diff --git a/.dockerignore b/.dockerignore
new file mode 100644
index 000000000..d940ae7ad
--- /dev/null
+++ b/.dockerignore
@@ -0,0 +1,6 @@
+*
+!README.md
+!setup.py
+!lbry
+!settings.yml
+lbry/blockchain/bin
diff --git a/Dockerfile b/Dockerfile
new file mode 100644
index 000000000..67139dd6a
--- /dev/null
+++ b/Dockerfile
@@ -0,0 +1,28 @@
+FROM ubuntu:20.04
+
+ENV DEBIAN_FRONTEND noninteractive
+RUN apt-get update && \
+    apt-get -y --no-install-recommends install \
+      wget git \
+      tar unzip \
+      libpq-dev pkg-config \
+      build-essential \
+      python3 \
+      python3-dev \
+      python3-pip \
+      python3-wheel \
+      python3-setuptools && \
+    update-alternatives --install /usr/bin/pip pip /usr/bin/pip3 1 && \
+    rm -rf /var/lib/apt/lists/*
+
+VOLUME /data
+VOLUME /lbrycrd
+RUN mkdir /src
+COPY lbry /src/lbry
+COPY setup.py /src/setup.py
+COPY README.md /src/README.md
+COPY settings.yml /data/settings.yml
+WORKDIR /src
+RUN pip install --no-cache-dir -e .[postgres]
+
+ENTRYPOINT ["lbrynet", "start", "--full-node", "--data-dir=/data", "--lbrycrd-dir=/lbrycrd"]
diff --git a/lbry/.dockerignore b/lbry/.dockerignore
deleted file mode 100644
index 4eef96cdf..000000000
--- a/lbry/.dockerignore
+++ /dev/null
@@ -1,7 +0,0 @@
-.git
-.tox
-__pycache__
-dist
-lbry.egg-info
-docs
-tests
diff --git a/lbry/cli.py b/lbry/cli.py
index 113c57499..0aefeb7fe 100644
--- a/lbry/cli.py
+++ b/lbry/cli.py
@@ -236,7 +236,11 @@ def main(argv=None):
     parser = get_argument_parser()
     args, command_args = parser.parse_known_args(argv)
 
-    conf = Config.create_from_arguments(args)
+    conf = Config()
+    conf.set_arguments(args)
+    conf.set_environment()
+    conf.set_default_paths()
+    conf.set_persisted()
     for directory in (conf.data_dir, conf.download_dir, conf.wallet_dir):
         ensure_directory_exists(directory)
 
diff --git a/lbry/conf.py b/lbry/conf.py
index 389ad1e10..b8a5a4c1a 100644
--- a/lbry/conf.py
+++ b/lbry/conf.py
@@ -661,10 +661,6 @@ class Config(CLIConfig):
     def streaming_port(self):
         return int(self.streaming_server.split(':')[1])
 
-    def __init__(self, **kwargs):
-        super().__init__(**kwargs)
-        self.set_default_paths()
-
     @classmethod
     def with_null_dir(cls):
         return cls.with_same_dir('/dev/null')
diff --git a/settings.yml b/settings.yml
new file mode 100644
index 000000000..996ced644
--- /dev/null
+++ b/settings.yml
@@ -0,0 +1,7 @@
+api: 0.0.0.0:5279
+db_url: postgresql:///lbry
+workers: 14
+console: basic
+no_spv_address_filters: true
+lbrycrd_rpc_user: lbry
+lbrycrd_rpc_pass: lbry
diff --git a/tests/unit/test_conf.py b/tests/unit/test_conf.py
index c890ea722..ff7728b64 100644
--- a/tests/unit/test_conf.py
+++ b/tests/unit/test_conf.py
@@ -26,6 +26,7 @@ class ConfigurationTests(unittest.TestCase):
     @unittest.skipIf("darwin" not in sys.platform, "skipping mac only test")
     def test_mac_defaults(self):
         c = Config()
+        c.set_default_paths()
         prefix = os.path.expanduser("~/Library/Application Support/lbrynet")
         self.assertEqual(c.data_dir,      prefix)
         self.assertEqual(c.blob_dir,      os.path.join(prefix, "blobs"))
@@ -37,6 +38,7 @@ class ConfigurationTests(unittest.TestCase):
     @unittest.skipIf("win32" not in sys.platform, "skipping windows only test")
     def test_windows_defaults(self):
         c = Config()
+        c.set_default_paths()
         prefix = os.path.join(r"C:\Users", os.getlogin(), r"AppData\Local\LBRY\lbrynet")
         self.assertEqual(c.data_dir,      prefix)
         self.assertEqual(c.blob_dir,      os.path.join(prefix, "blobs"))
@@ -48,6 +50,7 @@ class ConfigurationTests(unittest.TestCase):
     @unittest.skipIf("linux" not in sys.platform, "skipping linux only test")
     def test_linux_defaults(self):
         c = Config()
+        c.set_default_paths()
         self.assertEqual(c.data_dir,      os.path.expanduser("~/.local/share/lbrynet"))
         self.assertEqual(c.blob_dir,      os.path.expanduser("~/.local/share/lbrynet/blobs"))
         self.assertEqual(c.wallet_dir,    os.path.expanduser("~/.local/share/lbrynet/wallets"))
@@ -58,6 +61,7 @@ class ConfigurationTests(unittest.TestCase):
 
         # changes the root for all defaults
         c = Config(data_dir='/foo/bar')
+        c.set_default_paths()
         self.assertEqual(c.data_dir,      '/foo/bar')
         self.assertEqual(c.blob_dir,      '/foo/bar/blobs')
         self.assertEqual(c.wallet_dir,    '/foo/bar/wallets')
@@ -66,11 +70,13 @@ class ConfigurationTests(unittest.TestCase):
 
         # overwriting default blob_dir
         c = Config(data_dir='/foo/bar', blob_dir='/stuff')
+        c.set_default_paths()
         self.assertEqual(c.blob_dir,   '/stuff')
         self.assertEqual(c.wallet_dir, '/foo/bar/wallets')
 
         # overwriting default wallet_dir
         c = Config(data_dir='/foo/bar', wallet_dir='/secrets')
+        c.set_default_paths()
         self.assertEqual(c.blob_dir,   '/foo/bar/blobs')
         self.assertEqual(c.wallet_dir, '/secrets')