diff --git a/.dockerignore b/.dockerignore
new file mode 100644
index 0000000000..3cd47a87da
--- /dev/null
+++ b/.dockerignore
@@ -0,0 +1,13 @@
+/.github
+/.vscode
+/assets
+/band-consumer
+/bridges
+/lambda
+/obi
+/owasm
+/research
+/scan
+/scripts
+/spec
+
diff --git a/CHANGELOG.md b/CHANGELOG.md
index dc35a9e22e..d2d098d06c 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -32,3 +32,5 @@
 ### Oracle Binary Encoding (OBI)
 
 ### MISC
+
+- (chore) [\#1876](https://github.com/bandprotocol/bandchain/pull/1876)Update docker script fix build failed when using go-owasm local package
diff --git a/chain/Dockerfile b/chain/Dockerfile
index 03bee3d414..b760c4cfff 100644
--- a/chain/Dockerfile
+++ b/chain/Dockerfile
@@ -1,8 +1,12 @@
 FROM golang:1.13.5-buster
 
-WORKDIR /oracle
+WORKDIR /go-owasm
+COPY go-owasm/. /go-owasm
 
-COPY . /oracle
+WORKDIR /chain
+COPY chain/ /chain
+
+COPY chain/docker-config/run.sh .
 
 RUN make install
 
diff --git a/chain/docker-config/run.sh b/chain/docker-config/run.sh
index fd1be33ccd..2704021e84 100755
--- a/chain/docker-config/run.sh
+++ b/chain/docker-config/run.sh
@@ -1,17 +1,10 @@
 #!/bin/bash
 
-bandd init $1 --chain-id bandchain
+bandd init $1 --chain-id bandchain --oracle band1m5lq9u533qaya4q3nfyl6ulzqkpkhge9q8tpzs
 
-cp /oracle/docker-config/$1/priv_validator_key.json ~/.bandd/config/priv_validator_key.json
-cp /oracle/docker-config/$1/node_key.json ~/.bandd/config/node_key.json
-cp /oracle/docker-config/genesis.json ~/.bandd/config/genesis.json
-cp -r /oracle/docker-config/files ~/.bandd
-
-# add cors in config.toml
-cd ~/.bandd/config/
-sed 's/cors_allowed_origins = \[\]/cors_allowed_origins = \["\*"\]/g' config.toml > config_tmp.toml
-mv config_tmp.toml config.toml
-cd /oracle/
+cp /chain/docker-config/$1/priv_validator_key.json ~/.bandd/config/priv_validator_key.json
+cp /chain/docker-config/$1/node_key.json ~/.bandd/config/node_key.json
+cp /chain/docker-config/genesis.json ~/.bandd/config/genesis.json
 
 if [ "$1" == "query-node" ];then
     sleep 10
diff --git a/chain/docker-config/start_docker.sh b/chain/docker-config/start_docker.sh
index fc9014dd16..8b9d756039 100755
--- a/chain/docker-config/start_docker.sh
+++ b/chain/docker-config/start_docker.sh
@@ -19,6 +19,8 @@ done
 
 cd ../../chain
 
+make install
+
 # initial new node
 bandd init node-validator --chain-id bandchain --oracle band1m5lq9u533qaya4q3nfyl6ulzqkpkhge9q8tpzs
 
@@ -115,7 +117,6 @@ bandd collect-gentxs
 
 # copy genesis to the proper location!
 cp ~/.bandd/config/genesis.json $DIR/genesis.json
-cp -r ~/.bandd/files $DIR
 
 # Recreate files volume
 docker volume rm query-files
diff --git a/docker-compose.yaml b/docker-compose.yaml
index a4c801c6e5..783905c9ff 100644
--- a/docker-compose.yaml
+++ b/docker-compose.yaml
@@ -3,13 +3,13 @@ version: "3.7"
 services:
   multi-validator1-node:
     build:
-      context: chain
-      dockerfile: Dockerfile
+      context: .
+      dockerfile: chain/Dockerfile
     image: band-validator:latest
     networks:
       bandchain:
         ipv4_address: 172.18.0.11
-    command: sh -c "chmod +x ./docker-config/run.sh && ./docker-config/run.sh validator1"
+    command: sh -c "chmod +x ./run.sh && ./run.sh validator1"
 
   # oracle1:
   #   image: band-validator:latest
@@ -23,7 +23,7 @@ services:
     networks:
       bandchain:
         ipv4_address: 172.18.0.12
-    command: sh -c "chmod +x ./docker-config/run.sh && ./docker-config/run.sh validator2"
+    command: sh -c "chmod +x ./run.sh && ./run.sh validator2"
 
   # oracle2:
   #   image: band-validator:latest
@@ -39,7 +39,7 @@ services:
     networks:
       bandchain:
         ipv4_address: 172.18.0.13
-    command: sh -c "chmod +x ./docker-config/run.sh && ./docker-config/run.sh validator3"
+    command: sh -c "chmod +x ./run.sh && ./run.sh validator3"
 
   # oracle3:
   # image: band-validator:latest
@@ -55,7 +55,7 @@ services:
     networks:
       bandchain:
         ipv4_address: 172.18.0.14
-    command: sh -c "chmod +x ./docker-config/run.sh && ./docker-config/run.sh validator4"
+    command: sh -c "chmod +x ./run.sh && ./run.sh validator4"
 
   # oracle4:
   #   image: band-validator:latest
@@ -75,7 +75,7 @@ services:
     networks:
       bandchain:
         ipv4_address: 172.18.0.15
-    command: sh -c "chmod +x ./docker-config/run.sh && ./docker-config/run.sh query-node"
+    command: sh -c "chmod +x ./run.sh && ./run.sh query-node"
 
   rest-server:
     image: band-validator:latest