diff --git a/Dockerfile b/Dockerfile
index 4ef45f7a..65e51594 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -1,9 +1,30 @@
+
+# Stage 0: Build image
+FROM maven:3.8.3-jdk-8
+
+ARG BACKEND_ROOT="WIPP-backend"
+ARG BACKEND_APP="wipp-backend-application"
+ARG BACKEND_DATA="wipp-backend-data"
+ARG BACKEND_CORE="wipp-backend-core"
+ARG BACKEND_ARGO="wipp-backend-argo-workflows"
+
+COPY pom.xml /usr/local/${BACKEND_ROOT}/pom.xml
+COPY ${BACKEND_NAME} /usr/local/${BACKEND_ROOT}/${BACKEND_NAME}
+COPY ${BACKEND_DATA} /usr/local/${BACKEND_ROOT}/${BACKEND_DATA}
+COPY ${BACKEND_CORE} /usr/local/${BACKEND_ROOT}/${BACKEND_CORE}
+COPY ${BACKEND_ARGO} /usr/local/${BACKEND_ROOT}/${BACKEND_ARGO}
+COPY deploy/docker/maven-settings.xml /usr/share/maven/conf/settings.xml
+WORKDIR /usr/local/${BACKEND_ROOT}
+RUN mvn clean package -P prod
+
+# Stage 1: Runtime image
 FROM openjdk:8-jdk-alpine
-MAINTAINER National Institute of Standards and Technology
+LABEL org.opencontainers.image.authors="National Institute of Standards and Technology"
 
 EXPOSE 8080
 
-ARG BACKEND_NAME="wipp-backend-application"
+ARG BACKEND_ROOT="WIPP-backend"
+ARG BACKEND_APP="wipp-backend-application"
 ARG EXEC_DIR="/opt/wipp"
 ARG DATA_DIR="/data/WIPP-plugins"
 ARG ARGO_VERSION="v2.3.0"
@@ -24,8 +45,8 @@ RUN wget https://github.com/argoproj/argo-workflows/releases/download/${ARGO_VER
     chmod +x argo-linux-amd64 && \
     mv argo-linux-amd64 /usr/local/bin/argo
 
-# Copy WIPP backend application exec WAR
-COPY ${BACKEND_NAME}/target/${BACKEND_NAME}-*-exec.war ${EXEC_DIR}/wipp-backend.war
+# Copy WIPP backend application exec WAR from the previous stage
+COPY --from=0 /usr/local/${BACKEND_ROOT}/${BACKEND_APP}/target/${BACKEND_APP}-*-exec.war ${EXEC_DIR}/wipp-backend.war
 
 # Copy properties and entrypoint script
 COPY deploy/docker/application.properties ${EXEC_DIR}/config
diff --git a/Dockerfile.localdev b/Dockerfile.localdev
new file mode 100644
index 00000000..94a89533
--- /dev/null
+++ b/Dockerfile.localdev
@@ -0,0 +1,38 @@
+FROM openjdk:8-jdk-alpine
+LABEL org.opencontainers.image.authors="National Institute of Standards and Technology"
+
+EXPOSE 8080
+
+ARG BACKEND_NAME="wipp-backend-application"
+ARG EXEC_DIR="/opt/wipp"
+ARG DATA_DIR="/data/WIPP-plugins"
+ARG ARGO_VERSION="v2.3.0"
+ARG APM_VERSION="1.9.0"
+
+COPY deploy/docker/VERSION /VERSION
+
+# Create exec and data folders
+RUN mkdir -p \
+  ${EXEC_DIR}/config \
+  ${DATA_DIR}
+
+# Download Elastic APM Java Agent
+RUN wget https://repo1.maven.org/maven2/co/elastic/apm/elastic-apm-agent/${APM_VERSION}/elastic-apm-agent-${APM_VERSION}.jar -O ${EXEC_DIR}/elastic-apm-agent.jar
+
+# Install Argo CLI executable
+RUN wget https://github.com/argoproj/argo-workflows/releases/download/${ARGO_VERSION}/argo-linux-amd64 && \
+    chmod +x argo-linux-amd64 && \
+    mv argo-linux-amd64 /usr/local/bin/argo
+
+# Copy WIPP backend application exec WAR
+COPY ${BACKEND_NAME}/target/${BACKEND_NAME}-*-exec.war ${EXEC_DIR}/wipp-backend.war
+
+# Copy properties and entrypoint script
+COPY deploy/docker/application.properties ${EXEC_DIR}/config
+COPY deploy/docker/entrypoint.sh /usr/local/bin
+
+# Set working directory
+WORKDIR ${EXEC_DIR}
+
+# Entrypoint
+ENTRYPOINT ["/usr/local/bin/entrypoint.sh"]
diff --git a/README.md b/README.md
index 27df709c..87921076 100644
--- a/README.md
+++ b/README.md
@@ -55,11 +55,22 @@ mvn spring-boot:run
  - http://localhost:8080/v2/api-docs (OpenAPI spec)
 
 ## Docker packaging
+There are two ways to build Docker images for WIPP-backend:
+
+- For local development, first compile the project (so it produces `wipp-backend-application/target/wipp-backend-application-...-exec.war`), then build Docker image from `Dockerfile.localdev`.
+
 The Maven `prod` profile should be used for Docker packaging, even for testing/development purposes:
 ```sh
 mvn clean package -P prod
+docker build --no-cache -f Dockerfile.localdev . -t wipp_backend
+```
+
+- For CI builds or if you don't have Java/Maven installed on host, simply build Docker image from `Dockerfile`
+```sh
 docker build --no-cache . -t wipp_backend
 ```
+
+
 For a Docker deployment of WIPP on a Kubernetes cluster, scripts and configuration files are available in the [WIPP repository](https://github.com/usnistgov/WIPP/tree/master/deployment).
 
 ## Deployment
diff --git a/deploy/docker/maven-settings.xml b/deploy/docker/maven-settings.xml
new file mode 100644
index 00000000..f17de610
--- /dev/null
+++ b/deploy/docker/maven-settings.xml
@@ -0,0 +1,15 @@
+<settings xmlns="http://maven.apache.org/SETTINGS/1.0.0"
+ xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
+ xsi:schemaLocation="http://maven.apache.org/SETTINGS/1.0.0
+                     http://maven.apache.org/xsd/settings-1.0.0.xsd">
+ <localRepository/>
+ <interactiveMode/>
+ <usePluginRegistry/>
+ <offline/>
+ <pluginGroups/>
+ <servers/>
+ <mirrors/>
+ <proxies/>
+ <profiles/>
+ <activeProfiles/>
+</settings>
\ No newline at end of file