0.0.0.0:9001:9001"
@@ -63,19 +65,6 @@ services:
       retries: 15
       start_period: 5s
 
-  mobymask-watcher-peer:
-    restart: unless-stopped
-    depends_on:
-      mobymask:
-        condition: service_healthy
-    image: cerc/watcher-mobymask-v2:local
-    command: ["sh", "peer-start.sh"]
-    volumes:
-      - ../config/watcher-mobymask-v2/watcher.toml:/app/packages/mobymask-v2-watcher/environments/local.toml
-      - ../config/watcher-mobymask-v2/peer-id.json:/app/packages/mobymask-v2-watcher/peer-id.json
-      - ../config/watcher-mobymask-v2/peer-start.sh:/app/packages/mobymask-v2-watcher/peer-start.sh
-      - moby_data_server:/server
-
   mobymask-app:
     depends_on:
       mobymask-watcher-server:
diff --git a/app/data/config/watcher-mobymask-v2/peer-start.sh b/app/data/config/watcher-mobymask-v2/peer-start.sh
deleted file mode 100755
index 9749f97a..00000000
--- a/app/data/config/watcher-mobymask-v2/peer-start.sh
+++ /dev/null
@@ -1,10 +0,0 @@
-#!/bin/sh
-
-# Private key of account with balance
-PRIVATE_KEY=
-
-# Assign deployed contract address from server config
-CONTRACT_ADDRESS=`jq '.address' /server/config.json`
-
-echo 'yarn peer-listener --contract-address <CONTRACT_ADDRESS> --private-key <PRIVATE_KEY>'
-yarn peer-listener --contract-address $CONTRACT_ADDRESS --private-key $PRIVATE_KEY
diff --git a/app/data/config/watcher-mobymask-v2/server-start.sh b/app/data/config/watcher-mobymask-v2/server-start.sh
new file mode 100755
index 00000000..80bf4d34
--- /dev/null
+++ b/app/data/config/watcher-mobymask-v2/server-start.sh
@@ -0,0 +1,9 @@
+#!/bin/sh
+
+# Assign deployed contract address from server config
+CONTRACT_ADDRESS=`jq '.address' /server/config.json`
+
+sed "s/REPLACE_WITH_CONTRACT_ADDRESS/${CONTRACT_ADDRESS}/" environments/watcher-config-template.toml > environments/local.toml
+
+echo 'yarn server'
+yarn server
diff --git a/app/data/config/watcher-mobymask-v2/watcher.toml b/app/data/config/watcher-mobymask-v2/watcher-config-template.toml
similarity index 92%
rename from app/data/config/watcher-mobymask-v2/watcher.toml
rename to app/data/config/watcher-mobymask-v2/watcher-config-template.toml
index 3f50d137..1a05e225 100644
--- a/app/data/config/watcher-mobymask-v2/watcher.toml
+++ b/app/data/config/watcher-mobymask-v2/watcher-config-template.toml
@@ -21,7 +21,7 @@
 
   [server.p2p]
     enableRelay = true
-    enablePeer = false
+    enablePeer = true
 
     [server.p2p.relay]
       host = "0.0.0.0"
@@ -36,6 +36,10 @@
       peerIdFile = './peer-id.json'
       enableDebugInfo = true
 
+      [server.p2p.peer.l2TxConfig]
+        privateKey = ''
+        contractAddress = REPLACE_WITH_CONTRACT_ADDRESS
+
 [metrics]
   host = "0.0.0.0"
   port = 9000
diff --git a/app/data/container-build/cerc-builder-js/yarn-local-registry-fixup.sh b/app/data/container-build/cerc-builder-js/yarn-local-registry-fixup.sh
index 3f4f095a..ad11ce80 100755
--- a/app/data/container-build/cerc-builder-js/yarn-local-registry-fixup.sh
+++ b/app/data/container-build/cerc-builder-js/yarn-local-registry-fixup.sh
@@ -18,8 +18,9 @@ fi
 set -e
 target_package=$1
 local_npm_registry_url=$2
-# TODO: use jq rather than sed here:
-versioned_target_package=$(grep ${target_package} package.json | sed -e 's#[[:space:]]\{1,\}\"\('${target_package}'\)\":[[:space:]]\{1,\}\"\(.*\)\",#\1@\2#' )
+# Extract the actual version pinned in yarn.lock
+# See: https://stackoverflow.com/questions/60454251/how-to-know-the-version-of-currently-installed-package-from-yarn-lock
+versioned_target_package=$(yarn list --pattern ${target_package} --depth=0 --json --non-interactive --no-progress | jq -r '.data.trees[].name')
 # Use yarn info to get URL checksums etc from the new registry
 yarn_info_output=$(yarn info --json $versioned_target_package 2>/dev/null)
 # First check if the target version actually exists. 
diff --git a/app/data/stacks/mobymask-v2/README.md b/app/data/stacks/mobymask-v2/README.md
index 5cea8570..fc6f6b05 100644
--- a/app/data/stacks/mobymask-v2/README.md
+++ b/app/data/stacks/mobymask-v2/README.md
@@ -18,11 +18,11 @@ Checkout to the required versions and branches in repos
 ```bash
 # watcher-ts
 cd ~/cerc/watcher-ts
-git checkout v0.2.31
+git checkout v0.2.34
 
 # react-peer
 cd ~/cerc/react-peer
-git checkout v0.2.29
+git checkout v0.2.31
 
 # mobymask-ui
 cd ~/cerc/mobymask-ui
@@ -67,7 +67,7 @@ Deploy the stack:
 
 * Set the private key in [secrets.json](../../config/watcher-mobymask-v2/secrets.json) file that will be used by mobymask container to deploy contract
 
-* Create a new account
+* Create a new account named `alice`
 
   ```bash
   laconic-so --stack mobymask-v2 deploy-system --include mobymask-laconicd exec laconicd "laconicd keys add alice"
@@ -85,7 +85,12 @@ Deploy the stack:
   laconic-so --stack mobymask-v2 deploy-system --include mobymask-laconicd exec laconicd "echo y | laconicd keys export alice --unarmored-hex --unsafe"
   ```
 
-* Set the private key (`PRIVATE_KEY`) in [peer-start.sh](../../config/watcher-mobymask-v2/peer-start.sh) file that will be used to start the peer that sends txs to L2 chain
+* Set the private key (`server.p2p.peer.l2TxConfig.privateKey`) in [watcher.toml](../../config/watcher-mobymask-v2/watcher.toml) file that will be used to start the peer that sends txs to L2 chain
+
+  ```toml
+  [server.p2p.peer.l2TxConfig]
+    privateKey = 'ALICE_PRIVATE_KEY'
+  ```
 
 * Deploy the other containers
 
diff --git a/app/data/stacks/mobymask-v2/demo.md b/app/data/stacks/mobymask-v2/demo.md
index 63ad0a21..09085b89 100644
--- a/app/data/stacks/mobymask-v2/demo.md
+++ b/app/data/stacks/mobymask-v2/demo.md
@@ -34,7 +34,7 @@
   * Get the container id
 
     ```bash
-    laconic-so --stack mobymask-v2 deploy-system --include watcher-mobymask-v2 ps | grep mobymask-watcher-peer
+    laconic-so --stack mobymask-v2 deploy-system --include watcher-mobymask-v2 ps | grep mobymask-watcher-server
     ```
 
   * Check logs