diff --git a/.github/workflows/test.yml b/.github/workflows/test.yml
index 376dfb957554..937e29564a99 100644
--- a/.github/workflows/test.yml
+++ b/.github/workflows/test.yml
@@ -938,6 +938,7 @@ jobs:
 
   test-x-accounts-base:
     runs-on: ubuntu-latest
+    timeout-minutes: 15
     steps:
       - uses: actions/checkout@v4
       - uses: actions/setup-go@v5
diff --git a/Makefile b/Makefile
index f08a41402ded..8a446fc01fe1 100644
--- a/Makefile
+++ b/Makefile
@@ -329,13 +329,8 @@ proto-update-deps:
 # Run a 4-node testnet locally
 localnet-start: build-linux localnet-stop
 	$(if $(shell $(DOCKER) inspect -f '{{ .Id }}' cosmossdk/simd-env 2>/dev/null),$(info found image cosmossdk/simd-env),$(MAKE) -C contrib/images simd-env)
-	if ! [ -f build/node0/simd/config/genesis.json ]; then $(DOCKER) run --rm \
-		--user $(shell id -u):$(shell id -g) \
-		-v $(BUILDDIR):/simd:Z \
-		-v /etc/group:/etc/group:ro \
-		-v /etc/passwd:/etc/passwd:ro \
-		-v /etc/shadow:/etc/shadow:ro \
-		cosmossdk/simd-env testnet --v 4 -o . --starting-ip-address 192.168.10.2 --keyring-backend=test ; fi
+	$(DOCKER) run --rm -v $(CURDIR)/localnet:/data cosmossdk/simd-env \
+		testnet init-files --v 4 -o /data --starting-ip-address 192.168.10.2 --keyring-backend=test
 	docker-compose up -d
 
 localnet-stop:
diff --git a/contrib/images/Makefile b/contrib/images/Makefile
index 9fd1c11c12af..b28ade5b795b 100644
--- a/contrib/images/Makefile
+++ b/contrib/images/Makefile
@@ -1,7 +1,7 @@
 all: simd-env
 
-simd-env: simd-rmi
-	docker build --tag cosmossdk/simd -f simd-env/Dockerfile \
+simd-env:
+	docker build --tag cosmossdk/simd-env -f simd-env/Dockerfile \
 		$(shell git rev-parse --show-toplevel)
 
 simd-dlv: simd-rmi
diff --git a/contrib/images/simd-env/Dockerfile b/contrib/images/simd-env/Dockerfile
index 8ff6675b0379..b4443cdc8a8e 100644
--- a/contrib/images/simd-env/Dockerfile
+++ b/contrib/images/simd-env/Dockerfile
@@ -1,49 +1,21 @@
-FROM golang:1.23-alpine AS build
-
+FROM golang:1.17-alpine AS build
 RUN apk add build-base git linux-headers
-
 WORKDIR /work
 COPY go.mod go.sum /work/
-COPY math/go.mod math/go.sum /work/math/
-COPY api/go.mod api/go.sum /work/api/
-COPY log/go.mod log/go.sum /work/log/
-COPY core/go.mod core/go.sum /work/core/
-COPY collections/go.mod collections/go.sum /work/collections/
-COPY store/go.mod store/go.sum /work/store/
-COPY depinject/go.mod depinject/go.sum /work/depinject/
-COPY x/tx/go.mod x/tx/go.sum /work/x/tx/
-COPY x/protocolpool/go.mod x/protocolpool/go.sum /work/x/protocolpool/
-COPY x/gov/go.mod x/gov/go.sum /work/x/gov/
-COPY x/distribution/go.mod x/distribution/go.sum /work/x/distribution/
-COPY x/slashing/go.mod x/slashing/go.sum /work/x/slashing/
-COPY x/staking/go.mod x/staking/go.sum /work/x/staking/
-COPY x/auth/go.mod x/auth/go.sum /work/x/auth/
-COPY x/authz/go.mod x/authz/go.sum /work/x/authz/
-COPY x/bank/go.mod x/bank/go.sum /work/x/bank/
-COPY x/mint/go.mod x/mint/go.sum /work/x/mint/
-COPY x/consensus/go.mod x/consensus/go.sum /work/x/consensus/
-COPY x/accounts/go.mod x/accounts/go.sum /work/x/accounts/
-COPY runtime/v2/go.mod runtime/v2/go.sum /work/runtime/v2/
-COPY server/v2/go.mod server/v2/go.sum /work/server/v2/
-COPY server/v2/appmanager/go.mod server/v2/appmanager/go.sum /work/server/v2/appmanager/
-COPY server/v2/stf/go.mod server/v2/stf/go.sum /work/server/v2/stf/
-COPY server/v2/cometbft/go.mod server/v2/cometbft/go.sum /work/server/v2/cometbft/
-COPY core/testing/go.mod core/testing/go.sum /work/core/testing/
-
+COPY db/go.mod db/go.sum /work/db/
 RUN go mod download
-
 COPY ./ /work
 RUN LEDGER_ENABLED=false make clean build
 
-
-FROM alpine AS run
+FROM alpine:3.14 AS run
 RUN apk add bash curl jq
+COPY contrib/images/simd-env/wrapper.sh /usr/bin/wrapper.sh
+
+VOLUME /simd
+COPY --from=build /work/build/simd /simd/
+WORKDIR /simd
+
 EXPOSE 26656 26657
 ENTRYPOINT ["/usr/bin/wrapper.sh"]
 CMD ["start", "--log_format", "plain"]
 STOPSIGNAL SIGTERM
-VOLUME /simd
-WORKDIR /simd
-
-COPY contrib/images/simd-env/wrapper.sh /usr/bin/wrapper.sh
-COPY --from=build /work/build/simd /simd/
diff --git a/docker-compose.yml b/docker-compose.yml
index 13851c894e9f..0ca715d3731e 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -18,7 +18,7 @@ services:
       - "9090:9090"
       - "2345:2345"
     volumes:
-      - ./.testnets:/data:Z
+      - ./localnet:/data:Z
     networks:
       localnet:
         ipv4_address: 192.168.10.2
@@ -40,7 +40,7 @@ services:
       - "9091:9090"
       - "2346:2345"
     volumes:
-      - ./.testnets:/data:Z
+      - ./localnet:/data:Z
     networks:
       localnet:
         ipv4_address: 192.168.10.3
@@ -62,7 +62,7 @@ services:
       - "9092:9090"
       - "2347:2345"
     volumes:
-      - ./.testnets:/data:Z
+      - ./localnet:/data:Z
     networks:
       localnet:
         ipv4_address: 192.168.10.4
@@ -84,7 +84,7 @@ services:
       - "9093:9090"
       - "2348:2345"
     volumes:
-      - ./.testnets:/data:Z
+      - ./localnet:/data:Z
     networks:
       localnet:
         ipv4_address: 192.168.10.5